As much as he sucks as a poster, MB is right about "the retirement gamble" frontline episode. You should watch it.
Whatever you are paying in fees, it's basically reverse compound interest. 1% or whatever may not sound like a lot but it can add up to tens of thousands less in your retirement account over the years. Maybe even six figures less. And for what?
Again, I don't pay an annual fee. I used to have someone managing things that was charging that stuff and I pulled my money from there and managed it myself. The problem was when I added in my cash/stock investments into the mix, I was not reacting to the market appropriately and was missing out on things. I was also not rebalancing my portfolio. So, I found a guy who does this for me and it costs me far less than what my increased returns have become.
If you are worried about the fees and are unsure whether it is worth it, do what I did. I gave him money to manage for me and I kept doing my own management on a separate account for one year. His yield was 12% after his cut and mine was 8%. Granted, he is a friend and does not solicit clients, but to say that none of them are worth it is not true.
Oh, and don't forget the time that you spend on managing your money when it comes to taxes and rebalancing. I am better off spending my time making more money.
Fat, drunk and stupid is no way to go through life, son.