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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: Re: The Millionaire Twins Next Door Date: 11/25/2013 9:11 PM
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2gifts complains,

<<intercst: With that kind of wealth accumulation from an insurance agent, Robert must have handled her account without commission.>>

I see no reason to be snarky here. What difference does it make if he made a commission or not as she still ended up with $6 million, so didn't seem to suffer from possibly paying a commission. I also note that she ended up with more money than he did, as he had just under $4 million when he died.

</snip>


I certainly apologize if you found my comments or the arithmetic of this woman's situation offensive. I didn't know you worked in the financial services industry. <LOL>

Many people don't realize that the financial services industry operates on a business model that assumes they'll extract 2% per year in fees, expenses and costs from their customers. (Prudential is actually among that elite cadre of firms that manages to take a bit more than 2% from their clients.) Losing 2% per year, every year to an insurance agent and the company he represents has a profound affect on your ability to amass any wealth.

Over a 60-year investment horizon (30 years saving for retirement, 30 years in retirement) an advisor taking 2.00% per year will capture 2/3 of your wealth vs. a low-cost index fund portfolio with 0.10% in annual fees and expenses.

http://retireearlyhomepage.com/vg_tsp.html

Compound interest is a wonderful thing. Make it work for you, and not some blood-sucking advisor or insurance agent.

intercst
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