Reply to Am I overpaying my financial advisor?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]It should never be more than 1%.  But I agree asset under management fees are generally not worth it unless you really are allergic to doing this yourself, in which case, I would just go with Vanguard Personal Advisors or similar, which runs 0.30% for all index to 0.40% for mix of indexes and individual investments.

But at $750,000 you can do it yourself.  The clearance list would not be an issue for a broad based index fund like the S and P 500, so you wouldn't need to worry about that.  If you need bonds, you can do a government bond fund, which also should not need clearance. So I don't think that service is worth much. And really, why does anyone need to invest outside of these indexes unless it a hobby or passion (clearly not your case)?

A backdoor Roth is super simple and takes very little time once a year through an account at Vanguard, Fidelity, or Scwab.  Google whitecoatinvestor backdoor Roth for step by step instructions.

I would move everything at once to Vanguard or the other two. Pay for the really cheap personal advisor option and drop it once you are comfortable doing everything on your own.

[/quote]

Do you have sizable IRAs? Then a back door Roth is going to cost you $$$ in taxes. Beware of internet posters bloviating about which they know little. Your advisor may be worth his fee. Most great advisors don’t take on accounts of your size so that may be his fee for smaller households.[/quote]

Looks like we found the percentage based advisor who is worried about his business drying up. From the OP:

"handling of our backdoor Roth IRAs each year"

If they are doing it each year that's almost surely post-tax contributions to a $0 IRA, up to the annual IRA max, and then 1 or 2 days later doing the Roth conversion of the whole IRA. Nothing complicated about it once you have done it, and the tax implications are zero other than a couple of forms that tax software will do for you, based off of forms Vanguard gives you in February each year. I do it every year in January, takes 5 minutes on a Monday, and then 5 minutes on Wednesday.[/quote]

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