Should I seek a new financial advisor?

I have an IRA. My investment advisor charges 2% of the value of the fund yearly, but sends out bills monthly. The fund was a rollover account of $47,000 from a company I worked for. Even though the fund is now worth $70,000 in value now, that's only a paper value. I think his rate of  $1,200 or more per year is excessive. My shares' value become less as the year goes on. I feel cheated because even though the fund is doing well, it only relies on the market as growth. I am a widow who lives on only $30,000 a year, so I feel by the time I retire in five year, it will be down at least 20 to 40 more shares. Is this standard procedure?

Choosing an Advisor, IRAs
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October 2017

This is a good question and one you must put some thought into.

Simply looking at the fee, 2%, it may be abit high compared to industry standards.  I would also imagine that the investments you have your funds in most likely carry some type of charge as well, so you are probaly paying north of 2% annually.

I think the big question is, what are you getting for the 2% plus?  Are you getting advice and guidance in other areas of your financial life than simply on the invetments of the account?  Is the advisor doing planning for you under that fee too?  I think you get the idea..

I would imagine that the advisor is simply managing and guiding you on this account and that alone, if that is the case I would say it is a bit high and I would look elsewhere.  Keep in mind, your fee should be commensurate with the services provided, needed and wanted.

I would try and find a fiduciary advisor, like us, and discuss your situation and see what they would recommend for you in your specific situation.  Best of luck!

October 2017
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October 2017