Well this is a solid myth.
At Fidelity’s Inside Track conference in New York City this week, Ron Carson (of $10 bil. asset firm Carson Group) admitted as much by stating the assets under management (AUM) business is only worth 0.2%. That is, if you have $1.0 mil. being “managed” by an adviser, you should be paying only $2000/yr for the privilege. I come across people every week who are still paying 2.0%, ten times 0.2%, or $20,000/yr on a million account per year. The current average AUM fee is 1.22%, still more than six times what the advice is worth.
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