Their mutual fund fees(including hidden costs) are likely much higher than similar index fund at Vanguard or an ETF would be. That likely adds at least another 1% in expenses each year for a total that might be 2% or more a year. My SIL had a small IRA managed by a brokerage firm. The broker had bought mutual funds with expense fees >1% and high front-end loads (gee, I wonder why?). I had her transfer the funds to an online discount broker, sold all of them, and re-invested in various Vanguard index ETFs. The result was a 6.5% gain in value versus a 3.1% gain on a tracking portfolio of the old funds. I think the expense fees and other hidden costs account for the gain differential between the two portfolios. Makes me think the manager expertise wasn't worth it.I suggest the OP check out this book:http://www.amazon.com/Investment-Answer-Protect-Financial-eb...It gives the basics of investing and various asset allocations. You end up creating a buy and forget portfolio, maybe re-allocating once a year.
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