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[quote=Anonymous][quote=Anonymous]Let's say you had something like $15 million and aren't an investment expert but know some of the basics (i.e., diversification to protect against major losses). should you use a wealth advisor? The fees can be between 0.5% - 1.0% annually regardless of whether the portfolio goes up or down. That can range between $75k - $150k per year in this example![/quote]

My perspective.  About 10 years ago, some company stock vested and I decided to have it (and a few miscellaneous balances we had at that time) manged by a financial advisor.  The money they managed represented about 20% of my net worth at that time.  I track balances each quarter and I noticed that even with all their management, their accounts did not really beat any of my self-managed accounts.  When the market fell, theirs did too (and their assurance at the time of signing up was how they'd anticipate market downturns, hedge it and other such BS).   I have since cancelled their contract and self-manage all of my investments.

I've heard other advisors provide additional services - estate financial planning, tax strategy advice, etc.  Mine did not do that for the 1% fee they were charging.

If I were in your shoes, here's what I'd do.. Interview a few advisors to understand the services they will provide for the fee (not just offer).  Make sure they talk in terms of your life goals vs returns (you should be more focused on getting a certain threshold return each year vs. beating the market).  Ask them how they reacted to market downturns - 2008/9, 2011, 2015, 2017 and 2020. Ask for evidence.

Understand their fees. They have thresholds. E.g. 1% below $1M in assets, 0.75% for assets under $2M, etc.  Fees are negotiable.  Don't pay more than 0.5%.  Start them off with just the bare minimum to get the lowest fee.  Say $2M to get the 0.5% fee. If you are happy, move more money to them over time.  Or just copy their portfolio and implement it yourself with the rest of your money.

The real value of an advisor is not in their portfolio but their financial advice.
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