How much should a managed account cost?

Fees and costs: Consider all fees associated with the managed account, including management fees, performance fees and any other charges. Ensure transparency regarding costs and understand how they impact overall returns. You shouldn’t pay more than 0.50% for assets-under-management (AUM) management fees.

How much does a managed broker charge a year?

For instance, if you have $100,000 invested in a managed broker account that charges 1% of your assets annually in fees, you'll end up paying $1,000 a year -- with the fee amount withdrawn automatically from the account. Some brokers offer sliding scales that charge lower percentages if you have more assets under management, but not all do.

What is a managed account & how does it work?

The first managed-account program is called Personal Advisors. This one delivers a team of human financial advisors through video or phone consultations. The result is a personalized financial plan and a custom-built investment portfolio that costs 60 to 40 basis points per year. The minimum starting balance is $25,000.