Financial advisers and the ‘wealth tax’ toll

A good summary of the issues with wealth advisor’s fees and the impact they can have on your returns. The author’s obviously enjoying taking shots at the financial advisors too.

paywall but you can Google the title and click through to read the story

This is the key point -

Taking a 2 per cent charge will slash the rate at which your money grows and can mean your adviser gets most of that growth. For example, on £10,000 invested an annual return of 5 per cent over 25 years means your investment makes £23,864. But with a modest tax of 2 per cent, that growth is shared £10,938 to you and £12,926 to your adviser and others. They take 54 per cent of your gains. This excellent website does the maths: larrybates.ca/t-rex-score. Make a strong cup of tea, sit down and put your own figures in.

The calculator’s great.

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