Should We?

[target2019]

You're paying about .125% per year if the total cost is $750 on $650,000 balance.
How long have you held these 15 stocks?
You shouldn't take any action until you complete an analysis of what the deal is.
For example, do you have a contract with the individual? Is he a registered independent Schwab advisor?
If you start doubting the arrangement, talk to Schwab directly, and they will let you know your options.

 

[SecondAttempt]

I am troubled by this and actually from most of the replies.

OP quotes the fee is $500 going to $750 PER ACCOUNT. Then OP seems to describe each stock owned as an account.

OP, please tell us the total amount you have paid this, er, Gentleman this year just to clarify.

If he is a new graduate trying to earn clients, $750 might be very reasonable if he has given you good advice. The period since March has been pretty bad in the market so good advice does not necessarily mean you have made money from his advice.

Perhaps you can share some of the investing or financial principles he espouses so that the experts her have something better to judge him on.

Consolidating at Schwab and not having access to your accounts are both very encouraging but I just am not sure we have enough information to give you useful feedback.

 

[zippy2020]

I'm just a little curious about OP's overall planned asset allocation. Is this "adviser" - since apparently he is not a CFP or RIA with fiduciary responsibility - saying you should be 100% in stocks? And as others have pointed out, in individual stocks, rather than low-cost funds?

Not that I'm against dividend stocks - our independent CFP firm has been moving client portfolios in that direction over the past year. They use funds, not individual stocks; and Schwab holds the assets.

I would ask this adviser's clients how often the stock portfolios get traded. A high percentage of "churn" is a negative sign, just FYI.

I'm also a little concerned that he has not discussed evaluating your risk tolerance? If he has done so, that's great. If he has not, I'd be cautious at best and leery in reality. An individual's/family's risk profile changes over time with any "major event"* at which time you and your adviser sit down to discuss what, if any, changes need to be made to your portfolio to adjust your financial planning.

We use a firm because to me, financial planning is far more important than financial investing. But YMMV. Good luck with whatever you do.

* Major Events
These are defined in financial planning as:
- Birth
- Death
- Marriage
- Divorce
- Change of health;

and these days, I'd add:
- Job/Career change

 

[Davis65]

Check out some other fee-only advisors to see what they charge. That will give you an idea of what a professional advisor would charge. I think you'll find that it would cost a lot kore than your friend who is doing it as a side gig. Then you can decide whether you're getting a good deal at the new price, or if you want to go with someone else, or do it yourself.

 

[pc95]

I am troubled by this and actually from most of the replies.

OP quotes the fee is $500 going to $750 PER ACCOUNT. Then OP seems to describe each stock owned as an account.

OP, please tell us the total amount you have paid this, er, Gentleman this year just to clarify.

If he is a new graduate trying to earn clients, $750 might be very reasonable if he has given you good advice. The period since March has been pretty bad in the market so good advice does not necessarily mean you have made money from his advice.

Perhaps you can share some of the investing or financial principles he espouses so that the experts her have something better to judge him on.

Consolidating at Schwab and not having access to your accounts are both very encouraging but I just am not sure we have enough information to give you useful feedback.

Agree, for the original poster, be careful with this kind of thing. As others have noted, understand the portfolio can be in an aggregate down-position no matter the equities. If you trust/know the person well, then maybe ok but you mentioned "acquaintance"; at least be aware of the investments he is pointing you into, and the nature of those single-company stocks. I invest as a hobby, but many people would rather be advised and save the time. Still you're talking about a substantial sum, so spending some time for it is recommended/prudent.

Upon retirement in 2008, my mentor got completely out of stocks and went into fixed investments to enter the metaphorical " Sleep Well at Night (SWAN)" investing - generally less risk (but less reward). This kind of decision depends on your desired lifestyle, income needs, and investment tolerances.