What’s the theory on having your IRAs professionally managed? Fee is 1%. Get access to accredited investor investment options and other general banking benefits.

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1% every year kills your compound over time compared to those without that 1% drag.

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This. Don't do it.

This is a sales tactic. 1% is a lot.

If you want more advice, find a fee-only planner (hourly, not a percentage if assets). But don't hamper your future returns by giving away 1% needlessly.

You can’t beat the index. The market is over saturated with analysts chasing returns, so odds are that any individual active manager doesn’t know something that the tens of thousands of others doesn’t, and the market has already priced in fluctuations by the time an active manager has caught wind of anything. In an index you minimize what you pay in fees, and that will collect compound interest. Some managers have good years, and sometimes that same manager has a bad year. In the law of large numbers, actively managed funds always underperform just sticking to the index.

While past performance is not an indication of future performance, you might take a contrarian approach and say “well I think k there’s a lot of stupid money in the system right now and valuations are at an all time high beyond all logic”. In which case you’d be right. And then I’d say, too many retirement and pension funds are tied to the stock market, so the government will always prop it up beyond all reason because it’s bad public policy for people to go into their prime voting age as seniors with no retirement savings, so you may as well collect your free returns on the index fund.

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1% is for the advisory element not the return element. They will talk you off the cliff when you want to put all your money in cash.

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