• Question
  • How much should I be paying my Financial advisor to manage my retirement portfolio?

    Asked by a 63 year old man from Brewster, MA on 8/14/2018

    I have over 1M and at this point am paying 1.25% for annual asset management of a SEP account with no load funds. Internal expenses vary but usually average 1%. Also a rollover IRA is managed at 1.30% with minimal internal costs (less than 0.09% per year)

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  • Categories: Financial Advisors, Retirement Planning

Answers

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  • There is not a set amount that you should or should not pay your advisor. There are several business models such as assets under management, fee-based, fee only and subscription (among many others). One model is not better than the other.

    It seems that you are paying for assets under management. The percentage will vary based on location, amount managed, and level of service provided. At over 1%, I would expect that you have a high-touch relationship. Does your financial advisor provide advice on this account only? Or, does he or she provide holistic advice? Do they only manage investments? Or, do they help you with various aspects of financial planning? Do you meet with them regularly to asses your strategy and milestone changes? Do they provide access to investment options that would not be available to you without them?

    You should think about what you are hoping to get out of your relationship with your advisor. Then, you can back into the type of services you are looking and decide the amount you are willing to pay. There are great options and great advisors at every price point.

  • Login to rate this answer:   Answered on 8/14/2018
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.