The general consensus on BH is that you should do it yourself. They recommend that they post your portfolio using the guideline and get a critique. Advise given are pretty good but since there are multiple reviewers, you could get conflicting advises. Even if you end up using an advisor, you need to have some basic understanding so that you don't get cheated.
Most advisor work under an AUM model where you get charge for a percentage of your income. The typical fee I see is around 1% of your managed asset. Usually if you have a lot of asset, you might get a reduction in fee (for example, asset above $5M is reduced to 0.5%). There is typically a minimal fee since if you only have $500K, the advisor might not make enough money off it. In my opinion, this is an expensive model. 1% of $1M is $10K a year, and you pay it if you don't even use any of the services. Another downside is that the portfolio they generate then to be overly complicated. This is a sort of job security because they want to show that they are adding value by putting you into a 15 fund portfolio instead of 3 funds.
The other option are essentially fee only advisors. You basically paid by the hour. I think this is a good option if you just want someone to review your plan. The fee various ranging from $100 an hour to several hundred an hour. I think in another thread someone suggested about 8-10 hours initial consultation. The downside is that most of the good ones are booked well in advance. If you want to call them out of the blue because you are having jitters, you might not get an appointment for a year.
Then there are some approach that doesn't fit the bill like Planvision. They are basically a low cost planner that review your plan with a monthly subscription. Review are sort of mixed.I got the impression that they offer good advice for the price, but may be more suited for someone who know what they are doing and want a second pair of eyes.
I don't have any recommendation for AUM FA. Personally I don't really like them. However, if you want a lot of handholding, this is the only option. There's been a few good things on Vanguard PAS because they offer services for 0.35% AUM, but you have to move all of your asset to Vanguard.
For Fee only advisor. I believe that most people do recommend Rick Ferri. I believe his rate is $450/hour and he's booked out for a least a year if you don't mind the wait.
I wouldn't recommend going with Schwab or Fidelity. Based on some post, they seemed to generate boiler plate portfolio with too many asset classes.
Most advisor work under an AUM model where you get charge for a percentage of your income. The typical fee I see is around 1% of your managed asset. Usually if you have a lot of asset, you might get a reduction in fee (for example, asset above $5M is reduced to 0.5%). There is typically a minimal fee since if you only have $500K, the advisor might not make enough money off it. In my opinion, this is an expensive model. 1% of $1M is $10K a year, and you pay it if you don't even use any of the services. Another downside is that the portfolio they generate then to be overly complicated. This is a sort of job security because they want to show that they are adding value by putting you into a 15 fund portfolio instead of 3 funds.
The other option are essentially fee only advisors. You basically paid by the hour. I think this is a good option if you just want someone to review your plan. The fee various ranging from $100 an hour to several hundred an hour. I think in another thread someone suggested about 8-10 hours initial consultation. The downside is that most of the good ones are booked well in advance. If you want to call them out of the blue because you are having jitters, you might not get an appointment for a year.
Then there are some approach that doesn't fit the bill like Planvision. They are basically a low cost planner that review your plan with a monthly subscription. Review are sort of mixed.I got the impression that they offer good advice for the price, but may be more suited for someone who know what they are doing and want a second pair of eyes.
I don't have any recommendation for AUM FA. Personally I don't really like them. However, if you want a lot of handholding, this is the only option. There's been a few good things on Vanguard PAS because they offer services for 0.35% AUM, but you have to move all of your asset to Vanguard.
For Fee only advisor. I believe that most people do recommend Rick Ferri. I believe his rate is $450/hour and he's booked out for a least a year if you don't mind the wait.
I wouldn't recommend going with Schwab or Fidelity. Based on some post, they seemed to generate boiler plate portfolio with too many asset classes.
Statistics: Posted by gavinsiu — Wed Jul 24, 2024 1:37 pm — Replies 6 — Views 233