[USER]

I’ve have a brokerage account (200k) that my grandparents opened for me as a teenager. I’ve had a financial advisor who takes a 1% fee management fee all this time.

I didn’t know much about investing and was oblivious to how to do it on my own or the costs involved. I’m now 45. I also rolled over a 401k about 10 years ago that is now being managed by the same advisor (200k).

Now that I’m becoming more knowledgable about investing, I realize the advisor isn’t doing anything so nuances or complicated, we check in 2-3 times a year and if anything, changes in the account are made after a discussion then. I think I’m ready to manage these accounts on my own since I am becoming more knowledgeable about investing.

This advisor works with some family members and I’ve known him for many many years at this point.

What’s the best way to let him know that I’m going to managing my own accounts and will no longer need his services?

I know the obvious- just tell him, but I’d like to be more sensitive and it feels awkward for me, also, with the understanding that I may have to deal with him at certain points given other family still using his services.

Thanks in advance.

[Jiajie]

I’d just tell him you’re investing in yourself and learning personal finance to manage your money on your own.

Personally I’d just cut him off and ghost him though. Anyone who takes a % instead of hourly rate is/has been ripping you off.

[Colin]

Direct and polite. It won’t be anything so shocking to him. He’s a professional offering a service and no one is bound to use his service, just like we don’t have to keep buying something at a store just because we’ve bought it at that store for years. We can and do shop around. I know there’s the odd social pressure. It might feel like a huge deal but it’s not a huge deal.

Thank you for managing my investments. I’ve decided to manage them on my own and have transferred them to x. I appreciate your work all this time. Please let me know any questions. Thank you,

[Steven]

You just tell the advisor that you’re moving elsewhere. Thank you and goodbye. 1% is lucky, I’ve seen elderly get taken for 1.5% to 2.5%. I recommend a fiduciary advisor that doesn’t charge for advice.

Don’t miss: Do people do backdoor Roth IRAs on their own or do they typically have a financial advisor do that for them?

[Brian]

It’s your money. I don’t think you owe him a conversation. I’d just submit the rollover forms to fidelity, vanguard or whoever and they’ll contact him. You won’t even need to talk to him.

[Lauren]

CFP over here managing at an average of 1%, but I also provide fee-only planning.

We do earn our fees with our knowledge, guidance, and behavioral management. Vanguard has done studies showing that advisors add 4% value per year on average. And I work my tail off for my clients saving them time, money, tax burden. I walk with widowed spouses throughout the remainder of their lives.

It’s not all just about investment management.

But if you personally don’t see the value in the services provided, then just email your advisor. Tell him it was great working with him, but now you’ve decided to move forward with self-managing the portfolio. He will likely send you well wishes. You’ll have to do the remainder of the work to get him removed as rep or move the accounts to another custodian.

[Robert]

He is in it to get paid. It’s a business relationship so you can change your mind at any time and leave anytime you want. No harm no foul.

[May]

I’m in EXACTLY the same position, like I could have written this post. It’s keeping me awake at night how to keep the relationship for the sake of family accounts too (some I brought to them). I am even thinking of leaving them a token account – it has some products I can’t move yet anyway. When you do it, I’d love to hear about how it went on this thread.

I’d like to return to them some day in my late 70’s before my judgment fails etc. they are about asset preservation which is fine but I am definitely a high growth investor and willing to take some calculated risk at this stage in my life. At the end of the day, that is likely how I will do it.

Explain that my style of investing doesn’t fit with theirs at this current stage of my life. Anyway, I feel for you on this one.

[John]

I could have written this 2 years ago. Just tell him and move on. My fees were close to 17K a year and are now next to nothing…reason enough. Just do it and take care of yourself first. I am SO happy I did and feel ashamed I didn’t get educated sooner.

[Author]

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