Fisher Investments: Understanding The Half-Million Portfolio Strategy

Fisher Investments offers a service for individuals with $500k or more, called The 15-Minute Retirement Plan. This service helps people prepare to retire comfortably. They also offer a free guide for those with a $500,000 portfolio, written by best-selling author and money manager Ken Fisher, which addresses key questions when planning for retirement. However, there are mixed reviews of Fisher Investments' performance, with some people reporting that their portfolio lost money while others report gains.

Fisher Investments' fees

Fisher Investments is a fee-only investment advisor, meaning it only makes money by charging a percentage fee based on the value of the assets it manages. The company offers a simple and competitive tiered advisory fee based on the size of the portfolio it manages for you. Its fees are based only on the value of the assets it manages, and it does not charge any hidden or layered fees.

For its WealthBuilder accounts, as well as any accounts that are below the $500,000 threshold, Fisher Investments bills at an annual rate of 1.5%. For accounts above this threshold, the company charges the following fees:

• 1.25% for the first $1 million
• 1.125% for the next $4 million
• 1% for anything over $5 million

This is a progressive, bracketed fee structure, meaning that if you have a portfolio of $15 million, you will be charged fees according to the different tiers. In this scenario, your total annual fee would be $157,500.

In addition to these management fees, clients may also pay brokerage commissions, other custodian fees, and expenses associated with investing in ETFs or structured notes. Fisher Investments also charges $7-10 per trade, although this is a pass-through commission that goes to its broker.

Fisher Investments' fee structure is designed to be transparent and straightforward, with fees based only on the value of the assets managed. The company believes that its fees are often lower than many other financial professionals' fees, especially when considering the various "add-on" fees that may be charged by other firms in the industry.

Returns

Some people have reported that Fisher Investments beat the market for their portfolios, with returns of 47.3% after fees in 2023 for one person's IRA, and 24% growth over a few months for another. Another individual states that Fisher's returns after a 1.5% expense ratio beat Vanguard funds by 1-2% yearly. Fisher Investments' website offers a free guide by Ken Fisher, called "The 15-Minute Retirement Plan", which addresses key retirement planning questions.

On the other hand, there are also negative reviews, with some people expressing scepticism about the company's ability to deliver improved returns. One person shared that they felt Fisher's performance was ''abysmal', with their portfolio losing money while the indexes, including their MSCI benchmark, were up over 4%. Another individual calculated that a 1.5% fee on a $500,000 portfolio would amount to $7500 per year in fees, which could compound into a significant sum over time, with no guarantee of beating the market.

It is important to remember that past performance does not predict future results, and there are many factors that can influence investment returns. When considering Fisher Investments or any other investment firm, it is essential to conduct thorough research, compare different options, and carefully evaluate fees and potential risks.

Retirement planning

One of the biggest risks individuals face is starting to invest for retirement too late. The earlier you start planning and investing for retirement, the better. This allows more time for investment returns to compound and increase your retirement income potential. For example, if you invest $5,000 every year for 10 years starting at age 30, at the S&P 500's historical average annual return of approximately 10%, you will have accrued over $1.1 million by a typical retirement age of 65. However, if you wait until age 40 to start saving, you will have put in $80,000 more by retirement but will have $500,000 less.

When it comes to where to put your money, traditional individual retirement accounts (IRAs) and defined contribution plans are the most popular options. 401(k) plans are employer-sponsored and allow employees to invest through automatic paycheck deductions, often with employer contributions or matches. Contributions are tax-deferred, and gains are not taxed by the IRS initially. Traditional IRAs also offer tax-deferred growth, but most are not associated with an employer and may have penalties for early withdrawals.

Another option is a "Roth" account, which allows your investments to grow tax-free, and withdrawals are not taxed if the money has been held for at least 5 years. However, contributions come from after-tax income, and there are income limits and other restrictions to consider.

At Fisher Investments, we understand that retirement planning involves trade-offs between risk and reward. We offer a top-down, global investment approach, analyzing economic, political, and sentiment factors to find opportunities across investment categories. Our independent, privately held structure allows us to put our clients' interests first and do what's best for them.

To help you get started, we offer a free guide called "The 15-Minute Retirement Plan" by best-selling author and money manager Ken Fisher. This guide addresses key questions such as how long your portfolio will need to provide for you, how to establish a primary investment objective, and how cash distributions and inflation can impact your savings.

Tax planning

Fisher Investments offers a range of services to individuals, families, and institutions with a $500,000 portfolio, including tax planning. While the specifics of their tax planning services are not publicly available, tax planning is an important aspect of financial planning and can help individuals and families maximize their wealth and achieve their financial goals.

In addition to tax planning, Fisher Investments provides comprehensive financial planning services, tailored investment portfolios, and proactive client service. They also offer retirement planning tools, such as their Retirement Planning Calculator, which helps individuals estimate their retirement income and identify areas where they may need to save more.

When considering tax planning, it is important to work with a qualified professional who can provide personalized advice based on your specific circumstances. Tax laws and regulations can be complex and are subject to change, so it is crucial to stay informed and adapt your strategies accordingly.

Overall, tax planning is an essential component of wealth management and can help individuals with a $500,000 portfolio, such as those working with Fisher Investments, maximize their financial potential and work towards their retirement goals. By incorporating tax-efficient strategies, individuals can ensure that their investments are working as hard as possible to meet their financial objectives.

Customer service

Fisher Investments is a company that offers personal wealth management services. They provide customers with access to a range of tools and resources to help them make informed decisions about their financial future, particularly regarding retirement planning.

One of their key offerings is the "15-Minute Retirement Plan", a free guide by best-selling author and money manager Ken Fisher, which addresses key questions about retirement planning, such as how long a portfolio will need to provide for someone, how to establish a primary investment objective, and how cash distributions and inflation can impact retirement savings. This guide can be downloaded from their website.

Fisher Investments also has a retirement calculator tool on their website, which helps users visualise their finances for retirement and how much they should save now to achieve their retirement goals. It takes into account factors such as monthly income, expected monthly income in retirement, and average rates of return.

In addition to these resources, Fisher Investments provides individual consultations and appointments to offer detailed, personalised recommendations on retirement planning. They also have a knowledgeable team that customers can connect with to learn more about working with the company.

While the company does offer these customer services, it is important to note that there are mixed reviews about the value of their services. Some customers have reported that Fisher Investments provided valuable advice and improved their investment returns, while others have criticised the company for high fees and poor performance.

Ultimately, the decision to use Fisher Investments or any other financial advisory service should be made after careful consideration of one's own financial situation, goals, and comfort with managing their own investments.

Frequently asked questions