"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 portfolio (7 figures) and no longer want to take the time to manage them yourself. I've always scratched my head at the Assets Under Managment fee schedule. If I had two million with an advisor he would charge me $20,000 a year to control my investments (1%). If I had four million that fee would increase to $40,000 and for what? It's the same advisor, same skill and experience level, similar tax considerations, almost the same investments (maybe a few more muni's?), and he'd probably spend almost the same amount of time working on the two portfolios. Good financial advice deserves to be well paid but I can't stomach the idea that the bigger the whale the more blubber that can be squeezed out.
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