Hi All! I've been a long time MMM reader, but I'm brand new to the forums.
Anyway, I have a question and I'll try to keep this short... I've been with Schwab for 25+ years, and all my investments are there with the exception of a Betterment account containing some of my F-you money. :) Anyway, I used to use Schwab's managed portfolio services for which they charge .50% and they select a lot of very expensive mutual funds. I stuck with that for a few years, and then cancelled the service because it just didn't line up with everything I've learned over the years about low-cost indexing.
In order to have a system that eliminates emotions (I need this), I started using MarketRiders.com instead to build a portfolio for me. They charge $150/year flat fee, and you can create up to 10 portfolios (ie. accounts to manage). Anyway, they build a well diversified portfolio based on a risk assessment and appropriate asset allocation. Of course, they recommend very low cost index funds, and they try to select ones that trade free at your brokerage of choice. Unfortunately, all their recommended ETF's (some from Vanguard) are not free at Schwab, so I do have to pay $8.95 per transaction for those. When my asset allocation gets out of whack, they send me an email alert with buy/sell recommendations to get things back in balance.
OK, having said all that. I've been using MarketRiders for a year now and it's about time to renew. I'm happy with the service and the performance of the portfolio they constructed for me. But I keep questioning if I really need them, or if I could do the same with a simple portfolio of Schwab ETF's that are totally free. I've seen some Boglehead recommendations for a Schwab 3-fund portfolio for instance, but I really need a system to keep my emotions out of the equation.
I know Vanguard is the 1000 pound gorilla in the personal finance and early retirement community, but I really like Schwab and would prefer to stay with them unless someone knows of a REALLY good reason to switch. :) Schwab does have some really good ETF's now that compete very nicely with Vanguard on fees and performance.
Anyway, would love to get some thoughts, especially from folks who might have used MarketRiders.com and/or be with Schwab and managing their own investments using a low-cost indexing approach.
Thank you!
Dave