Post by @yunggeeski

That “tiny” 1% fee cost over $50,000 on a $10K starting portfolio in this example. And no, “financial advisors can outperform” does not erase fee drag. If they generate enough persistent alpha after fees to justify the cost, fine. If they’re delivering basically market returns while taking 1% every year, the math is doing exactly what the chart shows. #investing #financialadvisor #sp500 #PersonalFinance #moneytok Footnote: 10%+ annual AUM fees are hypothetical extreme scenarios used to illustrate compounding fee drag. Sources: SPY adjusted-price history via Yahoo Finance; modeled annual AUM fees deducted monthly.