L84SUPR wrote: ↑Sun Sep 10, 2023 11:10 am
There are good reasons to seek financial advise. Assuming alpha will exceed fees is not one of them.
Nearing retirement, I blinked in 2008/09 and made some emotional-based investing moves that I hadn’t done in the decades before. Because of this and nearing retirement, my trust in my abilities was shaken.
Thus, before retirement 13-years ago, we interviewed several fee-based financial advisors. My expectation was that via market timing, they may be better able to provide better returns than I could, even at the percentage rates they were charging. That exercise, along with copious amounts of reading and research led me to discard the fee-based financial planner/advisor notion.
I decided to go it alone, because I recognized that there was a reason why there are advisors on every talk radio station and 100’s to 1,000’s in major cities. All of them are touting what they can do. But I realized that when billion-dollar managers can't consistently beat the market, why would I believe a street corner Joe could do so?
I must admit however, that when we were within months of cutting our corporate umbilical cords, we did hire a flat-fee based (index fund fan) advisor, who was a retired bank manager. He and our local Fidelity advisor provided the hand holding advice we sought prior to entering retirement.
Since then, without paying anyone, but with advice and help here and there and from our local Fidelity advisor (especially when rolling-over funds), we have done well in retirement, using index funds and Bogleheads principles.
However, I am glad we went down the fee-based financial advisor rabbit hole. More importantly while down there, I’m happy I found the light switch, at about the same time I found the Bogleheads forum – cheers to all of the Bogleheads contributors.