<h1>The Hidden Cost of Using Financial Advisors vs. Low-Cost Index Funds</h1>

<p>I don't know who needs to hear this right now, but if you're not directly investing in low-cost index funds like Fidelity's FXAIX or Fidelity's FSKAX, both charging fees of under .02%, you are literally throwing away almost a quarter of a million dollars over 30 years by giving that money to a financial advisor to invest for you for 1%.</p>

<p>Don't believe me? Here's the math:</p>

<h2>Investment Scenario</h2>

<p>If I invest $500 today and subsequently contribute $500 a month over the course of the next 30 years into a low-cost index fund like the ones I named, assuming those funds return an average of 10%, after 30 years, I will have <strong>$1.14 million</strong>.</p>

<h2>Financial Advisor Scenario</h2>

<p>Now, if I take that same investment of $500 today and contribute another $500 a month over 30 years but give it to a financial advisor who charges 1%—most likely to put the money in the same low-cost funds or, even worse, in mutual funds charging 2% or 3% on top of the 1%—my return will drop to <strong>9%</strong>.</p>

<p>At that rate, after 30 years, I'm only looking at a total of <strong>$922,000</strong>. That's a difference of <strong>$218,000</strong>.</p>

<p>I don't know about you, but I invest so that one day I can achieve financial freedom, not so that my advisor can achieve it for me.</p>

Discover how choosing low-cost index funds over traditional financial advisors can significantly impact your investment returns over 30 years. Learn the numbers behind investing smartly.