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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I am just trying to see what we are missing. We are in our mid 50s and have a net worth of about $5 million. We have 401k’s, Roth IRAs, allocated generally on the three fund approach from Boglehead. In taxable account, we have VTI and T-Bills. We also have some I-bonds and savings in HYSA. College for kids covered by 529s and a little cash flow.

What are we missing by not having an advisor?[/quote]

Honest answer?  If you stay 100% on top of it; make allocation changes when you should; have the right allocation ----then no you do not need them.  Most people with any kind of wealth do not do these things.  They forget.  Become busy in their job or something else.  In fact most of the people that say they do those things do not.  So if you can do it great.  If you can't and try to do it yourself and do not -- that is where the 5 million pile should have been 7 million.

You may be fine.  Most are not.  Take a Biglaw partner with 10 million in investments.  If a litigator and they go on trial -- no way they are checking investments.  And trial for them is not a couple of days --- 3-4 months of barely being able to breathe.  They are not thinking investments.  Or another in an M&A transaction or a bunch of them.  When they come up for air months have passed.

The biggest challenge to investments is not fees -- that is secondary.  It is opportunity cost.  If you are ever in the investment you should have been in or the allocation you should have been in -- hard to make money.

So do you need them --- no.  But will you do what needs to be done or do you need to outsource it.  [/quote]

THis 1000%.  Sure I could do it myself---I did for 10+ years.  But I do not have the time to research, stay up to date, remember to do everything in our busy lives.  So we "outsource" our financial management to someone we have been with for 15+ years.  We started with them when we had only 6 figures to manage, totally trustworthy and not a slimy FA.  We interviewed "top level wealth managers" when we hit significantly higher levels, and I just do not trust them.  Ours does an excellent job of managing and coordinating with our tax firm and estate planner. Most importantly I trust them and their recommendations.  I enjoy knowing that we are their top client, not their lowest client, which we might get with a "fancy wealth manager".   [/quote]

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