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Old 07-31-2008, 08:52 PM   #3
BYU71
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[QUOTE=MikeWaters;249147]I guy I have worked with on a number of things is probably going to take up my stock portfolio (i.e. retirement accounts).

I pretty much trust him. I knew his brother in med school. I've known him now for several years.

With my small retirement fund, he had recommended I mainly invest in index funds.

But now he says my little pot of money is large enough to manage.

He says that historically he beats the S&P 500 by 2-3%. He would charge 1% per year for him and his employees to manage my accounts.:



If he historically beats the S&P by 2-3%, I assume per year, and that is net of his 1% charge, you are getting a very good deal. You could find some who are even better than 2-3% net of fees, but they will charge more than 1%.

One of the money managers I use for my clients has beaten the S&P the last 5 years, through June 30th, by 2% a year and and over the last 10 years by 5% a year. That is net of a 1 1/2% management fee.
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