Choice #1 – Mute:
I honestly want to hire Jim to manage my money with his own discretion. I vow not to bug Jim or question his decisions relative to my portfolio as I understand it is totally his prerogative. If I do ask questions they will be for my education only and Jim will answer them at his discretion. If I ask too many questions this will interfere with the trading process in the effort it takes to calm me down. Also, I will be thrilled to pay Jim 1.5% annually of the money HE is managing and never complain because his time and knowledge is really worth a lot more than I am paying.
Choice #2 – Control:
I am a raging neurotic and can’t possibly have Jim manage my money because I will whine, complain, and ask too many questions. I have to be in complete control and want to do it all by myself, like a big boy/girl, but I believe I know what I am doing. So, I will pay Jim upfront $3600 per year if he provides me the information I need to make decisions every day. I will of course use my own discretion and my neurosis will probably compromise my results, but I promise to not complain to Jim as I am in control of my accounts.