“This is bad.”

That was the thought running through my head two weeks ago during a 1:1 call I had with a woman named Lori who wanted me to review her portfolio.

She had about $300,000 invested with a financial advisor. She'd been with him for years. She trusted him. She liked him personally.

But after our phone call, something started nagging at her.

So she did what I always tell people to do…

She asked her advisor three specific questions.

And sent me his responses.

I'm going to share them with you — word for word — because what happened next is something every single person who has a 401k, IRA, and/or brokerage account needs to see.

His answer:

"Currently 0.90% to me and 0.30% strategy fee. I do typically charge 1.2% on accounts below $500K. National averages are near 1.75% all in fee on a $300K account. So in my opinion, even being in the 1.2-1.5% range isn't bad at all."

In plain English:

Lori is paying 1.2% total on a $300,000 portfolio.

That's $3,600 per year. Every year. Automatically deducted.

And his defense?

"National averages are near 1.75% — so 1.2% isn't bad."

That's like a restaurant charging you $18 for a burger and justifying it by saying the place down the street charges $22.

The benchmark isn't what other advisors charge.

The benchmark is what this is actually costing you over time.

Here's the math he didn't show her:

At $3,600 per year in fees, compounded at the opportunity cost of 8% annual returns, Lori is giving up roughly $175,000 over 20 years — just in advisory fees alone, before we even touch the strategy fee or the fund expense ratios underneath.

$175,000!!

For a service she could largely replicate herself with a simple three-fund portfolio and a 30-minute annual rebalance.

His answer:

"I am using buffered ETFs to limit your downside exposure while letting you benefit on certain levels of gains. Last year the S&P 500 was +17.88% and your account was +10.60%. The S&P is currently -4.25% since Jan 1 and your account is -1.92%."

This one is more nuanced — and more dangerous. Because it sounds compelling.

He's essentially saying:

"You give up some upside, but we protect you on the downside."

That's the pitch for buffered ETFs. And on the surface it sounds reasonable.

But let's look at what it actually cost Lori:

Last year the S&P 500 returned +17.88%.

Lori's account returned +10.60%.

That's a 7.28% gap — on a $300,000 portfolio — meaning she missed out on approximately $21,840 in gains in a single year.

In exchange for what?

A buffer on the downside. In a year when the market went up nearly 18%.

She paid $3,600 in fees. She gave up $21,840 in gains.

That's a $25,440 cost in a single year — for protection she didn't need in a year the market crushed it.

~

Now here's where it gets really interesting.

He points out the S&P is currently down 4.25% and her account is only down 1.92%. He frames this as a win.

And mathematically, in this exact moment, he's right.

But here's what he's not telling her:

Over any rolling 20-year period in stock market history, the S&P 500 has never produced a negative return. Not ONCE.

The "protection" she's paying for is protection against short-term volatility in an account she doesn't need to touch for decades.

She's paying a premium for an umbrella — in a climate that's sunny 90% of the time.

And in the 10% of rainy years? The umbrella helps.

But the sunny years — the compounding years, the recovery years, the bull market years — she's sitting on the sideline watching the S&P grow without her.

That gap compounds too.

It just compounds against her instead of for her.

His defense:

"National averages are near 1.75% all in on a $300K account — so 1.2-1.5% isn't bad at all."

I want to be direct with you here.

Comparing yourself to an expensive industry average is not a defense. It's a distraction.

The relevant comparison isn't what other advisors charge.

It's what Lori could be paying instead.

A simple three-fund portfolio at Fidelity or Vanguard — covering US stocks, international stocks, and bonds — costs between 0.03% and 0.07% in total expense ratios.

No advisory fee. No strategy fee. No buffered ETF premium.

Total annual cost on a $300,000 portfolio: roughly $90 to $210 per year.

Versus $3,600.

That's a difference of $3,390 to $3,510 per year — money that stays invested, compounds at 8% annually, and over 20 years becomes approximately $165,000 to $170,000 in additional wealth.

Not because Lori picked better stocks.

Not because she timed the market.

Just because she stopped paying for something she didn't need.

Here's the thing about Lori's advisor.

He's not a bad person. And I feel confident he's not running a scam.

He genuinely believes in what he's selling. He's polite, responsive, and clearly cares about his clients.

But caring about your clients, and being the optimal solution for your clients are two very different things.

The advisor who charges 1.2% and puts you in buffered ETFs that cap your upside is solving for your emotional comfort — not your long-term wealth.

And emotional comfort has a price tag.

In Lori's case, that price tag is potentially $175,000 over 20 years.

Here's what I told her to consider:

If she needs downside protection because market volatility genuinely keeps her up at night — that's a legitimate need.

But the solution isn't expensive buffered ETFs.

It's building an asset allocation with the right mix of stocks and bonds that she can hold through volatility without panicking. That costs almost nothing and accomplishes the same goal.

If she needs professional guidance — tax planning, estate coordination, a comprehensive financial plan — a fee-only fiduciary advisor charges a flat fee for that service.

NOT a percentage of her assets forever.

She gets the guidance. She keeps the compounding.

If she's comfortable managing a simple three-fund portfolio herself — she could be paying $90 a year instead of $3,600. With better long-term results. And zero conflict of interest.

None of those options require paying 1.2% annually to an advisor running buffered ETFs in a bull market.

Lori's situation is not unique. It is everywhere.

That’s why I created the “30-Min. Fee Audit”.

And why taking just half an hour of your life, might be the most valuable time you spend on your finances all year.

Here it is:

That conversation with Lori is exactly what my 1:1 portfolio review strategy calls are designed for.

You share your current holdings, your fee structure, and what you're trying to build. I go through it with you — line by line — the same way I did with Lori.

No judgment. No jargon.

Just an honest look at what your portfolio is actually costing you and what a simpler, cheaper strategy could look like instead.

If you've been wondering whether your fees are quietly working against you — the answer is probably yes. And the only way to know for sure is to actually look.

Book your private portfolio review call here →

Now let's make sure you have the tools to find your own leaks — starting in the next 30 minutes.

Log in to your brokerage account.

Find your current holdings. For every fund or ETF you own, search the ticker symbol followed by "expense ratio."

Write each one down. Add them up.

If any single fund is above 0.50% — flag it immediately.

If your weighted average across all funds is above 0.25% — you have work to do.

Five minutes. Could be worth six-figures over your investing lifetime.

Send this exact email to your HR department today:

"Hi — can you send me the fee disclosure document for our 401(k) plan? I want to review the expense ratios on the available funds."

They are legally required to provide it.

While you wait, log into your 401(k) portal and look at what funds you're currently invested in.

Most plans offer at least one low-cost index fund — often an S&P 500 fund with an expense ratio under 0.10%.

If you're sitting in an actively managed fund charging 0.75% and there's a comparable index fund available at 0.05%, switching takes three clicks and could save you $10,000+ over your career.

If you work with a financial advisor, pull up your last statement.

Find the advisory fee line.

Then ask yourself — and if necessary, ask them directly — these 3 questions:

"What specific services am I receiving for this fee?"

"Has my portfolio outperformed a simple index fund after your fee is deducted?"

"What would it cost me to replicate this myself?"

A good advisor answers these confidently and completely.

They show you exactly what value they're adding beyond fund selection — tax planning, estate coordination, behavioral coaching, comprehensive financial planning.

An advisor who gets defensive or vague?

That's your answer.

If your audit reveals high-cost, actively managed mutual funds, here's your replacement playbook:

These four funds cover virtually every major asset class at a fraction of the cost of their actively managed equivalents.

Done.

One note: if the funds are in a taxable brokerage account, check for capital gains before selling (ie. did you make a profit on the position or lose money, and how long have you held it?) Inside a Roth IRA or 401(k)? Switch freely. No tax consequences.

Raise your hand if you have a forgotten 401(k) sitting at an old employer.

It’s ok. Most people do.

And those old plans are almost always loaded with limited, high-cost fund options — plus administrative fees you're still paying even though you haven't worked there in years.

Rolling an old 401(k) into a Roth IRA at Fidelity, Vanguard, or Schwab takes about 30 minutes of paperwork.

Immediately after, you get access to the entire universe of low-cost index funds.

Zero administrative fees. Full control.

One phone call. 30 minutes. Potentially $1,000’s saved every single year going forward.

I guarantee this is the highest-ROI 30 minutes you'll spend on your finances this year.

If your audit revealed you're overpaying — and statistically, most people are — here's exactly what to do next:

Step 1: Replace any fund with an expense ratio above 0.50% with a low-cost index fund alternative. Use the swap table above as your guide.

Step 2: If your total fee burden exceeds 1% annually, have a direct conversation with your advisor about what you're receiving for that fee. If the answer doesn't satisfy you — explore a fee-only fiduciary or start doing it yourself.

Step 3: Roll any old 401(k)s from previous employers into a low-cost IRA where you control the investment selection.

Step 4: Set a calendar reminder to repeat this audit every 12 months. Fee creep is real — especially as your portfolio grows and percentage-based fees take bigger and bigger bites.

❌ You cannot control the market.

❌ You cannot predict returns.

❌ You cannot eliminate volatility.

✅ But you can control your fees.

In 30 minutes or less.

Reducing your total fee burden from 1.5% to 0.15% is the equivalent of giving yourself a guaranteed 1.35% annual return boost — forever.

On a $500,000 portfolio, that's an extra $308,000 over 20 years.

You didn't need a better stock pick.

You didn't need a market rally.

You just needed to stop the leak.

Nobody showed Lori for 15 years.

I'm showing you right now.

Building wealth isn't about what you earn. It's about what you keep.

Stop the leak. Keep more. Build faster.

That's quiet wealth.

-Charlie

📌 P.S. — Want me to help you audit your specific portfolio and build a low-cost, high-efficiency investing strategy tailored to your situation? Book a private 1:1 strategy session with me and let's find your leaks and fix them together.

📌 P.P.S. — Once you've cleaned up your fees, you need one place to track everything clearly. My Stock Tracker & Portfolio Balancer is a fully customizable Google Sheets template that tracks all your holdings, automatically calculates gains and losses, and shows you exactly how much to buy or sell to stay balanced — all for just $9.99. Because knowing your numbers is the first step to protecting them.

Disclaimer: this content is for educational and informational purposes only, and is not legal, financial or investment advice. Always do your own research before investing, and consult a licensed professional. Charlie and OJD LLC are not responsible for any losses or decisions made based on this content.