Reply to Those retirement planning seminars with free dinner..

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][img]https://i.ibb.co/TWqZJxF/image.png[/img]

Geez, these guys have $5.8 billion under management with 50-120bps per year fees?

Even that 0.75% average fee that's north of $40 million a year in revenue with only 86 employees. Good job if you can get it but it's crazy to me that a firm with 86 employees total is servicing over 3,000 families.[/quote]

The employees are either educated salesmen or admin. They outsource the thinking (i.e. models) to research firms to whom they pay a fee. The salesmen meet with clients, interview them, profile them, get them to agree to their profile and map them to one of their existing models. That's it. Beyond that, they focus on touch - [b]making sure the customers don't get scared away when the market jumps around, [/b]see if they have additional funds to invest, etc. essentially making sure they have no reason to leave. For someone with limited or no expertise in this area or no time, this is not a bad thing. [/quote]

I have a family member who used to be an FA at Schwab.  He said the bolded was by far the biggest value he brought to his clients.  Helping them not get emotional when the market jumps, stay on their course, etc.  As you said, for a good number of people, there is some value in this.  How much is for them to decide.  [/quote]

This is the # 1 reason people hire advisors. Most honest advisors know their goal is not to outperform the market because many people don’t care to outperform the S&P due to the volatility it creates.  Emotional reactions are far more costly than slightly underperforming the S&P [/quote]

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