Never more than 1%. Because what’s fair is fair.
Here’s a little secret. Most people with large investment portfolios do not pay more than 1% in management fees. Why? Because they do business with active management investment firms, whose leaders know that 1% is a fair fee. But the financial woods are full of companies who will gladly charge you 2% or 3% or 4%, and who aren’t always upfront about how they disclose their fees either. Even an extra 1% will make a significant difference in your returns over time. And you don’t need to pay it.