http://blog.ctnews.com/paulson/2009/08/13/investment-manager-selection-criteria/ Investment Advisor Mon, 11 Jan 2010 15:51:55 +0000 hourly 1 http://wordpress.org/?v=3.0.1 http://blog.ctnews.com/paulson/2009/08/13/investment-manager-selection-criteria/#comment-82 Eric Paulson Mon, 11 Jan 2010 15:51:55 +0000 http://blog.ctnews.com/paulson/?p=47#comment-82 I agree that an investment advisor using actively managed funds can be expensive. The "all-in" cost could in the neighborhood of 2% to 3% as you state. When using an advisor who actively manages a portfolio of stocks and bonds, however, you pay for just the management without the underlying fees for the investment vehicles used by the advisor. So, to keep costs down, try to find an advisor who manages individual stocks and bonds, and not expensive mutual funds or ETFs. This way, the annual management fees should be less. I agree that an investment advisor using actively managed funds can be expensive. The “all-in” cost could in the neighborhood of 2% to 3% as you state. When using an advisor who actively manages a portfolio of stocks and bonds, however, you pay for just the management without the underlying fees for the investment vehicles used by the advisor. So, to keep costs down, try to find an advisor who manages individual stocks and bonds, and not expensive mutual funds or ETFs. This way, the annual management fees should be less.

]]> http://blog.ctnews.com/paulson/2009/08/13/investment-manager-selection-criteria/#comment-81 Coz Sun, 10 Jan 2010 14:33:38 +0000 http://blog.ctnews.com/paulson/?p=47#comment-81 What is fair? What is reasonable? The total cost of investing with an investment advisor seems too high to me, especially when they are using actively managed mutual funds. The total costs are easily over 2% per year and over 3% per year. 2 to 3% per year over 30 or 40 years can cut an investment portfolio in half from where it would be if an index fund approach was used. What is fair? What is reasonable? The total cost of investing with an investment advisor seems too high to me, especially when they are using actively managed mutual funds. The total costs are easily over 2% per year and over 3% per year. 2 to 3% per year over 30 or 40 years can cut an investment portfolio in half from where it would be if an index fund approach was used.

]]>