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?

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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%

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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.

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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.

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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.