Financial Planner

[ishoot308]

Originally Posted by PeterG

Yes, one needs to know what he's looking for. But the 1% per year that you advocate is breathtakingly expensive over time. Paying 1% per year for 20 years will cost you approximately 25% of your total portfolio. It's as if you've decided to give a quarter of your life savings to the planner. As a number of us have noted above, it's best to start with free advice, then be really careful before you give away a quarter of your savings.

Not quite sure I understand the math,...are you saying the 1% adds up to 25% over 20 years of your original investment? In other word 20 years ago you started with 100,000.00 after 20 years of 1% fees it has cost you 25,000.00? If so wouldn’t that only apply if you made nothing over the years on your investment?

Dan

[Doobs41378]

Originally Posted by ishoot308

Not quite sure I understand the math,...are you saying the 1% adds up to 25% over 20 years of your original investment? In other word 20 years ago you started with 100,000.00 after 20 years of 1% fees it has cost you 25,000.00? If so wouldn’t that only apply if you made nothing over the years on your investment?



Dan

Yes but they take 1% of your assets so if you now have 250k because of interest etc they aren’t still taking 1% of 100k. I think 1% for 20 years is 20%. Not sure were the other 5% comes from. On the other side of the coin if the person makes you a lot more than 1% in gains perhaps his 1% was well worth it.


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