For this amount of money I doubt they will just be rebalancing your portfolio between a few low cost index funds so you could expect to add on at least another 1% (and possibly much more) in trading costs, higher mutual fund fees, or hidden expenses. I'm sure it depends on the broker, but I can say that we were paying a flat fee of 1.5% when the account was at Morgan Stanley, and we are paying 1.25% now at AG Edwards. This is a flat fee, and there are no other fees or commissions regardless of how many trades are made. In our case, we have 3 accounts, all IRA's that are being managed. There's a long story on why I actually have 2 separate IRA's there, but it does make sense in our case to just leave them like that, and it doesn't cost us any more.In addition if this is in a taxable account, every time they get you to do a trade you may have to also pay capital gains taxes. Agreed, and that's why we have only had our IRA's managed because those are tax-deferred accounts. I'm still handling all the taxable accounts myself.If the OP is doing fine managing his own portfolio, then he may not need to spend the money to get a professional financial manager to do it instead. In our case, however, we have a very specific reason for doing this. We are simply hedging our bets to find someone who I would trust to manage our money if I get hit by a bus. I know all about the 'average investor' statistics, but not everyone is an average investor. In our case, my DH has no interest in managing money at all, and never has, so we're just doing a test drive to find someone that we like who could take care of things in the event that I cannot. I'm not seeing that sort of reason from the OP, so I'm not so sure it would make financial sense for him to do that.In our case, though, it makes sense for us to have someone who can manage the money, and I am willing to pay a fee for that.
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