Topic: Investment Fees in a Stagnant Market
Question: You’ve been disciplined with that initial $10,000 from Aunt Mabel, and over time grow it to $1 million. But then, you trust the previously mentioned money manager to protect your nest egg now.
He still charges 1.5%… but across the next 10 years, your portfolio goes nowhere instead of generating the 10% market returns he previously did. At least, it’s gone nowhere based on the appreciation of investments. Thanks to his fees, which are still levied, it has actually shrunk.
Exactly how much have you paid him those 10 years of flat returns?
Answers:
