I (32) am a Boglehead beginner. Only a few chapters into "The Bogleheads' Guide to Investing". My dad (67) just mentioned to me that he is looking to move his retirement account over to a financial planner (FP). I would like this community's advice on questions/considerations my dad should know.
My counter thought is that he could just setup these index funds himself and rebalance twice a year. Where could he get started on doing this himself? I saw in the wiki that even if the annual fee is 0-75%, he could lose around 20% of his investment over 30 years. I think he believes that a financial planner will net him more than 1% over index funds and that a professional will do better than he ever could. Could that be true in this case? Thanks in advance for your advice!
- The FP is a family friend my dad approached for assistance.
- The company this FP works for only invests in index funds. The FPs of this company are fiduciaries.
- Rebalances occur twice annually.
- 1% annual fee on first $1M, 0.8% on second $M, 0.6% on third $M.
My counter thought is that he could just setup these index funds himself and rebalance twice a year. Where could he get started on doing this himself? I saw in the wiki that even if the annual fee is 0-75%, he could lose around 20% of his investment over 30 years. I think he believes that a financial planner will net him more than 1% over index funds and that a professional will do better than he ever could. Could that be true in this case? Thanks in advance for your advice!
Statistics: Posted by Zakayla — Mon Jun 24, 2024 9:49 pm — Replies 1 — Views 62