I'm paying over two percent of the current value of my portfolio in annual fees; is this rate high for a fee-based advisor?

I have a fee-based advisor for my mutual fund portfolio. The current value is at about $60,000. I'm averaging about $320 in fees per quarter, which amounts to just over two percent in annual fees. Is this rate high for a financial advisor? The advisor is also a CPA.

Asset Allocation, Choosing an Advisor, Mutual Funds, Taxes, Income Tax
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6 days ago
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Yes, this is a very high rate for a fee-based advisor. The high-end average for fees is 1.5%/yr plus any internal costs of your portfolios (mutual funds have internal expenses). Most hover around 1% nowadays even at the wirehouses like Merril Lynch or UBS. If I were you, I'd be looking to see what your client agreement and account paperwork says as well as analyzing the weighted average expense ratio of the mutual fund portfolio you are in. The main thing to note here is that for every percentage point in fees you pay, that's a percentage point less on returns. Over long periods of time with the power of compounding, this can result in substantially lower returns. I would hope that if you're paying more than 2%/year, your advisor is providing an enormous amount of value. Otherwise, you're just wasting money in my opinion and I'd be looking elsewhere. My firm, for example, uses strictly ETF portfolios and charges 0.80%/yr, so our clients only pay around 1% all-in. 

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