A one percent annual financial advisor fee sounds small on a monthly statement. Compounded over a full career, that single percentage point consumes a massive portion of portfolio wealth.
Starting with $100,000 over thirty years at a 7% gross return yields $761,225 without advisory fees. Adding a 1% annual fee reduces the ending balance to $574,349.
The 1% advisory fee costs $186,876 in lost portfolio growth. That fee consumes 24.5% of your final account value and 28.3% of total investment gains.
Checking total advisory costs annually protects hundreds of thousands in compounding returns.
What percentage advisory fee do you pay on your investment accounts?
(Not financial advice. For educational purposes only.)
