✂ How much would you save avoiding high fees and risky investments?

A viewer recently shared that her 86-year-old mother has $150,000 in an IRA. Her advisor built a highly aggressive portfolio of 92% stocks and now wants her to follow him to a new firm. This real case reveals major red flags. The portfolio is stuffed with high fees and Class A share front-loads. The risk level is completely wrong for her age. This calculator shows exactly how much those fees drain from your savings compared to a low-cost index fund approach.

Many advisors push Class A mutual funds to earn hefty commissions. A front-load fee takes a massive cut right off the top of your investment. High ongoing expense ratios drag down your growth every single year. Your advisor might also charge an annual management fee. Compare that to managing your own money using low-cost index funds or ETFs. With index funds, your fees drop to a fraction of a percent.

A 92% stock portfolio exposes an 86-year-old to severe sequence-of-returns risk. A market crash could wipe out the portfolio just when you need the money most. We assume a moderate 6% growth rate for both paths here. This isolates the exact impact of fees. The difference in your final balance comes entirely from avoiding front-loads and high expense ratios.

Based on content by Rob Berger on YouTube.

Original: An 86-Year-Old With 92% in Stocks: Is Her Advisor Right?

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