What’s the difference between £27,800 and £30,353?
One is the total costs for looking after £1,000,000 the other is the UK average salary for the year.
The average registered nurse is £24,797
Whilst for any analytical purposes these are incomparable numbers, yet they are important for perspective.
If you employ wealth or fund managers that make you 20% each year, paying £27,800 to make £200,000 each year is a price worth paying. But when is the price not worth paying?
If you have a 60/40 portfolio in favour of equities with an average return of say 8%, that’s £80,000 on £1m; would you pay £27,800? Maybe. Maybe not. That’s your decision.
At what point would you say no, I’m not paying that price? When do you know when to say enough is enough?
Of course, investors almost always tell me they are paying significantly less than average. That is until I show them they are paying more than they ever appreciated. Want a conversation?