How much money before you stop managing and hand off to a wealth management firm?

[Anonymous]

Vanguard posts their fees on line:

https://investor.vanguard.com/wealth-management/personal-advisor-wealth-management?msockid=044a77ede27a655704fe6121e3f164ba

You would pay .1% for a managed account with 10 million to invest.

Fidelity and Schwab also have high net worth divisions.

Look long and hard. It really is all about the basis points (fees charged.)

[Anonymous]

Anonymous wrote:We had someone managing our money before we even hit $1 million. At about $2.5M I decided to do it on my own, then realized I wasn't actively managing anything--more just watching. My husband is completely uninterested in money, so I couldn't count on him.

A couple of years later I signed on with a wealth management firm that also manages my mother's money. While I hate the .08% fee, I love the personalized attention when it comes to taxes and retirement planning. And we're up quite a bit.

Which firm?

[Anonymous]

Anonymous wrote:.8 percent of 2.7 million is over $21,000 a year.
No way would I pay anyone that amount of money per year. What decisions are they making that are worth that?
I belong to the Bogle philosophy of buying and holding, long term, diversified mutual funds. It’s not rocket science. If I need specific advice, I can hire fee-only advisers for a per hour rate through the Garrett Planning Network
I did try a wealth manager for a while, but after a few years of paying them gobs of money while they did not do much of anything, I realized that I was losing a huge amount of money—because I was losing thousands in fees that should have been compounding as part of my investments.

Yes, we've done the math. The firm has saved us more than that in bad decisions. But you do you.

[Anonymous]

What do you mean it grew about percent in last 4 years? I read that sentence several times.
Why is it all over the place? Stop playing with it.
This was so much money that all you had to do it stick it into a few ETFs and then sell some when you are done working. Barely any tax to be paid.

[Anonymous]

I’ve only been investing out of 401k for a few years, mostly in low cost Vanguard index funds often recommended on investor forums.

Based on a few years of tax returns, I can’t imagine how I’d even come close to breaking even putting my assets under management. Yeah, I’m probably paying a few hundred more in taxes than I could be. But it’s still less than the advisor fee, and I’d be paying that fee regardless of whether I have dividends or capital gains or not.

Granted I only have a few hundred thousand in the market, and many years to go. The numbers might make more sense in the millions and when I have to start cashing out. But for now VTSAX and chill seems to be working best for me.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We had someone managing our money before we even hit $1 million. At about $2.5M I decided to do it on my own, then realized I wasn't actively managing anything--more just watching. My husband is completely uninterested in money, so I couldn't count on him.

A couple of years later I signed on with a wealth management firm that also manages my mother's money. While I hate the .08% fee, I love the personalized attention when it comes to taxes and retirement planning. And we're up quite a bit.

Are you sure .08 percent is correct? Do you actually mean .80 percent?

If it's .08 percent, please say the name. Our extended immediate family has about twenty million collectively and our fee is .45 percent. It's supposed to be a lower percentage the higher you go in assets

You are getting a decent rate at 45 basis points for 20 million. I have to think the PP is paying 80 basis points for the 2.5 million which is a very good rate for 2.5 million.

[Anonymous]

OP

re: the private equity offerings

There have been several articles in the WSJ about accessing private equity offerings. They appear to go to those that are ultra high net worth and also very connected.

I would question if you want to avoid stress and anxiety why you would even consider the private equity offerings? According to the last article there also seemed to be pretty big fees associated for the average man/woman to access the private equity offerings.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We had someone managing our money before we even hit $1 million. At about $2.5M I decided to do it on my own, then realized I wasn't actively managing anything--more just watching. My husband is completely uninterested in money, so I couldn't count on him.

A couple of years later I signed on with a wealth management firm that also manages my mother's money. While I hate the .08% fee, I love the personalized attention when it comes to taxes and retirement planning. And we're up quite a bit.

Are you sure .08 percent is correct? Do you actually mean .80 percent?

If it's .08 percent, please say the name. Our extended immediate family has about twenty million collectively and our fee is .45 percent. It's supposed to be a lower percentage the higher you go in assets

You are getting a decent rate at 45 basis points for 20 million. I have to think the PP is paying 80 basis points for the 2.5 million which is a very good rate for 2.5 million.

I'm the PP and I meant .8, not .08. My bad. Sorry to get everyone excited.