No. of Recommendations: 7
2gifts writes,

I do have a financial planner, and he does take a percentage, but he takes 1%, which is half of the rate you are quoting.


The 2% financial services industry average I quoted is total annual fees, expenses & costs -- not just your advisor's 1% skim.

What kind of investment products is your advisor recommending you buy? A portfolio of low-cost Vanguard index funds with a 0.10% expense ratio and another 0.01% in trading costs (total of 0.11%) or something closer to the average mutual fund with an expense ratio of 1.07% plus another 0.5% to 1.00% in brokerage commissions and trading costs if it's actively managed, (total of 1.57% to 2.07%)

You're likely paying more than 2% when you add it all up.

At 3% in annual fees expenses and costs, your financial advisor and the companies he recommends will capture 80% of your wealth over 60 years -- $1 for you, $4 to Wall Street.

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