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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 79106  
Subject: Re: The Millionaire Twins Next Door Date: 11/27/2013 2:45 PM
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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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