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Subject:  Re: Talk me out of a Financial Advisor Date:  6/2/2013  3:48 PM
Author:  Rayvt Number:  72370 of 88498

If you pay him 1% which only leaves you 3% to live on and pay taxes out of. That is 25% of your income that is being paid to him even without taking taxes into account which could easily cost another 1%.

I've often heard this, but the 4% rule is based on historic returns of a simple portfolio. If a more complex portfolio can be structured to either increase the average annual return or smooth out the valleys at the same return, both after fees, wouldn't the SWR be higher?

Yeah. But not THAT much higher. 1% fee out of 4% SWR is 25% of your income going to him. 1% fee out of 5% SWR is 20%. That's still a lot.
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