Think about this: if he can REALLY beat the market by 2-3% a year and, during the course of his lengthy career, has demonstrated said ability, why is he marketing to small time retail investors? His proper seat should be at a trading desk of one of the large multinational investment banks or hedge funds (or even mutual funds) and he should be managing billions of dollars at a minimum.
"If he's so smart, why ain't he rich?"
Let me put it this way: I am an investment professional with ample experience, a CFA charter and a finance MBA from a top 10 school. If I could consistently beat any index by 3% without taking more risk, I would be a billionaire. Maybe Warren Buffet can do it. Maybe. Maybe Bill Gross can do it (maybe). That is about it. Your tinpot Ameriprise guy cannot do it.
IIRC Bill Miller did it for 15 years.
But that 16th year was ugly, and then the recession got going.
Lots of excellent points. Thanks!
After 6+ years on this discussion board, and dozens of posters asking questions about similar situations, I've learned to look upon your response with some skepticism verging on jaundice & cynicism. Past results are no guarantee of future performance, so to speak, but previous posters expressing similar sentiments have essentially been saying "Thanks, but I don't really believe that it's as bad as you say and we're gonna go with the Ameriprise guy for a while." To which we usually nod our heads and say "Yep, you're gonna have to prove it to your own satisfaction."
Or, as CuteFuzzyBunny used to cite so eloquently, "Hairball."
I like the other poster's metaphor of writing a check to your spouse every year for the amount you'd be paying to the advisor. Or heck, you could do it as an incentive and not just as a metaphor.
Another thought experiment would be asking your spouse if she'd like to pay that amount of money as tuition for one of your kids, siblings, or relatives at a private school or a college. For about 40-50 years.