Advice needed for firing investment advisor and hiring Vanguard--Fidelity or Schwab

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crc0952
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Advice needed for firing investment advisor and hiring Vanguard--Fidelity or Schwab

Post by crc0952 » Sat Jun 02, 2018 4:46 pm

Hello--
This is my first posting and I'm looking for guidance/advice. I have been with my first investment advisor for approximately the past 2 years. He has been managing about 1million in assets in a balanced portfolio of mutual funds(i shares-30 individual stocks-treasury bonds). I have been paying 1.1% AUM fees.The rate of return minus his fees is about 5.27%.

During the last year I have been doing alot more financial research and have become better educated. I'm starting to think that paying 1.1% for this rate of return is very expensive.I plan on retiring in 18 months so I am considering terminating my relationship with him and am considering using Vanguard, Fidelity or Schwabs personal advisor services. I would still feel more comfortable having an advisor to help set up my portfolio and to ask specific questions but don't feel it's worth 1% AUM over time. I'm aware that Vanguard has a .3% AUM with a dedicated personal advisor but do not have any first hand knowledge about it from those that have used it in the past. I do not know if Fidelity or Schwab has similar services or how good they are.

I would appreciate any advice from those that have had first hand experience with this before I fire my present advisor.

Thank You All

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dwickenh
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Re: Advice needed for firing investment advisor and hiring Vanguard--Fidelity or Schwab

Post by dwickenh » Sat Jun 02, 2018 5:32 pm

What else are you getting from your adviser for the 1.1% fee? If this is only advice of which funds and allocation to stocks and bonds, you can do much better by lowering your expenses at one of the 3 firms you mentioned. There may be some things your current adviser is doing(tax harvesting, re-balancing, or estate planning) that may not get done as well at the 3 firms. It all depends on your needs. I would continue to learn all you can about
how to handle your own investments, then hire a CPA or estate attorney if you don't feel comfortable handling those things.

Best to you in retirement,

Dan
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

Housedoc
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Re: Advice needed for firing investment advisor and hiring Vanguard--Fidelity or Schwab

Post by Housedoc » Sat Jun 02, 2018 5:55 pm

I fired mine a few years ago. Set up acct at new firm and they will handle the rest. You can have the pleasure of firing them via phone call or just let new firm handle. I went with VG. Started using personal advisor for .3 pct for about 9 months. I am now managing it myself.

TheAncientOne
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Re: Advice needed for firing investment advisor and hiring Vanguard--Fidelity or Schwab

Post by TheAncientOne » Sat Jun 02, 2018 6:00 pm

I suggest Fidelity or Schwab for most people because having an office you can go to beats having only an 800 number like Vanguard. As others here have suggested, you can open an account then have your new firm get all your assets transferred,

crc0952
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Re: Advice needed for firing investment advisor and hiring Vanguard--Fidelity or Schwab

Post by crc0952 » Sat Jun 02, 2018 6:14 pm

My present advisor only managements my assets no other services!

Grt2bOutdoors
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Re: Advice needed for firing investment advisor and hiring Vanguard--Fidelity or Schwab

Post by Grt2bOutdoors » Sat Jun 02, 2018 6:19 pm

crc0952 wrote:
Sat Jun 02, 2018 6:14 pm
My present advisor only managements my assets no other services!
You're paying ALOT of money, that is nearly 17% of the total return (1.1%+5.27%).
How is your account currently allocated? % Equity, % bonds, % cash, if any. What is your asset allocation you prefer to hold?

What are the gains/losses in the individual stock/i shares?
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

student
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Re: Advice needed for firing investment advisor and hiring Vanguard--Fidelity or Schwab

Post by student » Sat Jun 02, 2018 7:49 pm

Please move your money to Vanguard, Fidelity or Schwab. I think any one of them will do. However, I do not recommend paying even 0.3%. Just do an asset allocation index fund if you want simplicity. Otherwise, you can read more on this site to come up with a portfolio with a small number of funds.

Jablean
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Re: Advice needed for firing investment advisor and hiring Vanguard--Fidelity or Schwab

Post by Jablean » Sat Jun 02, 2018 8:07 pm

Last year when we had to do a good sized 401k rollover to IRA was when I first realized that Fidelity had local offices and yet was more like the regular mutual fund online companies I was used to working with. The 401k had been performing well so the Fidelity guy I sat down with sent me a list of funds that were similiar to what the company 401k was invested in. It was up to me to actually move things once the money was in the cash account. Sat down with a Fidelity advisor again this year to move some inherited IRAs and again pretty painless. I can request more help if I want but not required to come in to a yearly meeting like some advisors.

emlowe
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Re: Advice needed for firing investment advisor and hiring Vanguard--Fidelity or Schwab

Post by emlowe » Sat Jun 02, 2018 8:34 pm

Fidelity has a completely free service called "Fidelity Private Client Group" - https://www.fidelity.com/growing-managi ... ient-group

You can get completely free guidance and portfolio checks from an advisor in person - no AUM or any other fees. There are posts here on the forums about it, so you can search and read a bit.

-Earle

mhalley
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Re: Advice needed for firing investment advisor and hiring Vanguard--Fidelity or Schwab

Post by mhalley » Sun Jun 03, 2018 9:06 am

The posts here about the Fidelity client group seem mixed. If you are not firm about wanting a low cost indexed portfolio, then they might try to talk you into going with higher er fee funds.
With Vanguard, you know the maximum fee you will get is .3% with low cost admiral funds. So one option is going with vanguard PAS, get everything set up, then after a year or so go the DIY route.
You could also check into Fidelity go or Schwab Intelligent portolio, but these are roboadvisor services and might not be what you are looking for. Schwab has a hybrid now similar to Vanguard PAS, here is a review:
https://www.nerdwallet.com/blog/investi ... ry-review/
You don't mention if the money is taxable or not, which makes a huge difference on how fast you want to unwind from the current portfolio.
Another option if this is an IRA is to move to vanguard and invest in target date or lifestrategy fund. One and done.

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ruralavalon
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Re: Advice needed for firing investment advisor and hiring Vanguard--Fidelity or Schwab

Post by ruralavalon » Sun Jun 03, 2018 11:49 am

Welcome to the forum :)

crc0952 wrote:
Sat Jun 02, 2018 4:46 pm
Hello--
This is my first posting and I'm looking for guidance/advice. I have been with my first investment advisor for approximately the past 2 years. He has been managing about 1million in assets in a balanced portfolio of mutual funds(i shares-30 individual stocks-treasury bonds). I have been paying 1.1% AUM fees.The rate of return minus his fees is about 5.27%.

During the last year I have been doing alot more financial research and have become better educated. I'm starting to think that paying 1.1% for this rate of return is very expensive.I plan on retiring in 18 months so I am considering terminating my relationship with him and am considering using Vanguard, Fidelity or Schwabs personal advisor services. I would still feel more comfortable having an advisor to help set up my portfolio and to ask specific questions but don't feel it's worth 1% AUM over time. I'm aware that Vanguard has a .3% AUM with a dedicated personal advisor but do not have any first hand knowledge about it from those that have used it in the past. I do not know if Fidelity or Schwab has similar services or how good they are.

I would appreciate any advice from those that have had first hand experience with this before I fire my present advisor.

Thank You All
Leaving your advisor and ditching the 1.1% annual fee is a very good idea.

I usually suggest
1) Vanguard,
2) Fidelity, or
3) Schwab
in that order of preference.

Vanguard has by far the largest selection of low expense mutual funds offered anywhere. Both Vanguard and Schwab have a larger selection of low expense index funds than does Schwab.

We have all of our accounts at Vanguard, and use only Vanguard index funds.

Both Fidelity and Schwab have local customer service offices in some cities, but Vanguard does not. None have a local office near me, so that was not a factor in my choice.

A local office important for some, but in my opinion not at all necessary. We have had no problems with the rare phone consultations that were necessary. I call Vanguard once per year at most, some years not at all. Once a reasonable investing plan is set up, it requires almost no attention.

I have no personal experience with Vanguard Personal Advisory Service, I manage our investments myself.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

sls239
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Re: Advice needed for firing investment advisor and hiring Vanguard--Fidelity or Schwab

Post by sls239 » Sun Jun 03, 2018 1:27 pm

My advice is to consider if there is a reason you think the generic portfolio recommendations would not be appropriate for you.

Are those reasons far out of the ordinary and large on financial impact?

If so, be prepared to pay for more specialized service.

If not, go cheap.

MrPotatoHead
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Re: Advice needed for firing investment advisor and hiring Vanguard--Fidelity or Schwab

Post by MrPotatoHead » Mon Jun 04, 2018 12:51 am

This is not meant sarcastically but there are people who have millions of dollars and investing in simple 2 or 3 fund portfolios. That is one thing to mulover.

Here is another. You might want to consider writing a simple IPS ad then opening your account at Fidelity or Schwab. As mentioned you would certainly be Private Client at Fidelity (if you ask for it) or get an assigned rep who is likely a CFP. The reason I mentioned the IPS is if it indicates you only want to use low cost index funds and you give a copy of your IPS to your adviser that is how they will design your portfolio.

The point is, it will cost you virtually nothing.

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