Key insights
- A high-net-worth individual is questioning the value of their current financial advisor's asset allocation, fees, and portfolio fragmentation. The discussion raises concerns about the cost-effectiveness of traditional wealth management versus fixed-fee fiduciary services. While this reflects individual portfolio strategy, broader trends in fee sensitivity and demand for transparent advisory services could indirectly influence asset management industry dynamics.
For those who are above $1M and have a financial advisor / wealth management team, what does your allocation look like? And what % are you paying them?
I'm 39 with a family, and I have mine managing a portfolio of $1.8M+. I also have a couple of brokerage accounts that I manage on my own.
My asset allocation they put me in:
Domestic stock - 57.2%
Foreign stock - 28.8%
Bonds - 11.2%
Short term - 2.1%
Other - 0.7%
Their fee is 0.903% - I'm still trying to negotiate that down.
I'm not a fan of how fragmented my portfolio is, with many positions being under 0.05% and have overlap with the ETFs, but I like how they focus on tax avoidance, estate planning, retirement planning etc. I'm wondering if going to a fixed-fee fiduciary for both planning and investment management would be best.