Reply to if you have a financial advisor-question on fees from mutual funds

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[quote=Anonymous]Argh. First, put no money in individual stocks unless you have a massive appetite for risk. You're not a professional trader.

Our advisor charges a fixed fee of assets managed. It's in the 0.75%-1% range depending on portfolio size. Worht every penny, because you can use them for everyhting else. I had them review our wills for how the trusts are set up and beneficiaries; evaluate some refinancing options on our house and rental property, etc.

Don't get caught up on the funds. ALl you need to do is figure out risk level, then they'll come up with a mix of equities/bonds based on that (more bonds if you are lower risk). Then, in each of those groups, they'll choose funds that are cheap, let you diversify, etc. Then, they'll keep track of all the tax issues, and do loss harvesting, etc.

Myself and DW both have MBAs; we understand finance.. and yet we still use a financial advisor. Why? A mix of time and expertise. For example, during a complex refi of our primary home and a rental property, the advisor pointed out a rarely-used tax provision for additional deductible interest that will save us $4k/year. They also set up a back-door roth IRA (google it) to let us get into a Roth despite our income levels. Neither of us have time to become experts in this stuff -- it's worth the 1%, because we benefit much more than that over the course of the year, compared to our previous "strategy" (haphazard picking of mutual funds, no rebalancing, etc).[/quote]

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