I'm probably the only one here that uses a FA.

[brett]

I think this is most valuable service FA's provide: Disconnect you from investing actions should you need it due to your temperament. If you can transact freely then having FA may not help when you need his/her the most. I am very disciplined and objective so FA is useless to me, but I have plenty of friends who would have done much better (albeit less than the market) if they have given away the keys to their fortune to FA. These friends are the one who can't stop talking about the hottest stocks!

We decided to go the advisory route because of this, and many of the reasons above.

I can attest that our advisory team (along with my spouse's intuition) did serve to disconnect me from an investing action. I was beginning to drink my employers kool aid concerning where the stock was headed over the next 12-18 from a stock option excercise perspective.

It seems to me that this is very much a personal decision based on one's wants and needs, cost/benefit analysis.

When we started looking I asked friends and colleagues who engaged a advisor of some sort, FA, CFP, bank advisory, broker, etc, for recommendations. Surprisingly not one came out with a strong recommendation. Most were mediocre-negative but seemingly were making no effort to change. This made us much more dillegent in our selection process.

 

[Stormy Kromer]

I realize that there are some who want or need a financial advisor. I've spoken to literally dozens of brokers and FA's in the Madison and Milwaukee Wisconsin area and have yet to find one who delivers anything that is close to matching the S&P 500 index. If you found the gem in the midst of a sea of pebbles, then I must say congratulations!
I had to fire three (or four) of my own "professional" advisors in my years as an investor. They overcharged and underdelivered on a consistent basis. Lesson learned so I am DIY and when I am gone my son and son-in-law will carry the torch for me.
So far, of the dozens of people I have rescued from FAs who were overcharging and underperforming, only one decided to go back. The rest learned some basics and began the DIY journey. I understood the logic of the one who gave up, but there is a small part of me that feels sorry for him. I wish him well.

My experience as well. My FA had me in heavy loaded funds that couldn't see the SP 500 with binoculars. For 10 years plus. I rolled it all to Vanguard about 7 years ago. Put it all in the Total Stock Market Fund. I have kicked him so hard he doesn't even call me any more. After charging me 5% front end loads, then switched me to AUM at 1.5% (after charging me 5% up front) I had a come to meet me meeting and rolled it all to Vanguard, I am making more money than he is now. It costs me many hundreds of thousands of dollars......To those of you with a FA that worked, good for you. I wanted one too. Didn't happen

 

[Lorenzo]

My experience as well. My FA had me in heavy loaded funds that couldn't see the SP 500 with binoculars. For 10 years plus.

And mine for 3 decades. In the beginning I don't think I even knew what the S&P 500 was--or much about AA in general--so I trusted his judgment. In our very first meeting he quizzed me on my risk tolerance, and it was apparently based on my answers that he judged the S&P 500 too risky a basket for me to put all or most of my eggs in. Sure, it's weighted heavily with tech stocks nowadays, but I don't think I would have been uncomfortable with its volatilty over the course of 30 years if I had better understood the picture as a whole, including the concept of a 30-plus year investing horizon. Apparently because 30 years ago in a single interview I answered that something like a drop of 20 percent in a quarter might give me the chills I was saddled with a more conservative portolio than really suited me for my time horizon.

 

[Waynew]

On the other hand, paying a FA to do virtually nothing isn't valuable to me. I had an FA for decades, and he had me invested in sensible index funds. When the dotcom bust of 2000 hit, he reassured me that doing nothing was the best course of action and "this, too shall pass." When the 2008 financial crisis hit, he said the same. Then the Covid market nosedive--same. Oh, now and then he would add or drop a fund, but never any major shift. The bottom line is I didn't need a FA to do nothing. I am perfectly capable of doing nothing on my own.

I have noticed the same thing. I asked one friend "why are you paying $5,000 per year for a portfolio that is established and unchanging." The light flickered on and they moved to DIY - doing nothing and keeping their $5K per year. Even worse is the one advisor who had a terrible down year when the market went up. When I asked him why that happened he gave me the dumbest answer I ever heard. Not only that, but he kept the fee he charged for that year. That was for my mother-in-law. I fired that guy immediately.

 

[zippy2020]

I worked in the financial services industry under a semi-retired independent CFP who is highly regarded by his peers (as well as attorneys - he is one of the first names called by both defending and litigating attorneys of this state for his opinion of a case, pro or con).

When we retired I did not wish to deal with the tax issues of our personal situation, so I requested my ex-boss give me some recommendations based on our needs, which I outlined to him. I had handled all our investments during our active careers.

The referrals I received are not firms you will easily find, unless you know one of their existing clients. They do very little "hard" advertising because they have no need for it. More than 80+% of their business comes from direct referrals; many are family-related accounts (as ours has become, in fact).

Like the OP, we use our fiduciary CFP firm because not just my spouse, but my AND his entire family, have never dealt with complex financial issues (we have no kids). They are my back-up resource, and in fact they do deal with taxes on an investment basis: our portfolio distributions are tax-managed (very well, according to our CPA). Our DAF and QCD funds were also their suggestions.

The overall allocation of 65/45 does vary, but not radically. They are conservative in their portfolio moves but not unreasonably so: back in late 2024 they determined to slowly shift most clients to a larger increase in foreign stocks and bonds - still a small percentage of our overall portfolio, but a very profitable move as it turned out.

We have no issues paying their fees. Net of their fees, we have taken over 50% of the original portfolio starting amount (fun money, LOL), and still gained a substantial 6-figure addition to the portfolio.

I did very well investing on our own. But they have done better - admittedly helped by a long bull run! - so no complaints from us.

 

[Crewer]

I use a FA who is a fiduciary and part of a firm of people with the dreaded % of assets fee structure. Sometimes I ask myself why am I still doing that since it seems to be on autopilot by now. They use low fee funds and at first helped us get things in order - updating wills, evaluating DH's business, etc. One of the first things they did was get us into annuities with the money that accrued when former employers discontinued defined benefit pensions and went to defined contribution. Purchasing those immediately reduced the assets under management, of course. I started taking the annuities 2 years ago - once a year lump sum dispersement. And the firm does my tax returns. I like that it's a company and not a lone wolf FA.

The attorney and especially his paralegal has since helped me do everything for DH's part of the estate when he died 3 years ago and I was/am very glad to know them. With their guidance the $60/year royalties on books my father co-wrote 35 years ago are the only thing in my estate not beneficiaried or TOD. Well, there are some mineral rights of DH's that we may reopen his estate to access if they do drill a well on the property, but I digress.

By now I think I continue so I can say to my kids "when the time comes, call so and so and he'll take care of transferring most of the assets and do such and such for the rest." My father's estate was a MESS!! (yes, it was that bad) in so many ways that it took over 3 years for me to clear things up. I had just realized the extent of that mess - or most of it - when we met these FAs.

My returns have been good and the assets under management have grown (yeah the stock market has done very well), I never have to do anything in terms of rebalancing or deciding on what ratio of stocks/fixed I should use now that the annuities plus my SS really cover all my expenses. In fact I've been accumulating CDs and MM accounts outside of their management with the annuity payouts I haven't used. I sort of figure the FA fee is coming out of my kids' inheritance. And since the annuities go to double payout if I can't do 2 of the 5 things of daily living I could well be covered for a long time. I am very happy with the arrangement.

 

[splitwdw]

Zippy2020, If you are happy with them and the results that's all that matters. We all have "things" that work for us.
I'm not retired. I enjoy investing in the stock market and individual stocks. I don't mind the ups and downs AND I check my accounts several times a day. My sister is terrified of the market and takes pleasure in calling me on days that the market is down. She only has a money market, CD's and savings account. That's what works for her.
Several times I've bought tax programs and tried to replicate my tax returns from my accountant and couldn't. It's just something I'm not good at even though a lot of people on this forum will tell you it's easy, just follow the forms. It's not easy for everyone. Keep your FA as long as you are happy with them.

 

[sparky08]

I'm the OP of this thread, and I wanted to report that my FA just saved me $32,000!!

We were having our quarterly meeting and I mentioned that I was going to take extra out of an Inherited IRA this year. She ran the numbers and told me that would put us over the ACA cliff of $84,600. (Without any subsidy, we would pay an extra $2,700 in monthly premiums.)

She met with her team and they came up with three scenarios (this will be a yearly issue until DW and I are on Medicare) to keep me under the 4X poverty number.

That is exactly what I pay her for! As I mentioned in my first post, I hate thinking about this stuff, it causes me anxiety, and I have way too much fun stuff to do in retirement!

 

[mrfeh]

I'm the OP of this thread, and I wanted to report that my FA just saved me $32,000!!

We were having our quarterly meeting and I mentioned that I was going to take extra out of an Inherited IRA this year. She ran the numbers and told me that would put us over the ACA cliff of $84,600. (Without any subsidy, we would pay an extra $2,700 in monthly premiums.)

She met with her team and they came up with three scenarios (this will be a yearly issue until DW and I are on Medicare) to keep me under the 4X poverty number.

That is exactly what I pay her for! As I mentioned in my first post, I hate thinking about this stuff, it causes me anxiety, and I have way too much fun stuff to do in retirement!

And how much will you be paying for this service this year? And every year after that?

And if you delegate managing your portfolio, how do you know when her advice is serving her instead of you?

 

[Lorenzo]

And if you delegate managing your portfolio, how do you know when her advice is serving her instead of you?

That's an aspect of the relationship with my former FA that I did not have a concern about. He was a fiduciary and, it seemed to me, took only the most straightforward, time-tested paths. Now, as for the latter, one could admittedly view it as serving himself as well as me, because it lightened his workload and perhaps offered a shield in the event of a dispute.

 

[ArmchairMillionaire]

I'm the OP of this thread, and I wanted to report that my FA just saved me $32,000!!

We were having our quarterly meeting and I mentioned that I was going to take extra out of an Inherited IRA this year. She ran the numbers and told me that would put us over the ACA cliff of $84,600. (Without any subsidy, we would pay an extra $2,700 in monthly premiums.)

She met with her team and they came up with three scenarios (this will be a yearly issue until DW and I are on Medicare) to keep me under the 4X poverty number.

That is exactly what I pay her for! As I mentioned in my first post, I hate thinking about this stuff, it causes me anxiety, and I have way too much fun stuff to do in retirement!

I have a FA available for us to use through my previous employer. We met with her a few times before and right after I retired.

She offered to save us so much money if we took everything we had from our retirement plans, IRAs, Roth-IRAs, that we had in low-cost accounts with Vanguard and transferred it to Northwestern Mutual. Their maintenance fees were only around 1%. I passed.

She also said she could give us 'piece of mind' if we put $1M into an annuity when we retired. Even DW was a little skeptical about her 'presentation' and she's the one who is usually more anxious when it comes to financial matters.

Basically the only help she gave us was to help make DW sure that we were indeed in a good enough position to be able to retire last year at 54 and 47.

 

[FD1000]

I already posted about it in the beginning, page 1 of this thread.
The best way is to learn the stuff and do it yourself or at least be knowledgeable. If you need help, get it and pay for one meeting.
You could easily see a CPA and tell him/her your numbers and get advice. Heck, you could post it here and get free excellent advice.

Problem 1: Catch-22
If your investment knowledge is below average, you won’t know whether your financial advisor (FA) is competent. If your investment knowledge is above average, you likely don’t need one.
Problem 2: Limited Expertise
Most FAs are generalists—jack of all trades, master of none. When it comes to complex issues, they often fall short. For anything tax-related, you’ll need a CPA. For trust or estate matters, you’ll need an attorney.
Problem 3: No Promises
An FA can’t promise future performance—or even reliable, risk-adjusted returns. Legally and realistically, they cannot guarantee outcomes. If they are wrong, they will not compensate you for underperformance or bad tax advice.
Problem 4:
FA who gets paid annually based on a percentage of someone's portfolio regardless of their services is unique and outrageous.
Please let me know what expensive services you paid for for years based solely on how much money you have.
The FA recommendation should be good for years to come unless you have major changes.
I can see one hour of work for your FA in years 2 to 10 while you pay thousands every year.

 

[Koolau]

I'm the OP of this thread, and I wanted to report that my FA just saved me $32,000!!

We were having our quarterly meeting and I mentioned that I was going to take extra out of an Inherited IRA this year. She ran the numbers and told me that would put us over the ACA cliff of $84,600. (Without any subsidy, we would pay an extra $2,700 in monthly premiums.)

She met with her team and they came up with three scenarios (this will be a yearly issue until DW and I are on Medicare) to keep me under the 4X poverty number.

That is exactly what I pay her for! As I mentioned in my first post, I hate thinking about this stuff, it causes me anxiety, and I have way too much fun stuff to do in retirement!

I'm hard pressed to argue with this - though I'm personally against (especially AUM) FAs.

Funny, as I was thinking about all the tasks OP is willing to do (change oil, paint, etc.). I HATE those things and will pay for them.

OP hates the financial stuff and is willing to pay (big) to be relieved of such w*rk.

We have a big tent here and how we spend our money is just one more thing that makes each of us "interesting."

I'm glad OP has found an FA that he is comfortable with and believes he is getting value for the cost.

 

[big-papa]

I'm hard pressed to argue with this - though I'm personally against (especially AUM) FAs.

Funny, as I was thinking about all the tasks OP is willing to do (change oil, paint, etc.). I HATE those things and will pay for them.

OP hates the financial stuff and is willing to pay (big) to be relieved of such w*rk.

We have a big tent here and how we spend our money is just one more thing that makes each of us "interesting."

I'm glad OP has found an FA that he is comfortable with and believes he is getting value for the cost.

I don't use an FA, but one thing I always wonder about a trusted FA, accountant or any of the other types of professionals that we many of us rely on for the "big stuff".... They're human just like the rest of us and that means that means they're subject to the same sorts of things we all are - premature death, disability, career change, retirement, etc.

Case in point: my dentist of nearly 4 decades had a spinal stroke. One man operation so no choice but to retire and to sell his practice. Most of his staff stayed and I've found myself happy with the new dentist. My primary care doc is only a year younger than I am and I've had him for almost 3 decades. I'm coming up on age 65 this summer, which will mark my 3rd anniversary in retirement. So far the only change my doc has made is that he's not accepting any new patients outside of those with a certain chronic disease for which he has a passion for treating.

As a plan B in case I'm unable to manage our finances, I have both a "simplified plan" for my wife and a backup CFP, who I'm not sure is still in business so I'm currently doing some research now for some names for her in case she needs an assist (by the hour advice only), but no way do I think she should go all-in on an FA; not with how I've set things up at this point.

My question to the OP and others - what's your Plan B?

Cheers

 

[mrfeh]

I'm hard pressed to argue with this - though I'm personally against (especially AUM) FAs.

Funny, as I was thinking about all the tasks OP is willing to do (change oil, paint, etc.). I HATE those things and will pay for them.

OP hates the financial stuff and is willing to pay (big) to be relieved of such w*rk.

The difference is that the OP is paying 5 figures (my guess) every year.

 

[Koolau]

The difference is that the OP is paying 5 figures (my guess) every year.

Yep. I agree. But OP seems satisfied, so how do you argue with that? A FA (especially AUM) is not for me, but it w*rks for OP - at least to their satisfaction.

I paid $13K (all in) for my last (used) vehicle back on '17. I'm still driving it and am completely satisfied with it. It (likely) has 100K more miles in it and likely will last the remainder of my life. But some here buy a $60K car every 5 years or so. They like the extra features and added safety and comfort. More power to them, I say. It's not for me, but it brings them satisfaction. I won't try to convince them that my choice was better for anyone other than for me.

Thankfully, we here are all different.

 

[sparky08]

I'm hard pressed to argue with this - though I'm personally against (especially AUM) FAs.

Funny, as I was thinking about all the tasks OP is willing to do (change oil, paint, etc.). I HATE those things and will pay for them.

I just replaced the water heater in my basement. I'd rather mess around with natural gas and electricity!

OP hates the financial stuff and is willing to pay (big) to be relieved of such w*rk.

I'm glad OP has found an FA that he is comfortable with and believes he is getting value for the cost.

I read all the replies and realize that I'm in the minority here. Yes, I pay a team to do something I hate to do. (Something I tried to do for a year after I retired.)

This was an issue with an account that isn't part of their AUM. But my FA noticed it and worked with her team on several solutions. (And the preferred solution involved a different account that isn't under AUM.)

So, yes, I trust her. This was not an issue I would have caught paying a couple hours of attention to my financials per month.

 

[Lorenzo]

A difference between paying for work such as oil changes, painting, replacing a water heater, etc., and managing a retirement portfolio is that you know pretty immediately if the former is unsuccessful. It seems like a reasonable fear that in DIY-ing one's retirement finances one might make a major mistake that only reveals itself years later. Of course, FAs can make mistakes, too, which is likely why my former FA went out of his way to minimize that likelihood and invested me in a more or less Boglehead 4-fund portfolio. There's no correct answer here.

 

[Dtail]

Will never use an FA, but can see it for certain folks out of fear to some extent.

 

[CaliKid]

I am too cheap to use a FA, at this point in life, BUT I think they definitely serve a purpose for a lot of people. A lot of people sleep better knowing (or thinking) someone else is worrying about their money. I get that as, for me, having less to worry about in life is pretty huge. I am never going to second guess or try to talk people out of using a FA. Do what works for you!

 

[FD1000]

If you must have a FA, the following results will be as good but a lot cheaper.

=================================

The easy FREE solution: I'm with Fidelity and Schwab for over 20 years, but I transferred almost everything to Schwab. There are several reasons, but I will discuss only this one.
1. Free "General" Advice (All Clients)

• Local Branch Access: You can visit a local Schwab branch to speak with a Financial Consultant about your financial strategy, planning, and product recommendations at no cost.
• Complimentary Financial Plan: Schwab offers a free digital financial planning tool, and you can discuss this plan with a professional at a branch.
• Workshops & Consultations: Local branches hold complimentary workshops, and staff can provide guidance on your portfolio and retirement goals.
• No Obligation: There is no charge to work with a consultant, though standard brokerage fees and fund expenses still apply.

2. Dedicated Local Advisor ($500k+ Assets)
While anyone can get advice, Schwab generally assigns a dedicated Financial Consultant to clients with $500,000 or more in assets.

3. Schwab Private Client ($1M+ Assets)
Clients with $1 million or more in qualifying household assets are typically enrolled in Schwab Private Client Services, which provides a dedicated team, premium support, and specialized planning.

In my experience, Charles Schwab consultants have been a cut above. They didn’t try to sell me anything for a fee, and the ones I worked with were both licensed and fiduciaries.
The consultants I worked with were particularly helpful, offering thoughtful ideas on specific funds and total portfolios. I didn’t necessarily need the guidance, but it was reassuring to have a knowledgeable second opinion.
Another advantage is that Schwab consultants, both locally and nationwide, can answer most questions at no cost.

=================

If you feel the need to pay for advice because it helps you sleep better, that’s understandable. That said, I’ve met and evaluated many financial advisors, and I wouldn’t place full trust in most of them.

• For tax questions, go to a CPA. A one-hour consultation typically costs a few hundred dollars and gives you guidance from someone who specializes in taxes. Financial advisors generally aren’t qualified to provide detailed tax advice—that’s why they refer you to a CPA.
• If you want financial planning, consider fee-only advice. Networks like Garrett Planning Network offer advisors who charge by the hour or per engagement. A comprehensive financial plan might cost around $1,500–$2,000, with annual check-ins closer to $500.

 

[Brat]

Two FA situations:

Friend who is in her early 80s is having memory issues. Her IRA is at Vanguard (+ SS), is her sole source of income. I worked with another family member to have her sign up with Vanguard's FA service. Goal is preservation of assetts.

Daughter is a CFO of a VC. Her holdings are complex. She hired a FA who specializes in VC assetts.

I enjoy investing. Our annual meetings with Fidelity have been productive.