Earl E Retyre
Full time employment: Posting here.
- Joined
- Jan 1, 2010
- Messages
- 541
I suspect I know the response I am going to get, but need some advice. I just met with a Financial Advisor at Chase who would charge fees to advise and actively manage my portfolio with the following rates:
first $250k 1.6% fee
next $250k 1.35% fee
next $500k 1.1% fee
over $1M .85% fee
By paying these rates I pay no additional fees to purchase any individual investments and they are not incented to sell me any particular funds or make me want to trade often just to make commissions.
I am about to sell a second house which will bring in $575k lump sum cash. Plus I have other investments currently with Fidelity at around $425. So, we are talking about $1M to manage for now. Probably add another $1M over the next few years.
Per advise from this site, I am starting to read some books - Asset Allocation and Boglehead. Part of me says I should just do what the book says and diversify, purchasing no load funds (such as Vanguard) where I can and rebalance myself every 6 months. But part of me says that I really do not know what I am doing and I should pay the fee for a little while and learn. According to the financial advisor, of course, the fee would pay for itself since my portfolio would earn more than the 1+% fee.
OK ... let me have it ...
first $250k 1.6% fee
next $250k 1.35% fee
next $500k 1.1% fee
over $1M .85% fee
By paying these rates I pay no additional fees to purchase any individual investments and they are not incented to sell me any particular funds or make me want to trade often just to make commissions.
I am about to sell a second house which will bring in $575k lump sum cash. Plus I have other investments currently with Fidelity at around $425. So, we are talking about $1M to manage for now. Probably add another $1M over the next few years.
Per advise from this site, I am starting to read some books - Asset Allocation and Boglehead. Part of me says I should just do what the book says and diversify, purchasing no load funds (such as Vanguard) where I can and rebalance myself every 6 months. But part of me says that I really do not know what I am doing and I should pay the fee for a little while and learn. According to the financial advisor, of course, the fee would pay for itself since my portfolio would earn more than the 1+% fee.
OK ... let me have it ...