GaryM wrote:
- quote -

1.5% would be a lot to pay for just rebalancing, IMO, and hopefully
you'd be getting more than that. [disclosure: I'm an advisor]. If it's
just rebalancing then they need to convince you that after factoring the
1.5% charge you'll end up better off than if you don't use them, or if
you use something cheaper, like financial engines.

A weakness I see in financial engines, when used for this purpose, is
that I'm not convinced that historical metrics about a mutual fund can
be projected forward with much confidence. For index/passive funds it's
not a problem, but for actively managed funds it seems to introduce
error factors bigger than your conclusions. For example management
changes, style drift, changes in costs, boom/bust cycles with "popular"
funds, or the kinds of things happening right now at Putnam & Janus
(among others). Can you project fund metrics forward three years, let
alone 15 or 20?

I also don't know if it will help you, as your advisor hopefully would,
with the things that have nothing to do with the allocation decisions. A
timely Roth conversion for example, or one done over several years.

-Tad

How much time and attention can you put into this effort? How large are your
assets? These on-line sites are generic in their advice, do you have
requirements or issues that make your account an exception to the rules? Is
doing it yourself the highest and best use of your time?

A financial planner is much like any other contractor that you use. You can
build your own house, fix the plumbing, wire the electricity or fix your car
but you will go out and get a professional because that person has
experience, education and other skills that makes his doing it more
effective than you.

If the planners that you have talked to have not given you the confidence to
use them, find one that does or if you can't then it may merit doing it
yourself.

"GaryM" <gary_marcos[at]yahoo.com> wrote in message
news:29562e9a.0311271330.6cec8a38[at]posting.google.com...
- quote -

A number of firms that want to manage my money for retirement say they
do it better than anyone else. However, it sounds to me like they
mostly use tools such as financialengines.com. Since I am looking for
an asset allocation systems with rebalancing, I am wondering about
paying the 1.5% management fees from most of these firms compared to
using financialengines.com. They sound pretty much the same except
for the personal touch.

Has anyone compared or have experience in this area?
Regards,
Gary