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Investing - Theory, News & General • The alarming impact of fees.

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Even simpler:

If I withdraw 4% from my portfolio each year and out of that an advisor takes 1%, that's a 25% fee!

Alarming.
One person that just retired at my company is doing exactly that. I recommended some of the hourly rate people or far lower AUM choices (most mentioned on this site) to mitigate this issue. This person understood the cost implications, but they and their spouse felt "comfortable" with their current advisor. All you can do is inform and whether or not the horse drinks the water is usually outside ones control. So, a 3% SWR it is (net less after taxes)!

With a 25% hit, I would believe that partially annuituzing the portfolio becomes a bit more attractive, perhaps even throw in a COLA rider.

RM

Statistics: Posted by Random Musings — Sat Nov 15, 2025 10:57 pm — Replies 96 — Views 7348



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