[Jessica]

I have always used one, but have recently been following more personal finance people who advise against it. I pay my advisor around .8%. I have a ROTH IRA, a 403B, and a personal investment account.

I think I’m just scared to do it myself since I’ve always relied on an advisor?

[Lynn]

On this note, if I have an old 401k from an old job and need to move the money, is that something I can easily move to VSTAX? Or not since it’s a retirement account?

I’m new, be gentle.

[Aaron]

Would it surprise you if I said that over a 20 year period (assuming 6 percent annual growth) you are paying 26 percent of your growth to the advisor?

It may be uncomfortable to do it yourself but it’s expensive not to.

I think it’s because .8 percent sounds low it sounds like it’s no big deal.

Don’t miss: What have people taken $ out of investments for?

[Don]

VTSAX and chill

[Julie]

It can be as complicated or as simple as you choose. Start with a low cost index fund at somewhere like Fidelity or Schwab or Vanguard. Maybe one that tracks the S&P or something along those lines.

Then start reading and see if you want to try an asset allocation or maybe stocks and bonds- or don’t- leave it in your low cost index fund and check on it occasionally.

Read some books or blogs if you want to learn more. Don’t be scared!

You got this!!

[Kevin]

It all depends on what you can produce vs what the advisor is producing. If he’s returning 10.8% or less, then ditch him and invest in VOO (s&p500) and you’ll hit that over the long run and save the 0.8% fee.

If he’s returning less than 10.8%, definitely ditch him.

My return over the past 10 years is 22.8%. Advisors I met with couldn’t commit to coming close. So I’m doing it myself.

Ps. 0.8% isn’t as bad as other fee percentages I’ve seen. For what it’s worth.

Explore these too: I’m just now getting started in investments… Sad this late

[Jessie]

I’d never pay an advisor. I agree with the VTSAX and chill sentiment. no need to give away your wealth!

[Steven]

0.8% is A LOT … no one is too American to at least be capable of managing their own expenses and follow a passive investment strategy.

[Dane]

I briefly worked in wealth management “helping” a variety of clients with their investments. The only time an advisor made any sense to me was for very wealthy clients who ended up paying the lowest fee and simply did not want to deal with it (even if they likely could do better on their own).

For everyone else with relatively simple investments, my opinion is avoid advisors. They provide very little value, although one counter argument is they act as an obstacle to your emotions and may help prevent you from doing something really dumb, like selling after the market has dropped.

That aside, there are several low cost, passive options that are just as good as what an advisor would put you in, and your returns will be 0.8% better every year – and that really adds up.

Also, check out: How much of your portfolio do you invest in international funds?

[Stev]

What does your advisor have you invested in even? Losing 0.8% per year is hard, and only gets more expensive as you have more money even though the advisor does the same thing.

[Kyle]

With just these assets… you can probably do your own investment planning. Once your investments start impacting your financial, tax, retirement, insurance, estate planning, and wealth management…You will need an advisor again. At least until you learn how to do those things.

[Author]

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