What aspect does high-cost investment brokers and advisors pose to investors?

High-cost investment brokers and advisors often lead to decreased net returns for investors primarily due to the fees associated with their services. When investors pay substantial commission fees, management fees, or advisory fees, these costs are deducted from their overall investment returns. Consequently, even if the underlying investments perform well, the investor's actual profit can be significantly diminished by these high costs.

For instance, if an investment earns a 10% return, but the fees consume 3% of that return, the net gain would only be 7%. Over time, these costs can compound, further impacting the overall performance of the investor's portfolio, thus highlighting the importance of considering total investment costs when choosing financial services. By prioritizing lower-cost investment options, investors can retain a greater share of their returns, ultimately achieving better long-term financial outcomes.