Advisor is Costing Client $110,350 a Year!
What your advisor is costing you...
Instead of fees, lagging the market, capital gains, etc.
You could do it yourself, save the fee, get better returns AND pay less taxes.
Have us do a review of what your advisor is costing you, your lifestyle and your legacy.
Matt explains the alarming cost of "good enough" advice.
This Advisor is Quietly Costing an Investor $110,350 Per Year
Meet John.
John is a 61-year-old successful entrepreneur who recently sold his business. After taxes, he’s sitting on a $3 million nest egg. Like many, he trusted a well-known advisor recommended by a friend. The advisor’s pitch? “Customized strategy, active management, and decades of experience.”
John didn’t question it. After all, this was his first time being on the other side of wealth — the side where his money had to work for him.
But here’s the problem…
The Advisor Looked Smart. But the Numbers Tell a Different Story.
Let’s break it down...
1. Underperformance: -2% vs. the Market
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Let’s say the S&P 500 returned 8%.
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John’s advisor-managed portfolio returned only 6%.
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That 2% gap on a $3,000,000 portfolio equals $60,000/year in lost growth.
That’s $60,000… just gone. Not from fees. Just from not being in the index.
2. Advisor Fees: 1% AUM
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The advisor charges 1% annually.
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That’s $30,000/year. Every year. Whether they beat the market or not.
Unlike performance, the fee always shows up — like clockwork.
3. Capital Gains Tax Drag
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John's advisor traded frequently, realizing $110,000 in capital gains.
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At an 18.5% tax rate, that’s a $20,350 tax bill John wouldn’t have had if the advisor held long-term positions or indexed more.
John wasn’t making more. He was just paying more to the IRS.
What Could John Have Done Instead?
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Indexed a core portion of his portfolio (lower fees, lower taxes)
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Benchmarked performance annually (to measure real value)
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Chosen an advisor with audited performance — not just a fancy brochure
Bottom Line:
If your advisor is underperforming the market by even 2%, and charging you 1% to do it… You might not notice it this year. But over time, the quiet cost becomes devastating.
Phil Beat The S&P 500... 8 YEARS IN A ROW!
THE RESULTS SPEAK FOR THEMSELVES
Our mission is simple:
🔹 To provide you with tax and financial services that not only meet expectations, but exceed them.
🔹 To deliver clarity and confidence, no matter the complexity of your finances.
🔹 To stand by you with a stronger team, smarter systems, and unwavering commitment.
If you ever have a question, a concern, or just want to talk, I’m here.
Your trust matters more than ever.
Warm regards,
Matt
President, VMG Financial
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