Quote:
Originally Posted by wdfifteen
You are going to give him 1 percent of your portfolio every year. Think about that. Is the advice given to client A who has $2 million under management twice as good the advice given for client B’s $1million account?
The whole arrangement stinks. Pay a fee-only advisor a flat rate for a tune-up every couple of years.
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I think the idea with 1% is that they no longer charge for trades, so there is no incentive to churn your account. Instead they are guaranteed their money and in theory, should only make trades because it makes YOU more money, not just them.
The question is two fold:
1) Do you want to pay someone to manager you money (or not)
2) What is the best way to pay them if you do. (Is it per trade or flat fee)