No. of Recommendations: 2
JimCopeland wrote:
In general, I would start looking seriously at SSB and other big brokerages only if you're a high net worth individual able to access their private banking services --which means you have at least $500,000 to give them, and substantial funds (at least a few million) on top of that. Assuming that's not the case, though, I'd avoid the fees and go elsewhere.

A $1M retirement portfolio of 25% fixed income and 75% stocks with portfolio expenses of 0.2% (or less) of assets will allow the retiree a $40K per year retirement income.

Let's say the retiree has $10M. The financial advisor now charges the retiree 0.5% of assests to put him into managed mutual funds that still charge 1.5% of assets per year. The millionaire retiree is now paying 2% of assets per year or $200,000 per year to underperform the S&P500 index 80 to 98% of the time. I don't know about you people, but $200,000-$20,000=$180,000 or $15,000 per month. I'd rather keep that $$ vs giving it to a financial advisor and mutual funds.

It really doesn't matter how much money you have. When Wall Street rakes-off a percentage of assets each year. The numbers just get bigger. The performance stays the same.
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