True Cost of Management Fees

Based on our experience, most firms charge an annual management fee of 1% to 2.5% on your account balance.  They deduct their fee even if the account has a negative returning year.  They make money regardless of your return and share no risk.  Below are charts showing the effects of a 1.5% and 2.5% annual fee.  Your investment growth is listed in future dollars, however their fees are not since they are deducted yearly.  Highlighted in yellow, you can see how much their fees total to after 8, 16, 23, and 30 years.  After 30 years a 2.5% management fee amounts to $244,267 on only $100,000 invested with the firm.  If you follow the highlighted green amounts, you will see that after 30 years, the 14% returning account would be 7 times the amount of the ones returning 7% after annual fees.  The returns listed are for information purposes only and do not represent actual client returns.

<— Down Years Matter / Client Agreement —>