Letting go of Fee-Based Advisor

[Anonymous]

Anonymous wrote: Or should we self-manage?

You should self-manage if you can make more than you would by paying the management fees.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We have one though whether we should keep one is debateable. However, one thing to note is that the use of this advisor allows us to buy funds with institutional shares that have much lower fees. So say 0.05% instead of 0.30% or something like that. So the 1% we're paying may be more like 0.8%. Area there other ways to get into those type of shares without advisor (or having multi-million to hit those fund limits to get institutional shares)? It doesn't net a positive return but it does make the "fee" smaller in reality for analysis purposes.

The fees on vanguard index funds are close to zero anyway. You can’t save much on VOO 0.04 percent...
But if it makes you feel better about your advisor, then fine...

Vanguard Small-Cap Value Index Fund Institutional Shares (VSIIX) - Expense ratio: 0.06%
Vanguard Small-Cap Value Index Fund (VISVX) - Expense ratio: 0.19%

This is one example of Vanguard shares where because I get in on institutional share, the fee is 0.13% less than if I just bought this as a small investor directly for the same investment otherwise. There are other examples such as below.

Vanguard Developed Markets Index Fund Investor Shares (VDMIX) - 0.20%
Vanguard Developed Markets Index Fund Institutional Plus Shares (VDIPX) - 0.05%

Normally the minimum on the later one is $100,000,000. Sometimes it's $5M minimum to get similar class of shares.