Quote:
Originally posted by HardDrive
His fees are $600 yearly retainer, plus 1.5% of your portfolio. So if I give this guy 100k to work with, he is charging me basically 2.1% in the first year. So my investments are going to have to beat the markets by 2 points just to make this worth it. I'm pretty skeptical.
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Not just 2.1% but you'll also have to figure in the fees of whatever funds he puts you into.
Not to sound sceptical, and I don't mean to offend anyone in the business... but that entire industry is about separating you from your money.
I think Schwab will charge .5% to actively manage your portfolio. The other option (and what I will suggest). Is to find a flat fee based adviser. you pay him a flat fee of say $750 and go rearrange you portfolio once a year.
There are also one time fee services available. I think Schwab does it for $500, TRowe Price for $250 or something like that.
Why the **** should these folks make a percentage? is managing 200k twice as hard as 100k? N.F.W.
Better yet, figure out a good allocation for yourself. Find high morningstar rated, low fee (NO 12B!) funds and do it yourself.