[bigred]

I was wondering what view the board took on paying someone for help helping in crafting a custom allocation with Vanguard. It is with an RIA and would broadly diversify across domestic, international, bond and real estate. Is .25% or .50% too much to be paying for something like this?

[kev]

.25 - .5 one time, or annually forever? One time, maybe too much, maybe not - depends on your balance. Annually, forever, definitely too much - kind of defeats some of the purpose of low fee index funds.

If I was goint to pay someone (and I think it is a good idea if you want the input), I would try to find a fee only planner that will charge you by the hour.

[sschullo]

bigred,
Agree with kev. but here is another option besides the fee only pro. Crafting an asset allocation plan can be had for about $20-$30 from one of dozens of books available.
You already know most of the asset classes in your post. Of course its a little more complicated but you are miles ahead of most folks that don't have a clue. Add to your considerable knowledge is my suggestion.

Your question: In this context, heck yes, .25-.50 is terribly expensive.
Good luck,
Steve

[apteacher]

I like the one-time only fee from a fee-only planner. It would be far less expensive in the long run.

I also like Steve's idea of crafting a plan yourself. Try that, and then run it by the fee-only planner to get some feedback.

[tony]

Big Red,

There was a reputable study done by a major university a while back that compared returns using a financial advisor versus returns a do it yourselfer got. Guess what? The results are surprising. The individual do- it- yourselfer did better than the "Pro" by a significant amount. How could that happen? Less commissions, less fees, less buying and selling, and more attentiveness toward your own personal wealth trumps supposed licensed knowledge.

Of course its one study and I did post it here a long time ago but it does show that your average Joe or Jane
can master the art of money management if they are willing to put some time in.

If you are totally lost go to a fee only financial advisor who you have checked up on .

My point is the same as the others . You don't always get what you pay for-especially in the financial industry.

[apteacher]

Also: why on earth would someone trust one's financial future to a perfect stranger?

[kev]

Another option - invest in one of Vanguard's target date funds that seems to suit your situation/risk tolerance for the time being. That way, you get some index fund diversification, at no real extra cost. And, then you can read more and become more comfortable about making the allocations yourself. In the future, if you feel you want to make adjustments yourself, you can, and if you still feel you do not want to do this, you could pursue the fee only planner to help you.

[JudyS]

Kev --
Here's another idea.... while others may not agree, I think. Anyway, if you go to www.FundAdvice.com, they offer a variety of portfolios, including all-Vanguard. Looks like their allocation may fit with some of your ideas. I like their work and their analysis. Many articles to read there as well.

JudyS

[bigred]

Thanks guys! Great responses and I will ponder them all. I just know somebody who has spent some time educating me on this already as he is a % based planner and is a friend.

I checked out fundadvice. Good site, they could make their ports a little more informative and save me some time by posting other figures with them. Anyway thanks all.

[sschullo]

Also: why on earth would someone trust one's financial future to a perfect stranger?

AP,
Heck thats easy, our colleagues think well of the nice TSA gentleman or lady. "They're so nice!"
Steve