Over the course of a few (hopefully) friendly discussions, some of the rationale given for making this move is:
I should say that I think that some of the above concerns are perfectly valid to be asking and that seeking help from a pro is completely appropriate. I would rather seek that advice from a fee-only CFP myself rather than having 1.25% of my assets nibbled away every year, but I am trying to objectively get a handle on the thought process of someone who has basically been a Boglehead since before the term was first coined.What happens if I can no longer manage our money?
A lot of what we've talked about is shifting assets around to avoid high RMD tax rates.
His staff has access to search tools that would cost me more time and money than what I pay him.
His staff has far more knowledge of tax law than I ever will.
He does this for a living. Very successfully. I wouldn't, for a minute, think I could out invest him.
My spouse wanted a second opinion.
I find it insulting when people tell me I'm a fool for using an FA. I'm not new to investing, I've been doing quite well for 25+ years. I figured it was a good time to learn what I don't know about investing.
Despite the prevailing opinion, I'm convinced that an expert in a field can do better than an average person doing research on the internet
He's already provided value in helping to arrange our finances for retirement and death.
I think the value will come in the next downturn. I recognize that my flaw is knowing how to protect my nest egg and making moves to smooth the volatility.
1.25% times several years is minor compared to the amount my portfolio lost between '07-'09.
A guy that teaches asset allocation at one of the best business schools in the country could put together a portfolio that returns just as much or more while reducing volatility. Certainly, there are a lot of financial advisors that you and I could beat, but if this guy can beat my returns after fees, what I'm paying him becomes nil, correct?
So fellow Bogleheads, if you were about 50 and still working because you wanted to and not because you had to, could you see yourself abandoning the investment philosophy you very successfully employed for 25 years in favor of an academic financial guru that charges 1.25% AUM? How does one get there from here? It just seems so counter-intuitive to everything I hold dear!