We're in the BofA "Appreciation" portfolio, which is a kind of set it and forget it plan where BofA buys and sells to hit a target return without needing approval from us. Based on the amount of our assets under management, we're paying a 1.5% commission (currently amouts to about $3,500/year but of course will go up as we add more). This isn't a horror story: BofA has done fine for us, and the personal service is nice.
But my question is, are we paying too much for what amounts to a conservative return target and a lot of warm-fuzzies for being premier banking clients? As I've learned a little more, I've found programs like Vanguard's Target Retirement and LifeStrategy funds that seem to do the same thing BofA is doing (diversify, shift assets appropriate to age) for WAY less than 1.5%.
It's important to note that, while we're willing to put work in up front to find the right plan, we're not interested in becoming active investors. We just want to put our money with a source we can trust and not spend an unreasonable amount in fees. Do a yearly review, that kind of thing.
Anyone else have experience with BofA in particular, or with plans similar to the Vanguard plans mentioned above?
Thanks very much,