Originally Posted by Vikas
Originally Posted by Leo99
Originally Posted by Vikas
Suppose you earned $100K. Would you be willing to hand over $25K to your guy? How about an year when you *lost* $200K? Would you *still* hand over $22K to your guy that year, so that your total loss now would be $222K ?
*REALLY*?????
It's not based on earnings it is based on assets under management. If I had him manage $1M, that would be $10k per year. So, if the return was 4% for $40,000, then, the advisor would get 25% of my income. If the loss was $200k, he'd still get $8k.
https://www.nerdwallet.com/blog/investing/how-much-does-a-financial-advisor-cost/
This is *exactly* what I said. If you made $40K, you gave $10K to him and thus lost 25% of your annual income for that year.
If you lost $200K in a year, your actual loss would be $208K.
Even after understanding that you still want him to manage your investments?
May I ask you what was your profession which allowed you to build a nice nest egg but did not require even rudimentary math?
You're acting unprofessionally. We're having an adult conversation. If you don't agree with a AUM fee of 1%, that is your decision but childish insults are not necessary. It's a common advisor fee. It's a decision I need to make and I'm on the fence about.