I have an IRA at Fidelity. It is where I have rolled old 401(k) plans into. Currently, I am paying Fidelity to actively manage the account. It is currently invested in many mutual funds, bonds, and some index funds. In addition to the cost ratio I am paying on the various mutual funds, I am also paying a quarterly fee to Fidelity that is based on the average balance of the account (something like .25% but it is tiered).
I am I starting to think that I am probably paying way too much in fees and should probably self manage the fund. Furthermore, I should probably just put everything into an index fund. I have recently read how index funds routinely out perform mutual funds and that costs are very low since they are pretty much on auto pilot with no manager. Is this a wise move?
I am 20 years (at least) from retirement and my risk tolerance is high.
EDIT: I recently compared the performance of my IRA compared to the market of the last 5 years and the market has out performed my fund - by a few percentage points. But it has been a bull market. Risk is being managed by diversification but with a 20 year horizon I wonder if risk management is worth the cost (I think I am starting to answer my own question).