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Ed Meek
CEO/Investment Advisor

Edge Portfolio Management

City:Winfield

State: IL



BIOGRAPHY:
At Edge, a low client to advisor ratio allows for personal and customized service for each individual.  Our goal is to work as a team for each client to provide not only portfolio management but wealth coordination and financial planning.  We make every effort to have frequent communication with our clients and to provide timely response to calls and emails.  I also enjoy spending time with my wife and three kids, playing and following basketball, playing golf, and participating as an advisory board member for Breakthrough Urban Ministries.

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Plan Participants are Comfortable with Advisor Fees

Plan participants think advisor fees are expensive, but as long as account growth continues, fees are acceptable.

| BY Kent McDill

Fees and commissions are a necessary part of working with a financial advisor, and defined contribution plan participants have a unique perspective on the fees they pay.

According to Spectrem’s Millionaire Corner report Advisor Usage Among DC Plan Participants, 83 percent of participants believe fees or commission are an important factor in choosing an advisor. It is the fourth most important factor, behind honesty and trustworthiness (94 percent), transparency and staying in touch (88 percent) and investment track record (86 percent).

While the overall percentage is 83 percent, 87 percent of those aged 50-64 say fees are important in choosing and advisor, as do 87 percent of males.

Sixty-seven percent of plan participants consider advisor fees to be expensive. Keep in mind that 47 percent of plan participants do not use an advisor at all, perhaps because the fees are considered prohibitively expensive.


Among those 401(k) contributors who do use an advisor, most understand and appreciate what an advisor does for their assets. In the report, plan participants were asked to place the expense of fees versus the appreciation of account growth on a sliding scale of importance, with “zero’’ being the importance of fees and “100” being the importance of account growth, and the overall mark was 72.83, a significant nod toward the appreciation of account growth.

Participants with less than $10,000 in their account balances placed the highest importance on growth, 78.88. Other segments reporting a greater than average appreciation of account growth were participants between the ages of 36-49 (76.53), those 65 years old and older (75.15), and females (75.07, versus males at 70.42). The lowest mark for the importance of account growth was from participants aged 50-64 (67.41), although even that group indicated account growth was more important than fees.

Fifty-four percent of plan participants say they are comfortable with the fees they pay advisors. Sixty-six percent of participants aged 35 and younger say they are comfortable with their advisor fees.



About the Author


Kent McDill

kmcdill@spectrem.com

Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.

In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.

McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.

McDill is the father of four children, and an active fan of soccer, Jimmy  Buffett and all things Disney.