The outcome on the left isn’t bad! Retiring with $3M in the bank is pretty sweet and WAY better than the vast majority of us do. If you find a good AUM (assets under management) advisor and stick with them for the long haul, you’ll probably have a great outcome.

That said, it’s about the same amount of effort to simply hold your investments in your own account, rather than have them under the custody of your investment manager. In fact, I personally prefer that experience because I don’t feel like I have a gate keeper to access my own money. Plus, as the graphic, shows, for about the same amount of work you end up with an extra MILLION DOLLARS. Oh, and Dani still gets financial advice whenever she needs it!

In this scenario, Dani is simply paying a FLAT-FEE out of her pocket to pay for her financial advisor, rather than having the fee taken out automatically annually and increasing with the size of the investment. As the size of the investment compounds, so do the fees. The math is dramatic, which is why we try to avoid fees on our investments!

For the last six years I’ve been running Personal Finance Club, I’d explain this math and would get the next obvious question: “Yeah, that sounds great! How do I find a good flat-fee financial advisor?” And my answer was always “Oh, I have no idea.” Not many advisors charged a flat fee, and those that did were hard to find, fragmented around the internet, with different terms, different fees, etc.

I was sick of giving that answer, so about a year ago we launched @hello_nectarine! It’s been going GREAT so far. I generally think investors LOVE talking to a Nectarine advisor because, for the first time in their life, they’re talking to a financial advisor who doesn’t have some WEIRD AGENDA like selling life insurance or taking custody of your assets. Nectarine advisors have NO agenda other than using their expertise to help you, and hopefully get a good review!

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.

-Jeremy

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By: Gabriela Gonzalez
Title: How hiring a flat-fee financial advisor can save you millions
Sourced From: www.personalfinanceclub.com/how-hiring-a-flat-fee-financial-advisor-can-save-you-millions/
Published Date: Wed, 19 Feb 2025 02:12:22 +0000

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