Should You Fire an Expensive Investment Advisor (1% AUM or More)

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Here are 5 things to consider when deciding whether to leave your investment advisor (plus one bonus tip). Personal Capital Fee Analyzer: robberger.com/go/personal-cap...
This video is in response to the following question a viewer recently asked me:
"Should I dissolve my relationship with my financial advisor? They charge “just 1%”, as they say.
Here’s why I’m hesitating:
They manage my traditional IRA and one of my taxable accounts, and together that’s about 1/3 of my total stock/bond investments. Mercifully, the portfolio is made up of very low cost index funds in Vanguard, Wisdom Tree, and i shares. They do not manage my 401(k) or my separate taxable account in Vanguard (invested much more simply in roughly 75% S&P 500, 10% small cap value, and 10% CA munis).
The team (including a lawyer looking at my legal stuff) helped counsel me about a home refi, disability insurance, and made me realize I had to update my trust. I’m assuming that was included in the 1%. So yes, there is a crushing 1% fee - but is it crazy for me to think of it as only 0.33% since they advise me on everything?"
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ABOUT ME
While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.
I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (amzn.to/3by10EE)
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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.
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Опубликовано:

27 июл 2024

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Комментарии : 199

@stevemaggs6781 6 месяцев назад

I used an advisor for a number of years. Asked the advisor to prepare an annual performance report, with comparison to agreed to benchmarks. Invariably, my portfolio's actual performance fell below the benchmarks, by an amount approximating their fee. Terminated the relationship and now my portfolio approximates benchmarks, and I have saved over $50k in the last two years. I have a buy-and-hold portfolio consisting of MFs, ETFs and bonds of various maturity.

@politics4816 4 месяца назад

I have heard pitches from a number of advisors that wanted my business. I asked them for a performance report for their existing clients and not one ever agreed to it. If they can't prove they can beat the markets for the majority of their clients, I will continue just to purchase low cost index funds. As far as a Trust, it is very easy to do your own.

@DarkoFitCoach 2 месяца назад

@@politics4816 correct. an investment firm will need to show solid PROOF of beating the sp500 or vanguard index or any other exchange and thus justify their 1% take home. otherwise just invest yourself in index and pay 10x less cost then a firm will charge. although i am investing with a firm which has proven to beat the market and is going for individual companies and not in an index thus being more optimized

@kellykellykelly7 2 года назад

Wow! Thank you so much for answering my question Rob!! You make such great points and explained everything clearly. This video really helped me build up the nerve I will need to be a DIY investor. As far as I am concerned yours is the #1 financial channel on RU-vid!

@user-vp1eb7nj7y 2 года назад

Let’s talk, message me👆🏻📩

@toddhallam9598 2 года назад

Excellent video. I recently had a conversation with a CFP at Ed Jones. I told him that there is no way that I would pay a percentage of my portfolio to manage my retirement accounts. But, I would gladly pay a flat fee for some comprehensive planning. The guy got upset with me and actually hung up. His loss, my gain.

@lesbolstad 2 года назад

I'm really surprised there aren't more CFP's out there going after the flat fee market. It's only going to get larger as investors become more sophisticated and knowledgeable re: investments and fees

@toddhallam9598 2 года назад

@@lesbolstad Totally agree!

@DavidRamseyIII 2 года назад

If they can get a 1% drag off a massive portfolio of someone who isn’t focussed on fees why would they bother with someone who wants to dictate how they pay?

@carlbook2051 2 года назад

They want the easy money. Working by the hour isn't that lucrative.

@funnyspence4252 2 года назад

Ed Jones can’t charge a flat fee for planning as a standalone, one time service. They’re commission based or fee based only

@scottcardais3560 2 года назад

Thank you for a balanced and objective look at this issue.

@alphamale2363 2 года назад

I am impressed with how even tempered and fair minded you are when discussing hot button issues like this. I would cuss every time I thought about a 1% fee!

@msgmak1379 2 года назад

I believe Edelman charged me 1.65% quarterly with around $500k in it......after 2 years I woke up. Been with Vanguard about 4 years now.....best move I made.

@johnbrown1851 3 месяца назад

Ouch..... Glad you woke up!

@katsadventures7027 Месяц назад

I think I’m going to get out of this too. The banks are taking 1.78% from me and who knows what else

@afridgetoofar1818 4 дня назад

1.65% quarterly is 6.5% per year. I’m not buying that

@jimalexander2582 4 месяца назад

This was excellent and timely for me - thank you so much!

@jeffreym3233 2 года назад

Very relevant to a trust for which I am trustee, as I consider moving assets from advisor managed to self directed. Thanks for choosing this topic.

@northerncaptain855 2 года назад

Great video! I’d been thinking about this issue for a while. Ive always managed our accounts but if something were to happen to me my wife would not want that additional responsibility.

@josetoribio3982 2 года назад

Hi Rob! This is Jose Toribio from Madrid, Spain. I love your channel and I agree 100% with your video. I have been a FA for over 28 years (Merrill Lynch & Citigroup and now on my own). I would add to your video that I always ask my new clients to read the Psychology of money by Morgan Housel and I always follow a 30bps TER portfolio including my fees. I also believe that I a good FA should show his/her clients his/her own personal portfolio and be available 24/7. That in my experience adds more value and it's not quantified but appreciated. Thank you so much for your channel! Jose

@Propguypaul Год назад

Man, you are good. Thanks Rob.

@vjay_michigan9158 2 года назад

Great video Rob. You are absolutely right. You don’t want to pay 1% of your assets for Financial, Estate planning, Refinancing etc. it costs a fraction

@user-vp1eb7nj7y 2 года назад

Let’s talk, message me👆🏻

@SueTNguyen Год назад

Am in agreement Rob, am slowly setting up my accounts to fire my advisor. All the referrals i get they are from friends, who i trust. Thank goodness he only manages 1/4 of my portfolio. My brokerage firm has also been a huge help, in addition to your podcasts Rob!

@markciocco2509 5 месяцев назад

An AUM arrangement is nearly a complete waste of money especially if the portfolio in question is mostly or exclusively made up of index funds!! In an AUM arrangement, the client takes all the risk and the advisor gets rewarded regardless of outcome. It’s bonkers and arguably a racket.

@weeverob 2 года назад

Thanks Rob! Very practical advice

@user-vp1eb7nj7y 2 года назад

Let’s talk, message me👆🏻📩

@paulacothren3591 2 года назад

Financial freedom. Yes! Free yourself from 1% advisor fees- a drain on the "magic of compounding" (as Buffet would say). Like a vampire.

@user-vp1eb7nj7y 2 года назад

Let’s talk, message me👆🏻

@carlbook2051 2 года назад

It is a good feeling to have direct control over your money.

@antiquatedandroid7952 2 года назад

Ya, no one needs comprehensive planning from a fiduciary (CFP professional) who’s educated and experienced in investments, tax planning, estate planning, insurance and retirement income strategies. I mean it only takes roughly 2yrs to get that designation, a college degree and three years experience as a planner.Oh and pass 6 preliminary exams followed by a 7yr comprehensive board exam. I mean there’s know way a person like that could possibly provide more than 1% total return each year to your total net worth, right…?

@paulacothren3591 2 года назад

@@antiquatedandroid7952 Warren Buffet says, "You're looking for three things in a person, intelligence, energy, and integrity. And if they don't have the last one, don't even bother with the first two.

@carlbook2051 2 года назад

@@antiquatedandroid7952 If he projects that he can generate higher returns by managing your money, you might need to do some research before you become a client.

@kevinmccumber7489 2 года назад

Great video. Thank you.

@DianaHylandTX 2 года назад

What has happened to the finial planning industry? Seems like all the firms just want to gather assets at 1%. That’s hundreds of thousands $$ over 20-30 years in retirement. You used to just be able to buy a plan. You pay for the plan and set it up for long term. I can’t find a financial planner, just “wealth managers”. Since we are now in high inflation and a highly volatile dropping market…how can anyone justify paying these annual fees.

@123jochi 2 года назад

Rob your a Legend mate. I think its about time we get that Avantis Deep Dive. P.S. More chess puzzles

@tchen61 2 года назад

Another point to consider, many financial advisors buy the "institutional" class mutual funds, in many cases, the fees are less than "retail" type of mutual funds... However, they CANNOT be transfered "in-kind" if you want to leave, the only way is to liquidate them and trigger tax event

@user-vp1eb7nj7y 2 года назад

Let’s talk, message me👆🏻📩

@ShOwStOpp3rr 2 года назад

This was a great video,,i too was curious about this question and came across a book called "everybody wants your money" by David Latko the book has a couple great chapters of how financial advisors take advantage of you,what to ask and look for when choosing a financial advisor and how to negotiate a fair fee..its worth buying just for a handful of great chapters.

@user-vp1eb7nj7y 2 года назад

Let’s talk, message me👆🏻📩

@ghostl1124 2 года назад

Rob, I like your Batman, (with purple & blue glows) keyboard. It comes in black. (see the movie reference)

@johnbonner2656 2 года назад

When I rolled over a Merrill Lynch account to Vanguard the ML advisor said that once he authorizes the transfer that its out of their hands and if the money is lost its not their problem. He was trying to scare me into staying. VG helped make the process smooth.

@connorcoffey3072 2 года назад

He’s probably not trying to scare you at all. He just wants you on record saying that you understand to cover his ass from compliance. Which, honestly, is usually the wise route to take.

@dotunfamakinwa 11 месяцев назад

I’m right at the decision point right now and appreciate this video - They want us to pay 0.8% annually for tax, financial planning and estate planning - for us, we already have a tax accountant and most of our retirement is in low cost index funds so this does not make much sense to us - At least, that’s what we were thinking - why pay significant fees for something that will need very little updates year to year. Thank you Rob

@muradshawar 8 месяцев назад

Seems you dont know what a financial planner is really for.

@MakesMeNoDifference-sd9qg 2 года назад

A good discussion and I would agree if the advisor you are paying 1% is just using mutual funds which have fees on top and/or hidden. However, once I had a portfolio large enough to get a top notch advisor who had resources (research department) to keep a very diversed portifolio without mutual funds, it has out performed what I have kept myself and what my wife's advisors with a national firm has done. The 1% has been paid by the extra 2-5% that my account has earned in the last 5 years.

@gikacoustics6360 7 месяцев назад

I would love to know who this firm is. 99.99% of advises don't beat the market so just getting something like VOO is going to out perform some fancy adviser. I just went through this and fired mine last year. The money I have saved in just a year is increadible and my funds are doing way better then the 100 + stocks he had me in.

@matthiaslipinski2826 4 месяца назад

Since markets are efficient there is no research Department on this planet that repeatedly gives you 3-5% above market returns. Just saying….

@DarkoFitCoach 2 месяца назад

@@gikacoustics6360 plenty of investment firms do. and the one that do NEVER invest in index funds. always in individual companies which means KNOWING the market and reasons for choosing companies. and not 100 of them but 15 companies or so. i am with one in europe. we beat 10% capital gain yearly easily which i would get with an index. i pay 1% but they earn 13% so 2% extra then an index and i dont have to do anything. win win

@ebelen1 2 года назад

Rob, same thought as you related to finding an adviser for my wife should I not be around. She has no interest and has little knowledge in the space. Son is better but don’t want to burden him unless he wants to help. Best way is for me to find someone now just in case.

@user-vp1eb7nj7y 2 года назад

Let’s talk, message me👆🏻

@johnbrown1851 3 месяца назад

1%=25% of your 4% yearly distribution. That's very generous to give your advisor 25% of your yearly income!

@scoobie8amg 6 месяцев назад

I left my advisor at Raymond James. My husband and I picked new investments and I ran my strategy by a free advising service I have through my job.

@randallj5683 2 года назад

This is a very good video. I believe that I am intelligent enough to choose 3-4 mutual funds to invest in long term, on my own, using dollar cost averaging. Each fund has somebody looking after my interest already: a fund manager. I already pay an expense ratio to them. If they fail to do their job then, they and their team get fired… or I just change funds. Only a couple scenarios I would consider hiring a financial advisor. 1) If advisors got paid a % of annual gains only, not the total portfolio. : meaning 0% or less during bad years. 2) If I was wealthy enough (or foolish enough) to invest large amounts in individual stocks/securities. Then the advisor would basically be my fund manager.

@user-vp1eb7nj7y 2 года назад

Let’s talk, message me👆🏻📩

@user-tv6tu1hp6t 2 года назад

There are good years and bad years when investing and nothing can be guaranteed. The annual fee (% of the account value) does not all go to the individual advisor. You are paying for a few things with this: 1) the company’s infrastructure and compliance oversight. They take their cut first before the advisor gets anything. 2) the advisor’s knowledge - this person went to school for a long time to help people choose appropriate strategies - which is typically why people hire financial advisors. 3) If it’s in a qualified account (like an IRA) most of these managed accounts are rebalanced quarterly to your risk level. Whether it’s a Buy and Hold strategy in a brokerage account or an actively managed fee-based account - no one can guarantee results. They can help you manage your risk, but they are not day traders trying to time the market. They’re investing in funds with strong track records for nice returns. Their goal is not to outperform the S&P 500 because if it was then 60 year olds would be 100% invested in the stock market which most of the time is not at all appropriate. All in all - financial advisors get a lot of criticism because of some bad apples, but most really are good people trying to help others. And it’s not a sin to want to get paid for your work.

@paulturner4419 10 месяцев назад

AUM is a scandalous ripoff, particularly in retirement. How to turn the 4% rule into a 3% rule? Pay 1% AUM. 25% of your portfolio income going to your advisor.

@DarkoFitCoach 2 месяца назад

advisor should be adding percentages on capital gain and paying for itself. otherwise indeed its lost money.

@roseother8306 Месяц назад

For my small account, he wants 1.75%. I'm hesitant and looking for options. Suggestions, please.

@DarkoFitCoach Месяц назад

@@roseother8306 index is ur solution

@DarkoFitCoach Месяц назад

@@roseother8306 index. 0.04% cost and u get market returns

@randy74989 6 месяцев назад

Oh hell no, think of it this way: "But research suggests the services aren’t always worth the extra cost. If you’re not willing to put in the time to provide personal information, “it’s like paying an ongoing fee for a gym membership you never use,” said Ben Taylor, a consultant at Callan." Unless they are providing tax, estate, and investment advice in the fee, it's not worth it. If you need help, just pay a fee only advisor for your "specific" needs. An RIA for investments/financial planning, a CPA for taxes and an Estate Lawyer for Estate Planning.

@alexandrailnyckyj6059 11 месяцев назад

Move everything into ETFs. Easy to open the accounts and they manage themselves. Do not worry about capital gains tax. It has to be paid eventually so best pay it now and save yourself hundreds of thousands of dollars over the next 30 years. The financial advisor who charge AUM is nuts

@leedulion821 2 года назад

First Rob, you are an excellent presenter. Since you like Vanguard, please reference their data that the value of a Financial Advisor MAY add between 1 to 3 percent over and above the fee's charged by the Financial Advisor.

@rob_berger 2 года назад

I've read that report. Lots of assumptions, but I'm glad you brought it up. I'll do a separate video covering it.

@_cadia 2 месяца назад

@@rob_berger I agree there are assumptions in that report. However, the assumptions are based on some historical observation to provide a basis. Mileage will vary. You compared the value of a financial advisor (as a generalization) to an estate attorney, which I believe is a fallacy. You don't pay them the same as they perform separate jobs and only one has incentive to strengthen your financial plan. One of a few points that I think discount your overall good message. To be clear, I think your message is good. I appreciate it. A good financial advisor should demonstrate how they deliver "value" in multiples of his/her cost and be broader in scope than investment management. You were hitting on this point. Unfortunately, many financial advisors - start out with good attention - end up accumulating client assets as priority number one and the practices they build are to support that accumulation business model. If someone wants to work with a financial advisor (or does), ask directly about their costs, the embedded portfolio fees, and how they can quantify the "value" of their service to offset the costs and provide an overall return on the scope of the engagement. They should be able to demonstrate systems, technical competency, and have a practice (team, philosophy, and resources) that supports that. A solo advisor with an assistant serving 300 client families is probably not capable to deliver much more than generic boilerplate advice (even that has value to a lot of people). Their business model disincentivizes them from doing more. A strong message I'd advocate for is to stop being sold and be an informed buyer with clear objectives. Understand how the advisor and his practice intends to deliver what they define as "value" - what is the value proposition? Value is perceived differently at the individual level and anyone you hire should be clear on what you define as value. The most successful relationships are when expectations are aligned and value is contributed and extracted appropriately. An advisor that diverges from his value proposition to accommodate you (even with the best of intention) creates a mismatch and is a red flag.

@mj1961christian 2 года назад

Rob, I finally got my portfolio moved over to Vanguard into a 70/30 portfolio (per their recommendation). I'm currently 60. By the time I'm 67 (retirement age) it should be 60/40 and by the time I'm 85 it will be 50/50. For now I plan on using their personal Advisor Service at .30% and they have me in 4 ETF's with an average expense ration of .07%. This is far less than the total fees I was paying with RJ at 1.73%. RJ had me in 25 mostly actively managed funds. Thank you for all of your advice on this channel.

@SueTNguyen Год назад

Your personal advisor service is with Vanguard?

@mj1961christian Год назад

Yes

@joecocklin8596 11 месяцев назад

Which funds did they put you in? Did they use BND for your bonds or individual bonds? Thanks@@mj1961christian

@lukethomas3066 10 месяцев назад

You like vanguards Personal adviser?

@jb396 9 месяцев назад

Most of my portfolio is currently is at vanguard with an advisor at .30%. They have me in a mix of index, ETFs and actively managed investments. My 401k, HSA and some company stock are with fidelity. To consolidate and get a holistic view I am considering moving everything to Fidelity. They have proposed a more simple allocation of mostly index funds with about 30% of the portfolio in their SMA. Overall the fee is less than vanguard. I would still get access to a dedicated advisor, which I find valuable. I like the idea that someone is there to help answer financial question when they arise. That is something that is happening more and more as I age.

@chaleurphantom1 2 года назад

You missed one very important point. I am with a financial advisor with my bank. I challenged the high Management Expense Ratios, MER's, on my Mutual funds. At the time we were not paying any separate fees for his services. He sensed that I was getting ready to pull the plug. He offered a different arrangement. The Mutual Funds with this bank have different Series. Same investments but different MER's. In order to qualify for the lower cost MER Series we would have to switch to Fee Based Account with a 1% Fee. The drop in the MER's was more than 1%. Some were 1.8%. The compounded returns on the lowered MER Series was significantly higher. I felt this made the 1% fee more tolerable.

@philip5899 2 года назад

Rob, would the inverse be where you have cap losses as in the current market to harvest the loss and exit the relationship?

@auricgoldfinger8478 2 года назад

I used Gabelli investment company for 20 years. 1%. They outperformed the S&P for the first 13 or so years, by 2-3% net. Then they didn’t. Severed relations 2 years ago

@carlbook2051 2 года назад

It's really hard to beat the market year after year.

@auricgoldfinger8478 2 года назад

@@carlbook2051 Jack Bogle said it all when he emphasized reversion to the mean

@DavidRamseyIII 2 года назад

My advisor has beaten the market by 2-3% net of fees every year and he’s a pretty dopey guy

@CK-qx6of Год назад

Great video. I am in the process of moving out from a financial advisor. He has me in 6 different actively managed accounts. None of which has ticker symbols. I guess the firm has a contract which mimics the activity of the specific funds. What advice would you give of transferring out of those funds?

@W3BKY_73 2 года назад

Awesome presentation! I’ve been weighing the value versus cost for quite awhile, given the resources now available for DIY. Along the same lines… is it important to have more than one broker, particularly if a DIY investor? I was thinking that if a large company (Schwab, Fidelity, etc) has an issue where my assets with them would be at risk, then most likely the entire industry would be at risk and diversification wouldn’t make much difference. Any advantage to spreading your investments to multiple brokers, if costs are nearly the same? Thanks!

@miket6094 5 месяцев назад

I have an actively managed Roth ira opened in 2005. I'm curious if it would be a good idea to have an audit done on my retirement account by an independent financial advisor to ensure my advisor is doing a good job for me.

@dakyz 2 года назад

Thanks a lot, I struggle with answering the questions. "What are your goals?" I just don't know. We've got Fidelity (previous job) and Vanguard ( New job) my wife is a teacher Its tough to get all the accounts in front of us really. I've got a good friend at Ameriprise that I do trust but I don't want to get jacked around with fees if I can do simply investing over time on my own. I feel like a got soured on financial advisors because of my experience with Northwestern Mutual. They were so adamant that I needed a Variable annuity and it did it for like 25k. just silly.

@user-vp1eb7nj7y 2 года назад

Let’s talk, message me👆🏻📩

@noreenn6976 2 года назад

@Paul Kyser Fidelity and Vanguard are excellent places to have your accounts. You could be really basic and just pick target date funds. Or you could come up with a simple stategy, like the 3 fund strategy. Vanguard has a life strategy growth fund, 80% stocks 20% bonds, I have that fund and have been happy with it. Very low expense ratio. Learn more about funds, listen to more of Rob's videos. Andrew Hallam has two books that might be helpful.

@asdstrike 4 месяца назад

Hello, I have a CFP trying to convince my wife and I to move our large accounts to AUM. I thought showing them this fee calculator would be great; however it is no longer available. Do you know of any similar alternatives?

@unitedstateser 2 года назад

What do you think of buying funds like GUT and CLM? Is there a catch with these funds that I'm not seeing?

@robinspanier7017 Год назад

for most people my advise would be no, you can not argue against the fact that retail investors do 3% worse then the market. they need to be protected from themselfs. ofc this opinion is not popular and most viewers here will disagree. but remember guys.. you are already a advanced retail investor for indexing and educating yourself

@StephanDavisson 6 месяцев назад

I agree completely. I’m a CPA and work mostly with small business owners. The vast majority of them cannot do it themselves and wouldn’t even do anything at all for retirement if I, or someone, didn’t encourage them to and basically hold their hand through the process. Frankly, I include my 30 years ago self in that group as well. I have had my retirement accounts at EDJ for many years in A share American funds which is a much better arrangement than AUM fees. Commissions go down as you get more money in the accounts. Now for the even more unpopular opinion……. These people would still be light years better off paying AUM fees than doing nothing. This cannot be disputed. For many people the choice is not AUM vs DIY, it’s AUM vs doing nothing. Which is better?

@robynnichols1695 2 года назад

Did I miss the section on how to dissolve a relationship with an advisor? I am thinking about it and would like to know the best way to go about doing that.

@user-tv6tu1hp6t 2 года назад

Just decide on where you want to move your money to next and the new company will help you move the money.

@jimschmitt9001 2 года назад

One more disheartening situation exists when you begin to draw down during retirement. Say a $1M portfolio and you pull $50K. That year the advisor still gets $9500. Next year, $50k, advisor gets $9000. So he makes big bucks while you see your savings depleted. If advisors got paid a percentage of the gains they produce it would be more equitable.

@user-vp1eb7nj7y 2 года назад

Let’s talk, message me👆🏻📩

@katsadventures7027 Месяц назад

Well, I only have 370,000 and my advisor takes 1.78% of that this makes me sick and it seems the more money you have the less they take 😢

@slmunney7760 Год назад

"Fools and their money are soon departed." That is what comes to my mind when I hear about people paying so called "financial advisors" 1% or more of their hard-earned savings annually for no discernible reason.

@antoniomarine1567 Месяц назад

Great video (like all your videos). But I am scratching my head a bit. In your example - 1 million invested with a 1% annual fee = $10,000. Some of the "low cost" financial advisors you link to charge very close to that much! Should you really be linking to them???

@planetag310 2 года назад

"...there are many services out there that will handle your investments for you for far less than 1%". Please name some, because I'm not finding any. Are you referring to online services such as Betterment, or actual advisors who charge less than 1%? HELP!

@BiggMo 6 месяцев назад

I’m glad I found this video. I’ve been wondering when does it make sense to invest in a Financial Planner? I’m seeing costs of 1.25% for 1 million under management, that’s equivalent to $1041 a month that’s not in a portfolio earning money. In my situation, I’m 8 years from retirement. Assuming an 8% return (low S&P avg Long term return rate) compounded for 8 years, that 1.25% is equal to $141,000. When does it make sense to divert $1041 a month from my investment allocation to an advisor?

@DarkoFitCoach 2 месяца назад

makes sense if you dont have the stomach for long term investment, dont have the knowledge, dont WANT to do it yourself etc. plenty of reasons. if there were no reasons then invetsment firms wouldnt exist and they do

@KathyRussell-xh7cd Год назад

Hello Rob, What if you have a portfolio of $350,000? Are there fee only advisors that will handle a small account? Kathy

@Wayneman50 5 месяцев назад

We have a FA for just over a year. Our total fee including funds is .75% of assets under management. Which does not include assets in our 2 annuities or our CD's. I do not want a FA. I can do just as good a job with no problem. My wife on the other hand doesn't want to deal with it and wants someone to guide her. She always argues what happens if you die first and i don't know what to do? I am slowly working on prying her away. Every quarter i show her in dollars what she is paying out in fee's. Hopefully, by mid or end of 2024 in can convince her to leave. The problem in her eyes is if we leave everything gets separated again. Like it already isn't, but under his management it looks like everything is together. Geesh.

@SuperDagod1 4 месяца назад

How much should a basic trust cost. House retirement accounts and make a will.

@successfulusername 2 года назад

Don’t get rid of the advisor because of the fee- get rid of them because they have you in index funds.

@rootedrotor525 5 месяцев назад

I can handle my investments just fine. BUT - I would like help on tax strategy, backdoor roth conversion analysis, ACA credit opitmization, etc. Wonder if i can just pay a fixed fee for that analysis?

@sogaboy1 5 месяцев назад

I have a fee only advisor with Ameriprise. She does this for me.

@629990 Месяц назад

I'd ask myself how that cost compares to a fee for service based adviser providing advise on an as needed basis.

@KevinEricMcCarthy 4 месяца назад

If I were to win the $1.1 million mega million lottery and opt for the annuity payments over 30 years, after factoring in federal taxes at a 37% marginal rate, I would receive a net payment of varying amounts each year. The total net payment over the 30 years would amount to $694,254,369, hiring the expertise of a CPA or tax attorney is essential. When it comes to hiring certified financial planner/advisor versus using a program like Fidelity or Vanguard?

@Kimmer 2 года назад

What do you think of Vanguard's Advisory fees of 0.3%? I'm trying this service and have found it useful as a sounding board and also access to many managed funds that are closed to other investors. As I near retirement, it gets more complicated, so this is giving me some peace of mind though I still don't like the fees.

@davidk6498 2 года назад

I guess it would depend on .3 percent of 5 million or 500 thousand ?

@rob_berger 2 года назад

Well, at $5 million, you can go with Vanguard's Wealth Management services, where fees begin to drop as you exceed $5M. It also adds lots of other services.

@rob_berger 2 года назад

I think it's definitely an option to consider.

@Kimmer 2 года назад

@@davidk6498 I'm in the middle of that range, so the fees aren't insignificant. But I do like access to some of those closed funds like Capital Opportunity and Prime Cap that have good track records, though primarily I'm an index fund guy.

@The.Common.Denominator 2 месяца назад

The main focus should be on the value that advisors provide to clients who understand the complexity of managing their money. Selling during a market bottom could absolutely hurt their financial situation, requiring much more than a 1% return to get back to even. Professional management should not be cheap or free. Just like a good CPA, attorney, etc.

@David-fv7zg 2 года назад

I once paid an advisor 2.25% to manage my money subpar to the markets. Ugh.

@user-vp1eb7nj7y 2 года назад

Let’s talk, message me👆🏻

@nicholasmartinez6043 2 года назад

It’s not worth it to do an adviser. Kelly should just use VFIAX for stock, VBTLX for bonds. Decide your allocation and separate the two funds so that you keep the VBTLX in your retirement accounts and VFIAX between retirement and taxable account. Rebalance if you want to once a year, but otherwise just keep putting the money in and don’t look at it. For expenses 5 years or less, save some cash so you don’t have to sell taxable VFIAX to buy something like a car or big ticket item.

@brokecooking8277 11 часов назад

1% is great

@maggielee6435 2 года назад

I do not know any advisor that is less than 1 percent...what about the vanguard at 00.3... l gave annuity and l want to get out of it but l do have a penalty...l was wonder what would be the best way to go

@user-vp1eb7nj7y 2 года назад

Let’s talk, message me👆🏻

@user-tv6tu1hp6t 2 года назад

1% is the industry standard. To get less than 1% you’d have to have a few million. And the entire 1% doesn’t go to just the advisor, the company takes its cut first for providing the tools used in the advisor’s business. I’m not sure what type of annuity you have but it sounds like you’re still in a surrender period and these have penalties if you take money out too soon. These typically last anywhere from 7-10 years. Sometimes they apply to each contribution to the account and sometimes they only apply to when you start the annuity. Ask your advisor for more clarification on how your annuity is supposed to work & ask if there are any riders attached to it.

@quartytypo Месяц назад

If advisor was any good, they would quit the advising game and go make money investing. Why work when you don't have to? Because they can't make a living following their own advice.

@chriscamburn 2 года назад

What would you consider a fair "flat fee"?

@user-vp1eb7nj7y 2 года назад

Let’s talk, message me👆🏻📩

@ljrockstar69 2 года назад

Thank you for doing this video. My concern is that my EJ financial advisor is kind of arrogant and tells me if I close my account it will be the wrong thing to do. I feel intimidated and bullied. Any advice to circumvent this? I was to move it to Vanguard, but in a smooth transition. Can Vanguard just deal with my advisor at EJ and not get involved? I just don't want to deal with with him. I'm literally stressed out about this and fear confronting this advisor. I have my Roth and a taxable account there, is it a good time now to move it to Vanguard?

@rob_berger 2 года назад

Vanguard should be able to help you.

@tinman63 2 года назад

I just moved my Roth and 401k from an advisor to Vanguard. It was very easy to set up, I started out with the toll free number on Vanguard's site and they walked me through the process.

@vjay_michigan9158 2 года назад

I was in a similar situation 5 years ago. Moved my accounts into Fidelity and Vanguard. Both of them were helpful. Good luck.

@ljrockstar69 2 года назад

@@vjay_michigan9158 Thank you this is a very traumatic experience for me.

@ljrockstar69 2 года назад

@@rob_berger thank you for the advice I will work with Vanguard, I'm really unhappy and always having these panic attacks because of this financial advisor.

@nareshvasishth4034 2 года назад

I have always done better than advisers. Touchy subject. But who am I to say. The entire nation uses them. Remember even Bogle could not convince Vanguard. Vanguard has some good managed funds. If you make money, you have to pay taxes. Sooner or later.

@tinman63 2 года назад

1.5%. He underperformed last year with high ER's. He's fired now and is being difficult with producing some documents I'm entitled to. A letter to FINRA might be in his future.

@user-vp1eb7nj7y 2 года назад

Let’s talk, message me👆🏻

@rusilver2 4 месяца назад

you should never look at as a percentage - how much actual CASH did it cost for what they did .... was it worth it??? most likely not unless you have less then 500k. Which explains why they'll have minimum account size.

@jameslee884 2 года назад

Hey Rob, great show. I have a friend who is in his mid 50’s retired. He opened Charles Schwab and fired his advisor at full service broker. He has been managing money himself for 6 month. Last couple of month his been hit hard on his portfolio as it has mostly tech stock or growth stock. He has 15 million in stocks and 5 million in real estate holding. Question - He reached out to CS advisor and they are charging .26% for this kind of asset 15mil. Today lots of those stocks have come back 80%. They want to rebalance the portfolio but most of those stocks have huge gains and subjects to capital gains tax. Question is do you bite the bullet and pay the cap gain taxes and rebalance or steady as she goes? Do you think this is a good rate assuming she good or steady as she goes? Use the advisor or not? at this asset even .26 % adds huge fees.

@user-vp1eb7nj7y 2 года назад

Let’s talk, message me👆🏻📩

@katsadventures7027 Месяц назад

My bank is taking 1.78% makes me feel sick. $540 a month almost

@TexasRanchu Год назад

Yea..1 percent is alot when you convert it to dollar amount

@rickdunn9606 2 года назад

Have the Advisor translate the AUM % to $. Then ask, show me that Im getting x$ worth of service?

@David-fv7zg 2 года назад

9:35 No but a lawyer will take 33% of your money when he wins you court case.

@user-vp1eb7nj7y 2 года назад

Let’s talk, message me👆🏻📩

@mj1961christian 2 года назад

I’m charged 1.25% from my R.J. Advisor every year. Is that too much? I don’t know what to do?

@donh8223 2 года назад

@Mike Damron Educate yourself

@user-tv6tu1hp6t 2 года назад

Depending on how much you have invested with them, that is pretty standard for the industry right now at most companies like RJ.

@funnyspence4252 2 года назад

Do you value the full range of service being provided or are you simply having your investments managed with little to no contact?

@TJC-zz4zx Год назад

Rob, where could I find your email ? Thank you .

@campsitez2355 2 года назад

If you're in a bond fund and are investing more than 3-4 years grow some balls or get a financial advisor to encourage you to get into the right equity investment for the long term. SURE any joe shmo can pick a bunch of tech funds but an advisor will make sure you're not chasing a timely sector investment on your own... more than likely you'l actually be properly diversified depending on your own risk profile

@addanametocontinue 9 месяцев назад

Doesn't make sense to pay 1% if all the money being managed is already being managed by another company (i.e. index and ETFs). That's like paying somebody 1% to manage your 401k. Advisors are great for people who don't want to manage their own money, even at a minimal level. I get it, learning about stocks and funds and investing money outside of your 401k takes effort and not everybody wants to deal with that. This person sounds like she's already familiar with this type of thing: she's not the type of person who should be hiring an investment advisor and paying them 1% to do what she already knows how to do.

@davidbrooks8809 Год назад

Just remember a lot of this information you can get off RU-vid for free

@thomasknight604 2 года назад

E4 or D4?

@rob_berger 2 года назад

Both, but mainly e4.

@johnbrown1851 2 года назад

Duh!! Do you even need to ask that question?? You will lose thousands of dollars through the years. Spend a few hours studying on your own. It will pay about $1000/ hr

@16Millington 10 месяцев назад

Hello, my husband just left his company of 35 years after it went out of business. He has a 401k from this company with John Hancock. His balance is 553,000. As of his last quarterly statement, he was paying over $1,000.00 a quarter in admin fees. Not advisor fees, but admin fees. I am assuming this is because he came from of small company. I think this amount is crazy. In your opinion, would he be better of rolling his money over into an IRA account with another company. In the past, I have rolled money from a 401k into a Fidelity IRA and I know I do not pay the same high fee that he does. What would be the pros and cons of rolling this money over. Also, his company will no longer exist so what impact my this have on his 401k with John Hancock. Thanks in advance for your help! Pam M.

@tonyherdina9142 7 месяцев назад

Paying a financial advisor is like paying for a personal trainer.

@couldbe8348 Год назад

But what happens if they earn you more than one percent more than not having them?

@glasshalffull2930 3 месяца назад

92% of them each year DONT beat the S&P500.

@couldbe8348 3 месяца назад

@@glasshalffull2930 evidence for that stat?

@jdarst100 2 месяца назад

@@glasshalffull2930 Do you have any evidence we can see? Thanks

@sam22smith13 6 месяцев назад

The only issue is that a professional investor can beat you by more than 1%. So you actually make less $ and waste all that time - double whammy. Of course you need to have a skilled investor that does more than parking your money in static asset allocation index funds…..

@dparacca 14 дней назад

There is a very fine line between charging a 1% fee, and earning a 1% fee. Keep that in mind. Not all fees are bad. For example, I charge a 1% fee but I earn that 1% and more just by the tax savings I can save clients because of a CPA that’s on my team.

@MC-gj8fg 2 года назад

Paying 1% is certainly not worth it for indexing. You can very easily do that yourself. That said, most of these guys that get paid to invest in individual stocks and "beat the market" generally don't...which strikes me as odd. Beating the market as an amateur by value investing isn't actually all that difficult, so it confuses me that these professionals come up short so frequently. The hell are these guys investing in?

@user-vp1eb7nj7y 2 года назад

Let’s talk, message me👆🏻📩

@m_avery6479 2 года назад

You get what you pay for.....

@rob_berger 2 года назад

True in many circumstances, but not investing. For example, the more you pay for a mutual fund or ETF, the less likely it is to match the performance of an index over time.

@billyjohnson9166 2 года назад

Not true

@p47rr 5 месяцев назад

What about funds that have out performed index funds 98% of the time over fifty years? Why would I want to own five hundred companies rather than owning just the great companies. 20% of the companies drive 80% of the returns. Why settle for average index return minus Vanguard fees ? Anyone else notice over the last twenty years. All Vanguard and Fidelity promotes is how inexpensive they are. Plus they are both woke corporations. If that is what you want. No big deal.

@randydiver3076 2 года назад

Pray for wisdom from God. My human advisor quit, he was getting me 6% to 10% a year and charging for it.. I converted all my IRA to a ROTH IRA and payed the conversion tax. Bought TSLA LEAPS back in 2019. I diversified after the big rise in TSLA into some things, gold, BTC, ETH, EDIT, land and a new truck with about 5% of the profit. The other 95% is still in TSLA LEAPS. Will keep rolling forward into TSLA LEAPS until Tesla stops growing more than 50% a year. DO NOT do this if you can not stomach wild swings in your account value. Pray for wisdom and learn about Tesla and LEAP options. I am not your advisor. Just stating what I did WITHOUT an advisor other than God. You must have something stronger than diamond hands to do this.

@davidk6498 2 года назад

If the devil ever shows up you going to lose your shirt

@randydiver3076 2 года назад

@@davidk6498 Hi David, you are named after the father of the richest man on earth King Solomon. King Solomon prayed for wisdom and God made him wise and the richest man in history. Yes the devil came to me and thought he had won. I was down on my knees and tears were streaming from my eyes as my fortune in options had dropped through the floor due to IV Crush. However the devil ran away with his tail between his legs when I said AMEN and rose up. Find God read the Bible. You will know when you do the devil can not prevail. Thank you for your comment.

@jdarst100 2 месяца назад

@@randydiver3076 There is no god. Now, Go have a nice day

@jdarst100 2 месяца назад

There is no god. Now, go have a nice day