Too-High Money Management Costs

 

                       

Avoid money managers if you can. You pay them a fee of 1% to 2% of your assets which amounts to about 20% or more of your earnings a year. If you invest with them in a hedge fund, you pay 20% or more of earnings off the top, plus that percentage management fee.

                       

Only a tiny number of money managers prove to be frauds, but you will sleep better by staying away from them all because of their annual cost that adds up to a large chunk of what you’re left with. As much as one third or more of your earnings.

                       

Hire an accountant, or a CPA, and if you have considerable funds, and a tax attorney. But avoid expensive money managers by sticking to plain, low- management-cost funds.(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole tweets.)