Quote:
Originally Posted by Manhattanboy
I look at my statements and the 1% or more of fees I pay and often times think why don’t I just buy 5 or 6 ETFs that track the various indexes. I would be curious on the stats but I have to think very few managers can do better over the long term (assuming the client is not willing to take on more than moderate risk).
The other pet peeve I have is reporting. I can’t even tell whether my returns are net of contributions. I guess I need to ask lol.
|
It's quite likely you could save the fees and build similar exposure via ETFs. Generally speaking the value of an advisor is the "soft" part, not so much returns/portfolio construction, imo. If they talk you out of panicking and going to 100% cash the next time a March 2020 style panic happens they've earned their fee for your whole life. If you didn't even consider selling in March 2020 then maybe you didn't need that service. Some people need other stuff (estate planning, etc) but I think it's quite likely you're better off buying that type of advice a-la-carte, not bundled into your money management.
If they're showing you a % return I'm fairly sure that would be a compound annual growth rate (ie, not affected by contributions) so you should be fine there.