In the early mid part of 90's, my mom had an advisor that we end up firing not because they were doing a bad job, but they were too expensive at around 1.25% and wanted to increase it to 2%. The portfolio was returning like 20-30%, but in that time period S&P 500 was returning the same amount or better. I then managed it for a few years and the numbers were not worse, but that was because the later part of the 90's was great for stock and not because of skill.I haven't been that active on the forums, I also need to be certain of the information here, right?
He doesn't promise, he says 11-12% with a combination of strategies may be possible. He has revised his estimates before when I have quizzed him on it. This year he initially said 10%, now 8%.
The numbers quoted are with the wrap fee, as I said before.
I probably could do it alone but I wasn't that confident before. For those who did away with their FA, when do you feel that you can take the plunge?
For some reason, you do not feel that you can do it on your own. I am not sure if you feel that you can't contruct a portfolio on your own or you feel that you cannot stay the course. There is value in an advisor if you are the type that needs to be talked down from selling everything when the market goes down, but the fee is going to hurt. 1% of $1M is going to be $10K a year. $10K will buy you 25 hours of a fee only advisor that charges $400 an hour and most only charge half that much and I doubt you meet your advisor for 25 hours a year. You will pay that 1% if that portfolio is making -40%.
Asking the board will not get you a definitive answer. You will just get a bunch of different answers. If you feel you can't do it alone, I suggest hiring a fee only advisor to review your choices. You can hire a low cost advisor like Planvision. You can even hire one now to examine your existing portfolio to get a second opinion.
Statistics: Posted by gavinsiu — Wed Jun 19, 2024 10:41 pm — Replies 46 — Views 5995