The Real Cost of Wealth Management
Friends often ask me how to choose between private banking and an independent wealth manager. I always say: start with the fees, not just the performance.
Costs quietly shape investment outcomes. Yet too often, clients fixate on returns and overlook what theyβre paying to get them. Thatβs a costly mistake. The right partner should offer real value, not just a recognisable name.
- Private banks bundle services under layers of management fees, custody charges, transaction costs, and hidden spreads. Over time, these can quietly erode your returns.
- Independent Swiss wealth managers tend to operate more transparently, often with flat or asset-based fees. There are no hidden costs, sales quotas, or conflicts of interest.
What I Recommend:
- Break down the numbers β Donβt stop at the headline fee. Ask whatβs underneath.
- Scrutinise transaction costs β FX spreads and trading fees add up quickly.
- Check product flexibility. Private banks often promote in-house products, while independent managers can choose from the open investment market.
- Demand transparency β If the fee structure isnβt crystal clear, ask why.
Bottom Line? Are you paying too much?
Some value the convenience and branding of private banks, while others prefer a boutique manager’s flexibility, independence, and cost-efficiency. Thereβs no universal answer, but informed decisions lead to better outcomes.
If youβre reassessing your wealth strategy, take the time to explore different models.
Source: LinkedIn