Reply to 1% fee for investment management?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]It depends. First, 1% is pretty standard rate which can be worth it. For me, the benefits are 1) it gets me access to less expensive institutional shares of stocks (e.g. instead of paying fee of 0.30% to Vanguard say it's 0.08%. 2) Access to shares of Dimensional Fund Advisors (DFA) or other funds that you need an advisor for 3) advice on a variety of financial topics 4) no need to spend the time rebalancing or managing the account. So I would ask for the 1% fee, how much of what I listed do you "get" and do they combined make up for the 1% fee. If they don't give you benefits, then I agree a low cost Vanguard or Schwab is probably better.[/quote]

This doesn't make sense.  Why pay someone 1%, so you can save 0.22% on the expense ratio.  Also vanguard and Fidelity have very low expense ratio products these days, but you would need more than $8,000 to invest in them.  Vanguard calls them admiral, not sure what Fidelity calls them.

In any event, I'd roll over your account just to consolidate accounts.  Having $8,000 in an orphan account where you won't add more money to it seems like a waste.[/quote]
DP.. certain types of accounts have more flexibility in terms of what types of stocks, funds can be purchased. [b]The cheaper ones don't have access to some of the more aggressive funds[/b].  I just reviewed all this with my investment manager who doesn't make any commission. He is salary based.[/quote]

I don't understand. Vanguard has hundreds of funds, from low risk/low return to high risk/high return. Can you give an example? [/quote]

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