It's not all about cost
IT'S NOT ALL ABOUT COSTS
Imagine that you’re sitting down for dinner at a nice restaurant. The waiter approaches and asks if you’d like to hear the specials. He lists them off and you are immediately intrigued by the lobster dish. You have one question to ask before ordering, however. How much will it cost.
If this sounds like you, you’re in good company. Moreover, there’s a good chance that, as we talk about various investment vehicles that might suit your goals and objectives, you’re wondering the same thing. What will these products cost me?
We believe that our decision-making process should be cost-conscious. But we make a distinction between cost-conscious and cost-focused product selection. For us, costs are a priority, but not the priority.
When we look at an investment for a client, our first question is not about cost. We are more concerned with the following:
- Is it the right fit for the client?
- Does it match what he or she wants and needs?
- Is it reasonably priced?
Using the restaurant as an example, if you are craving lobster and the waiter tells you that this will be the best lobster you’ve ever tasted, and it is priced comparably to a fancy lobster dish at a high-end seafood restaurant, you probably will not hesitate to order it. But if you simply hear the price, you might instead opt for the steak.
Investments are often critiqued for their expense ratio. But the criticism must have some context. What is the product cost relative to a similar product? Can its cost be explained? Remember, the cheapest products are not always the best performers—even when we discount for fees. If the lobster special cost a dollar, you’d probably be skeptical. With food, as with many investment products, you often get what you pay for.
As we propose investment vehicles for your account, we focus on providing solutions to your wealth management needs. We want to offer you the proper products, not the most expensive ones. Again, cost is always one of our considerations, but it never rules out a product, nor will it compel us to sacrifice quality to save money. We provide cost-conscious strategies to complex wealth management situations. So, ask us, is this product reasonably priced? Does it suit my goals and objectives? Is it the right fit?
If we’ve done our job, the answer to all three questions should be a resounding yes.
Cahill & Associates Financial Services, LLC 75 Berlin Road, Suite 110, Cromwell, CT 06416 | P860.635.4800 | F860.635.4572
Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser.