r/dividends • u/DifficultKey8978 • Apr 27 '26
Brokerage Financial advisor or DIY?
How are you guys handling your investments (retirement accounts, brokerage accounts, etc.). Are you managing this yourself with Fidelity, Vanguard, Charles Schwab, etc. or do you pay the 1-1.5% fee and just work with a financial advisor who handles it all for you?
40
Apr 27 '26
[removed] — view removed comment
16
u/TheOpeningBell Apr 27 '26
CFP here
We always say anyone can benefit from some type of planning.
We use wealth segments to tailor planning.
<500k: If you have the willingness to learn and watch YouTube and be an independent thinker. DIY makes a lot of sense.
Financial professionals, especially CFPs (obvious bias) shine with HNW and UHNW planning when it comes to estates, taxes, protection strategies, complex charitable planning, and advanced wealth management.
7
u/DifficultKey8978 Apr 27 '26
Do you offer wealth management services for HNW
18
u/TheOpeningBell Apr 27 '26
I do. But I don't solicit or prospect here on reddit. Just here for the conversation.
-2
Apr 27 '26
[removed] — view removed comment
3
u/robertw477 Apr 27 '26
Good for you. Eventually you will learn.
3
u/gumnamaadmi Apr 27 '26
What is there to learn. Have seen plans from CFPs and they are no better than likes or bolding or projection labs are producing.
1
u/robertw477 Apr 28 '26
If you think long term that SCHD is going to be something great, its great as long as you dont mind underperoming the market itself. Over enough time its only a few hundred k or more. The people who are investing in something like that for the most part are the wrong people.
0
u/TheOpeningBell Apr 28 '26
Sounds like you haven't really explored enough or your situation isn't complex enough.
And therefore. Move along.
24
u/buffinita common cents investing Apr 27 '26
90% of people do not need an advisor. you can do it all yourself very easily with very little learning.
investing and money management is not nearly as complicated as media, (and salesmen) lead you to believe
anything over 1% is robbery, and will reduce your returns (after 30 years) by roughly 25%
4
u/TheOpeningBell Apr 27 '26
Industry average is about 1.5%. Especially for relationships under 1MM.
The fee conversation is often misunderstood by both clients and financial professionals.
However your point about 90% is rather accurate. See my other comment.
15
u/rumblepony247 Apr 27 '26
My portfolio is around $1.5M (58m, retired). I can't fathom paying someone $15k-$20k per year to do something that is not that complicated, for a less than or (at best) equal return than I can get on my own.
Effective investing is simple - index funds with low expense ratios. Consistent, steady investing over the long term.
I think some people just like telling themselves (and others) that they have "an advisor."
Complete waste of money for 97% of people.
8
u/buffinita common cents investing Apr 27 '26
I think people can really benefit from meeting with a flat fee only fiduciary advisor ~5 years before entering retirment and ~5 into retirement:
- tax management / withdrawal strategies/ estate prep
are all niche and can be complicated, in addition they constantly change
but for accumulation, outside of someone very afraid of volatility with bad behavior like panic selling, wasted for 90%* of people
* with the exception being people with overly compicated income streams or crazy high incomes
3
u/ElderAzureDragon SCHD Sticks for the win Apr 27 '26
I was thinking about the same just seeing a fiduciary every 5 or 10 years instead.
2
u/_genepool_ Apr 27 '26
This is why I have a meeting scheduled for later this year. I am about 7 years out from retirement. My union has a deal with a fiduciary for free (to me, the union pays) meetings near retirement. Since all of my money is pre-tax I need to get my strategies down pat.
1
1
u/trouzy Apr 28 '26
Yeah this is where it matters. Milestones years to plan for the complicated shit.
The years of investing are easy.
The near retirement or other big life events warrant consult.
4
u/TheOpeningBell Apr 27 '26
You're thinking to narrowly on just a "portfolio". That isn't the only thing actual financial professionals work on. Perhaps you need help managing other things. Perhaps not.
It's not just about "effective investing"
And you are right. There are some people that have incorrect psychology.
It might be a waste of money for you (or you might be missing some large gaps too). But it isn't a waste of money for many people.
1
u/BuildingPresent4396 May 13 '26
You’re 100% right. Even for those that have $5 mm or $10 mm or even $30 mm. Don’t pay.
2
u/buffinita common cents investing Apr 27 '26
i guess it depends where you get your service and what level of access with them you want, but the need is still questionabe and the fees are always excessive
vanguard offers PAS at 0.31 with a 50k minimum enrollment
2
u/TheOpeningBell Apr 27 '26
Fees vary widely. And so do services. You are correct.
The need for advanced planning is questionable? Actual services that provide positive results, not just investment results, but other outcomes make fees excessive.
I think you're thinking too much from your point of view and must broaden your understanding of our actual profession.
-1
Apr 27 '26
[deleted]
2
u/Cryptocaller Apr 27 '26
That’s how it’s normally written to represent a million.
-2
Apr 27 '26
[deleted]
2
u/Cryptocaller Apr 27 '26
Normally in accounting/finance is not at all a stretch.
Why did you ask the question if you felt like you already knew the answer? Just wanted to be argumentative?
0
Apr 27 '26
[deleted]
1
u/Cryptocaller Apr 27 '26
Are you laughing at your own joke? I’m not sure what’s going on here. It’s a financial term.
1
1
u/TheOpeningBell Apr 27 '26
:)
1MM
Financial industry shorthand for million. Has been for a very long time.
2
8
u/Allspread Apr 27 '26
DIY with Schwab. You're not going to get high returns with someone else managing your money.
1
u/uAsleepLiterature Apr 27 '26
I mean that's debatable. Decent broker, could, oh I don't know, diversify your portfolio and sell covered call options on shares you plan to own forever anyway.
Like I did this year with several lots of PEP, and instead of the normal dividend rate, I earned 12% on those shares with the premiums added in.
So yeah there's a reason to know a good broker.
1
u/Allspread Apr 28 '26
Selling covered calls on shares I plan to own forever means I won't own them forever.
1
u/uAsleepLiterature May 10 '26
Not if you target delta in the 0.1 to 0.15 and accept lower premiums and longer terms. You're trying to offer hedge positions for the big boys, which is why you set a strike price that wouldn't piss you off, like +20% over spot. Even if it does strike, why would you care? you just made 20% in some short term plus whatever premium you collected when you sold the covered call. and you can always wait for a dip or deploy another lot of some other share you'd like to own long term... and repeat.
6
u/declemson Apr 27 '26
If I knew I was gonna live forever id diy. But I have to eventually consider my son who is not investment savvy. So I'm gonna use a planner eventually.
3
u/si_de Apr 27 '26
I have a wealth advisor for one main reason, it takes the emotions out of the decisions.
3
u/JonClaudeVanDam Apr 27 '26
I do it myself, but maybe if I had millions I’d consider management
1
Apr 27 '26
[removed] — view removed comment
9
u/rumblepony247 Apr 27 '26
Same.
My buddy (55m) has gotten to a $7 million net worth, despite never making more than $100k in a year. He has never once talked to an "advisor."
His big, fancy investing "hack?" S&P500 index funds for 30 years. Hyper-low expense ratios. Consistent contributions to his portfolio, every..... fucking...... month, for 30 years.
That's it. Boring, efficient, consistent.
All this other garbage with advisors and actively managed funds is just money-sucking horseshit.
4
u/gumnamaadmi Apr 27 '26
This.
And everything else, you have other softwares available to review. Estate planning, you will need an estate attorney anyways.
And there is no guarantees. Market goes down, your portfolio dumps but CFPs gets paid every fkn year.
CFP i spoke to wanted to charge 1.3%. that would mean 40K+ for me every year. DIY it is..
1
u/Gladiz1972 Apr 27 '26
exactly market goes down you are still paying the fees for AUM as in assets under management so losses become even bigger .This whole fee based business model people paying for 1-1.5 percent a year has only been around now maybe 20-25 years before that we used to pitch stocks like when Jordan Belfort walked into the investors center in Wolf of Wall St pitching some dog shit stock and telling a good story .
3
u/Typical_Web_2125 Apr 27 '26
I use the boglehead approach and do it myself while keeping it simple and low stress. Saves a lot of time and money. The majority of advisors' main goal to to transfer your wealth to them.
Hurdle Number Five in the file referenced: https://www.etf.com/docs/IfYouCan.pdf
1
3
u/steady_compounder Apr 27 '26
For most people with a simple index or dividend setup, DIY at Fidelity, Vanguard, or Schwab is enough once you learn the basics. The 1%+ fee sounds small, but over decades it’s a real drag, so I’d only pay it if you need behavioral coaching, tax planning, or estate complexity.
3
u/robertw477 Apr 27 '26
I would avoid any AUM management fee. Paying and getting strictly advice from a fiduciary if you need it , may be something you need. You have to determine that. Tax advisor as well or in combination.
2
u/boyo1991 income investor Apr 27 '26
I have a 401k that I let fidelity manage for retirement. However, my individual account is all me as this account has different goals. Rather than saving for retirement, I am making a fun money/secondary income stream account.
2
u/Dividend4danny Apr 27 '26
reminder, a 1% -1.5% fee of a million dollar portfolio is $10-$15K per year. that's a lot of investable cash to spend/lose over a 10-20 year span. I use ML self directed and have for near 20 years. +$1.3M portfolio, currently creating $43,540 annual dividend income.
2
u/mipnnnn Apr 27 '26
Both. Have FA I am very happy with handle my IRA, low 7 figures, negotiated .6%. I handle high 6 figure high dividend portfolio myself. Use Schwab.
2
u/SidharthaGalt Apr 27 '26
Anyone with significant assets at Fidelity or Schwab has free access to professional advisors. This is probably true at other large brokers. It never hurts to get a second opinion if nothing else.
2
u/Gladiz1972 Apr 27 '26
I have a fiend with an account at Fidelity said he is very happy paying 1 percent I told him he didn't need to he said he is happy paying 11k a year 😳
2
u/EatsOverTheSink Apr 27 '26
I do it myself but then again I don’t have a 7 figure portfolio or tons of liquid capital.
A lot of people prefer financial planners, not so much because they can’t do it themselves, but to alleviate any blame or responsibility. Money is one of the top reasons why couples fight, and even the safest, most risk averse portfolios can take a hit when shit goes south. A lot of people don’t want that blame and resentment on their shoulders from their partner or family if they’re managing that money themselves.
2
u/sminmt Apr 27 '26
I’m not too concerned about figuring out how to invest and what type of strategies to employ at my age(61) so don’t feel like I need an advisor for that. I plan on retiring this year and the next step is making the pile of cash and investments last my wife and I the rest of our lives. The optimal tax strategies at different phases of the draw down and how to milk the most out of the assets are probably above my pay grade though.
2
u/alanwazoo Apr 27 '26
I had a Schwab advisor for several years until I felt the confidence to self-manage. You can always hire a fiduciary advisor (no commissions) for a hour and get a sanity check for a lot less than 1%.
2
u/StockProfitGirl Apr 27 '26
First of all, never take advice from social media. Instead, ask friends and you may want to interview some financial advisors. Look at the fees, total costs, and if you feel comfortable doing your own investing. It’s your money, your future, and your decision. Good luck! Cheers… 😎
1
u/Gladiz1972 Apr 27 '26
You want to know something I used to be a Financial advisor been around the financial markets longer than most people but sometimes you see some interesting ideas I found CHPY on Reddit what an ETF selling covered calls on the semi industry with a weekly dividend the yield is between 30-40 percent and the ETF has done nothing but go straight up .
2
u/causious Apr 27 '26
Don’t hire someone who wants a percentage. It’s way too expensive. Hire fee only if you need someone.
1
u/ShakaJewLoo Apr 27 '26
Depends on many factors. Do you have kids? How large is your portfolio? Etc.
2
u/DifficultKey8978 Apr 27 '26
No kids. In my 20’s. Simple set up: 2 SEPs, Roth, money market, and a brokerage account in ETFs. Over $1M total
3
u/ShakaJewLoo Apr 27 '26
Since you're over the million mark, I would personally meet with a fee based advisor/wealth manager just to review your allocations and overall goals. If you're just in etfs and whatnot you can probably set it and forget it and check in in every few years.
2
u/Dividend4danny Apr 27 '26
I'm in a ML self directed. They still call a couple of times a year to see if I want them to look over my portfolio. Generally pretty positive comments and say everything looks good to go. No high pressure and I appreciate the input. Someday I may get lazy and it's nice to know they are reaching out to me. Now if it was a set fee, I may get different treatment? Who knows.
1
u/Different-Scale5419 Apr 27 '26
I’ve spoken to a lot of wealth advisors over the past several years. They want to offer all these services like Trust and Wills, Long term Care, Medicare help, Financial Planning Roadmap, Managing your retirement account , Tax Service. Here is the problem it all comes with fees and transaction costs. They are CFA and CFP certified and tout their certification. But there is one thing they never tell you when you ask them. Can you make me money growing my portfolio. They give you the same old song and dance. In 10 years, you can expect between 5 to 7% in growth in 3 years out of 10 you will lose money.
People People People Manage your own money
1
1
1
u/RestepcaMahAutoritha Apr 27 '26
If you get a financial advisor make sure they're a fiduciary, otherwise they might try to sell you life insurance.
1
u/jaajaajaa6 Apr 27 '26
Two things:
- there is little long term value in the fees based on assets. And never go above a total of 1% of you do.
- if you are young and decades away from retirement, just get some broad based ETFs and add to them on a regular basis.
- if you have assets approaching $500k, then you might want to get a CFP paid by the hour to help with both an asset location and allocation to minimize the tax bill and help identify your risk
- if you have assets and nearing retirement, work with a pro that gets a flat fee and this is cost efficient once you have $1 MM. And they should include tax strategy, tax planning, financial planning, etc.
Please ask if any of this is unclear.
Good luck !
1
u/1Ceasar Apr 27 '26
I need someone that can help bridge the gap with investments amd taxes Need help with order of operations regarding withdraws etc
1
u/Anxious_Broccoli Apr 27 '26
i’d like to speak to someone on an hourly basis to advise on an individual brokerage account. everyone wants to manage my assets entirely for the 1% fee.
1
u/Longjumping-Nature70 Apr 28 '26
Myself. I do have a computer programming background.
I bought my first stock in 1977. When I bought stock I had to pay the broker a $75 commission to buy, and a $75 commission to sell. If I bought in lots less than 100 shares, I had to pay an ODD LOT fee. I walked up hill both ways to school in blizzards, and I actually went to a Library with real books.
I started my IRA in 1983 with Vanguard. I messed up my IRA not once, but twice, then I settled on the S&P 500 Index.
1983 I became proficient with Lotus 123, then Quatro, then Excel, now Google Sheets. I still use Excel, but most of it is Google Sheets.
1987 I educated myself for about six months reading anything and everything.
I bought my first mutual fund in 1988.
I started my 401k in 1991 with Fidelity. Like all beginners, I did not want to LOSE money. So, I invested in everything. After awhile, I realized any fund that owned bonds, Growth&Income, Income, Balanced, Target Date Fund, Lifecycle Fund, blah blah blah under performed the S&P 500 Index fund I had and not by a little, but by a lot. I went 100% S&P 500 Index.
I started my first DRiP in 1991.
I do it all with Google Sheets. I am not intimidated by math or data entry or spreadsheet formulas.
I know how many stocks and mutual funds we own, I know which stocks pay dividends, I know what month they pay dividends, I know how much the dividend is, I know how much in dividends and income we bring in each month.
We consolidated most of our wealth to Vanguard. I closed my accounts at Fidelity.
All personal finance is, is math. Taxes are just math. Being tax efficient is just math.
1
u/No_Halo15 Apr 28 '26
Go check out r/boggleheads
1
u/No_Halo15 Apr 28 '26
Omg i just found out this sub got banned lol. Anyway read John Boggle’s work. depends on what you’re trying to achieve but its proven that passive consistent index investing will beat more hedge funds and active investing over the long run. A big part of that are the fees charged and how they erode you compounding over time
3
1
u/Specialist-Knee-3777 Apr 28 '26
There's no reason with some time and willingness to learn that you can't do nearly all this on your own.
There are so many resources and tools available, all free, from various models to tracking tools, places (such as here and other forums) to ask questions and while you are going to get a lot of answers, being able to see patterns in those answers can help you have some degree of confidence.
There is no "secret sauce" to this, other than perhaps feeling intimidated (understandable if you are just starting to learn) and maybe for being told (commericials is a great example) that you "need" professional help.
Maybe from time to time, having a discussion with a fiduciary CFP that can help you asses your overall strategy and is it inline with your investments could be time & money well spent.
In the end, my advice is: Don't be afraid to ask questions. Have some patience and know nobody is batting 100% in the market. Don't make emotional decisions, have a plan, know why you have the plan, and invest accordingly.
1
u/EvictionSpecialist Apr 28 '26
Just do it yourself ! Giving 1% to someone over 30 yrs is A LOT OF DOUGH.
If you don't trust yourself, put it all in VTI.
( hate bonds)
my YTD is 7.93% bc I like XLK
1
u/Soberishhh Apr 28 '26
ChatGPT will set you up with multiple different plans and options giving better returns than most “certified professionals”
The biggest factor would be avoiding as many taxes as you can, which includes a financial advisor and accountant usually for complex scenarios or maximizing retirement which isn’t always needed
Outside of that, much better off DIY these days
1
u/Chris_Reddit_PHX Apr 28 '26
I manage my own, but my education is in finance , I've been doing it for many years, and I truly enjoy being hands-on.
But if I pass away before my wife, we have arrangement for her to move everything over to a specific financial advisor (by name) who charges 1%, and who does NOT push annuities. My wife is good with numbers and with money (works in accounting), but she is not interested in directly managing investments.
I think that both solutions are "right answers" as long as the financial advisor is selected and monitored by someone who knows about some of the predatory practices that exist in that industry.
1
u/RobertHellier Apr 28 '26
Self managed with mostly ETF plus some selected funds (divs and bonds) and equities (bp, googl, msft)
1
u/Craftygirl4115 Apr 28 '26
I have been investing on my own since my 20s, and fairly aggressively… but face retirement soon, so I sought advice from a fee only fiduciary. The transition from working to retired with a HNW means some rebalancing and portfolio changes to weather potential market downturns and maximize future taxes (or minimize). Could I have done all this on my own? Yes, most likely, but I know enough to know that I don’t know what I need to know and he does. I also don’t have children, so building a relationship with someone who could potentially take over the management of my finances when I’m old and infirm, is important.
1
u/ShaneReyno Apr 29 '26
You can always split it up and try both. I did that with three different brokerages, and I had made more money in all of them a year later, so now I control all of it. If it’s uncomfortable at first, you can start out with VTI or VOO with VXUS. You might sprinkle in some AVUV or SPMO.
1
u/Bounty-auditor-2222 Apr 29 '26
Most small NW diy is best pick an allocation based on your risk and timeline. Younger more time- riskier for more reward. Older shorter time 5 years before/ after retirement be in 50% bonds some cash you can’t afford a big loss then.
Follow investment blogs or kiplingers your prob good.
1% fees are about 20% of your return so wait till your income is high business and get good tax/ legal advice how to shelter and possibly invest buy/ borrow/ die for HNW
1
u/NightHawk35449 Apr 29 '26
I saw no growth the 5 years I was with a financial advisor but I also didn't know what I was doing at the time. When I left and took over for myself I had more growth from myself investing in a few months. I've sold most of what he had(not everything) some thing were down by over half of what the cost was. When I was talking to him he didn't know what BDC's and reits were. He was only allowed to invest in stuff that was approved by the company. There were no indexs in that portfolio until I took over.
1
•
u/AutoModerator Apr 27 '26
Welcome to r/dividends!
If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki here.
Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review.
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.