[Caymus]

Originally Posted by manaboutown

I am old enough to remember when trading costs were fixed...and they were high!

Yes, they were high. I just found a trading confirmation where I paid $49.95 (including telebroker discount) on a $2,000 trade I made in 1991.

[daniel200]

Originally Posted by Rainger99

But when you put your money into a Fidelity or Vanguard, it is being managed by professionals. They just don't charge the fees that Fisher does.

I have never found value in Fidelity’s “professionals”. I have met with them several times and they cold call me a couple of times per year. They also push some risky adventures that have high fees. These guys are not fiduciary. So I don’t use their advice and just manage everything at Fidelity myself.

That’s why I say, if you do not have the interest or ability to manage it yourself, the best option is a money manager that follows the fiduciary guidelines.

[Babubhat]

Originally Posted by glsatterlee

As another person said on this post, Fischer does not make cold calls. I have been with them for 12 years. We are up 26% YTD. Put that into your calculations.

It needs to be risk and tax adjusted. That figure is meaningless

[Plinker]

If you don’t understand the math posted by manaboutime then you need to read it over and over again until you do. Or, ask someone to explain it. It is based on a 1% AUM fee. If you are charged 1.5% in AUM fees than the numbers are even more staggering.

“If my assets made 10% in a year they would get 10% of my return. If my assets earned 5% they could get 20% of my return. If my assets earned 1% in a year they would take 100% or more of my earnings. “

A common suggestion by advisors is to take 4% of your portfolio each year and adjust it for inflation. This “rule” was suggested by William Bengen, a financial advisor, in 1974 and was designed to allow a 30-year withdrawal period, covering your retirement years. Whether that is appropriate or not is a topic for another post. However, with a $1 million dollar portfolio, this equates to a $40,000 withdrawal the first year. Charging a 1% AUM fee would result in the advisor pocketing $10,000.

This means the advisor is taking a mind boggling 25% of the money you are allowed to withdraw and likely took you decades of hard work to accumulate. Actually, it’s even worse because now you have withdrawn 5% (your 4% + the 1% AUM fee). People underestimate the effect fees have on their portfolio. “Gee, it’s only 1-1.5%”. Imagine paying only 0.14%. It’s easily done when you invest with Vanguard and Fidelity (and others).

[retiredguy123]

In my opinion, you have two options:

1. Open an account with Vanguard and invest 40 percent in the S&P 500 Index stock fund, 20 percent in the short term bond index fund, 20 per cent in the total bond market index fund, and 20 percent in the money market cash reserves fund.

2. Pay Fisher Investments 1 to 1.5 percent of your total investment portfolio each year to select the investment products for you.

I would advise you to choose option 1, and I have been doing that for over 40 years. I have never paid an investment advisor a penny.

[Babubhat]

I would not pay Warren Buffet 1.5%. He says use index funds. But so many think they can do better. The odds are against you in the long run just like playing in the Casino

[dpscmsgt]

I lost money with Vanguard. Since switching to Fisher my investments have done better than the S&P 500 but not as good as the Nasdaq 100 index. I am ok with that because it fits my risk tolerance.

I have three accounts with them IRA, Roth and Brokerage. I am required to take RMD from the IRA and I am still making money from that account.

During the Bear market of 2022 mu accounts did go down but not as much as the S&P and Nasdaq. At the end of the bear market, I was still making a lot of money above my original investments in each account.

They set up your investments based upon your financial facts and other factors (i.e. your risk tolerance, age, etc.)

[BlueStarAirlines]

Originally Posted by glsatterlee

As another person said on this post, Fischer does not make cold calls. I have been with them for 12 years. We are up 26% YTD. Put that into your calculations.

If you invested in Vanguard's 500 Index Fund Admiral shares and forgot about it you'd be up 20.62 as of yesterday.

My 401k is up 39% as of yesterday. Both of those without advisor fees.

If its working for you then you should feel good, but if I were in your shoes I'd feel ripped off. By the way, you are not up 26%. That may be your return before paying your advisor costs.

[Robbb]

Originally Posted by Rainger99

I don’t know of one but I expect that they don’t do it because they aren’t that good.

The average yearly return of the S&P 500 is 10.749% over the last 50 years. This assumes dividends are reinvested.

I think the minimum Fisher investment is $500,000. If your advisor can just match the market, that would be $50,000 a year in profit. If an advisor took just 3% of the added value, he would make $1,500 a year. If they are really that good, I would expect that a financial advisor could beat the market most years.

How is a "good advisor" going to beat the market most years? Without insider information how are they going to beat the market? What kind of insight will guide them into making decisions that others don't make? The reality of the situation is NO advisor has ever beaten the market over a long time period.

[Robbb]

Originally Posted by Plinker

If you don’t understand the math posted by manaboutime then you need to read it over and over again until you do. Or, ask someone to explain it. It is based on a 1% AUM fee. If you are charged 1.5% in AUM fees than the numbers are even more staggering.

“If my assets made 10% in a year they would get 10% of my return. If my assets earned 5% they could get 20% of my return. If my assets earned 1% in a year they would take 100% or more of my earnings. “

A common suggestion by advisors is to take 4% of your portfolio each year and adjust it for inflation. This “rule” was suggested by William Bengen, a financial advisor, in 1974 and was designed to allow a 30-year withdrawal period, covering your retirement years. Whether that is appropriate or not is a topic for another post. However, with a $1 million dollar portfolio, this equates to a $40,000 withdrawal the first year. Charging a 1% AUM fee would result in the advisor pocketing $10,000.

This means the advisor is taking a mind boggling 25% of the money you are allowed to withdraw and likely took you decades of hard work to accumulate. Actually, it’s even worse because now you have withdrawn 5% (your 4% + the 1% AUM fee). People underestimate the effect fees have on their portfolio. “Gee, it’s only 1-1.5%”. Imagine paying only 0.14%. It’s easily done when you invest with Vanguard and Fidelity (and others).

Do what this guy says.

[manaboutown]

AI will bring 'carnage' to wealth management, strategist says

[mrf0151]

Originally Posted by manaboutown

I cannot count the number of times I have received expensive glossy brochure mailings from them over the years. They show up on my FB page almost daily. They show up as ads on almost all the investment news internet sites I frequent. Feels like a high pressure outfit due to all its aggressive advertising but I have no first hand experience with Fisher Investments. Ken Fisher is a multibillionaire. Kenneth Fisher - Wikipedia

Good observation. Fisher spends mega millions on advertising. Who do we think pays for all that advertising? Could it possibly be coming out of the investor's pockets? Reminds me of Parady here in the TV area. You think you're doing well? Think again.