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Here is an online book chapter in this subject: Chapter 10 – On Your Own or Hire an Advisor. "The great paradox of using an advisor is that you must know some basics in order to evaluate the advice, and once you do, you also know enough to consider doing your own management. If you have gotten this far through the primer, you are already a more knowledgeable investor."
For some ideas on how he could set up a simple, easy to manage portfolio by himself consider posting his financial information using this format: Asking Portfolio Questions.
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.He may be able to do this (set up a simple, easy to manage portfolio) himself. The 1% fee will consume much of his returns. For a quick education on the basics read the wiki article "Bogleheads® investment philosophy", see the link in my signature below.I (32) am a Boglehead beginner. Only a few chapters into "The Bogleheads' Guide to Investing". My dad (67) just mentioned to me that he is looking to move his retirement account over to a financial planner (FP). I would like this community's advice on questions/considerations my dad should know.
- The FP is a family friend my dad approached for assistance.
- The company this FP works for only invests in index funds. The FPs of this company are fiduciaries.
- Rebalances occur twice annually.
My dad's main motivation is to not have to worry about his retirement money. He also wants to have things setup so that it will be easy for my mom and the rest of us if something happens to him.
- 1% annual fee on first $1M, 0.8% on second $M, 0.6% on third $M.
[emphasis added]
My counter thought is that he could just setup these index funds himself and rebalance twice a year. Where could he get started on doing this himself? I saw in the wiki that even if the annual fee is 0-75%, he could lose around 20% of his investment over 30 years. I think he believes that a financial planner will net him more than 1% over index funds and that a professional will do better than he ever could. Could that be true in this case? Thanks in advance for your advice!
Here is an online book chapter in this subject: Chapter 10 – On Your Own or Hire an Advisor. "The great paradox of using an advisor is that you must know some basics in order to evaluate the advice, and once you do, you also know enough to consider doing your own management. If you have gotten this far through the primer, you are already a more knowledgeable investor."
For some ideas on how he could set up a simple, easy to manage portfolio by himself consider posting his financial information using this format: Asking Portfolio Questions.
Statistics: Posted by ruralavalon — Tue Jun 25, 2024 9:59 am
