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The highest costs are often invisible

February is the month when the Wealth Office conducts its annual cost review. Have costs been calculated correctly, and is there a need for action? Hidden costs in particular often lead to unexpected discrepancies. Here you will find tips and benchmarks to help with your comparison.

ZWEI Wealth
Reading time: 3’

The highest costs are often those that are not clearly disclosed. Implicit transaction costs, fees hidden in products and structural inefficiencies have a subtle but lasting effect. Controlling and improving costs creates a better basis for long-term positive investment results.

Annual cost control as standard

For clients with a Wealth Office, the annual cost control for the previous year is prepared in February. Cost control comprises three dimensions:

  1. Making all costs visible
    Many investors are aware of their management fee. However, the actual total costs are often significantly higher.

  2. Check statements for errors
    Statements often contain discrepancies. These are usually not intentional, but arise because banking systems work inadequately or agreed discounts are omitted.

  3. Renegotiate fees if necessary
    The official price lists for asset management companies are deliberately set at a high level and are generally negotiable. Price reductions of 30-50 percent are not uncommon.

Classify comparative figures

Compare your actual costs with standard market structures and gain a better understanding of where costs arise and how they can be influenced. If you wish, you can receive a well-founded assessment and specific starting points for optimization in a personal exchange with a Wealth Officer.

 

Find out more about costs

In the topic Deep Dive "Costs in Wealth Management", we shed light on the most important types of costs in wealth management and show why transparency is crucial for long-term investment results. The video offers a compact and comprehensible in-depth look at the topic.