Fisher Investments Review 2020

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Fisher Investments, for those unfamiliar with the name, is a private money management firm that provides investment and financial advisory services to high net worth individuals and institutions around the world.

Founded in 1979, and reputed to be one of the largest wealth management firms in the United States, Fisher Investments has over 3500 employees and over $100 billion in assets under management.

The firm offers a plethora of investing and financial planning services to its vast array of customers. In this Fisher Investments review, we will investigate the quality of those services, and how they stack up against the competition.

About Fisher Investments’ Founder – Ken Fisher

Ken Fisher founded Fisher Investments back in 1979 after training with his dad, Philip Fisher, a respected investor, and money manager.

Ken Fisher Fisher Investment — Source: Fisher Investments

The new firm started providing discretionary asset management services, and help pioneered the use of the Price-to-Sales Ratio as an effective investment analysis tool.

Ken Fisher also ran the “portfolio strategy” column in Forbes Magazine for over 33 years, from 1984 to 2017, making him the longest continuously-running columnist in the magazine’s history.

As the Founder, chairman, and Co-Chief Investment Officer of Fisher Investments, Ken Fisher is reputed to be worth over $4.3 billion as of January 2020, putting him on the Forbes list of the 400 wealthiest Americans.

Ken Fisher is also regarded for his research in Behavioral Finance and is the author of several books on investing.

How Fisher Investment Works

Fisher Investment is a fee-only money management firm that primarily caters to wealthy individuals and institutions.

The Fisher Investments Approach

Fisher Investments has a pragmatic approach to investing. They consider themselves a dynamic investment firm that uses a variety of investment tactic that they can adjust with prevailing market trends.

For example, while some firms may have an ideological approach to investing, Fisher Investment uses a flexible approach. They believe that investing styles move in and out of favor over time, and that one should adjust accordingly.

Fisher Investments Has A Global Investment Outlook

While some investment firms are apprehensive about investing in capital markets outside the United States, Fisher Investments is not.

Fisher Investments looks for investment opportunities worldwide, and believes that investing globally can help diversify one’s portfolio and mitigate risk. It can also lead to investment opportunities others may miss.

Tailored Portfolio At Fisher Investments

Fisher Investments does not employ a one-size-fits-all approach to investing, as some investment companies do.

Because Fisher Investments deals with high net worth clients, they try to know each client personally to give them a tailored portfolio.

They evaluate each client’s financial position and then provide them with a written portfolio analysis and a personalized investment strategy.

Fisher’s personalized investment strategy recommendation considers the following:

The client’s investment goals
Their income needs
Investment payback period
Tax considerations
Outside assets and incomes not included in the portfolio
And other customizations that might consist of the client’s personal needs and desires.

Fisher Investments Services And Core Business

Fisher Investments offers an array of premium services that might be suitable for high net worth people looking to multiply their money. Below are some of the services they offer.

Annuity Conversions

Annuity conversion is the process of converting an annuity investment into a series of periodic income payments.

Because annuities are complex investment instruments, many people fail to understand the details of their annuity. Investors routinely overlook or misunderstand things like taxes, fees, penalties, death benefits, riders, income, and other aspects of their annuity.

Fisher Investments’ annuity evaluation program educates investors about the annuities they own or are considering.

Annuity Analysis

Fisher conducts a detailed analysis of annuities–which sometimes includes calling the annuity company– and then advise clients on the advantages and disadvantages of maintaining their investment.

Sometimes after the analysis, investors do opt to explore other investment opportunities that more align with their financial goals. Some, with a better understanding of their annuity, choose to keep it.

Financial Planning

A financial plan is your roadmap to financial security now and at retirement. Fisher Investments can help develop that plan in a way that assures confidence and financial security.

If you already have a financial plan, Fisher Investments can evaluate your plan to see if you’re on track to meet your goals. If not, they can help put you on track.

Retirement Planning With Fisher Investments

Fisher offers a robust retirement planning service. They look into all your sources of income and investments to develop a sound retirement plan.

Planning for retirement can be a daunting process, especially now that people are living longer, and uncertainties in the Financial markets.

Because Fisher Investments has been in business for over 40 years, and they’ve helped pioneer some of the cutting edge tools used in the investment industry today, their elite retirement experts can bring a unique, top-notch perspective to your retirement planning.

Tax Planning With Fisher Investments

Taxes are a significant and complex part of retirement planning, and it can get very costly if you get it wrong.

Planning your investment in a way to save on taxes, take advantage of tax-loss harvesting, capital gains tax, changes in tax laws, and tax rates can be difficult to accomplish alone.

That’s why Fisher Investments has a dedicated group of investment and tax specialist to take care of that for their clients.

Comprehensive tax planning tailored to your specific situation is one of the advantages clients get for using Fisher Investments.

Portfolio Management

Portfolio management is the art of choosing the right mix of investment assets to maximize your clients’ return on investment.

Luck is not going to help you in picking the right mix of assets for your investment portfolio.

Getting it right the majority of the time is a function of education, skills, and experience; and that’s what Fisher Investments brings to the table.

Getting it right, the majority of the time, is a function of education, skills, and experience; and that’s what Fisher Investments brings to the table.

Fisher Investments has a five-member Investment Policy Committee with over 130 years of combined investment industry experience and supported by Fisher’s in-house global research platform.

Getting it right the majority of the time is a function of education, skills, and experience; and that’s what Fisher Investments brings to the table.

Fisher Investments have a five-member Investment Policy Committee with over 130 years of combined investment industry experience, and supported by the Fisher’s in-house global research platform.

Private Client Group

Private Client Group is a division of Fisher Investments that offers customized portfolio management to individual investors. These portfolios are tailored to each client’s situation and investment goals.

Each client receives a dedicated Investment Counselor who knows them by name and is their primary point of contact.

Fisher Investments also provides clients access to a wide array of exclusive research and educational materials.

Discretionary Asset Management With Fisher Investments

Discretionary asset management is the process in which Portfolio Managers or Investment Counselors make investment decisions for a client.

That’s the hallmark of the Fisher Investment Process — physical interaction with the investment process.

Fisher Investments is not a robo-advisor like other platforms such as Acorns, Stash, Robinhood, and the likes.

Fisher Investments Fees: How Fisher Investment Makes Money

Understanding your investment company’s fee structure is crucial to your overall investment strategy.

Some companies charge up to 5% in commissions on your investment. What if you’re not making as much as 5% in returns? A 5% fee could spell disaster for you.

Others charge based on asset classes. For example, they might charge a higher fee for managing stocks and a lower fee for bonds. The problem with this is that they may have a bias for investing most of your money in stocks because it offers them a higher return, but may not necessarily be the best way to maximize your returns.

Fisher Investment Fees

Fisher Investments charges a 1 – 1.5% fee on assets under management only. They do not charge commission or other hidden fees.

While this fee is higher than the prices popular robo-advisors like Robinhood, Wealthfront, Stash, and Acorns charge, you can be consoled by the fact that an actual person is handling your investment.

Unlike robo-advisor, you can pick up the phone and speak with your portfolio manager.

Why Fisher Investments? The Pros

Investment Portfolio Tailored to Your Needs
Active Portfolio Management
Transparent flat fee
Strategic financial planning geared towards a comfortable retirement
access to a wide array of exclusive research and educational materials

Problem With Fisher Investments: The Cons

Fisher Investment typically accepts only wealthy clients with $500,000 or more to invest.
Fisher Investments is not a publicly-traded company. What this means that they are not bound by certain statutory requirements and disclosures.
Their fee is relatively higher than most investment and money management firms. For example, the price to manage $500,000 is at least $7,500 a year. The price for a similar amount with a robo-advisor like Acorns is $3 a month.

Who Should Sign Up With Fisher Investments

Fisher Investments is best suited for wealthy individuals, families, and institutions. That’s because, unlike some robo-advisors with whom $5 is enough to start investing, you’ll need at least $500,000 to start your investment journey with Fisher Investments.

Additionally, Fisher Investments charges a minimum of $7,500 a year in management fees. That amount is in sharp contrast to the maximum of just $3 a month that Acorns, Robinhood, or Stash charges.

If you are a high net worth individual, Fisher Investments might be right for you.

Do You Need Fisher Investments?

You don’t necessarily need a money management firm to invest in the stock market. However, it might be beneficial to have one on your side if you are a novice investor.

You can also learn how to invest and take your financial future in your hands.

For example, Fisher Investments has its most significant stock positions in Visa Inc., Apple Inc., Amazon.com, Microsoft, and Alibaba Group Holdings.

Many individual investors simply follow the investment patterns of the successful money management firms with the hope that they too will be successful.

So, do you need firms like Fisher Investments to manage your money, or can you just follow their investment patterns and succeed?

The answer to that question might depend on how much time you’re willing to devote to monitoring the stock market.

Fisher Investments has full-time portfolio managers whose job it is to manage your money on a full-time basis.

If you don’t have the time to devote to the stock market, then it might be wise to put your financial fate in the hands of the professionals.

How To Open An Account At Fisher Investments

The first step to opening an account with Fisher Investments is having at least $500,000. Because money managers at Fisher Investments personally handle clients’ investments, you’ll need to call Fisher Investments personally to commence the process of opening an account.

When you call, Fisher’s Private Client Group will assess your financial situation to help you achieve a secure financial future in retirement.

Fisher Investments Performance Over The Years

There’s no set performance indicator at Fisher Investments. That’s because no two investors are the same. Fisher Investment personalizes each portfolio according to the investor’s financial goals, risk tolerance, and preferred payback period.

While past performance is not a guarantee of future results, it is essential to note that Fisher Investments has a track record of performing well.

Fisher Investments has clients all over the world, including the U.S., Europe, Canada, Asia and the Middle East. These include more than 60,000 private clients and over 175 large institutions that do business with Fisher.

Bottom Line

Fisher Investments is one of the largest independent wealth management firms in the country, and they have been relatively successful over the years.

If you are a high net worth individual or organization, with no time to manage your investment portfolio, Fisher Investments might be a good match for you.

While Fisher Investments charges a management fee that is much more than the average robo-advisor, they compensate by providing a personal hand-on approach to wealth management.

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