Reply to How much money before you stop managing and hand off to a wealth management firm?

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Reply to "How much money before you stop managing and hand off to a wealth management firm?"

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[quote=Anonymous]Portfolio size has little to do with it.  You use an advisor when you recognize that you lack the knowledge, experience, and/or objectivity to optimally balance risk and reward while minimizing your tax liabilities.  You also use an advisor before advancing age has a deleterious effect on your financial decision-making, a move which should help you avoid bad outcomes which result from impaired cognition, even if not at the level of actual dementia.

That said, there are advisors, and there are advisors, and selecting the right one for your needs is not as simple as just going along with the first pitch you listen to, or blindly adopting whoever your friends or family have been using.  Costs and investment expenses, as well as returns, have a significant impact on your net returns over time, and advisors who create complex portfolios often increase the complexity and amount of your investment-related taxes with portfolios which can be complicated to unwind later if desired.  Many, if not most, people can be well served by a low-cost robo-advisor or by a low-cost hybrid service like Vanguard's Personal Advisor Service.  The publication "Robo Report" reports on robo advisor performance, and is worth subscribing to, since it's free.

https://www.condorcapital.com/the-robo-report/

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