Re:UBS Acquires Wealthfront for $1.4B
by bonestamp2 on Thursday January 27, 2022 @12:06PM
(#30103038)
> It can be hard convincing people that 1% is a big number.
It's true. My mom only has about $1 million saved for her retirement, which sounds big to anyone who hasn't done retirement planning, but it's really not enough. Growth aside, that's $50k/yr for 20 years. She's paying her advisor 2%/yr. That's $20k/yr, which is a big percentage of her annual income, and he does almost nothing. It makes me sick.
After you get over 1M+ AUM, your advisor should seriously think long and hard about lowering their fees, many will go down almost in half(.5%ER). Still high, but if you really desire hands-off do everything for me, it's reasonable.
Once you get to 30M+ invested NW, you can seriously think about a multi-family office and > 100M+ a family office just for you starts making sense.
Most people will have a hard time getting over 1M before retirement, so I left the other options off my original post.
When you are in the $1m+ AUM, it is pretty easy to explain. You are going to be paying for your kids to go to college and one of theirs as well. Make sure you really like them.