How Much Your Dad’s Advisor at the Bank is Co$ting You

Your Dad’s financial advisor at the bank isn’t free. We need to get that clear from the start. But do you know how much those fees are costing?

Financial advisors at the bank usually charge between 1-2% in management fees.

Over 30 years, that’s $250,000 out of your pocket in fees and lost compounding interest.

Does good old Frank at the bank provide that much value to you when we just throws your money into some low-performing mutual fund and pretty much forgets about you?

How This Chart was Calculated?

I love math and I love numbers. Always have. That’s because numbers can tell a story and I LOVE a good story.

Financial advisors at traditional banks usually charge between 1% to 2%. In this chart, I estimated that the financial advisor in this example is charging only 1% - which is conservative. So yes, that means it can be worse. In this example, let’s say you invest $100,000 (which is usually the minimum an financial advisor will consider) at 35 years old and don’t add another dollar more and then you retire at 65. I also conservatively estimate an 8% return (the market has an average rate of return of 10-12% over 30 years). Over those 30 years, you will have lost around $250,000 in fees and lost compounding interest.

So What Other Options Do You Have?

You can work with a financial expert that charges a flat fee for financial planning services - like me. It’s a much better value for you. I have over 15 years of experience on Wall Street and Bay Street. Schedule a discovery call with me to see how I can best help your money work hard for you.