So I'm still using an independent financial adviser for my IRA…

1,469 Views | 10 Replies | Last: 12 days ago by Kenneth_2003
Donghorn
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9:46a, 3/4/25
I changed jobs and rolled 100% of my 401K to an IRA through a financial adviser in June 2021.
I haven't touched it, or added any mine to it since inception.
My return is still down 8% to date. HALF of that was in "management fees"
The advisor has made some financial moves and bought/sold different funds during this timeframe but hasn't made a single transaction since June '24 (other than the quarterly withdrawal of management fees)
Basically I gave the dude 100% of my 401K and he's underperformed the S&P.
Why do I need to pay this guy?
Can't I just shove it all in to an IRA on my Charles Schwab account in another IRA?…,or is that essentially the same fees percentage wise?
The only debt I have is my home. I'm also sitting on a wad of cash I need to put somewhere more productive than a bank account but I'm hesitant to give it to my guy
I set up a separate cash account for him to manage but have yet to send any of my money to this account.

I'm honestly just fishing for some advice. I haven't put any money into my IRA since June 2021. I know I need to stick my cash in a better spot. I also fail to see the reasoning in keeping my advisor. I'm just looking for options after I cut the cord from him.
I don’t start threads, I end them…
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turfman80
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9:50a, 3/4/25
AG
Down 8% over the last few years? Run away from that guy. Self directed with index funds with Vanguard, Fidelity, etc. is a starting point. Check this forum for past advice on the same question.
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Petrino1
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In reply to Donghorn • 9:57a, 3/4/25
Donghorn said:
I changed jobs and rolled 100% of my 401K to an IRA through a financial adviser in June 2021.
I haven't touched it, or added any mine to it since inception.
My return is still down 8% to date. HALF of that was in "management fees"
The advisor has made some financial moves and bought/sold different funds during this timeframe but hasn't made a single transaction since June '24 (other than the quarterly withdrawal of management fees)
Basically I gave the dude 100% of my 401K and he's underperformed the S&P.
Why do I need to pay this guy?
Can't I just shove it all in to an IRA on my Charles Schwab account in another IRA?…,or is that essentially the same fees percentage wise?
The only debt I have is my home. I'm also sitting on a wad of cash I need to put somewhere more productive than a bank account but I'm hesitant to give it to my guy
I set up a separate cash account for him to manage but have yet to send any of my money to this account.

I'm honestly just fishing for some advice. I haven't put any money into my IRA since June 2021. I know I need to stick my cash in a better spot. I also fail to see the reasoning in keeping my advisor. I'm just looking for options after I cut the cord from him.
The S&P 500 is up 38% since June-2021. There is zero reason why you should be down 8% in that same timeframe. This advisor seems to be royally screwing you. I would take that money out and manage it on your own.
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Tex117
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In reply to Donghorn • 10:29a, 3/4/25
AG
This is insane. Fire that financial advisor.

When it comes to this stuff, just snagging a fund that more or less tracks the S&P is the way to go.
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I bleed maroon
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In reply to Donghorn • 10:42a, 3/4/25
AG
Quote:
My return is still down 8% to date. HALF of that was in "management fees"
I just want to make sure we understand what you're saying, here.

- Are you down 8% this year to date (2025)?
- Are you down 8% vs. the S&P500 or some other benchmark since the account was opened?
- Are you down 8% from what you invested in 2021?

I think we're assuming you are saying the third option, which certainly means it's time for a change, but please confirm...

On management fees, are you saying that you have had a total of 4% in fees since account opening (about 1% a year?) or something else?
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Diggity
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10:49a, 3/4/25
AG
can you give a high level view of the portfolio he has you in?
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TXTransplant
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11:07a, 3/4/25
Just to give you some context: I similarly did a rollover, but in Feb 2022. It wasn't my entire 401k, just a 403b I had from my first job. I'm not adding any new money to this fund (last deposit was 2010). Overall, it's about 30-40% of my (current) pre-tax retirement savings.

In 3 years, I'm up 37% overall and my annualized return is 11%. Took a hit the last few days, but I've been happy with the performance. The firm/guy I use is also serving as my overall FA (included in the fees, which I can't tell you off the top of my head), even though they only have this one small part of my portfolio.

I'm with a firm tied to Equitable Advisors. I've been very happy, and they don't try to sell me anything.
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Hoyt Ag
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11:59a, 3/4/25
AG
I moved all of mine late 2022 from a financial advisor for similar reasons OP. Returns sucked and fees were insane. Best move I ever made. It is easier than you think to manage it yourself. And with this dip in the market, you are buying low.
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plarmigan
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1:56p, 3/4/25
AG
I can't emphasize enough how much you would benefit from reading either (or preferably both) of these books. You can take control and manage everything yourself, it's much easier than you think.









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Joseph in Cypress
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In reply to Donghorn • 8:45a, 3/11/25
AG
You should compare the two portfolios. I'm guessing you feel like your Schwab account is doing better? If so, I suspect that you will see a big difference in the risk you are taking between the two.
Joseph George '92
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Kenneth_2003
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8:59a, 3/11/25
AG
Assuming you had any real amount of money in that 401(k) there is ZERO reason for a good FA to have you in mutual funds.

You're paying him to diversify and mange the asset. If he's putting it into funds then you're further paying other people to buy the stocks. So lets say he's got you in 10 different funds, good chance you're paying 11 people to buy you Apple stock!!! Maybe only 8 or 9 if Apple isn't in every fund your FA bought. (I'm picking on Apple, but you get the idea)

The next thing to find out is if he's charing you a commission every time he trades. He should not. Moving you in and out of assets as necessary to properly balance your portfolio is his job. He should not be financially incentivized to move your money around.

FIRE HIM YESTERDAY!
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