Menu

Should I keep my Financial Advisor?

Home Financial Advisors Should I keep my Financial Advisor?

  • The White Coat Investor The White Coat Investor 
    Keymaster
    Status: Physician
    Posts: 4260
    Joined: 05/13/2011
    Splash Refinancing Bonus

    I have had a Fee-only fiduciary financial advisor on a flat retainer fee model for last 3 years. I pay 5k/year, will soon increase to 6k/ yr. Wondering if it is a good idea to continue paying him or should I do it myself. I have read many financial books and follow Bogleheads and WCI forum. I feel comfortable managing my current investment asset allocation. I’m currently maxing my ORP, 403b, 457b. My total investment asset is around 250K. I have a mortgage for 180k and 2 car loans. Total net asset is 400k. My fear with going solo is
    1. Will I freak out and not stick to my asset allocation during a bear market
    2. Maybe my FA can fine tune some of my investments like doing Roth conversion or taxable investment and other subtalities that I may not be well versed with but my FA may be…

    Thanks for your opinion in advance
    Confused first time poster!

    Click to expand…

    The fee is fair.

    The advice appears to be good.

    So this is merely a question of whether you’re willing and able to do what your advisor is currently doing in exchange for $6K/year. For me, the answer is yes.

    As far as 1, I have no idea. What did you do in 2008? Bear in mind using a less aggressive asset allocation for a few years will probably cost you less than paying the advisor.

    As far as “fine tuning” stuff, the good news is you can make $6K worth of mistakes a year and still come out ahead. Hopefully you’ll learn most of the fine tuning stuff on a site like this one.

    Site/Forum Owner, Emergency Physician, Blogger, and author of The White Coat Investor: A Doctor's Guide to Personal Finance and Investing
    Helping Those Who Wear The White Coat Get A "Fair Shake" on Wall Street since 2011

    #162985 Reply
    fatlittlepig fatlittlepig 
    Participant
    Status: Physician
    Posts: 673
    Joined: 01/26/2017

    Sheesh @fatlittlepig, I may want to hire your financial advisor for that fee ?

    Click to expand…

    Actually Fatlittlepig is Fatlittlepig’s financial advisor.

    Original poster: my portfolio is about 20x your size and I am paying less overall fees which are the fees I pay to own mutual funds. You are paying a fee to your advisor and also paying mutual fund fees. Not great situation especially for such a modest portfolio.

    Fatpig

    #162995 Reply
    Avatar snowcanyon 
    Participant
    Status: Physician
    Posts: 418
    Joined: 10/22/2018

    Sheesh @fatlittlepig, I may want to hire your financial advisor for that fee ?

    Click to expand…

    Actually Fatlittlepig is Fatlittlepig’s financial advisor.

    Original poster: my portfolio is about 20x your size and I am paying less overall fees which are the fees I pay to own mutual funds. You are paying a fee to your advisor and also paying mutual fund fees. Not great situation especially for such a modest portfolio.

    Fatpig

    Click to expand…

    I want to be as phat as you, FLP. Also, 5k is insane. Pick a normal asset allocation and move on. It may be a reasonable fee and decent advice, but it’s also 433k compounded after 25 years, a nice annual vacation, or some value-added home upgrades. For me, not worth it.

    #163000 Reply
    Avatar NerdyNeurologist 
    Participant
    Status: Physician
    Posts: 13
    Joined: 10/21/2018
    Earnest refinancing bonus

    Thank you fatlittlepig. Appreciate your advice:)

    #163196 Reply
    Avatar NerdyNeurologist 
    Participant
    Status: Physician
    Posts: 13
    Joined: 10/21/2018

    Thank you snowcanyon for that perspective. That really helps!

    #163198 Reply
    Liked by snowcanyon
    Avatar Physicians Capital Management LLC 
    Participant
    Status: Physician, Financial Advisor
    Posts: 30
    Joined: 07/17/2017

    I would do it yourself.  The Vanguard products are so good now today that you won’t really have any problems.  Most docs that can ask the question about a bear market know to “stay the course” during a bear market.  Any doubts, write a question in this forum.  For the nuances, write into this forum or use “as needed” advice for a second opinion.  It will be a lot cheaper than your current rate.  Don’t be afraid.  If you want, open a small account yourself at Vanguard and get some money invested on your own.  You will quickly realize there is not mystery to it.  — Physicians Capital Management

    #169064 Reply
    Avatar NerdyNeurologist 
    Participant
    Status: Physician
    Posts: 13
    Joined: 10/21/2018

    Thank you Physician Capital Management. Appreciate your advice.

    #169194 Reply

Reply To: Should I keep my Financial Advisor?

In case of a glitch or error, please save your text elsewhere, clear browser cache, close browser, open browser and refresh the page.

Notifications Mark all as read  |  Clear