facebookI am a busy working adult and am looking for some help in investment. Is it a wise move to engage POEM Securities Advisory Service for assistance which charges 1.25% advisory fees pa.? - Seedly

Anonymous

12 Jun 2020

βˆ™

General Investing

I am a busy working adult and am looking for some help in investment. Is it a wise move to engage POEM Securities Advisory Service for assistance which charges 1.25% advisory fees pa.?

Discussion (2)

What are your thoughts?

Learn how to style your text

Elijah Lee

11 Jun 2020

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

I need to point out that there are also brokerage fees under the Securities Advisory Service, although they will be reduced as compared to retail brokerage. You also need to be able to respond to the recommendations which will be sent by email in a timely fashion, as the advisory service relies on agreement from end client before a trade can be executed (regardless of whether it is buy or sell). You mentioned you are busy and it may be a concern if you are not able to reply on time, as stock prices move fast and by the time you reply, the share could have moved out of the proposed range.

You will need to speak to the person managing your advisory service to find out how he/she intends to help you to deploy your capital into the market. What is the strategy involved? Is it for capital gains or for dividends? Can you specify your preferences?

Also note that there might be an upfront fee, which is up to the advisor.

It seems like you wish to have a portfolio of stocks but leave the legwork to the advisor. Another suggestion that you can look into are the managed account services. This does not require your approval to execute and the fees are tiered, meaning the larger the portfolio, the lower the advisory fee. However, there is a performance fee based on high water mark. Different advisors may have different managed account portfolios to offer, so you will want to get your queries answered first.

Be very comfortable with working with the advisor, regardless whether you choose advisory or managed. You will want to know their view, strategy, etc and be comfortable before starting.

It depends on your choice and trust in POEMs.
Meanwhile, roboadvisors could work for you as well and charge less than 1.25% pa!

Write your thoughts