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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75340  
Subject: Re: Professional management Date: 7/10/2011 3:34 PM
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StockGoddess asks,

I think a professional can be a big help even to someone who's already saavy because you can discuss the pro's and cons of your investment options using the same language - mine is happy she doesn't have to explain every single term to me, your advisor should LOVE it that you know the market! If they don't, that's a bad sign. When I talk to mine we just short-hand it. WHERE did one poster get some outrageous 4% figure? I pay mine $120 a year in fees to manage my funds. And answer the occasional question and balance my 401K.

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The 4% isn't a fee. It's the generally accepted "safe" rate of withdrawal from a retirement portfolio if you want your money to last at least 30 years. The point I was making is that if you're paying your advisor the typical management fee of 1% of assets, he's taking 25% of your annual retirement income.

What kind of financial advisor are you getting for $120 per year? Is it something like the Financial Engines telephone assistance program offered by many employers?

http://corp.financialengines.com/helping_you/managed_service...

intercst
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