Your financial advisor's cost can cut into long-term gains
Traditional advisors typically charge Assets Under Management (AUM) fees—a percentage of your total investments, commonly 0.25% to 1% annually. While this might seem small, these fees create a compounding drag on your wealth over time.
A portfolio with a 1% AUM fee starting at $500,000 with 7% annual returns would grow to approximately $2.15 million after 25 years. The same portfolio with Range’s 0% AUM fees would reach about $2.71 million—a difference of more than what you started with!
Why such a dramatic difference? AUM fees don't just reduce your returns for one year—they eat into the base amount available for future compounding, creating what John Bogle aptly called "the tyranny of compounding costs."
When you pay a flat fee for your wealth management, you gain three key advantages: transparency (clear visibility into costs), alignment of interests (advisors aren't incentivized by portfolio size), and—most importantly—you keep more of your returns as every dollar compounds fully in your favor.