Fisher Investments Review: Is Fisher Investments Worth It in 2023? (2024)

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Looking for an investment advisor to guide your portfolio? There are plenty of reasons why Fisher Investments might be on your list. But is it right for you?

The firm is famous for its hands-on, customized investment approach. But world-class service comes at a cost. In this review of Fisher investments, you’ll learn whether or not it’s worth the fees.

We’ll explore the firm’s pros and cons, investment philosophy, and exactly what kinds of fees are assessed. By the time you’re finished reading this Fisher Investments review, you’ll know whether or not it’s a good fit for you and your money.

And if it’s not, I’ll share some high-quality alternatives that could save you money. Let’s go…

Fisher Investments Review: Is It Worth the Fees in 2023?

The Bottom Line: No, Fisher Investments is not worth the fees in 2023, unless you fall into a very small subset of investors.

The target investor:

• Has a high net worth.
• Wantsa hands-off approach.
• Has $500,000+ to invest.

If that doesn’t sound like you, then Fisher Investments probably isn’t a good fit. Even if you do fit those criteria, you might want to explore other options.

Why?

Because Fisher Investments fees are exceptionally high — annual fees range from 1 to 1.5% while most online advisors range from 0.25 to 0.5%.

Free financial resources like Empower(Personal Capital) and low-fee online robo-advisors like Betterment(U.S.) and Wealthsimple (Canada) have democratized investing, allowing investors with any level of knowledge and experience to start investing on autopilot with low fees and minimums.

So ultimately, if you have a small amount to start and don’t need access to an investment professional, Fisher Investments may not be the best option for you.

Keep reading the Fisher Investments review to learn more and discover some lower-fee alternatives…

What is Fisher Investments?

Fisher Investments is one of the world’s largest private, fee-only investment advisors. They manage over $197 billion and assets and serve 100,000 clients globally — a mix of private individuals, small to mid-sized businesses, and global institutions.

Founder Ken Fisher made a name for himself writing the “Portfolio Strategist” column for Forbes, which ran from 1984 to 2016. Over the years, Fisher has also written 10+ books on investment management.

How Does Fisher Investments Work?

Personal Wealth Management services from Fisher Investments begin with a deep dive into all the contributing factors to your financial situation.

First, you’ll meet your Investment Counselor and discuss what your assets need to achieve over a specific time period. To determine a tailored portfolio strategy, you’ll discuss:

• Investment objectives:What goals do you have for your assets?
• Time horizon: How long do you need your assets to work for you?
• Restrictions: Will you need to draw income from the portfolio?
• Tax considerations: How can you protect your wealth from taxes?
• Outside assets: Do you have assets managed outside of Fisher?
• Risk tolerance:What’s your comfort level related to market volatility?

Next, your Investment Counselor will help to choose a custodian like Schwab, Fidelity or UBS. From there, the new portfolio can be implemented.

Services Offered

Here are some of the services offered by Fisher Investments:

• Portfolio management:The Investment Policy Committee (IPC) monitors the global market and economic factors to capitalize on opportunities while taking your personal objectives into consideration.
• Financial planning: Fisher Investments takes a holistic approach that involves setting personal goals, defining a time horizon, emergency planning, and understanding your spending.
• Annuity evaluation: Annuities have been known to overpromise and underdeliver. Your Investment Counselor will help evaluate if policies are in alignment with your goals.
• Tailored solutions:Fisher Investments helps you develop a tailored retirement strategy and offers active, high-touch client service to keep you informed and on track.

Target Clientele

Fisher Investments does work with small to midsizebusinesses and financial institutions, but their main client base is high-net-worth individuals looking for a customized asset allocation portfolio with ongoing advisor support.

To become a Fisher Investments client, you need to have available assets of $500,000+, but there’s also a WealthBuilder account option with a $200,000 minimum (approved on a case-by-case basis).

Investment Philosophy

At Fisher Investments, you’re not just a customer. You’re an individual investor with long-term goals. Individuality requires customization and an adaptive approach.

Several key principles drive what they call “The Fisher Difference”:

• Independence: Fisher Investments is privately-held. Clients come first because there are no shareholders.
• Structure: A fee-only setup eliminates any hidden fees or commissions and allows the company to differentiate between sales and client services.
• Investment Expertise: A five-member Investment Policy Committee (IPC) monitors key economic drivers to drive decisions for client portfolios.
• Top-down investment approach: More emphasis on macroeconomic factors as opposed to a bottom-up approach where picking individual stocks is the main driver.

That top-down approach helps Fisher Investments approach the market in a way that can help them adapt based on the current market.

The chart below demonstrates year-over-year uncertainty in the capital markets and proves that future performance can’t always be predicted by the past.

Fisher Investments Fees

Fisher Investment charges a simple advisory fee based on assets under management.

• Fisher Investments fees range from 1 to 1.5%, which is comparable to other actively-managed investment advisors.
• WealthBuilder accounts ($200,000 account minimum) are charged closer to the 1.5% range; the annual advisor fee decreases with a minimum investment of $500,000+.

When you consider that robo-advisors like Betterment(U.S.) and Wealthsimple (Canada) range from 0.25 to 0.5% annually, that’s pretty high.

Although Fisher Investments’ fees are high, they are transparent, and they justify their fees by taking a hands-on customized approach to portfolio management. Many other active management services have hidden commissions and product fees in addition to the annual advisory fee.

Fisher Investments Pros and Cons

The Problem with Fisher Investments

Albert Einstein is reported to have said, “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.”

Just as interest can compound in your favor, fees over time can compound out of your favor.

For instance, say your fee with Fisher Investments is 1.25%. That might not sound like a lot.

But if you invest $1 million with Fisher Investments…

• Your annual fee would be $12,500.
• Over five years you’re looking at $62,500.

That’s a lot of money that could have been put into potentially interest-earning investments.

So, to wrap up this review of Fisher Investments …

The annual fees are simply not reasonable for most investors.

Fisher Investments Alternatives:

1. Self-Directed Investing

Empower offers a little bit of everything: free financial tools, PLUS low-fee wealth management over $100K.

Empower provides all of the following for FREE:

• An investment checkuptool to help you assess your current portfolio risk, analyze past performance, and model asset allocation
• A retirement calculatorthat can estimate your future net worth based on your current habits, then provides custom withdrawal rates based on your expenses.
• Abudget planner

But it also offers wealth management services along the lines of Fisher Investments.

If you have a portfolio with $100,000 or more, you can get a free consultation; simply reach out and an Empower advisor will reach out to you via email. Their guiding principle? Bespoke, tailored portfolios. Together, you and your advisor create a plan that aligns with your goals and stage in life.

They’re able to help with common investing objectives:

• Building a more tax-efficient portfolio
• Cash flow insights, and targeted budgeting solutions
• An approach rooted in diversification.

Plus, as noted earlier, Empower’s wealth management fees start at 0.89% for up to the first million dollars invested, but go down to as low as 0.49% depending on account size — much lower than Fisher Investments’ 1.25% fee.

2. Robo-Advisors

Robo-advisors are another alternative to active investment management. They use algorithms to create a portfolio and put it on autopilot.

Robo-advisors like Betterment(U.S.) and Wealthsimple(Canada) have emerged as solid alternatives for investors looking for simple, hands-off investing with minimal fees.

What kind of fees? Typically, robo-advisor fees range from 0.25 to 0.5%, compared to Fisher Investments’ 1 to 1.5% fees for active management.

Granted, you won’t get the personal attention you would with a personal advisor. However, robo-advisors are a great option for investors who are starting small since they lower

the barrier to entry for the everyday investor by limiting fees and account minimums.

3. Other Financial Advisors

Another potential alternative? Online financial advisors are a great option for beginner investors of all levels of wealth.

An online financial advisor gives you a hands-on approach without the cost of a traditional actively managed service like Fisher Investments. Fees can range between 0.5 to 1%.

Of course, account minimums and fees can vary depending on your situation. Be sure to read the fine print to verify account minimums and fee structures before you get started.

Final Word: Review of Fisher Investments

Fisher Investments offers a lot of great services for long-term investors looking for a customized portfolio strategy and dedicated access to an advisor. However, their account requirements and exceptionally steep annual fees rule them out for the majority of investors.

If you’re looking for a more accessible and less expensive option, consider Empower(Personal Capital) or robo-advisors like Betterment(U.S.) and Wealthsimple (Canada), or an online financial advisor.

Empower Personal Wealth, LLC (“EPW”) compensates WallStreetZen.com for new leads. WallStreetZen.com is not an investment client of Personal Capital Advisors Corporation or Empower Advisory Group, LLC.

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