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<<With time, her interest in investing will grow with her account balance. The sooner she develops the confidence to do it herself, the better off she will be.>>

There is no evidence that suggests a client's interest in making their own decisions will grow over time. In fact, there is an opposite correlation between amount of assets and advise desired; as a number of studies have shown -- and as the markets indicate.

Those with more to lose are more than willing to pay for expert assistance. Such is very evident with accounts valued at 1 million or more (something like 95% of all such accounts are actively managed)

Also, that would not grow to $40,000 in expenses as her fees would shrink as her account grows. She only pays a fee when she buys. Assuming zero growth in her account, the fee would drop in the seventh year and again in the 13th year. Assuming 8% growth, the fee would drop in the in the fifth year and again in the 10th year. After the 10th year, he is only making about $160 per 4k purchase. He only gets paid a commission if he makes a sale. He might get paid a portion of the operating expenses in the form of a 12b1 fee (about .25% or $125 of a 50K account) but whether he makes that or the company does, the return is already net of fees.
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