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URL:  http://boards.fool.com/quotand-if-you-are-withdrawing-0-quot-a-1-29403572.aspx

Subject:  Re: Professional management Date:  7/8/2011  6:09 PM
Author:  MajorMajor78 Number:  69238 of 78166

"And if you are withdrawing 0% ? "

A 1% assets under management fee on top of any high ER's and/or loads for active funds the advisor places you into can take a massive blow to retirement income safe withdrawl rates. At 56 and all of your goals taken care of then withdrawls are probably not terribly far off. Even if you are not making any withdrawls yet these fees can drastically undercut any returns you earn on your portfolio. If inflation averages 3%, AUM fee of 1%, ER on the active funds at an average of 1-1.5% and you would need a return of over 5% to just break even (God help you if there are loads).

This doesn't mean active managment doesn't have it's place, only that you need to be aware of potential pitfalls so you can avoid them. BruceCM mentioned the Garret network and finding an advisor that charges by the hour. I would say this is probably the best way to go if you have a large