I know the forum does not prefer financial advisors but I have a question concerning financial advisers and robo advisers. I understand the financial impact advisors have on my investments but am willing to pay. I am trying to figure out how to pay less.
I have an 8+ year history with an advisor that creates his own portfolio. I am holding primarily stocks and bonds not mutual funds of a 60/40 portfolio. He has the leeway to time the market within a range of changing the ratio about 15% in either direction. Over the 8 years buying/selling has been minimal and the stock part of the portfolio has been closer to 65%.
Returns from 2010 to 2018 has been 9.2% after fees. I think I should be happy with that for a 60/40+ portfolio. The funds are weighted to USA large caps. Fixed income investments are held in individual companies.
I have negotiated a reduction in my rate but it would still be slightly more than double of a robo program. Betterment is at the top of my list if I were to change. Betterment is charging 0.25%. Betterment data shows in the same period, 2010 -2018 their increase is about 92%. I believe the financial advisor's growth is a bit higher. I do understand enough to realize if large caps out performed the total market in the last few years, the advisors account would be showing the benefit of their current investment approach vs a more total market/global approach. I am not sure if the level of risk for that approach. The adviser in general focuses on large caps but can be more diversified. They control the approach.
I am hoping you can help me think through this decision of staying where I am at or moving to the lower cost robo adviser. I will be with an adviser. I want to be sure my analysis does not miss the obvious and/or subtle questions. Obviously, if you have questions that you feel will guide your advice, I will try to answer them.
One last thing, I do not need to speak to an adviser and the money is not really needed to support our lifestyle. I treat it in the same fashion as my pre-retirement money.
Thanks
I have an 8+ year history with an advisor that creates his own portfolio. I am holding primarily stocks and bonds not mutual funds of a 60/40 portfolio. He has the leeway to time the market within a range of changing the ratio about 15% in either direction. Over the 8 years buying/selling has been minimal and the stock part of the portfolio has been closer to 65%.
Returns from 2010 to 2018 has been 9.2% after fees. I think I should be happy with that for a 60/40+ portfolio. The funds are weighted to USA large caps. Fixed income investments are held in individual companies.
I have negotiated a reduction in my rate but it would still be slightly more than double of a robo program. Betterment is at the top of my list if I were to change. Betterment is charging 0.25%. Betterment data shows in the same period, 2010 -2018 their increase is about 92%. I believe the financial advisor's growth is a bit higher. I do understand enough to realize if large caps out performed the total market in the last few years, the advisors account would be showing the benefit of their current investment approach vs a more total market/global approach. I am not sure if the level of risk for that approach. The adviser in general focuses on large caps but can be more diversified. They control the approach.
I am hoping you can help me think through this decision of staying where I am at or moving to the lower cost robo adviser. I will be with an adviser. I want to be sure my analysis does not miss the obvious and/or subtle questions. Obviously, if you have questions that you feel will guide your advice, I will try to answer them.
One last thing, I do not need to speak to an adviser and the money is not really needed to support our lifestyle. I treat it in the same fashion as my pre-retirement money.
Thanks