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Why not to use a financial advisor

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  • Why not to use a financial advisor

    I'm in the process of taking over managing my cousin's affairs (he is terminally ill). I logged into his bank account today for the first time. He has his regular checking and savings account there but also has a "wealth management" arrangement for a big chunk of his retirement money (traditional and Roth IRAs).

    He's got about $441,000 in that account. I just looked and they have him in 22 mutual funds! That's nuts. I can't imagine how much he is losing in ERs and other expenses beyond the 1% AUM he's paying them. I haven't gotten beyond seeing the list so I haven't explored all of the funds but that can't be good or efficient investing.

    When he dies, I'll be inheriting that money and you can be damned sure that as quickly as I possibly can, I'll be condensing that down to 2 or 3 funds at Vanguard, maybe 4 tops.

    And this is a reasonably bright guy who spent his career in the banking industry. He should have known better.​

  • #2
    While some prefer the DIY approach, there are pros and cons to consider when it comes to using a financial advisor. On one hand, they provide expertise and personalized advice. However, if you enjoy being hands-on, doing your own research, and making decisions, it can be empowering. Remember, tools like Immediate Connect can help you stay informed and make informed choices.