Financial Advisor Fees

A 1.5% annual fee from a financial advisor on a $1,000/month investment over 30 years, with an 11% return, results in approximately $1.9 million. Without the fee and with a 10% return, the outcome would be $2.1-$2.2 million, highlighting a $200,000-$300,000 difference due to fees.

Investing $1,000 per month for 30 years with a financial advisor who achieves an 11% return but charges a 1.5% fee, could result in just under $1.8 million due to fees.

A financial advisor charging 0.5% in fees (Advisor B) will result in $300,000 more over 40 years compared to an advisor charging 1.5% (Advisor A), assuming $1,000 monthly investment and comparable returns.