Financial Advisors Charge 2.5 Times Doctor Costs on $100,000 Accounts

1 articles · Updated · RealClearMarkets · May 12

$100,000 in savings can generate about $1,000 a year in advisory fees—roughly 2.5 times a $400 annual primary-care physical, the report says.
The gap stems largely from percentage-based pricing: a standard 1% fee rises automatically as portfolios grow even though managing more money adds little extra work.
Over 40 years, a $1,000 stock investment earning 8% would lose nearly one-third of its value to fees, underscoring how small annual percentages compound into large costs.
The report argues many clients miss the burden because fees are deducted before statements arrive and because consumers often struggle to translate percentages into dollars.
It urges investors to negotiate lower or fixed fees and weigh cheaper alternatives such as index funds, target-date funds and robo-advisers.

With robo-advisors and zero-fee funds, is paying for a human financial advisor an obsolete luxury?

Your advisor's fee could cost a third of your retirement. Why aren't these charges more openly challenged?