• Question
  • What level of advisor fees (% of assets) is reasonable given that a good portion of assets will be

    Asked by a 76 year old man from Seabrook, TX on 6/2/2015

    What level of advisor fees (% of assets) is reasonable given that a good portion of assets will be in fixed income type of investments (for risk control) which which currently do not pay a high level of return rate.

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  • Categories: Financial Advisors, Retirement Planning

Answers

  • Steve 

    Steve 
    NewRetirement

    San Francisco, CA

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  • Great question - until recently many advisors charged at ~ 1% fees on assets on top of any fees charged by the investments (like mutual funds) that were held in the account. More recently there have been a number of "robo advisors" created that do automated portfolio creation and rebalancing for ~ 25 bips (0.25%) a much lower amount, however you typically don't get the high touch personalized advice that comes with a traditional in person advisor.

    If you are just looking for a service to help monitor and re-balance your account, then I'd look at automating it and paying very low fees ex. 0.25%. Firms like Schwab Intelligent Portfolios https://intelligent.schwab.com/, Vanguard, Wealthfront, Personal Capital, Betterment, etc all have solutions. You can find an overview here: http://www.wsj.com/articles/putting-robo-advisers-to-the-test-1429887456

    If you want richer services you can look at fee only financial advisors - then you just pay for the services you use.

    You can reach out to talk an advisor here https://www.newretirement.com/free-retirement-consultation.aspx - just make sure to ask what their fee structure is.


  • Login to rate this answer:   Answered on 6/8/2015
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.