Do I need a “wealth manager”

[Anonymous]

52 yo divorced female, I have about 1.5 in liquid assets. I have a wealth manager with Schwab who charges about 10k a year. I’ve always outsourced because it’s not my field and I don’t have a lot of time (maybe I’m answering my own question). My portfolio is a lot of index funds and big US stocks. I buy and hold. I’m just thinking I could do this on my own.
Please tell me if you think it’s a bad idea and just pay for the expertise. Part of this is I’m kind of battered financially after the divorce, and I’m looking for ways to cut back while I rebuild.

[Anonymous]

That's a lot you've been leaving on the table every year, OP. I've always bought and held on my own. It doesn't take up a lot of time.

I have about 14M and have never had a wealth manager. But I do want to research and possible establish a trust fund, and need expert advice for that, so I'll be looking at estate planning advisors.

[Anonymous]

No! Move everything to fidelity and put it in low fee funds.

[Anonymous]

Op here—I really appreciate your perspective! I’m thinking it is a lot to leave on the table. I’m glad to hear that you’ve accumulated such a nest egg on your own. There’s a lot to be said for saving money.

[Anonymous]

Go to Bogleheads and ask this question. Not DCUM.

[Anonymous]

Thanks 16:10!! I was just looking at their website. Or Vanguard. I actually have Vanguard funds in the Schwab account, which she bought. I can do that!

[Anonymous]

Definitely bogleheads > wealth manager

Good job for realizing it

[Anonymous]

You absolutely can manage $1.5 million on your own. I would have a lot better uses for the $10,000 (like adding to my index funds).

Spend some time perusing Bogleheads. Once you are familiar with the site, feel free to post with any questions. Responses there are very helpful.

Alternatively, sign up for Plan Vision and they will help you with a plan that you execute. $300 the first year, a $100 a year thereafter.

[Anonymous]

Anonymous wrote:Thanks 16:10!! I was just looking at their website. Or Vanguard. I actually have Vanguard funds in the Schwab account, which she bought. I can do that!

You can keep a Schwab account without the wealth manager. I have been at Schwab for 25 years, have about $2Million in my accounts, and manage it all myself. When they approach me for wealth management/financial planning, I just say no thanks.

[Anonymous]

OP, What services does your wealth manager provide?

[Anonymous]

OP here—thank you all for the Bogleheads recommendations.
16:36…she recommends what to buy and sell, and we meet four times a year for about 45 min each time.
I just also realized I can leave everything with Schwab and take it out of “wealth management.” So thank you to the other poster. That 10k can definitely go toward an Index fund instead. Thanks everyone.

[Anonymous]

Anonymous wrote:OP, What services does your wealth manager provide?

mine has access to funds that regular trade accounts don't. They have in house analysts that know what to buy. I don't have time or the interest to keep track of it.

We have about $3mil with them.

[Anonymous]

16:47 I would guess mine does as well, so that is a plus!!

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP, What services does your wealth manager provide?

mine has access to funds that regular trade accounts don't. They have in house analysts that know what to buy. I don't have time or the interest to keep track of it.

We have about $3mil with them.

What funds,exactly?

And what has the record of their analysts been over the last 20 years, compared to the stock market as a whole? Most studies show that in the long term, around 95% of stock pickers underperform the overall market.

[Anonymous]

What a waste of money.