What is the ROI (return on investment) on your brokerage account or investments?
What I am asking is who is making more money off of your money? You or the brokerage firm?
I just had a new prospect come in and have me review his 2017 return for potential errors. There seemed to be a number that I could not back into based upon the information provided.
But I did come across a potential problem other than the suspect number. The client had brokerage fees over $5,000, almost 10% of total income. With interest, dividends and capital gains slightly over that amount. So the client is battling for breakeven. SO I say the brokerage firm won the ROI for the year.
Another client is struggling with a Turn Key Business (small Franchise), this has been an under performing asset, since the Franchisor takes almost 10% off the top. They do no advertising; they offer no product discounts, nor any management assistance. But they do get a minimum royalty charge each year. The clients are in year six of a ten year agreement. I keep suggesting that they rebrand themselves and market that so when they can throw off the yoke of the Franchisor they have a rebirth.
With any investment or business you want to make sure that you are getting your money’s worth.