Check your inbox or spam folder to confirm your subscription.
Go to main Voices page »
Only if it’s keeping you from making big mistakes. If we assume you were going to put your money in a Target Date Fund appropriate to your age, then under almost any scenario that 1% will cost you over 15% of your final portfolio balance. It’s a pretty steep cost to pay for 30 or 40 years.
If all they are doing is move you’re money around using a robo system, they aren’t adding any value. I would much rather pay a fee for the service provided rather than pay a percentage of assets.
No. There are fee-only financial advisors who can do the job equally well. Mine charged $1200 for three sessions, well under a percentage of my portfolio.
Only if your own investing impulses really need restraint and you have less than $1 million in assets. If you are prone to shooting yourself in the foot, you probably are costing yourself well more than 1% a year. Following the advice of an advisor may help steer you away from the typical costly mistakes many investors make.
This depends on your level of assets. The larger your financial assets, the more likely the answer to this question is no. A good financial advisor can be worth it if she 1) puts your interests ahead of hers; 2) does more than just manage your portfolio; 3) keeps investment expenses very low; and (especially) 4) keeps you from making major behavioral mistakes.