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Investing/Strategies / Retirement Investing
|Subject: Re: Withdrawal rates in retirement||Date: 4/4/2008 10:21 AM|
|Author: Hawkwin||Number: 62124 of 81371|
I've got a problem with these a$$holes charging fees that many, if not most of their clients simply don't understand. When you tell a little old lady that all it costs is 1% a year, she has no idea that the broker is actually taking 30% of her yearly gain in exchange for putting her money in funds with high expense ratios to boot. If you don't have a problem with this, then that's your problem, not mine.
If that is the depth of your understand of what an adivsor does, your knowledge is sorely lacking.
I have very few "little old ladies" in an account that has an annual fee. The few I do, their expense ratios are significantly below the average for each fund class as we either use ETFs, institutional shares, no load funds, or A shares with no load and no 12b1 fees.
An account that only makes 3% a year (e.g. a total bond allocation) is not appropriate for a fee-based account and the company I represent would not allow a 100% bond allocation account.
If all I had to do what print off some generic asset allocation model and everything would be perfect, then perhaps you would be right.
On a side note, I find the blatant hostility towards advisors to be rather infantile. They provide a service in which no one is required to use and in which there are SEVERE penalities, unlike any other industry, for not only doing the wrong job, but also for not doing a good enough job.
You may not like the service they provide - you may think it is entirely too expensive (*as do I on many occasions), but I have no doubt that most people would be worse off, if left to their own devices, without them.
Someone previously stated that successful retirees don't use advisors.
Studies after studies have indicated that the really rich have neither the desire or the time to manage their own money. One of the fastest growing areas of wealth management are the ultra-afflient - those with more than 10 million. Do people really think Fortune 500 CEO's spend a lot of their time online researching individual stocks and making adjustsments to their retirement accounts? Of course not.
*I agree that the fees can be too high - that is why I discount my fee-based accounts to the maximum allowed by my company for every single client. They need that extra return more than I need the .15% fee. I would like to discount even further.
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