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I was shocked that item #2 which is about 6.5 times less than item #1 was earning more $$ per month than item #1 But item #1 has grown $14,000 where item #2 did not grow any. Some way I need to factor in this amount in my figuring of dividends vs fees. If it was a perfect world I would like to put a lot of the $$ from item #1 into the same type of funds that item #2 is. This would give me more monthly dividends without the high quarterly fees. At this stage of my investing I am not so much concerned with how much my $$ grow, but how much I get monthly into my bank account.
It is good that you are looking at expenses and evaluating just what your FA is doing for you.
That said (and don't take this as criticism, it is an observation and I'm trying to help!), the way you are looking at your investments is somewhat twisted. But that's OK, because people here can help with that.
You need to look at your investments as a whole - a 'top down' view, and at 'total return' (the gain/loss on its entirety - price change plus divs). Comparing dividends, but not accounting for price change is just going to confuse you. It's all money.
Getting higher dividends (your comment about moving from #1 funds to #2 funds), might not be the right thing for you to do. Higher dividends are typically associated with higher risk funds. Is that what you want?
The general formula here is, pick an Asset Allocation (blend of stocks and fixed income) that matches your risk tolerance. History shows that anything from about 45/55 to 90/10 will provide similar success rates for a 30+ year retirement, so don't sweat the details.
As others have mentioned, it looks like the fees you mentioned ar somewhere around 1%, which is a typical FA fee. But then the funds probably have higher ERs than other choices you have, so that adds to the costs.
Don't think of fees as a % of dividends, think of them as a % of your total portfolio. Dividends are a function of what type of investments you have, it's just not a useful metric. That said, a typical 1% has a huge impact on your retirement - if you plan to draw 4% from your portfolio, you need a portfolio that is 25% larger just to pay your advisor. It's as if you handed $80,000 of your $400,000 to your FA.
It is unlikely that an FA can provide returns over and above those costs, compared to a simple 'couch potato' style portfolio that you can easily do yourself.
Good luck, and keep asking questions!
-ERD50