How Much Should You Pay Your Financial Advisor?

How much should you pay your financial advisor? The answer, of course, is it depends — on the scope of the work, the type of firm, the advisor’s credentials, etc. To complicate matters, there are different fee structures: some advisors charge a percentage of assets under management, so for example, on a $1 million portfolio with the typical AUM charge of 1%, the yearly fee would be $10,000. That’s pretty steep if the advisor doesn’t do much beyond the initial portfolio setup. Yet if you get regular meetings, portfolio rebalancing, and help with tax and estate planning, then the outlay might be worth it to you. On the other hand, if you like to DIY but need a road map, you can hire an advisor to create a one-time financial plan. How much is it customary to pay for one? In today’s edition, learn the median fees for various types of financial planning services.

Best wishes,
Elizabeth

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And personally, I had the chance to get into the Moderna trial in August. It was an opportunity to get the vaccine at an early point (and if you were in the placebo arm you were guaranteed to get the vaccine the day it was approved). HIV disproportionately affects the Hispanic and African-American communities, and the same thing was happening with COVID. I knew that being in the trial, I could be an example for the community.

What a great opportunity! Tell me your investing philosophy.
I’m a big fan of Warren Buffett, invest in what you know. The one thing that’s common to all the vaccines is the little vials. I researched who was the preeminent vial maker, and it turned out in the U.S. it was Corning. I bought it last March. I also researched delivery packaging, since everyone has to stay home. And when I go to the grocery store, I look at the boxes they’re unloading. I found companies like International Paper and WestRock. I devote an hour every morning to reading--I read the Wall Street Journal, I look at Seeking Alpha, I read your column religiously. 

Thank you! What are your plans for retirement?
People ask me that all the time. I have a 401(k) and I’ll have two pensions and then Social Security. I’m also a basketball referee, and I can easily make $1,000 a month doing that. My monthly budget, all in, is about $3,000. So I’ll have more than enough money. But with COVID, what am I going to do? COVID bought me another year. If they let me hang on, we’ll see how it goes. What’s going on in the country? How much fun am I having? If I pulled the plug today, it’s kind of chilly. You can only walk around the block so many times.

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