Reply to Am I overpaying my financial advisor?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]OP here. Thank you all for the recommendations and help! Based on everything I’ve read, I’m trying to decide between one of the following:

1. Call Atwood (thank you to the PP for this recommendation! She sounds very promising) and pay by the hour before firing FA. Get her professional opinion on existing portfolio and take next steps she recommends. 
2. Fire FA immediately and tell him I want to self manage (Wells Fargo). Work with CPA to streamline investing and figure out tax advantageous plan. 
3. Open account with discount brokerage (Schwab, Fidelity, etc). and get them to move stuff over from WF on my behalf. Then fire FA. 
4. Ask FA to reduce fee to .35% AUM to match discount brokerage FA fees. (Husband suggested this and thinks we should hear him out, I don’t, especially considering all the fees we’re paying to be “diversified”.).

To be clear, I don’t want to look for a new FA that charges any kind of AUM fees. I really like the idea of the hourly help (Atwood) recommendation. I’m just not sure WHEN in this process I should fire my FA.

Thoughts? Thank you, DCUM! [/quote]

I’d ask Atwood (or whichever affiliated CFP you talk to) this question.[/quote]

Option 4 is your worst choice.  Do not hear him out; so far he has given you absolutely terrible advice and has taken advantage of you.  He would not be authorized to give an AUM as low as .35% anyway.  Am guessing for your size portfolio, he would not be able to go below 1%. I am also guessing that like most sales people he is a nice, pleasant guy so your DH likes him.  This does not detract from the fact that he has fleeced you.

I would go with 2 or 3.  If you go the Schwab route, you need to make sure first that they can carry over all the relatively illiquid funds.

I would not rule out 1.  She might be able to give you advice on 2 v. 3, but she wouldn't be able to execute; that would be up to you to carry out.[/quote]

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