Rick,Rick Ferri wrote:I'm not saying what we do is right for everyone who wants to hire an advisor. There are people who shouldn't hire us. Our fee is fair for investors who wish to delegate and have $1 million or more. But we're too expensive for people who have $300,000 or even $600,000 because our minimum is $2,000 per year household. That makes the fee to high, IMO. These folks might look at an advisor such as Derek Tinninwho also charges 0.25% and has a $1,000 minimum fee. Or, they might go toAllan Roth, who charges by the hour. Or, they could manage their own account with the help of MarketRiders.com for $99 per year.
Thanks for addressing this. There have been a number of threads on brokers/advisors/managers/planners, but the links provided led to firms that were not geared toward smaller portfolios. This may be one place where those guys earn their fees as dealing with uninformed or small investors can be labor intensive and taking an up-front fee is probably better than churning or pushing high-commission "opportunities" (wrap annuities in a retirement account come to mind). That said, I am probably going to set up a VG brokerage acc't soon and lose the inherited brokers.
You have several times mentioned "fair price." Do you know the history of this concept? It was part of the economic theory of the Middle Ages, a feature of popular saints' lives, etc. Had some interesting consequences.