A listener moved a six-figure investment account to a friend’s son who had just started as an advisor, based on loyalty rather than experience. The outcome was a portfolio managed by someone without a track record. Orman emphasized that results and performance matter more than fees. For a $500,000 portfolio over 20 years, a seasoned advisor at 7% gross with 1.5% fees yields about $1.46 million. An untested advisor at 5.5% gross with 1% fees yields about $1.21 million. The cheaper option costs roughly $253,000, making performance far more important than small fee differences over long horizons.
"Friendship isn't a financial plan. Guilt is not a strategy. Loyalty does not grow your money."
Read at 24/7 Wall St.
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