DRAFT GUIDE · OUTLINE STAGE
Am I paying too much for my financial advisor?
A plain-English guide from Real Performance Report.
The short answer: Maybe. It depends on what you pay in total and what you get for it. Many people pay 1% to 2% a year once every fee is added up. A low-cost index fund can cost less than 0.1%. The gap is worth checking.
Find the fees you can see
Your statement may show an advisory or wrap fee. Write down the dollar amount for the last 12 months.
Find the fees you can't see
Funds charge a yearly fee called an expense ratio. It comes out of the fund's value, so it never shows up as a bill.
Turn percentages into dollars
Multiply your balance by the total yearly fee. On $150,000, 1.5% is $2,250 a year, every year.
See what fees do over time
Fees grow like interest, just in the wrong direction. Our fee-drag calculator shows a rough picture in seconds.
Ask what you get for it
Planning, taxes and coaching can be worth paying for. Ask your advisor to show you, in writing, what you get each year.
Compare with a simple index portfolio
Our Report Card does this for you, with your real deposits and withdrawals.
Two next steps
1. Try the free fee-drag calculator. See roughly what your advisor's yearly fee could cost you over time. Open the calculator
2. Get your Report Card. One grade and one dollar figure for your own account. It's free during our pilot; the planned price after launch is $39. Join the pilot
Real Performance Report is not an investment adviser. This guide is general education, not advice about your situation, and never a recommendation to buy, sell, hire or fire.