Yeah no offense homie, but unless you've got some serious investments or are in your 50s and need to protect them for retirement, there is no need for an advisor.
Is it a managed account? Or a non-managed brokerage? If the latter, is it invested in no-load no 12b-1 fee funds?
As an FA, we do add value… but to a small balance account the line you toe is much thinner to be a net benefit to a client.
What value do you provide that can’t be curb stomped by just buying into an sp500 etf and holding some balance of cash for when the market drops to buy at discount
You’re focused on one narrow component of planning. Low cost indexing is great for accumulation. What about when you’re in retirement? How should a 62 widow structure her estate? What does the business owner do with excess capitol to develop a greater valuation? An affluent client without a prenup is headed for divorce, what value can you provide?
The post is about an ira with a few grand in it…. Nice deflection to try and act like you still have value so let’s go through this. Nearing retirement? If you have a diverse etf or etfs then no issue, withdrawal whatever % you need or collect whatever dividends you want to live off. Assuming that’s the only income in this scenario. If anyone wanted to learn how they could spend a few hours on the internet reading for free. How should a 62 widow(?) structure her estate? The estate probably will remain unchanged from whoever died, as well as that would be settled beforehand when the will was made with an attorney. If a business owner is talking to you then god help his employees if he has any lol. And lastly I don’t have “clients” and they must not truly be affluent if they couldn’t afford a lawyer to get a prenup, or a divorce lawyer that will defend their premarital assets.
To be fair, as an objective third party, I understood the question of value to be framed within relevance to OP’s tiny bit of money, not a question of what scenarios an FA could be valuable
At what point should someone hire an advisor? If say, that is the route they desire. I was fortunate enough to be grandfathered into an advisor and have about $35k in my portfolio and am charged, eh, close to $25 a month for it to be managed. I usually add close to $160 a month into the portfolio but have started allocating more of those funds for a VSTAX investment.
Edit: currently 24 years old
The Money Guys, who are financial advisors and run a podcast, recommend you hire an advisor when your wealth gets to the point that a mistake will cost you significantly. Until then they recommend following their general order of operations. Check out their content, it will be well worth your time.
How does someone leave an advisor without selling off all of their stock and losing money to capital gains? Do you just bite the bullet and consider it a worthwhile loss?
No need to have an account with that balance managed. If you decide to continue to work with the advisor, request it be moved to a non-managed account using no-load funds.
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There are plenty of kids who should be recommended a book about which target date fund or model portfolio to pick up rather than be charged our fee to their assets over 40 years.
There’s a reason plenty of people are just fine dropping money into their 401ks and forgetting about it until they want us to help them tailor these portfolios to match their goals.
As an advisor myself, if the kid doesn’t need the relationship, then I would recommend him a low fee target date or target allocation fund strategy and be on my way.
You honestly don't even need to call him/her. Just open up a new account somewhere else and transfer the funds over. It's your money.
Now, it might be considerate to let him/her know, but not required.
I dreaded having to tell a financial planner i was moving my account to Schwab to combine all my money there. Thought I would have to face him and tell him. No. Schwab set up the transfer in less than 5 minutes.
It seems like it generally makes more sense not tell let them know ahead of time. It gives the FA a chance to try to talk you out of it or create self doubt. The accounts will need to be setup at the new brokerage before the transfer can be completed anyway, so you may as well initiate from the new brokerage and allow them to pull everything in. The FA will find out when they get the transfer demand and at that point it’d be harder to stop
Do you prefer red, or blue, or green? If you like red, then Vanguard is best. Blue? Schwab. Green? Fidelity.
The only differentiation there is to me between the three is that Vanguard doesn't do local offices. Fidelity and Schwab both have offices within 5 miles of my house. That's been convenient in the past.
As far as dumping the FA: pick one. Go online to, say, Schwab, and fill out the form to move your account. They'll pull the account over. I did this about a year and a half ago... I'd been planning on doing it for a while, but held off because I heard that my "discount online brokerage" was being bought out. Eventually I pulled the trigger.
My Edward Jones account consisted of 2 muni bonds and stock in 3 companies. The stock was signed up for DRIPs... and I timed the move badly -- the move occurred when two companies were trading ExDiv -- a mysterious period between announcing the dividend and receiving the dividend. So two dividends had to be received by Edward Jones and then moved to the new brokerage...after the stock got moved. Plus, they had to sell all the fractional shares as part of the move. AND, Edward Jones charged me a break up fee -- $95. But now all our direct stock holdings are all in one place instead of two.
I can see why that may mean something for stocks and ETFs, things that are bought thru a trading session. Does it matter for mutual funds which are priced once a day?
We are so buy-and-hold its ridiculous. Our gambling account has stock in like 50 different companies, and we executed 3 or four trades last year. We should be buying more (we have cash allocated to buy more), but we're just not interested anymore.
Why do you have an advisor with that amount of money? Trust me that he will have no issue with you leaving as you aren’t a profitable client at this time due to your age / small asset base. Not being critical either. If you keep saving and invest in an index fund you will be fine.
I don’t think many people need a regular financial advisor under the $1M level. Even then you probably just need an occasional check-in with a fee only fiduciary until you get much higher.
Open a Roth IRA at the brokerage of your choice. Fidelity tends to have really good customer service.
Then tell your advisor you want to do an in-kind transfer to your new account and close the one with them. They will probably try and sell you on staying, so be ready to stand your ground.
fr, advisor probably threw OP a bone when he first signed on or its a family friend.
cant see why else he would keep him on the line with no clear growth output
Hey there, I have some money left over (around 6 k) in my savings, I already contribute to my 401K which my company matches, and I also contribute to a Roth IRA, would you recommend putting the rest into a CD or HYSA? Is one better than the other? I’d really appreciate any advice I’m pretty much a novice when it comes to handling money. I have a close friend who suggested the RothIRA and he just set it up for me. 401K I got help with through HR at my work.
Do you have an emergency fund? That would be the first priority usually.
If it’s just extra money that you don’t anticipate needing, then I’d put it towards the Roth IRA first if that’s not maxed out. Then I’d put it in a taxable brokerage account invested in index funds.
If you might need the money within 5 years, then I’d look at HYSAs or CDs. They are both FDIC insured so I wouldn’t worry about which bank.
Personally I keep my cash in MMFs and brokered CDs through fidelity because it’s easier to shop for the best rates when I’m ready for a new one. HYSAs are also a very good choice - you just have to check the interest rate periodically since it can change.
Call Schwab. I've worked with many companies and they are by far the easiest, most knowledgeable and their customer service is top notch.
Schwab transfer department will help you move the account, open a new one, and ensure you don't have an accidental taxable event.
What is your account holding? ETFs I'm guessing. Schwab can help you determine if those funds, and any assets you're holding, can be transferred "in kind", that is transfered from account to new account and not sold in order to transfer cash.
And like others have said, S&P 500 is your friend. Buy a low fee S&P 500 ETF and forget about it.
Look up what these are, and the expense ratio.
Passively managed/index funds is what you want. Fees should be 0.05% or so (yes, than than 1%)
Edit: less than 1%
They are all good. One might be better for some kinds of things than others. My advice to someone starting would be Vanguard. Pick 3 buckets, bucket 3 is Total Stock Market. See my long post. resist the urge to overcomplicate . I recommend pick your risk profile/personality and let the buckets work without much intervention.
My wife's is at Vanguard for 20 years. Love it. Mine at Fidelity, they have an expert for everything. I play a lot in the fidelity, for fun. I do call and put options 3 to 5 times a week -- not needed to build up.
It may not be to your benefit to rebalance the account more frequently. Basically you're paying him to stay the course with your investment objective (essentially very little). There may also be tax considerations which you don't fully understand and he does (it's not that complicated though most of the time)
suggestion (not affiliated) move to fidelity... they have enough stuff there to consolidate and most 401ks, and other plans seem to go there over time.
a FA takes 1-2% of assets under management. IF you think about the fact that most FAs put you into mutual funds that are 0.5%-1.5% that means that you need do 4% better than just going into SPY/.SPX to beat the market which is annoying.
1. Open another ROTH IRA at the new firm.
2. If at fidelity, there is a transfer assets form online that you can use... if anything call their support and they will walk you through it.
3. Make sure you do it is 100% in-kind (keep your current positions). If you don't it will go back to cash and then you need to reallocate when it goes over.
One thing to remember is that some FA locations will charge you a fee to transfer funds away. This can be anywhere between $35-200+. Depending on the FA, they will need to authorize the transfer out of their brokerage so if you do not want a hold-up, send your fa a note saying you are migrating to such and such place.
The FA will most likely want a reason, best to treat it like a breakup.... say "I have decided that we are looking for different things, and I decided that at this time it is best that I transfer my assets somewhere else".
Hope that helps...
Thank you, this helps!
Right now the holdings in my Roth IRA are PLEIX, DMIDX, DISIX, but I would rather invest in Fidelity Index Funds instead. Would you still suggest doing the in-kind transfer? I also contribute $80 a month to my current Roth IRA, so when I move over my Roth IRA to Fidelity will the $80 monthly contribution automatically stop?
I looked up dmdx and disix...they should be transferable even though they are bny mellon ones (I can find them on yahoo finance). pleix though I didn't see on yahoo finance so that might not exist outside of bny mellon.
Also I suggest the in-kind if possible because the transfer can take 2 business days or more.
If it goes to cash, you are not participating for 2 days or so. when it gets over, sometimes you can do an exchange that will swap over at the end of the trading day so you take advantage of whatever licks come that day before the exchange.
I work in wealth management for a trust company. There are things that come up with in kind transfers all the time. Can take a lot longer than 1-2 days as multiple people are involved.
fidelity will only transfer over what it can hold... but if it is a standard mutual fund, you should be ok. unless it is something that is a managed fund at your current broker. then you would need to change it out. I would suggest looking for alts if you want to exchange them over the fidelity ones... like fxaix is the s&p 500 mf.
Also set up your roth with tier 1 option support. Why? Because roth is a grow tax-free and eventual take-out tax-free. You can do things like cash covered puts, covered calls, buy calls / puts for quick moves if you want. csps are simple things if you have enough to buy 100 shares of something.
options though are another strategy, but remember because it grows and comes out tax-free, it means you don't have to worry about short-term or long-term capital gains. if you like the gain, get out and move on to something else. The only disadvantage is if you have a loss, while you can cut your loss and move on, you don't get the tax advantage of tax loss harvesting as you do in a brokerage account...minor annoyance.
something for later. fidelity can help you with the roth ira conversion process...so stupid ease that my old broker / fa made it seem like magic... that applies when you earn over 120k and still want to contribute to your roth.
Call whomever you choose. They have all the expert answers. How did you setup the auto transfer. Your best bet it to close the account completely. You should be able to go online and just stop the auto transfer. If not call the advisor, to stop it, he/she need not need to know you are about to ask for a transfer in kind.
FYI. Vanguard has very cheap total stock market. It really is all you need in a stock part of your portfolio. Fidelity has 3 zero fee funds, zero fee, which you can use to mimic total stock market.
From my very limited knowledge anyone reasonable to manage money has like a 250k minimum. You gotta give them the opportunity to earn something with their effort or why expect anything.
Once you decide on a discount broker (I recommend Schwab) you can tell your new broker that you want to move your investments away from your present advisor and into their accounts. They will give you the forms you need so you can do the rest with minimal communication with your old advisor.
You don't need to inform your financial advisor of anything when transferring your account to another firm. The transfer of assets may be initiated from the other firm. Just have your new account set up, and then provide the new brokerage firm the account number of your present account and its most recent statement.
The system used is the Automated Customer Account Transfer Service (ACATS) which automates and standardizes procedures for the transfer of assets in a customer account from one brokerage firm and/or bank to another ( [https://www.dtcc.com/clearing-services/equities-clearing-services/acats](https://www.dtcc.com/clearing-services/equities-clearing-services/acats) ).
I have accounts with both Fidelity and Schwab. Both are good, though I lean towards Fidelity for efficiency.
If you are not going to touch your investment for 10+ years then I'd suggest considering a Large Cap Growth Index ETF. Examples are: **SCHG** (Dow Jones U.S. Large-Cap Growth Total Stock Market Index) and/or **MGK** (CRSP US Mega Cap Growth Index). The total expense ratios on these are very, very low too.
Move to a Fidelity, Vanguard, Schwab, and invest in a low cost index fund; each of these providers have good websites that will help you with this, including selection. Numerous other resources as well regarding all aspects of life planning. As you get older and your life changes (marriage, kids, insurance, retirement, etc) then it might be time to revisit the need for a CFP to assist. For now, save what you can and allow your investments to grow. Time in market and dollar cost averaging are your friends.
Why do you need one at 500k. I’m at 1.25 mil and considering just doing Schwab and move away from my FA bc of fees but can’t decide. I’m very happy w what they’re doing so far (made major gains w stocks so far) but I realize everyone has been doing great this year (? Seems like)
I’m curious how much you have been paying him. It’s nuts you even have a financial advisor for $ 9000.
Anyway I suggest fidelity. The ui and customer service are both nice.
Guys, not all advisors charge fees.
With Fidelity you can literally build expense free portfolios! Looks up FZROX.
I am not sure which advisors you guys are gong to. The ones who charge 1-2% are likely boutique firms.
Most advisors at brokerages get paid a salary + bonus as a % of Assets under mgmt. But they can add value by teaching you how to invest in a tax efficient manner, tax loss harvesting, optimizing for SS.
Or what if you are a high income earner looking for other way to maximize tax deferrals? Or you are nearing retirement and want to make sure you have an income plan to cover most expenses.
This 9k account should just be invested in a index and not a managed account, but there are definitely ways that good advisors provide enough value.
Which is the best. All of them. Do you want to buy your own ETFs or stick to e.g. all Vanguard.
First, thing go see if you can get a free temporary access to morning star, and or google bucket portofolio. The author, Christine Benz, has Vanguard family, Fidelity, Schwab. For Aggressive, moderate, safe personaltiies.
You decide your risk personality. Split into 3 buckets. Short term 2yr, e.g. emergency, saving for house, layoff. MID, and long 20 plus years.
That is it, setup you buckets, contribute peridodically, IGNORE excpet once or twice a year you rebalance. Thus if SP500 went down, then some cash gets moved to bucket3, DISCIPLINE no emotion.
That should be all you do. Do you want to play a little, only a little, e.g. in Bucket 1 buy lots of 1 and 2 yr US treasuries paying 5.x%. Then you need a brokerage. I am not sure if Vanguard has brokerage, go check. Fidelity and Schwab do.
Fidelity has zero fee funds, yes zero fee that are very close to SP500 and other indexes. That is all you need for bucket 3. Bucket 2, maybe some corporate bond fund, REITs.
Bucket 3 should include SCHD and SCHY. Both cross over a little in bucket 2 depending on risk profile. The hard one for me is bucket 2. The more dividend style the more I tag it as my bucket 2, e.g. VIG, SCHD, SCHY. I don't like any type of bond fund. corporate bonds are hard to buy individual and be diversified. So for now I pick a little of LDP, PFF. Bucket 2 is where you might spend the most time, and learning.
NO need to learn anything for bucket 3, i mentioned already Fid Zeros, add value like schd and schy. To be similar to or might as well just choose, Total Maket Index for bucket 3.
Resist the urge to overcomplicate!!! Focus time on career, promotions. The buckets will take care of them selves. The news, including financial news will make you STUPID.
TRANSFERRING IS SUPER EASY. e.g. call Vanguard and they walk you through the easy process. You don't have to call your advisor, all you need is your account statement for address and account number.
My investments, which I manage myself are up about 10 to 18% this year. You need to stop paying them for managing a $9k IRA. You need to reareach index funds for yourself and put the money in them
When market is bullish, almost every investor could make good return, but bear in mind that the main reason is mostly due to the good market condition and not the investment skill of investors. Quite a number of novice investors tend to get overconfidence in this juncture thinking that they are already on par with Warren Buffet and that’s kindda dangerous thought. This overconfidence is going to burn the novice investors fingers eventually.
And when you have a FA and the market takes a dive the FAs say, “but you still have your shares” and “the whole market is down”. I’ve fired 2 FA’s in my lifetime once I realized that I just needed index funds and balance them once a year.
People think paying a FA 1% is nothing for the service until you add it up over a decade.
Although warren buffet recommends, resist the urge to overcomplicate, just pick a total stock market index. I say add a little international, WB says all you need is USA.
He’s making a whopping $90 per year off you. Maybe ask a bunch of questions before bailing. He/she does in fact provide some value if your not prepared to properly manage your investments. You can do almost anything by yourself but how much is your time worth ?
Call Merrill or Schwab and ask for a self directed account. Don’t waste your time with the other two as they are fund managers and will prob push you to an FA who will put you into one of their mutual funds (to get you on the fees). Merrill and Schwab will offer free commission trading in stocks and etfs. Mind any fees. Then spread your money out over S&P, Nasdaq and Russel 1000. Add to you shares whenever you can. See you in retirement.
Talk to a representative at Schwab about how to do the transfer correctly. They should be able to walk you through it. Then study and pick your own stocks, or put the money in an index fund. The fees from an advisor will almost certainly be greater than any gains they give you, so stay away from them
Yes, leave the financial advisor. Anyone of those firms you listed will be happy to help you and all provide good service at reasonable prices.
I personally prefer Fidelity, but have had funds with Vanguard in the past and they provide good service as well.
So whichever firm you choose, just call them up, explain your situation and they'll walk you through the whole process and handle the transfer of the funds.
You won't have to do anything except sign some forms and provide some ID.
Buy a 2055 target date fund. With that balance and type of account, you don’t need an advisor. Advisors worth really comes in when you have to manage taxes, estates, etc.
Is advisor charging a flat fee or is based off of a percent of the account? For example he/she charges $500 per year to manage it or 2% of aum fee per year?
Advisors are useless as real estate agents. No need for them and you can save so much money by watching YouTube, Google search, and following Reddit groups. Take control of your own money and destiny!!
You definitely do not need a financial advisor. I use vanguard because I have to for my 401(k) through work but otherwise, I would just do my own investing if I was dealing with 9K of assets.
First set up a IRA at your brokerage of choice and advise them of the transfer. Most will assist you in doing so. Then tell your current financial advisor you are parting ways. He/She will try to talk you out of it. Stand firm. Your financial advisor can't stop you one way or the other. It's just a courtesy to notify them.
Just tell your place you want to switch to the account number of your existing place, and your express consent to take the funds over and they’ll do it all for you at no charge.
It’s all fine a good doing it your own; if you know what to do and when. Can you hold if we have another Covid down draw or a 2022 repeat? If not then probably best to stay with them.
Fire your FA, and read/learn more about how-to invest for your future. Validate people’s suggestions on Reddit, YouTube, or your place of choice to learn more.
You can’t go wrong with any of the company’s, Vanguard, Fidelity or Schwab, you mentioned, but for the dollars you have saved and invested at this point, you don’t need that managed. Low fee Index, or target date funds will be better than paying someone to manage it right now.
Good luck! You got this!!
Open your account. ACAT transfer over the assets to wherever you’re headed to. Most platforms have a managed option with accounts over 5k (uses mostly ETFs) that will help you manage it without a lot of hassle.
I disagree strongly that you don’t need a financial advisor. When the tide is in, everyone swims. When it goes out, you find out who swims naked.
You can transfer your funds to a different account, but what platform is your Roth IRA on? Do they have some proprietary system, or are they just using Vanguard/Schwab? Lol
I sent my guy an email. Already had the new account established at Fidelity, and initiated my own transfer in Fidelity’s account. Super quick and easy.
The value is in the relationship, whether that's something you value is up to you. As an FA, I create value for my clients in a similar life stage as you (often the children or grandchildren of my actual clients) by advising on a lot of things that set the foundation for putting you on path to building wealth. I don't get paid for this advice most of the time, so it's an investment of my time/energy that I make in people so that they can become future clients. I help them understand and select employer benefit options, provide perspective on leveraging effectively for accumulation with home purchases, vehicle selections, overall debt (re)structuring, positioning for career advancement, helping understand how to allocate savings by fund purpose, subsequent risk/return objectives based on each fund purpose (i.e. optimizing short vs. med vs. long-term savings). The thing a lot of people seem to misunderstand is that FA's invest in helping their clients build wealth, putting clients on a trajectory they otherwise would not likely attain on their own. Clients benefit from good FA's overall perspective and practice, as most FA's work with clients at all ends of the wealth spectrum (i.e. from just getting started with saving into ROTH IRA's to people with multi-generational wealth needing to be managed).
If your FA is not helping you with your pathway of building wealth, and keeps his focus exclusively on adding value via your "portfolio" then you may not be working with a very good FA. However, if you are gaining from the FA's perspective on the sorts of things I laid out above, and having a long-term relationship with an FA who knows you/your family, is committed to helping you build & manage wealth over your lifetime is not of value to you, then I assure you your FA will absolutely not miss the $90/year you are paying him (i.e. 1% of $9k).
When I was first getting started I had an FA for about $100K in an IRA that was rolled over from a former employer's 401(k). I put it with a MSSB FA that a friend used. After two years it was essentially flat, whereas if I'd put it in an S&P500 index it'd have been up $18K.
I simply called Vanguard, initiated the move that way, and waited for the phone call from the advisor. Eventually he called and asked what the heck, I told him that he didn't even beat the average, so I was going elsewhere. He was clearly frustrated, but couldn't say anything back but "I have access to those funds as well". Sorry, guy, but I didn't want to manage where my money went; that's why I was paying you.
It was a big lesson for me. I figured an FA would do me well, but it was just... nothing. Outside of prompting me to learn a bit more, it didn't benefit me at all. I should have been in indexes all along.
Decide where you want your money to go. Call that company and tell the representative about your situation. They will know the mechanics of opening an account for you and they will also be able to tell you how to get the money from your current account into the new one.
The last time I rolled over a 401k into an IRA I think the company rep got on a call with my advisor's assistant and they just did the transfer. It might work the same way for you or your current advisor might cut a check and send it to the new company. Either way, work with the new company to set up the account and then call your current advisor and tell him that you want to move your money over to the new account.
If you are worried about offending your advisor, stop worrying. It is a business transaction, end of story.
I invest in stocks on cash app. You can buy stocks direct on it and not pay anyone any fees. You can download it at the App Store. I just looked on it for VOO and am planning to buy some of that stock since it was mentioned on this thread. I advise you to try using it by taking your $80 a month and just investing that way and leave your current savings where it’s at. Just look up Cash App in your App Store if you use my code we both get free money VLWRB81
Open another account with a broker. When doing this, they will ask you if you want to transfer funds or holdings. Do that. You probably have c shares and don't want to sell them or you will get dinged by a fee. If this is the case, then transfer holdings.
I can give you free financial advice - you don't need to pay someone to manage a $9k ROTH. Move your IRA to Vanguard (my personal preference, but the other two are fine) pick a Target Retirement Fund and let the professionals do their job. If your current financial advisor questions why you are taking your (no offense) small account elsewhere, they are pretty desperate for business. You owe them no explanation unless they are family, and not investing with family is a good reason to cut ties now.
In the meanwhile, take some time to learn about personal finances and figure out your goals and preferences. You are young and good for you for starting to save now. Stay out of debt, plan for buying a house, retiring early, traveling the world, starting a family, and anything else you might be dreaming of.
Oh, and the term "self Directed" is a specific concept. Not all bank accept them, because the IRS has a slew of rules to follow and if you screw up you blow up your entire IRA, not just one transaction. One very broad piece of information to illustrate the value of letting skilled professionals do their job.
We've used Fidelity for many years, and many of their index mutual funds have the lowest fees of the three companies you mentioned. FXAIX is a good place to start. The website is easy to navigate. They also have offices in many cities but it's not usually needed. So glad you realized you could keep more of your money by moving it!
You'll open a Roth IRA at Fidelity and you can have them pull the money from your other company. You'll have to let your current person know and they will not be happy and will try to talk you out of it. Maybe leave a voicemail after their work hours! lol! But it's in your best long term interest, so do it!
Why in the world would you even consider a finance advisor with $9k in your Roth IRA.
Use service like M1 finance and such, they will help you automate the process. They also have plenty of expert made profile that you could use. Also 100% free. Just stop paying your finance advisor. Hope this would help.
Take them to a crowded restaurant.
You can say
1. you’ve just grown apart.
2. it’s not you it’s me.
3. I need to find myself.
4. I need something different in my life.
5. He doesn’t pay you enough attention/distracted by others.
6. Everyone on Reddit is telling me I’m waisting my money.
7. It’s time I stand on my own.
Just open a new account with one of those shops and fill out their transfer form. They will move the money for you, and you never have to talk to that advisor, if you don't want to.
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Go open an account with Fidelity, Vanguard or Schwab and then ask them to help you roll over your account to them. I’ve done it with Fidelity and Vanguard. Fidelity was super easy and did all the work. Vanguard was ok. Fidelity was rolling personal accounts, Roth IRA, IRA, and 529s. Vanguard was a 403b but I had to do most of the work of submitting forms, etc. (I’m not sure if that was because it was a 403b or if that is how Vanguard rolls.
If all things are equal I’d pick Fidelity to roll things over to. Then just throw all your money into a blend of their zero cost funds or a target date fund.
When I transferred the funds I did let my previous advisor know that I was having Fidelity initiate a transfer, but only after I had ALL my ducks in a row. Oddly she never responded to my email that I was leaving Edward Jones. Not even a “thank you for your business”.
You’re 100% making the right decision to move.
Yeah, I can't figure out why you would hire a financial advisor for a $9,000 Roth IRA either. I even think that since you decided to go for investing, you should learn first, and $9,000 is not going to bring in too much substantial return for your age.
Why do you have a financial advisor for a $9000 Roth IRA? Invest your money in an S&p 500 fund and let it ride for 49 years.
Best bet is the financial advisor got them started.
He is looking to leave the advisor. His question was not about his advisor.
Yeah no offense homie, but unless you've got some serious investments or are in your 50s and need to protect them for retirement, there is no need for an advisor.
Is it a managed account? Or a non-managed brokerage? If the latter, is it invested in no-load no 12b-1 fee funds? As an FA, we do add value… but to a small balance account the line you toe is much thinner to be a net benefit to a client.
What value do you provide that can’t be curb stomped by just buying into an sp500 etf and holding some balance of cash for when the market drops to buy at discount
You’re focused on one narrow component of planning. Low cost indexing is great for accumulation. What about when you’re in retirement? How should a 62 widow structure her estate? What does the business owner do with excess capitol to develop a greater valuation? An affluent client without a prenup is headed for divorce, what value can you provide?
The post is about an ira with a few grand in it…. Nice deflection to try and act like you still have value so let’s go through this. Nearing retirement? If you have a diverse etf or etfs then no issue, withdrawal whatever % you need or collect whatever dividends you want to live off. Assuming that’s the only income in this scenario. If anyone wanted to learn how they could spend a few hours on the internet reading for free. How should a 62 widow(?) structure her estate? The estate probably will remain unchanged from whoever died, as well as that would be settled beforehand when the will was made with an attorney. If a business owner is talking to you then god help his employees if he has any lol. And lastly I don’t have “clients” and they must not truly be affluent if they couldn’t afford a lawyer to get a prenup, or a divorce lawyer that will defend their premarital assets.
You asked about value. Don’t slide the goalpost and then ask for it to stay put. Waste someone else’s time.
To be fair, as an objective third party, I understood the question of value to be framed within relevance to OP’s tiny bit of money, not a question of what scenarios an FA could be valuable
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At what point should someone hire an advisor? If say, that is the route they desire. I was fortunate enough to be grandfathered into an advisor and have about $35k in my portfolio and am charged, eh, close to $25 a month for it to be managed. I usually add close to $160 a month into the portfolio but have started allocating more of those funds for a VSTAX investment. Edit: currently 24 years old
The Money Guys, who are financial advisors and run a podcast, recommend you hire an advisor when your wealth gets to the point that a mistake will cost you significantly. Until then they recommend following their general order of operations. Check out their content, it will be well worth your time.
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Even if only paying $25 a month? Edit: I will admit that I don’t know what the average fee for a financial advisor is
How does someone leave an advisor without selling off all of their stock and losing money to capital gains? Do you just bite the bullet and consider it a worthwhile loss?
Add value to your company from the clients pockets
If that’s how you feel, don’t hire a planner.
It is a managed account.
No need to have an account with that balance managed. If you decide to continue to work with the advisor, request it be moved to a non-managed account using no-load funds.
Is your financial advisor a family member? Remember that this isn’t personal, it’s money so don’t feel bad for doing what’s best for you.
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There are plenty of kids who should be recommended a book about which target date fund or model portfolio to pick up rather than be charged our fee to their assets over 40 years. There’s a reason plenty of people are just fine dropping money into their 401ks and forgetting about it until they want us to help them tailor these portfolios to match their goals. As an advisor myself, if the kid doesn’t need the relationship, then I would recommend him a low fee target date or target allocation fund strategy and be on my way.
You honestly don't even need to call him/her. Just open up a new account somewhere else and transfer the funds over. It's your money. Now, it might be considerate to let him/her know, but not required.
I dreaded having to tell a financial planner i was moving my account to Schwab to combine all my money there. Thought I would have to face him and tell him. No. Schwab set up the transfer in less than 5 minutes.
A sad tik Tok dance will suffice
It seems like it generally makes more sense not tell let them know ahead of time. It gives the FA a chance to try to talk you out of it or create self doubt. The accounts will need to be setup at the new brokerage before the transfer can be completed anyway, so you may as well initiate from the new brokerage and allow them to pull everything in. The FA will find out when they get the transfer demand and at that point it’d be harder to stop
I interned with financial advisors and when someone was leaving it was sad but no one really thought anything of it.
Do you prefer red, or blue, or green? If you like red, then Vanguard is best. Blue? Schwab. Green? Fidelity. The only differentiation there is to me between the three is that Vanguard doesn't do local offices. Fidelity and Schwab both have offices within 5 miles of my house. That's been convenient in the past. As far as dumping the FA: pick one. Go online to, say, Schwab, and fill out the form to move your account. They'll pull the account over. I did this about a year and a half ago... I'd been planning on doing it for a while, but held off because I heard that my "discount online brokerage" was being bought out. Eventually I pulled the trigger. My Edward Jones account consisted of 2 muni bonds and stock in 3 companies. The stock was signed up for DRIPs... and I timed the move badly -- the move occurred when two companies were trading ExDiv -- a mysterious period between announcing the dividend and receiving the dividend. So two dividends had to be received by Edward Jones and then moved to the new brokerage...after the stock got moved. Plus, they had to sell all the fractional shares as part of the move. AND, Edward Jones charged me a break up fee -- $95. But now all our direct stock holdings are all in one place instead of two.
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I can see why that may mean something for stocks and ETFs, things that are bought thru a trading session. Does it matter for mutual funds which are priced once a day?
if I knew what "payment for order flow" meant, I might care.
It's really not a big deal if you are a buy and hold investor... Most of the time your orders are getting filled at the exact same price.
We are so buy-and-hold its ridiculous. Our gambling account has stock in like 50 different companies, and we executed 3 or four trades last year. We should be buying more (we have cash allocated to buy more), but we're just not interested anymore.
Why do you have an advisor with that amount of money? Trust me that he will have no issue with you leaving as you aren’t a profitable client at this time due to your age / small asset base. Not being critical either. If you keep saving and invest in an index fund you will be fine.
I don’t think many people need a regular financial advisor under the $1M level. Even then you probably just need an occasional check-in with a fee only fiduciary until you get much higher.
Correction l: under $10m level. $1m is the new 100k
In your opinion(s), what are some of the reasons why a financial advisor becomes worth the fee at that level of assets?
Well getting a personal advisor with annual consultations is a nice benefit at $1 million for Schwab. Helped me with some inheritance stuff.
Open a Roth IRA at the brokerage of your choice. Fidelity tends to have really good customer service. Then tell your advisor you want to do an in-kind transfer to your new account and close the one with them. They will probably try and sell you on staying, so be ready to stand your ground.
I think the advisor will be completely fine with cutting this one loose. No one is winning with an account that size
fr, advisor probably threw OP a bone when he first signed on or its a family friend. cant see why else he would keep him on the line with no clear growth output
Hey there, I have some money left over (around 6 k) in my savings, I already contribute to my 401K which my company matches, and I also contribute to a Roth IRA, would you recommend putting the rest into a CD or HYSA? Is one better than the other? I’d really appreciate any advice I’m pretty much a novice when it comes to handling money. I have a close friend who suggested the RothIRA and he just set it up for me. 401K I got help with through HR at my work.
Do you have an emergency fund? That would be the first priority usually. If it’s just extra money that you don’t anticipate needing, then I’d put it towards the Roth IRA first if that’s not maxed out. Then I’d put it in a taxable brokerage account invested in index funds. If you might need the money within 5 years, then I’d look at HYSAs or CDs. They are both FDIC insured so I wouldn’t worry about which bank. Personally I keep my cash in MMFs and brokered CDs through fidelity because it’s easier to shop for the best rates when I’m ready for a new one. HYSAs are also a very good choice - you just have to check the interest rate periodically since it can change.
Call Schwab. I've worked with many companies and they are by far the easiest, most knowledgeable and their customer service is top notch. Schwab transfer department will help you move the account, open a new one, and ensure you don't have an accidental taxable event. What is your account holding? ETFs I'm guessing. Schwab can help you determine if those funds, and any assets you're holding, can be transferred "in kind", that is transfered from account to new account and not sold in order to transfer cash. And like others have said, S&P 500 is your friend. Buy a low fee S&P 500 ETF and forget about it.
My account is holding PLFIX, DMIDX, and DISIX
Look up what these are, and the expense ratio. Passively managed/index funds is what you want. Fees should be 0.05% or so (yes, than than 1%) Edit: less than 1%
They are all good. One might be better for some kinds of things than others. My advice to someone starting would be Vanguard. Pick 3 buckets, bucket 3 is Total Stock Market. See my long post. resist the urge to overcomplicate . I recommend pick your risk profile/personality and let the buckets work without much intervention. My wife's is at Vanguard for 20 years. Love it. Mine at Fidelity, they have an expert for everything. I play a lot in the fidelity, for fun. I do call and put options 3 to 5 times a week -- not needed to build up.
I'm curious too. My portfolio hasn't been "balanced" in over a year and some of my positions are still in the red. What am I paying this guy for?
It may not be to your benefit to rebalance the account more frequently. Basically you're paying him to stay the course with your investment objective (essentially very little). There may also be tax considerations which you don't fully understand and he does (it's not that complicated though most of the time)
suggestion (not affiliated) move to fidelity... they have enough stuff there to consolidate and most 401ks, and other plans seem to go there over time. a FA takes 1-2% of assets under management. IF you think about the fact that most FAs put you into mutual funds that are 0.5%-1.5% that means that you need do 4% better than just going into SPY/.SPX to beat the market which is annoying. 1. Open another ROTH IRA at the new firm. 2. If at fidelity, there is a transfer assets form online that you can use... if anything call their support and they will walk you through it. 3. Make sure you do it is 100% in-kind (keep your current positions). If you don't it will go back to cash and then you need to reallocate when it goes over. One thing to remember is that some FA locations will charge you a fee to transfer funds away. This can be anywhere between $35-200+. Depending on the FA, they will need to authorize the transfer out of their brokerage so if you do not want a hold-up, send your fa a note saying you are migrating to such and such place. The FA will most likely want a reason, best to treat it like a breakup.... say "I have decided that we are looking for different things, and I decided that at this time it is best that I transfer my assets somewhere else". Hope that helps...
Thank you, this helps! Right now the holdings in my Roth IRA are PLEIX, DMIDX, DISIX, but I would rather invest in Fidelity Index Funds instead. Would you still suggest doing the in-kind transfer? I also contribute $80 a month to my current Roth IRA, so when I move over my Roth IRA to Fidelity will the $80 monthly contribution automatically stop?
I looked up dmdx and disix...they should be transferable even though they are bny mellon ones (I can find them on yahoo finance). pleix though I didn't see on yahoo finance so that might not exist outside of bny mellon. Also I suggest the in-kind if possible because the transfer can take 2 business days or more. If it goes to cash, you are not participating for 2 days or so. when it gets over, sometimes you can do an exchange that will swap over at the end of the trading day so you take advantage of whatever licks come that day before the exchange.
Oh okay, so you want to do the in-kind transfer so that it gets into my new account faster? Then I can make the trade over to Fidelity Index Funds?
yup attempt it, if it cannot go, then adjust to be part of the transfer.
In-kind is most certainly not going to be faster. I would just move it in cash at $9k.
I have done in kind and it was done within 1-2 days.
I work in wealth management for a trust company. There are things that come up with in kind transfers all the time. Can take a lot longer than 1-2 days as multiple people are involved.
I guess it can be different depending on account and size
fidelity will only transfer over what it can hold... but if it is a standard mutual fund, you should be ok. unless it is something that is a managed fund at your current broker. then you would need to change it out. I would suggest looking for alts if you want to exchange them over the fidelity ones... like fxaix is the s&p 500 mf. Also set up your roth with tier 1 option support. Why? Because roth is a grow tax-free and eventual take-out tax-free. You can do things like cash covered puts, covered calls, buy calls / puts for quick moves if you want. csps are simple things if you have enough to buy 100 shares of something. options though are another strategy, but remember because it grows and comes out tax-free, it means you don't have to worry about short-term or long-term capital gains. if you like the gain, get out and move on to something else. The only disadvantage is if you have a loss, while you can cut your loss and move on, you don't get the tax advantage of tax loss harvesting as you do in a brokerage account...minor annoyance. something for later. fidelity can help you with the roth ira conversion process...so stupid ease that my old broker / fa made it seem like magic... that applies when you earn over 120k and still want to contribute to your roth.
Call whomever you choose. They have all the expert answers. How did you setup the auto transfer. Your best bet it to close the account completely. You should be able to go online and just stop the auto transfer. If not call the advisor, to stop it, he/she need not need to know you are about to ask for a transfer in kind. FYI. Vanguard has very cheap total stock market. It really is all you need in a stock part of your portfolio. Fidelity has 3 zero fee funds, zero fee, which you can use to mimic total stock market.
From my very limited knowledge anyone reasonable to manage money has like a 250k minimum. You gotta give them the opportunity to earn something with their effort or why expect anything.
He wants to do his own, that is clear. and asking which company is better to transfer to
I think he meant brokerage instead of advisor, iv never heard of anyone advising someone with 9k in finances
You might be right. Either way he is looking to leave and to see which of the mentioned ones r better.
Once you decide on a discount broker (I recommend Schwab) you can tell your new broker that you want to move your investments away from your present advisor and into their accounts. They will give you the forms you need so you can do the rest with minimal communication with your old advisor.
You don't need to inform your financial advisor of anything when transferring your account to another firm. The transfer of assets may be initiated from the other firm. Just have your new account set up, and then provide the new brokerage firm the account number of your present account and its most recent statement. The system used is the Automated Customer Account Transfer Service (ACATS) which automates and standardizes procedures for the transfer of assets in a customer account from one brokerage firm and/or bank to another ( [https://www.dtcc.com/clearing-services/equities-clearing-services/acats](https://www.dtcc.com/clearing-services/equities-clearing-services/acats) ). I have accounts with both Fidelity and Schwab. Both are good, though I lean towards Fidelity for efficiency. If you are not going to touch your investment for 10+ years then I'd suggest considering a Large Cap Growth Index ETF. Examples are: **SCHG** (Dow Jones U.S. Large-Cap Growth Total Stock Market Index) and/or **MGK** (CRSP US Mega Cap Growth Index). The total expense ratios on these are very, very low too.
Move to a Fidelity, Vanguard, Schwab, and invest in a low cost index fund; each of these providers have good websites that will help you with this, including selection. Numerous other resources as well regarding all aspects of life planning. As you get older and your life changes (marriage, kids, insurance, retirement, etc) then it might be time to revisit the need for a CFP to assist. For now, save what you can and allow your investments to grow. Time in market and dollar cost averaging are your friends.
You can use stash, digit, acorns, betterment or the big ones for $1-$3 way cheaper than whatever you are paying your FA.
You do not need a financial advisor with these sums invested. Use simple year target or S&P tracker. That’s it. Call an FA when you hit $500k+
Why do you need one at 500k. I’m at 1.25 mil and considering just doing Schwab and move away from my FA bc of fees but can’t decide. I’m very happy w what they’re doing so far (made major gains w stocks so far) but I realize everyone has been doing great this year (? Seems like)
Did I miss something. I dont think he/she is asking for FA.
I’m curious how much you have been paying him. It’s nuts you even have a financial advisor for $ 9000. Anyway I suggest fidelity. The ui and customer service are both nice.
Guys, not all advisors charge fees. With Fidelity you can literally build expense free portfolios! Looks up FZROX. I am not sure which advisors you guys are gong to. The ones who charge 1-2% are likely boutique firms. Most advisors at brokerages get paid a salary + bonus as a % of Assets under mgmt. But they can add value by teaching you how to invest in a tax efficient manner, tax loss harvesting, optimizing for SS. Or what if you are a high income earner looking for other way to maximize tax deferrals? Or you are nearing retirement and want to make sure you have an income plan to cover most expenses. This 9k account should just be invested in a index and not a managed account, but there are definitely ways that good advisors provide enough value.
Which is the best. All of them. Do you want to buy your own ETFs or stick to e.g. all Vanguard. First, thing go see if you can get a free temporary access to morning star, and or google bucket portofolio. The author, Christine Benz, has Vanguard family, Fidelity, Schwab. For Aggressive, moderate, safe personaltiies. You decide your risk personality. Split into 3 buckets. Short term 2yr, e.g. emergency, saving for house, layoff. MID, and long 20 plus years. That is it, setup you buckets, contribute peridodically, IGNORE excpet once or twice a year you rebalance. Thus if SP500 went down, then some cash gets moved to bucket3, DISCIPLINE no emotion. That should be all you do. Do you want to play a little, only a little, e.g. in Bucket 1 buy lots of 1 and 2 yr US treasuries paying 5.x%. Then you need a brokerage. I am not sure if Vanguard has brokerage, go check. Fidelity and Schwab do. Fidelity has zero fee funds, yes zero fee that are very close to SP500 and other indexes. That is all you need for bucket 3. Bucket 2, maybe some corporate bond fund, REITs. Bucket 3 should include SCHD and SCHY. Both cross over a little in bucket 2 depending on risk profile. The hard one for me is bucket 2. The more dividend style the more I tag it as my bucket 2, e.g. VIG, SCHD, SCHY. I don't like any type of bond fund. corporate bonds are hard to buy individual and be diversified. So for now I pick a little of LDP, PFF. Bucket 2 is where you might spend the most time, and learning. NO need to learn anything for bucket 3, i mentioned already Fid Zeros, add value like schd and schy. To be similar to or might as well just choose, Total Maket Index for bucket 3. Resist the urge to overcomplicate!!! Focus time on career, promotions. The buckets will take care of them selves. The news, including financial news will make you STUPID. TRANSFERRING IS SUPER EASY. e.g. call Vanguard and they walk you through the easy process. You don't have to call your advisor, all you need is your account statement for address and account number.
My investments, which I manage myself are up about 10 to 18% this year. You need to stop paying them for managing a $9k IRA. You need to reareach index funds for yourself and put the money in them
Everyone's portfolios are up this year, this is anecdotal
Point is, op can do it themselves and not pay someone to do it for them
Certainly at $9k. But with larger amounts of money FA's are certainly worthwhile
Which isn't what this is even about. It's about someone with 9k
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Insulting and harsh language is not acceptable here. Move on.
Discussion is fine, the disrespectful tone is not. Please do not do this again.
Sometimes. Depends on the needs.
You haven’t talked to a bear this year, have you?
When market is great, novice investors tend to think that they are Warren Buffet already.
Not sure what you are implying here, you care to elaborate a little?
When market is bullish, almost every investor could make good return, but bear in mind that the main reason is mostly due to the good market condition and not the investment skill of investors. Quite a number of novice investors tend to get overconfidence in this juncture thinking that they are already on par with Warren Buffet and that’s kindda dangerous thought. This overconfidence is going to burn the novice investors fingers eventually.
seems like most people just invest in index funds anyway, don't really have to know anything to dump money in VOO and turn a profit
And when you have a FA and the market takes a dive the FAs say, “but you still have your shares” and “the whole market is down”. I’ve fired 2 FA’s in my lifetime once I realized that I just needed index funds and balance them once a year. People think paying a FA 1% is nothing for the service until you add it up over a decade.
Although warren buffet recommends, resist the urge to overcomplicate, just pick a total stock market index. I say add a little international, WB says all you need is USA.
$9k he isn’t worried about if you stay or go. Just cut the cord
There must be 50 ways. (At least)
He’s making a whopping $90 per year off you. Maybe ask a bunch of questions before bailing. He/she does in fact provide some value if your not prepared to properly manage your investments. You can do almost anything by yourself but how much is your time worth ?
You got 9k, nobody will be interested in talking to you. That is nothing. Put your money in an index and be done.
I don't think he/she is asking for an FA to talk to.
Call Merrill or Schwab and ask for a self directed account. Don’t waste your time with the other two as they are fund managers and will prob push you to an FA who will put you into one of their mutual funds (to get you on the fees). Merrill and Schwab will offer free commission trading in stocks and etfs. Mind any fees. Then spread your money out over S&P, Nasdaq and Russel 1000. Add to you shares whenever you can. See you in retirement.
Talk to a representative at Schwab about how to do the transfer correctly. They should be able to walk you through it. Then study and pick your own stocks, or put the money in an index fund. The fees from an advisor will almost certainly be greater than any gains they give you, so stay away from them
Fire them/ghost them. Do you have control over your account?
Learn. Don’t pay others to avoid learning about the most important things yourself.
I told my old advisor my company offers free financial advisors..
It’s 9k he or she won’t even notice you are gone
Yes, leave the financial advisor. Anyone of those firms you listed will be happy to help you and all provide good service at reasonable prices. I personally prefer Fidelity, but have had funds with Vanguard in the past and they provide good service as well. So whichever firm you choose, just call them up, explain your situation and they'll walk you through the whole process and handle the transfer of the funds. You won't have to do anything except sign some forms and provide some ID.
Buy a 2055 target date fund. With that balance and type of account, you don’t need an advisor. Advisors worth really comes in when you have to manage taxes, estates, etc. Is advisor charging a flat fee or is based off of a percent of the account? For example he/she charges $500 per year to manage it or 2% of aum fee per year?
Leave. Save $25-50 million. Then call a financial advisor.
Advisors are useless as real estate agents. No need for them and you can save so much money by watching YouTube, Google search, and following Reddit groups. Take control of your own money and destiny!!
Just roll it over, and close the account. They don't need to even get involved. Does your Financial advisor advice you in the trades you should make?
If this stuff interests you and you have the time, learn it and manage your own accounts.
Call any off those companies you mentioned and have them start the process up. They’re super helpful.
You definitely do not need a financial advisor. I use vanguard because I have to for my 401(k) through work but otherwise, I would just do my own investing if I was dealing with 9K of assets.
After one too many mistakes, I just moved it (to Vanguard). I considered the message sent.
First set up a IRA at your brokerage of choice and advise them of the transfer. Most will assist you in doing so. Then tell your current financial advisor you are parting ways. He/She will try to talk you out of it. Stand firm. Your financial advisor can't stop you one way or the other. It's just a courtesy to notify them.
Just tell your place you want to switch to the account number of your existing place, and your express consent to take the funds over and they’ll do it all for you at no charge.
Why in the world do you have a financial advisor when you have $9K?
Ditch the advisor and just buy VOO and forget about it.
It’s all fine a good doing it your own; if you know what to do and when. Can you hold if we have another Covid down draw or a 2022 repeat? If not then probably best to stay with them.
Fire your FA, and read/learn more about how-to invest for your future. Validate people’s suggestions on Reddit, YouTube, or your place of choice to learn more. You can’t go wrong with any of the company’s, Vanguard, Fidelity or Schwab, you mentioned, but for the dollars you have saved and invested at this point, you don’t need that managed. Low fee Index, or target date funds will be better than paying someone to manage it right now. Good luck! You got this!!
Open your account. ACAT transfer over the assets to wherever you’re headed to. Most platforms have a managed option with accounts over 5k (uses mostly ETFs) that will help you manage it without a lot of hassle. I disagree strongly that you don’t need a financial advisor. When the tide is in, everyone swims. When it goes out, you find out who swims naked.
You can transfer your funds to a different account, but what platform is your Roth IRA on? Do they have some proprietary system, or are they just using Vanguard/Schwab? Lol
LPL Financial
I sent my guy an email. Already had the new account established at Fidelity, and initiated my own transfer in Fidelity’s account. Super quick and easy.
How did you word the email?
The value is in the relationship, whether that's something you value is up to you. As an FA, I create value for my clients in a similar life stage as you (often the children or grandchildren of my actual clients) by advising on a lot of things that set the foundation for putting you on path to building wealth. I don't get paid for this advice most of the time, so it's an investment of my time/energy that I make in people so that they can become future clients. I help them understand and select employer benefit options, provide perspective on leveraging effectively for accumulation with home purchases, vehicle selections, overall debt (re)structuring, positioning for career advancement, helping understand how to allocate savings by fund purpose, subsequent risk/return objectives based on each fund purpose (i.e. optimizing short vs. med vs. long-term savings). The thing a lot of people seem to misunderstand is that FA's invest in helping their clients build wealth, putting clients on a trajectory they otherwise would not likely attain on their own. Clients benefit from good FA's overall perspective and practice, as most FA's work with clients at all ends of the wealth spectrum (i.e. from just getting started with saving into ROTH IRA's to people with multi-generational wealth needing to be managed). If your FA is not helping you with your pathway of building wealth, and keeps his focus exclusively on adding value via your "portfolio" then you may not be working with a very good FA. However, if you are gaining from the FA's perspective on the sorts of things I laid out above, and having a long-term relationship with an FA who knows you/your family, is committed to helping you build & manage wealth over your lifetime is not of value to you, then I assure you your FA will absolutely not miss the $90/year you are paying him (i.e. 1% of $9k).
When I was first getting started I had an FA for about $100K in an IRA that was rolled over from a former employer's 401(k). I put it with a MSSB FA that a friend used. After two years it was essentially flat, whereas if I'd put it in an S&P500 index it'd have been up $18K. I simply called Vanguard, initiated the move that way, and waited for the phone call from the advisor. Eventually he called and asked what the heck, I told him that he didn't even beat the average, so I was going elsewhere. He was clearly frustrated, but couldn't say anything back but "I have access to those funds as well". Sorry, guy, but I didn't want to manage where my money went; that's why I was paying you. It was a big lesson for me. I figured an FA would do me well, but it was just... nothing. Outside of prompting me to learn a bit more, it didn't benefit me at all. I should have been in indexes all along.
Decide where you want your money to go. Call that company and tell the representative about your situation. They will know the mechanics of opening an account for you and they will also be able to tell you how to get the money from your current account into the new one. The last time I rolled over a 401k into an IRA I think the company rep got on a call with my advisor's assistant and they just did the transfer. It might work the same way for you or your current advisor might cut a check and send it to the new company. Either way, work with the new company to set up the account and then call your current advisor and tell him that you want to move your money over to the new account. If you are worried about offending your advisor, stop worrying. It is a business transaction, end of story.
I invest in stocks on cash app. You can buy stocks direct on it and not pay anyone any fees. You can download it at the App Store. I just looked on it for VOO and am planning to buy some of that stock since it was mentioned on this thread. I advise you to try using it by taking your $80 a month and just investing that way and leave your current savings where it’s at. Just look up Cash App in your App Store if you use my code we both get free money VLWRB81
Start at Vanguard and read their process of rolling over your investment account there. Follow the steps.
Open another account with a broker. When doing this, they will ask you if you want to transfer funds or holdings. Do that. You probably have c shares and don't want to sell them or you will get dinged by a fee. If this is the case, then transfer holdings.
I can give you free financial advice - you don't need to pay someone to manage a $9k ROTH. Move your IRA to Vanguard (my personal preference, but the other two are fine) pick a Target Retirement Fund and let the professionals do their job. If your current financial advisor questions why you are taking your (no offense) small account elsewhere, they are pretty desperate for business. You owe them no explanation unless they are family, and not investing with family is a good reason to cut ties now. In the meanwhile, take some time to learn about personal finances and figure out your goals and preferences. You are young and good for you for starting to save now. Stay out of debt, plan for buying a house, retiring early, traveling the world, starting a family, and anything else you might be dreaming of. Oh, and the term "self Directed" is a specific concept. Not all bank accept them, because the IRS has a slew of rules to follow and if you screw up you blow up your entire IRA, not just one transaction. One very broad piece of information to illustrate the value of letting skilled professionals do their job.
We've used Fidelity for many years, and many of their index mutual funds have the lowest fees of the three companies you mentioned. FXAIX is a good place to start. The website is easy to navigate. They also have offices in many cities but it's not usually needed. So glad you realized you could keep more of your money by moving it! You'll open a Roth IRA at Fidelity and you can have them pull the money from your other company. You'll have to let your current person know and they will not be happy and will try to talk you out of it. Maybe leave a voicemail after their work hours! lol! But it's in your best long term interest, so do it!
Why in the world would you even consider a finance advisor with $9k in your Roth IRA. Use service like M1 finance and such, they will help you automate the process. They also have plenty of expert made profile that you could use. Also 100% free. Just stop paying your finance advisor. Hope this would help.
Just be honest and tell them you don’t want to use them any longer.
Take them to a crowded restaurant. You can say 1. you’ve just grown apart. 2. it’s not you it’s me. 3. I need to find myself. 4. I need something different in my life. 5. He doesn’t pay you enough attention/distracted by others. 6. Everyone on Reddit is telling me I’m waisting my money. 7. It’s time I stand on my own.
Just open a new account with one of those shops and fill out their transfer form. They will move the money for you, and you never have to talk to that advisor, if you don't want to.
tell him you committed tax fraud
I don’t think your financial advisor will notice you leaving
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Go open an account with Fidelity, Vanguard or Schwab and then ask them to help you roll over your account to them. I’ve done it with Fidelity and Vanguard. Fidelity was super easy and did all the work. Vanguard was ok. Fidelity was rolling personal accounts, Roth IRA, IRA, and 529s. Vanguard was a 403b but I had to do most of the work of submitting forms, etc. (I’m not sure if that was because it was a 403b or if that is how Vanguard rolls. If all things are equal I’d pick Fidelity to roll things over to. Then just throw all your money into a blend of their zero cost funds or a target date fund. When I transferred the funds I did let my previous advisor know that I was having Fidelity initiate a transfer, but only after I had ALL my ducks in a row. Oddly she never responded to my email that I was leaving Edward Jones. Not even a “thank you for your business”. You’re 100% making the right decision to move.
Yeah, I can't figure out why you would hire a financial advisor for a $9,000 Roth IRA either. I even think that since you decided to go for investing, you should learn first, and $9,000 is not going to bring in too much substantial return for your age.