Poster 13 here. Yeah our situation is a bit different we do have well over $1M in liquid assets as well as three rental properties, plus our home, two young children et al. We both still work and generally W2 @ $400K combined, and we still have a fair share of unexercised options and espp shares that are managed by, but not charged/billed for, by our financial planner, as the are held it separate brokerage accounts set up by our employer.
With that being said we pay less than 2% of our total managed assets to our financial planner annually and this past year was a great year for us with close to a 20% return. We have yet to have a year that delivered less than 8%, even in the worst of years.
I would find it hard to believe, unless you are a CPA, and a Tax Attorney, and an Estate Attorney, and an ex- or experienced fund manager, that you could provide the same services to your father or anyone else, that
our financial team provides to us. Sure anyone can pick a few mutual funds and IRA’s but to truly “manage wealth” you need to be able to do more than pick a few mutual fund/stock/bond winners. Tax implications, tax structuring, insurance, investing, estate planning, LLC management, to name a few are things that I, even with an MBA in finance, are not willing or knowledgeable enough to do alone and <2% a year fee of our total assets feels like I’m stealing from them, especially in the double digit return years.
We literally did not lose a penny during this economic downturn and I feel 100% confident that if not for our financial advisor and the firm we would have had substantial losses, like most of the people who manage their own assets had.
I’d agree that you need to have a certain level of assets and a certain level of complexity to warrant a financial team, but at the very least if you have a high level of assets, the complexities will be there.