Allan Roth wrote:I'm working on a column on the costs of indexing and would like your opinion:
If you are working on a column, you can mention that the best financial advice can be found on the bogleheads forum free of cost
Seriously...for just a 250K portfolio, there is no need of any advisor
In general, this may be true, but there are many investors, regardless of portfolio size, who can benefit from the services of a low-cost competent advisor. I'll list a few of the reasons one might engage the services of a financial advisor:
* Lack of time.
* Lack of knowledge and unwilling to take the time to learn.
* Investor's subject to emotion and impulsive behavior.
* Investor has made mistakes that need correcting.
* Investors with special needs (a trust for a handicap child for example).
* Investors that travel or live abroad.
* Investors with small but complicated portfolios needing fund selection and portfolio tax advice.
* An advisor can distinguish between good and bad advice from friends, media, and yes, the Boglehead forum.
I'm sure professional advisors can give more reasons, but I doubt if "portfolio size" should be the primary criteria for hiring an advisor.