Originally Posted by molof
do keep close tabs on the expenses of your advisor.
I just did a quick calculation on your numbers from above, don't know what you are contributing each year, but it is more than $54k as you stated.
8 years of compounded interest at 8% (high I know...) from $1.8MM and $54k contributions --> $3.95MM
If you pay your advisor 1.5% (don't know how much it is...)
8 years of compounded interest at 6.5% (8-1.5%) from $1.8MM and $54k contributions --> $3.56MM
That 1.5% fee turns into 10% less in your final portfolio. That is just in the accumulation phase.
I realize this is an old thread but trying to find people in the class of '22 and found this thread.
It's interesting to compare returns but how do you compare risk? For example, maybe you are making greater returns because you take on slightly more risk in your investment mix!? I obviously don't know. So maybe year 9 your self-managed portfolio goes down 10% and the manager goes down 2%!? My concern with simplified comparisons is it's really hard to do a true apples to apples comparison except for the very long term because then risk has been naturally factored in better. I don't think there is an easy way to factor risk in other than time. Would be curious what analysis is done by you and by the broker on this issue!? I hope things have continued well since this thread was posted. Good luck with your continued success.