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[quote=Anonymous][quote=Anonymous]Most mutual funds are over 1%.  If you use a place to hold your accounts, like a Schwab, you have to pay them as well.    Then you have to pay an advisor.

Edelman's total cost is about 2.3% for all of that.  I bet if most people add up their fund costs, advisor costs and custodial costs it's similar.

Of course it's much cheaper to do yourself, but most don't have the ability to manage (or the time).  [/quote]

Inaccurate.

Average equity mutual fund fees are well below 1% and bond funds are close to 0.5% ... index funds are approx. 0.25%: http://www.ici.org/pdf/per19-03.pdf

Most discount brokerages do NOT charge a user fee assuming assets are above a certain threshold, though they do charge for transactions.  An astute investor can most certainly find a highly competent advisor for 1% or less.

Even a retail investor should not pay more than 1.75% for all-in management and advisory, and before you say 0.5%-0.75% is not a big difference, keep in mind that your long-term expected return is likely in the 5% range after taxes, so you're talking 10%-15% of your return that's devoted to extra fees.  If the advisor is able to deliver excess value above that threshold, then s/he is 'worth it' ... but it's a high hurdle and on average investors paying lower fees will outperform those paying higher fees.[/quote]

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