Friday, June 07, 2024

Retirement Trap - Investment Advisor Fees

One area that retirees sometimes get over charged on is fees to Financial Advisors for managing investments.    For reference, I am not opposed to fees.    I am opposed to what I consider exorbitant fees for little or no additional service.

IMHO,  a maximum all in fee, mutual fund/ETF expense, commissions and advisor charge, should not exceed 1% for basic investment effort.  I seen cases where the all in fee exceeds 2.5% and sometimes even has a front end load.   

Maybe 10-20 years ago, when brokerage commission were $50 to $100 a trade, a fee over 1% may have been justified.  However, with $0 trading commission and market index ETF expenses of less than 0.15%, it is hard for me to justify and investment advisor all in fee over 1%.

For more on Reaping the Rewards, check back every Friday  for a new segment.

This is not financial advice. Please consult a professional advisor.

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