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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>

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