Reply to Fee-based financial advisor for retirement years

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[quote=Anonymous][quote=Anonymous]Providing advice for an hourly fee, or by the project, usually is an insufficiently remunerative business model.  Most clients will look for 1/2 hour or an hour of time every once in a while, which provides an insufficient income stream to support an advisory business by itself.

Don't be so quick to dismiss low-cost asset management and advisory services.  The key is "low-cost".  Once you start to pay more than perhaps 0.5% of assets under management as a fee, it'll be difficult for returns to overcome the drag those fees impose on your portfolio.  But, when fees are low enough, and are coupled with advice and management, there may well be value there which justifies the advisory fees.  This is especially true if you're not always disciplined about maintaining your asset allocation through regular rebalancing, if you use active investments which are not tax sensitive, or may sometimes make other improvident investment decisions on your own.  An advisor can help with tax-loss harvesting, which some people struggle to execute optimally.  Further, an external advisor/manager may be helpful should you encounter periods of disability when you become unable to focus on or otherwise manage your investments diligently or effectively.

This discussion paper may be interesting, although it is admittedly also a marketing tool for an advisory service:    https://advisors.vanguard.com/insights/article/IWE_ResPuttingAValueOnValue

And this:  https://www.ifa.com/articles/advisor_alpha_view_from_vanguard/[/quote]
Thanks for this response. 
We've had an ongoing 10 yr relationship with a fee-only advisor who charged an annual fee (paid monthly in arrears) and that was just our speed. We're very plain simple investors and low spenders-- and those years were doubly-lucky with big compensation and big stock market gains. We were pretty much set up for life, accounts all positioned as we want, with quarterly and a big annual review with our advisor. But advisor is moving to fee-based. So sad, I know, but I want to replace the fee-only advisor we had, with a fee-only advisor. 
I didn't expect this to be a difficult search. [/quote]

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