GE said:

---

investorAg83 said:

---

Vanguard's study of the value an advisor adds concluded to 3% per year. Of that, asset allocation accounts for 0% and that's what all the DIY'ers put all their focus in. If that's the only reason you'd pay for help, there's no doubt they're better off.

The value comes from discussions about behavioral finance, asset location (read more as tax and risk management), spending strategies and to a much lesser degree, being able to do it cheaper than most investors on their own. The last bit is focused more on the fact that some investors find themselves in higher cost mutual funds, but it's still there. Asset allocation is no value add yet it's what most 'advisors' claim to help with the most.

'You got x% in your portfolio...I got x+2% over the same amount of time'. So tiring.

---

I am have no opinion or information on this topic whatsoever, but 3% compared to what? Are we talking ALL advisor-managed portfolios vs. ALL that do it themselves on average, or is it more of an apples to apples comparison based on portfolio size?

---

https://advisors.vanguard.com/iwe/pdf/ISGQVAA.pdf

investorAg83 said:

---

Believe it or not, even 300k in an account and an advisory fee should get you a lot more than mutual funds or etfs.

---

like what?
What would be an expected rate of return?

OasisMan said:

---

investorAg83 said:

---

Believe it or not, even 300k in an account and an advisory fee should get you a lot more than mutual funds or etfs.

---

like what?
What would be an expected rate of return?

---

You're asking the wrong question. What if the return is the same but you shave off 20% of the risk in the process and make it more tax efficient? "But the return is the same and I can just buy an index". Forest for the trees.

Either way, my point is that even at the 300k level an investor could have 4-6 asset managers (not funds and not even ETF's...an example being Kayne Anderson Rudnick) where the actual securities are held in name with no expense ratio and the investor can have a direct communication to the portfolio managers about their specific holdings. There's a lot more value to be had in the account management than just paying x% for someone to suggest some mutual funds and etf's.