Why would you pay 1% to a financial advisor?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For those that don’t use advisors, what do you do as a “sanity check” on your finances?

I do it all myself and feel pretty good about my allocations, etc. However I don’t trust myself. I have always wanted an advisor to review it, charge me an hourly fee, then let me take it from there.

We have someone who we pay an hourly fee. It’s $330/hour and they go over our investments but also all other aspects of our financial lives.

Where do you find a person like this?

Lori Atwood

[Anonymous]

Anonymous wrote:

Anonymous wrote:For those that don’t use advisors, what do you do as a “sanity check” on your finances?

I do it all myself and feel pretty good about my allocations, etc. However I don’t trust myself. I have always wanted an advisor to review it, charge me an hourly fee, then let me take it from there.

I’ve done this 2 or 3 times. There was a guy who retired from some high powered investment firm who did this as his retirement gig.

Getting advice isn’t a bad idea but paying thousands year after year doesn’t seem worth it to me

We had a great guy similar to this hourly fee arrangement. But then he retired. We haven’t found a replacement.

[Anonymous]

Why would someone pay for a lawn service when they can cut the grass themselves? Because they don’t want to cut the grass. Plain and simple. Doesn’t mean the lawn service does a better job.

[Anonymous]

Anonymous wrote:Why would someone pay for a lawn service when they can cut the grass themselves? Because they don’t want to cut the grass. Plain and simple. Doesn’t mean the lawn service does a better job.

A lawn service doesn’t cost 1% each year of the value of the land the property is on.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Why would someone pay for a lawn service when they can cut the grass themselves? Because they don’t want to cut the grass. Plain and simple. Doesn’t mean the lawn service does a better job.

A lawn service doesn’t cost 1% each year of the value of the land the property is on.

Ok. The point is that people outsource a lot of things they can do themselves, this is no different. (I don't happen to outsource either.)

[Anonymous]

Anonymous wrote:Ramit Sethi says absolutely do not pay 1%. Pay hourly.

Are you the same person that quotes this guy in every thread? We get it, you like him.

[Anonymous]

As someone else said, the tax harvesting is a big reason. Plus we get other services for the fee (trusts, other legal docs, insurance recommendations, etc).

[Anonymous]

Behavioral counseling is the greatest advantage a good advisor brings. Keeps you from panicking out and missing the rebound.

[Anonymous]

1% is an insane amount to pay year after year.

Paying for a lawn service makes sense because you get much more in return.