A short video by Ramit Sethi warning viewers to reconsider using financial advisors who charge 1% of assets under management (AUM). He argues many people don't know how much they pay and that a 1% fee can cost hundreds of thousands over a lifetime, urging viewers to reassess such relationships.
There's one money decision a lot of people don't rethink. That's their financial advisor. If you are working with someone who charges you 1% AUM, that's 1% of your assets under management, I strongly recommend you take a second look. Do you even know how much you're paying your financial advisor? Most people don't. And then they tell me, ramit, I can't get rid of this guy. He sends me a birthday card. He helped my parents. He. He took me to mini golf one time. He's so nice. Okay, I'm sure Chet is nice, but a nice Advisor Charging you 1% could cost you literally hundreds of thousands of dollars over your lifetime.
