High financial adviser fees undermine long-term investment returns compared to alternatives

A financial adviser charging a 1 percent fee on a $500,000 portfolio amounts to $5,000 annually. This fee is considered high compared to lower-cost alternatives, such as index funds or robo-advisers, which typically charge between 0.2 to 0.4 percent. Lower fees can significantly enhance long-term investment returns due to compounding effects.

Summary by OZbrief · Brisbane Times