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No. of Recommendations: 7
Fee-only advisors typically charge between 0.5% and 1.25% of the assets they manage, but these respondents believe the typical cost is between 5% and 15% or more of assets.

If you believe that the safe long term withdrawal rate is 4% (or even 4.5% if you do certain things like adjust withdrawals during down markets), then that 0.5% to 1.25% fee is 12.5% to 31% of your annual stream. Go ahead and ask your advisor if his advice/management is assured to increase the safe withdrawal rate...*at all*, much less by enough to exceed the fees. It may be that they can project a benefit of lower volatility or something, but it still would be worth hearing the answer.

My advisor did something like that, with projected returns for his managed portfolio vs. my current one. When I pointed out that:
a. Most of the improved return he projected for his proposed managed account was due to asset allocation and I purposely held more cash in anticipation of the seven years between my age 60 retirement and age 67 Social Security claiming, and
b. I still had assets in my (fairly high fee) 401k, and I could buy ETFs at <0.2% fee when I transferred that to an IRA
...well, he didn't have a good answer.

If an advisor wants to charge you even a few thousand dollars to create a plan, that doesn't seem out of line. But a percent--year in, year out--to adjust to a preset asset allocation?
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