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Investing - Theory, News & General • Re: Ramit Sethi on the usefulness of advisors

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I just can't digest the percentage based model. Why the fees needs to be about 1% whether the amount is 100k, 1M or 10M.
Are you really putting 100 times effort when managing 100k vs 10M?
Based on personal experience that's not how the AUM fee works. The AUM is normally on a sliding scale, with some cap on the annual fee. The person with $1M in assets may pay around 1.3%, and the person with $5M might pay something like 0.6%. Nevertheless a lot of money flushed away.
Still 46 times. How can anyone justify that? It continues to be linear increase after whatever is their minimum percentage.
Agreed, but I’m not justifying the fees, just pointing out the regurgitation of BH misinformation. I participate in about 6 different finance groups in my area. Sadly 99% of the folks cannot perform basic math taught in 3rd grade. For them managing their own portfolio would be a no go before even starting a discussion with them.
This is why the 401k is a failed experiment. Bring back pensions. Most people would be better off with one.
The problem with pensions is the people giving them out don't have to pay the bill.

Statistics: Posted by Maverick3320 — Thu Aug 08, 2024 12:55 pm



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