Find Out What 1% AUM Really Costs You
Jul 07, 2021
Does your financial adviser charge you 1% "AUM"? Or 1.5% or even 2% Assets Under Management? That means they take a fee of 1-2% of ALL of your money that's invested in the stock market.
Doesn't sound like a lot, right? Actually, it's a shit-ton of money over the life of your investments. In the video linked below, I'm gonna do just a smidge of the math to show you just how much money you really lose when you pay "just a 1% fee" based on the total of all of the money in your investment accounts.
To be clear--this isn't 1% of your earnings, it's 1% of ALL THE MONEY in your accounts-- that includes IRAs, 401ks, and brokerage accounts that an adviser is managing for you. Some advisers also charge annual fees on top of that! I didn't include those in my calculations, so just tack on $1500 or more to the annual total I use here.
This is a totally avoidable, unnecessary expense, because it's super easy to invest your own money and match the performance of the US stock market with low fee simple index funds.
Click below to watch the video.