Nice short list from Rick Ferri:

There are other reasons to hire an adviser even if you’re an index believer. Here is a partial list:

To put space between you and your investments so that you don’t make emotional decisions.
To do detailed research on asset allocation or index funds because you would rather spend time doing more enjoyable things.
To provide help to a spouse or family member who isn’t inclined to do it on their own.
To provide help to a spouse or family member when you’re no longer able.
For legal purposes to reduce your fiduciary responsibility such as a charitable trust account.

Hey Rick! Keep saying intelligent, rational things, and pretty soon you will be managing a billion dollars. (Oh, Wait!)

Category: Asset Allocation, Investing, Psychology

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2 Responses to “Why Hire an Advisor?”

  1. krice2001 says:

    “To put space between you and your investments so that you don’t make emotional decisions.”
    That’s the biggest for me. I learned that a little knowledge is a dangerous thing. I couldn’t help looking at some very basic charts (McClellan Oscillator/Summation Index) and panicking and pulling back. Then finding it hard to get back in. I realized I was a danger to my investments. Better to have dispassionate management take the reins.

  2. catclub says:

    I have been thinking about what happens if a large majority of money is put into indexing.
    [I do understand that many people say there will always be a larger amount not in indexing, but I still wonder.] What happens next. Who is the first mover for indexing under that condition? Perhaps only a very small amount of funds not indexing would then drive the indexing systems. Would that be dangerous? Has anyone else thought about this end state? Would we make John Bogle king?