Quote:
Originally Posted by Robbb
The problem with fee only advisors is they are impossible to find. I know there are many resources saying they are fee only, but when you dig into them the "fee only" is 1% AUM.
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The 1% AUM fee is only charged if you let the “fee-only” advisor actively manage your portfolio. You can engage them for a one-time fee (perhaps $1500 to $2500) to provide you with a thorough portfolio review with specific suggestions. Then, contact Fidelity or Vanguard and implement the plan. Meet once or twice a year and pay an hourly fee to review and make any appropriate adjustments. In other words, pay them like you pay your attorney or accountant, by the hour.
Obviously, this requires effort on your part but you will be richly rewarded by avoiding the AUM fee. It really depends on how much hands-on help you need.
Consider this: A $1,000,000 portfolio with a 1% AUM fee will cost you $10,000 in annual fees. Over a 30 year retirement, that adds up to $300,000 in fees!