Keep your money in your area of expertise
Most money managers are astute salespeople. They have slick brochures and charts showing why they are better than the competition. They are not above using guilt and intimidation to keep you with them. They will also influence you to keep your money in their area of expertise. In the current decade, real estate prospects are better than stock prospects. You will find no stock money managers suggesting that their clients move assets into real estate.
Many people like money managers because it personalizes the stock market. Brokers are too busy to chat. Many money managers will go to lunch with you, swap stories about the children and college, and tell amusing anecdotes about the market. All too often, though, as money managers grow, they ignore their individual clients and focus on their large institutional clients. After a few years, your only relationship may be through the dry reports they send you. For those of you who want to stay in denial about your stock investments, a money manager, for a fee, is a better choice than a broker free to churn your account. Churning will cost you and reduce your returns more than a money manager’s quarterly fee.