[USER]

Seeking some guidance.
I’m 50, my partner is 46, and we’ve worked with a financial advisor for 18 years.

He’s charged a 1.5% fee, and our net worth has grown from $200K to over $3M, with him managing $2M of our portfolio.

While his advice has been valuable, especially in re-balancing and key decisions (buying/selling homes, supporting parents, investing for children), we now feel more financially literate and question the value of a $20-30K annual fee, especially after a recent job loss and career shift.

As we approach retirement, how should we think about continuing with a financial advisor?

We value his service, but not at the current cost.

Should we consider managing our own finances, and how do others approach this transition?

[Kevin]

Typically if someone is managing that amount the charge should be .75 percent. Tell him you are willing to pay that much or your walking.

[Linda]

We were in exactly the same boat. There was no way I felt like I was getting $30,000 per year worth of advice and guidance.

I ditched our AUM advisor and hired an hourly advisor when needed.

If you follow the 4% rule, ask yourself if you are willing to pay your advisor 25% of your income every year?

For me that was a hard no but I do think advisors have value to add, particularly as you are nearing retirement.

I just think there are different options that make more sense.

[Dave]

Educate yourself and save your money for more important things. The information is out there. No one will care more about your finances than you do.

[Amar]

I’m sure he will gladly reduce his % he is charging.

[Anna]

We manage our own and just pay a cpa/fiduciary financial advisor a fee once a year to go over everything to make sure we are on track and help with tax strategies.

[Alan]

I went to mine and said – I am not paying AUM what is my flat fee – I pay 7k a year.

I do it because if I die my wife would be lost.

[Adam]

1.5% for that amount of assets being managed is way too much. Flat fee advisors can be had for around $5k-10k a year.

Or you could do an hourly advisor and manage your own investments (or use a robo advisor) and that would be significantly cheaper for you.

[Frank]

Yes, you should. Just do it. And if you need help on the planning, hire someone by the hour or the job.

Your future is as stake. Is your advisor really more important to you than your children, other family and each other?

If not, stop treating him like your lord and master.

[Randy]

You can likely find someone to provide all the services you need for under 10k annual.

[Brandon]

You should read the Choose FI book, quit like a millionaire, and JL Collin’s Simple Path To Wealth.

A couple of hours of reading is worth learning to save 20-30k in annual fees

[Lori]

I meet a flat fee advisor every 5 years for a check up. I do not take all their advice. They don’t have a crystal ball only software and probabilities.

I am more aggressive.

I am investing for the next generations who have decades of growth. My accounts don’t end at my death, they live on.

The software doesn’t seem to be able to handle that.

[Tom]

You’ve paid him a million. He should work for free at this point.

[Heidi]

You don’t owe your advisor any sort of justification or excuse as to why you shift your assets elsewhere… It happens every day.

I was anxiously preparing my rehearsed gentle excuses the first time I transferred funds from a fee based investment to a self managed investment.

only to get absolutely no inquiry, no survey, no protest, or pushback. It was kinda funny looking back.

If you value the advice, transfer out the majority of your investment to a self managed situation, and leave for example $200,000 under the advisor’s management. 1.5% x 200,000 is much more manageable.

Typically advisor would include all your assets held every where, such as 401ks and outside investments, in their analysis.

[Tony]

It’s time to walk. Managing your own money can be intimidating at first – especially a large sum – but everything you noted that you’ve been grateful for assistance with from your FA can either be researched on your own after reading a few books and leaning on this community and/or covered for +/- $2000/yr from a fee-only advisor.

30k to rebalance or create buckets is absurd.

[Amanda]

You have more than paid for the services you’ve received. Tell him thank you for what he’s taught you and that you guys are ready to move on.

In the future if you need help, consider looking to flat-fee fiduciaries.

[Annie]

1. I would ask him to reduce the fee to what you are comfortable with

2. Only walk if you are confident you can make at least what he would plus the fee.

[Brandon]

Just move everything to vanguard after the money is moved then tell them.

Financial advisors will pull out their used car salesman tricks they don’t want to lose the money they manage

[Author]

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