I Ended the Relationship After a Year: What’s My Next Move?

As a 59-year-old with $750K saved for retirement, I thought hiring a professional to manage my money would ease my worries. However, after a year of paying $3K in management fees, I realized I wasn’t getting the value I expected. I’m not alone; many people seek financial advice but feel unsatisfied with the results. In this article, we will explore what might be missing in the traditional financial adviser approach and what your next move should be.

What am I missing?

While traditional financial advisers can offer value to those who need comprehensive financial planning advice, they may not be the best fit for everyone. In your case, as someone who is well-versed in investing and saving for retirement, an hourly or per-project adviser might be the best fit. By doing this, you can retain control over your investments while still receiving the benefit of comprehensive financial planning advice.

For example, you may want an adviser to help you create a retirement income plan, help with tax and estate planning and provide guidance for transitioning into retirement. An adviser can also help you understand income streams in retirement and determine where to draw those funds from and how much to withdraw.

What went wrong?

While you may have had good intentions when starting with your financial adviser, the relationship may have faltered due to miscommunication or misunderstanding. You enjoy investing your own money, and the adviser may have not honored that. This resulted in a lack of trust and value for the money you paid for financial advice that didn’t meet your expectations.

What’s my next move?

If you’re feeling unsatisfied with your current financial adviser, it’s essential to assess what you need to move forward effectively. You may want to look for an adviser who charges an hourly rate or a flat retainer fee for financial planning advice instead of managing your investments.

You can find advisers like this through organizations like the National Association of Personal Financial Advisors (NAPFA) or the Garrett Planning Network. These organizations have certified financial planners who offer hourly or per-project services. When selecting an adviser, make sure to vet them properly, review their credentials, and verify that they share your values and work in your best interest.

Related Facts

• The average fee for financial advisers is 1% of assets under management.
• Many financial advisers are not fiduciaries, which means they are not required to act in your best interest, but it’s still essential to ensure that your adviser is a fiduciary.
• Hourly or per-project advisers have different pricing models but are often more cost-effective than traditional advisers.

Key Takeaway

The traditional financial adviser approach may not be the best fit for everyone. If you have experience with investing and saving for retirement, you may benefit more from hourly or per-project advisers who can offer comprehensive financial planning advice while you retain control over your investments. It’s essential to properly vet advisers, review their credentials, and ensure they work in your best interest.

Conclusion

If you’re feeling unsatisfied with your current financial adviser, don’t give up on finding the right fit. You may want to consider hourly or per-project advisers instead of traditional ones to better suit your needs and lifestyle. Ultimately, it’s essential to find an adviser who shares your values and provides you with relevant and valuable advice.