SOURCE: FeeX

January 20, 2016 09:00 ET

FeeX for Advised Accounts Reveals the Real Cost of a Financial Adviser

Millions of People Pay Their Adviser More Than They Need to Yet Are Unaware

NEW YORK, NY--(Marketwired - Jan 20, 2016) - FeeX, a service that helps people retire richer by reducing their retirement fees, today announced a new component to their service: FeeX for Advised Accounts.

Financial Advisers in the U.S. walk away with $100 billion annually in advisory fees on the IRA and brokerage accounts they oversee. However, all too often their clients are simply unaware or only partially aware of just how much in fees they are paying for these advised accounts.

"Our users are often outraged when we show them just how much they are paying in fees -- all too often total fees exceed 2% -- 1% or more in adviser fees and 1% for their portfolio allocation," said CEO Yoav Zurel. "When you compound 2% over a period of 30 years this could mean that up to two-thirds of your account ends up going toward fees, and unfortunately in addition to the high cost, users we talk to often express displeasure with the level of service they receive from their adviser too," Zurel added.

The sophisticated technology behind FeeX for Advised Accounts discovers the fees charged by a user's financial adviser, including commissions or asset-based fees, and the fees associated with the funds they own. FeeX also warns the user if it detects non-fiduciary activities associated with the user's adviser, for example 12b-1 fees or that the adviser is also registered as a broker and accepts commissions on the sale of products or other unnecessary fees. This holistic approach illustrates the true cost of the advisory relationship to the user. Results are provided in dollar amounts, not just percentages or basis points that most people find a challenge to decipher -- and that are employed by the investment industry to inhibit transparency.

To demonstrate the impact on an investor's future balance, FeeX considers and displays two scenarios in its analysis: an investor's estimated future balance if they do nothing, and their estimated future balance after they apply Feex's fee reduction suggestions. Because FeeX suggests switching to "similar" investments, FeeX runs both calculations assuming the same rate of return (determined based on an investor's asset allocation). For calculation purposes, FeeX assumes that an investor won't add any additional capital to their account. The rollover bonuses, where applicable, are not taken into account in the future balance calculations.

Once the results are generated the user chooses between two courses of action. The first choice is to provide the adviser with instructions on how to fix her or his portfolio by replacing assets with lower-fee but similar alternatives. And the other alternative is empowering the user to switch advisers by providing them with a range of lower-fee advisers vetted by FeeX.

FeeX for Advised Accounts is being introduced just one month after the launch of FeeX Concierge, a free service that empowers an investor to take action in rolling over their old inactive 401k. Concierge analyzes a user's old account and identifies a set of low-fee IRA candidates that best matches the investor's needs. Once the user decides on the right IRA FeeX's human Concierge takes over and handles the administrative drudgery associated with rolling over -- a process FeeX can handle in eight minutes. In July, FeeX unveiled the comparative analytics underlying Concierge when it announced the FeeX 401k Rollover Center.

For more information or to sign up for an account, visit: FeeX.com.

About FeeX
FeeX is a service that finds and helps reduce fees within investment and retirement accounts like IRA, brokerage accounts and more. Simply link investment accounts and FeeX's sophisticated algorithm uncovers advisory, investment and expense ratio fees and suggests alternative ways to save and reduce the cost of fees. In 2015, Fast Company named FeeX No. 3 of the World's Top 10 Most Innovative Companies in Personal Finance. The company was founded in September 2012 by Yoav Zurel, David Weisz, Eyal Halahmi and Uri Levine -- creator of Waze (which was acquired by Google in mid-2013). FeeX is a Registered Investment Advisor with the SEC. The FeeX Concierge service is an administrative service that does not consist of advice, and all investment advice is provided via the website. For more information, visit: www.FeeX.com.

Contact Information