Message Font: Serif | Sans-Serif
No. of Recommendations: 2
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!!

It makes index fund investing ever more attractive doesn't it?
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.