I generally discourage getting financial advice from colleagues, but it sounds like you got lucky this time. Stick around and learn; browse the wiki starting here.A colleague of mine who is rather savvy suggested that I take this news to this very forum (which I had not heard of until the other day) and watch the firestorm unveil. He seems to be correct. I agree with your comment.
These 2 statements are incongruent with each other.
One other metric to consider is how long it takes you to earn (after tax) what you pay an advisor. For example, someone who has $500,000 under management at 1.4% and earns $100,000 might have to work an extra 3-4 weeks each year to pay their advisor. When you're older and have saved more, it becomes ridiculous: I would be paying over 40% of my after-tax earned income if I used this advisor.
And think about retirement, where many people withdraw 3-4% of their savings per year to pay for expenses. A 1.4% fee means 25-30% of their post-retirement expenses goes towards paying an advisor who does what you can do in a few hours each year.
Statistics: Posted by Doctor Rhythm — Mon Dec 16, 2024 12:15 pm — Replies 32 — Views 1002