I recently received what will be about $6M after taxes. Everything I've read to this date seems to point to the fact that passive index investing is the way to go, and I'm fairly convinced of that. However, I'm wondering if b/c of the size of my assets, if a full service firm is the way to go. Regardless, I fully intend to seek a tax adviser, estate planner, and even a financial planner. However, the financial planner I would like to seek would be on a fee only basis (either hourly or I'd be willing to accept it being a small portion of portfolio <= 0.1%) to help with asset allocation among indexes. And if it matters, I'm not retiring and dependent on the income for at least 20+ years, and therefore investing long term. I'm also ready and willing to put in the extra time to manage my investments and coordinate the advisers (though since I'm investing passively, that should hopefully not be too time consuming).So basically, am I a fool NOT to use a full service firm given the size of my assets? I've heard they have investment strategies available for large accounts that may make it worth their premium (to which I would say BS, but I read that from a respectable source).Thanks in advance for your thoughts!
If you have any inclination to learn something about tax planning and asset allocation, I'd suggest paying someone an hourly fee and not a % of your assets, even 0.1% is huge and you can do better. Do your homework and find someone really good. The harder part is tax planning, not asset allocation. You can get visibility into index funds and manage allocation with a spreadsheet. There are many complexities for tax planning and you have many options, but in the long-run you'll be better off if you get intimately involved anyway. BTW, I think that it's worthwhile heavily investigating riskier bond investments like emerging markets and junk bonds as part of your portfolio -- they have less volatility than stocks and recover faster in downturns. Good luck! sincerely, maflo2
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |