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My financial advisor wants to fire me

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  • #16
    Originally posted by Heartsmart View Post
    Thanks for the advice. I looked on Fidelity site- their wealth management charges .05-1.05 for services while vanguard charges .3. Still seems like a lot for a 2 million portfolio.
    As you pointed out even a "small" assets under management (AUM) charge can be a lot of money. Same is true for mutual fund expenses.

    That American target fund has an expense ratio of 0.69:

    https://www.morningstar.com/funds/xnas/aadtx/quote

    VG charges 0.13:

    https://www.morningstar.com/funds/xnas/vttvx/quote

    On $2 million that 0.56 expense difference is costing you $11k every year. That's not counting the 5% front load your "adviser" charged you upfront for this sage advice.

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    • #17
      Originally posted by MPMD
      this thread is consistent with my limited interaction with most FA types.

      you start asking about fees, loads, etc and the conversation can turn south pretty fast.

      i honestly think some of these folks are specifically trained to recognize signs that a client is not going to be an easy mark. i'm not sure there's a seminar at NW Mutual where they tell the advisers to start looking elsewhere if loads are questioned but there could be. Actually, there probably is, something like "this is a sign that your client is not going to be a good fit with our 'services.'"
      There was a joke years ago that most wirehouses had two main office buildings. One was focused on how to "mess" with the advisor and the other was how to "mess" with the client.

      It does sound like the old/current advisor has decided he is tired of questions and not blindly listening to his advice. If you've been paying upfront loads there is little incentive for him to keep you as a client as you already paid his fee.

      .3 at Vanguard doesn't sound completely unreasonable depending on the level of service they provide. I've never known anyone who has used this service though. I would definitely check out how long you are committed to using it once you sign up. You may want to use it as a stop-gap to where you get comfortable after the transition and can do this on your own, which shouldn't be long.

      Keep us updated on how it goes!

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      • #18
        Originally posted by jacoavlu View Post
        Vanguard personal advisory service charges 0.3%.

        agree a good flat fee advisor sounds like an excellent option for you

        how much did / is prior advisor charging ?
        0.3% of OP's investable assets is $14,400. He can get a better deal with one of the WhiteCoatInvestor recommended financial advisors.

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        • #19
          Love the title of the thread. Maybe the FA took the "Fire Your White Coat Investor" online course.

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          • #20
            It sounds like what you value most is proper guidance and at least at the beginning of your transition continued oversight (via either account management or an collaborative relationship). Being a reformed broker turned fiduciary I can tell you that there will be some trade-off in fees/depth of service. Find a fiduciary that offers models other than AUM (hourly or flat-fee may be great fits for you). I can also tell you discount brokerage firms still have sales goals and are unequally compensated from one product to the next.

            I wish you the best of luck!
            Founder, Coastal Wealth Planners- Fiduciary Tax-Sensitive Retirement Planning & Wealth Management www.coastal-wp.com email: [email protected]

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