My wife an I met with a team of financial advisers last week. I am not planning on working at the same gig until I drop dead and we wanted to perhaps hire some help to sort out our saving an investment strategy for perhaps the next 20-40 years. It might all be moot if we are wiped out by a North Korean nuclear attack but optimism still reigns. In the back of my mind I am thinking I need
to have sufficient funds until I reach 100.
We are talking about paying advisers a significant chunk of change. I could consider doing this myself but I know I will not invest much time or effort. I also would also beat myself up if I did a lousy job which is very likely. That said, I know enough just to be dangerous and also fear spending money unwisely. Damned of you do, damned if you don't.
The parallels between financial professionals and health care professionals are obvious. Some financial professionals deal with people with acute or chronic illnesses. Facing bankruptcy, mortgage foreclosure, or mounds of debt, there are those who can deal with your acute financial illness. It is not so attractive for professionals since broke people don't generally have deep pockets. Better deal with the financially healthy and try to convince them you can make them even healthier.
As it turns out, the cost of health care premiums on an annual basis and the investment management fee on a $1 million portfolio is in the same ball park. Both are a lot of money. Are the services that are purchased by these fees really worth it? I am not sure. They are both trying to buy peace of mind and assure the best outcome so far in the future that we are crazy to believe that anyone or anything can see that far ahead. How do we measure success? You are still here...You are not broke yet. I guess it worked.