Ramit Sethi breaks down how a 1% advisor fee costs you roughly $300,000 over 35 years. Starting with $50,000 at age 30 and adding $1,000 monthly at 7% returns, you'd end with $1.7M instead of $2M. Use a flat-fee advisor or manage it yourself.
How much is your financial.
Advisor costing you?
Most people who work with a financial.
Advisor pay.
A percentage fee, usually 1% of their assets, and that doesn't seem like a lot. 1%.
But that's exactly what they want you to think. Here's the reality.
Let's say you're 30 years old and you invest $50,000 and contribute another thousand.
Dollars a month.
In 35 years, assuming a 7% return, you'd have two just over $2 million. But if you pay that advisor 1%, you'd only have $1.7.
Million.
You're much better off managing your investments on your own, which you can learn from my book in chapter three, six and seven. Or, if you want an expert to look over your numbers, look for a financial advisor.
Who charges a flat fee.
By the way, I recently talked to Susan and Jeff, a couple who were going to end up paying over $860,000 in fees to to their advisor. Make sure you check out the episode to see when they discover how much they're paying and.
How to break up with their advisor.
