The wealth-building thread

[Chromatischism]

you forgot to mention the sage advice of buying and holding because retail investors sell when they should be buying and vice versa. Like audio, its plagued with bias, emotion and brain tricks

I didn't forget.

My post specifically addressed the analysis in my case:

If all they're doing is sticking you in index funds or even a mix of mutual funds, just do it yourself and save the money.

If you're curious, it was EJ. I don't know how their fees compare to others.

The point is I don't need to spend $100k for someone to put me in mutual funds that have high-ish fees themselves.

I am not exaggerating when I say this: pulling out of that arrangement and putting the money into an index fund in my own Fidelity account was a savings of over $100k in fees over a period of 25 years. If these companies were up front about the real costs of fees, there would be a massive shakeup in the advisor market. You may see a fee of 1% or a fraction of 1%...but what they don't tell you is how that number can compound over time to eat 10-20% of your portfolio!

 

[levimax]

I am not exaggerating when I say this: pulling out of that arrangement and putting the money into an index fund in my own Fidelity account was a savings of over $100k in fees over a period of 25 years. If these companies were up front about the real costs of fees, there would be a massive shakeup in the advisor market. You may see a fee of 1% or a fraction of 1%...but what they don't tell you is how that number can compound over time to eat 10-20% of your portfolio!

For the fixed income part of your portfolio you can open a "Treasury Direct" account with the government. You get to buy the bonds or notes at the auction price just like the big boys with no commission and no ongoing management fees and no "bid" / "offer" price friction. This has the same effect of increasing long term returns. Since no one advertises this option many people don't know about it.

 

[muslhead]

I didn't forget.

My post specifically addressed the analysis in my case:



If you're curious, it was EJ. I don't know how their fees compare to others.

The point is I don't need to spend $100k for someone to put me in mutual funds that have high-ish fees themselves.

I am not exaggerating when I say this: pulling out of that arrangement and putting the money into an index fund in my own Fidelity account was a savings of over $100k in fees over a period of 25 years. If these companies were up front about the real costs of fees, there would be a massive shakeup in the advisor market. You may see a fee of 1% or a fraction of 1%...but what they don't tell you is how that number can compound over time to eat 10-20% of your portfolio!

as with everything investing, you are both right and wrong.
Maybe THEY didnt tell you but good IA's do. Sounds like you didnt do a good enough job screening your advisor. Its not like you to blame others, why now?

 

[muslhead]

Just to provide facts instead of some of the other biased, linear thinking nonsense being written on this post

 

[levimax]

Just to provide facts instead of some of the other biased, linear thinking nonsense being written on this post

View attachment 541846

Love this chart, I have a few questions, do you have a link as to how these number were calculated? I assume all the percentages are annulized?

 

[Chromatischism]

as with everything investing, you are both right and wrong.
Maybe THEY didnt tell you but good IA's do. Sounds like you didnt do a good enough job screening your advisor. Its not like you to blame others, why now?

I didn't say they did not tell me the fee rates. I just eventually got smarter and did the math on what it was really costing me in dollars. THAT information is not calculated and shown to you by any advisor that I know of. Imagine telling people up front you would take 15% of their profits as they go through their years of saving. Compounding is why a seemingly low fee of 1% can be so devious. Financial advisors shouldn't take more than 0.1% for managed retirement accounts. My 2 cents, of course.