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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 19021  
Subject: Re: Investment manager Date: 6/14/2001 10:46 PM
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galeno writes,

<<<<<fooldaveonce wrote:
I was told by a financial advisor with AMEX that the money managers he would recommend charge a flat rate of 3% of the funds under control if they total $100,000 or less. That fee includes expenses of buying and selling stock. After $100,000, he told me, the fee is "negotiable." I quoted the Fool to the advisor, "No one cares as much about my money as I do.">>>>>

AMEX financial advisors will charge you 3% of assets NOT COUNTING portfolio transaction costs of 1%. OK, the "advisors" will nail your portfolio for 4% of assets per year.

4% is my annual withdrawal rate from my 25%FI/75%Stock portfolio. In reality, my annual withdrawal rate is 3% of assets but my portfolio costs (commissions, spreads, and taxes) are around 1% of assets. 3+1=4.

So, if you have an AMEX financial advisor, you'd better not retire even if your net worth is $50M. It would be sad if it weren't so funny!!


I talked to an AMEX advisor when I was about age 22 just to see what kind of sales BS they used.

I asked the guy, "Is there a load on these funds?"

AMEX advisor, "What's a load?"

Like galeno said, "It would be sad if it weren't so funny" <LOL>

intercst
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