I need your help! I have always managed my investments on my own, but I’ve recently been researching Personal Capital and I have to admit that I am intrigued. My general investment strategy is to invest as simply and easily as possible. I typical purchase low-fee index funds and ETFs that align with a fairly aggressive asset allocation. I then stay the course, not changing my strategy based on market fluctuations but instead believing that over the long-term, this strategy will yield positive results.
Thus far, my strategy has yielded pretty good results. I weathered the recent market fluctuations without too much pain. I’ve earned some money over the years. And I have managed not to drive myself crazy in the process – no watching the market for daily fluctuations, obsessing about this going up or that going down, etc.
I’m beginning to wonder, though, if this strategy might be a bit too simplistic. See, there are a few things that I really don’t give much thought to. Taxes are a big one. I know that there are certain investments that should be held in tax advantaged accounts, and I do that, but that is where my tax strategy stops. My re-balancing strategy is simplistic at best, and I have paid zero attention to sector diversification (something that Personal Capital has lead me to believe is quite important).
Of course one huge benefit to my current strategy is low fees. All in, I average about 0.3% in fees across my portfolio, and I expect that will go down over time as I move out of some early investments with higher fees. Personal Capital charges 0.89% in fees, which could add a lot in costs over the years.
So what do you think? Should I continue to manage my money myself, or work with an asset manager? If I work with an asset manager, is Personal Capital the way to go?