ProGolferWannabe
Recycles dryer sheets
- Joined
- Jan 14, 2012
- Messages
- 141
I’ve managed my and my wife’s investment portfolio for our entire working lives. I suppose “managed” is somewhat of a generous characterization of my skill...we just relied on living below our means, dollar cost averaging into low-cost index funds, and a long period of time to accumulate (to us) a decent nest egg that, along with our pensions and social security, should allow us to have sufficient funds to retire.
I recently talked to a financial advisor who I liked very much. I like the idea of being able to hand off our assets and not have to worry about managing our investment portfolio, though like in the accumulation stage, I don’t think it is going to be a very heavy lift for me to do it myself. The advisor would be a source for me to turn to for guidance on ad hoc issues...should I drop my term life insurance, when should we take social security, should I do some Roth conversions. Again, I think I can make reasonably informed decisions about this stuff myself, but I do think he would add some value. One big plus is that assuming I leave planet earth before DW, I would feel confident that this advisor would serve her well...my DW is much brighter than I am, but just never had an interest in managing our money. She’s met with the advisor as well, and said if I were not around, she would be comfortable working with him.
The big issue for me is cost...he charges about 1.1% of AUM...way, way, way more than I have ever paid. I ran firecalc adjusting for the higher expenses in figuring out the impact on my spending. The reality is that even with the higher expenses, we would still be unlikely to spend what firecalc says we can.
Has anybody done something similar? Any thoughts on taking this approach? Any advantages to using an advisor I may not be considering? My gut is telling me this is not a very good use of money...not because I don’t think he won’t do a decent job, but just because the value isn’t there.
Appreciate any perspective you might want to share.
I recently talked to a financial advisor who I liked very much. I like the idea of being able to hand off our assets and not have to worry about managing our investment portfolio, though like in the accumulation stage, I don’t think it is going to be a very heavy lift for me to do it myself. The advisor would be a source for me to turn to for guidance on ad hoc issues...should I drop my term life insurance, when should we take social security, should I do some Roth conversions. Again, I think I can make reasonably informed decisions about this stuff myself, but I do think he would add some value. One big plus is that assuming I leave planet earth before DW, I would feel confident that this advisor would serve her well...my DW is much brighter than I am, but just never had an interest in managing our money. She’s met with the advisor as well, and said if I were not around, she would be comfortable working with him.
The big issue for me is cost...he charges about 1.1% of AUM...way, way, way more than I have ever paid. I ran firecalc adjusting for the higher expenses in figuring out the impact on my spending. The reality is that even with the higher expenses, we would still be unlikely to spend what firecalc says we can.
Has anybody done something similar? Any thoughts on taking this approach? Any advantages to using an advisor I may not be considering? My gut is telling me this is not a very good use of money...not because I don’t think he won’t do a decent job, but just because the value isn’t there.
Appreciate any perspective you might want to share.