Reply to Am I overpaying my financial advisor?

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[quote=Anonymous]We’re currently paying our financial advisor (a fiduciary) an annual 1.25% fee and we have $750k in total assets in our portfolio. It’s a mix of stocks, index funds, etc. His fee is full service and includes handling of our backdoor Roth IRAs each year and our kids’ 529 plans, and he calls us when he wants to buy/sell (if any of this is relevant).

Due to my husband’s job, every fund and entity within that fund has to be pre-cleared through a database (which our advisor handles on our behalf). We could technically do this ourselves, but it’s a bit overwhelming and TBH I don’t understand a lot about investing. Our average annualized rate of return since we started with him in 2018 is 7.4% and 8.7% since 2019.

I keep reading on here about everyone managing their own money or using fee only advisors, and can’t help feeling like we’re overpaying. For example, we just checked the Schwab S&P 500 index fund, which isn’t restricted, and it looks quite promising at a fee of only .5%. I’m tempted to put $50k of cash into it to see how it performs vs giving it to him.

Given the pre-clearance requirements, his fee, the value of our portfolio, and ROI, should we look into other options for managing our money? I often read about fee only advisors but am at a loss. WWYD? [/quote]

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