How much does your bean counter charge?

[Coyote machine]

You're between a rock and a hard place. You don't have enough money to get a better fee structure, and if you're using a CFP for basic 401K mutual fund and bond management you are likely using someone who's expertise is at a level higher than you need to pay for for the basic services you need. Ask yourself if the money you pay out is less than what your 401 earns per year, every year. By what amount?

You said it yourself: he's a planner. For $4,000 year what's his 'plan' for your assets?

 

[bigtiller]

The way they had me set up in the beginning, they were expecting what they called a very conservative 6%. So just for a comparison, 20 some years ago i kept a log of my own but i was using 4% as an expected return.

Today my 401K's value is 30% higher than what i expected it to be at 4% earnings all these years.

30% over 20 years is 1.5% but there were some very poor years after the dot-com, housing, and banking implosions. So they are pretty much hitting their self impose target but, if they raise their rate for services' they won't hit their target return.

 

[randy41]

you are aware that the s&p 500 return over the last 20 years is something like 7.8%?

 

[Coyote machine]

The way they had me set up in the beginning, they were expecting what they called a very conservative 6%. So just for a comparison, 20 some years ago i kept a log of my own but i was using 4% as an expected return.

Today my 401K's value is 30% higher than what i expected it to be at 4% earnings all these years.

30% over 20 years is 1.5% but there were some very poor years after the dot-com, housing, and banking implosions. So they are pretty much hitting their self impose target but, if they raise their rate for services' they won't hit their target return.

They won't hit their target rate of return, but they will eat into your savings. Sometimes the rate raising is to make the little guy go away. That would be you.
I'd be shopping around if I were you.
I'd be surprised if you couldn't do way better return for $4,000/year 'advice'.:confused2:

 

[MossRoad]

As others have mentions... talk to someone at Fidelity. It can't hurt.

 

[Cat_Driver]

I went to a certified bean counter ONCE. I was going to buy a large 1995 26' box brand spanking new in 1995.

I asked her should I lease or buy which is better for tax purposes. Mind you the price was EXACTLY the same purchase per month vs. buy per month same 36 months. I think at the time they both came out to 60K. Her ADVICE, LEASE because who would want the vehicle after three years. I listened and leased the truck. Again the truck was 60K to lease for three years and 60K to purchase in three years.

After three years the truck was in perfect condition only 20k miles on it, so I asked the lease company can I buy it. Sure for 9k more. At that moment I realized her advice just cost me 9K- BECAUSE you know who wanted the truck after three years - ME !

Now for the kicker. I've been using that truck every day since 1995 and making money with it for the last 20 years, and the truck is STILL in good condition.
With Ca. emission laws and diesel I sold the truck last week for that 9K.

Never again will I listen to a bean counter, common sense told me she was wrong, but the wife convinced me to listen to her.

 

[crackerjack222]

Nobody will look after your beans as well as you can.
I use Vanguard to hold my beans and have shifted somewhat into index funds over the last few years. I am on a hair trigger now since I believe we are overdue for a market correction.

 

[Uncle Doug]

Not real happy with my adviser either. They use a transaction fee to cover their fees. It is based on the amount of the transaction. So a small trade may be a small fee a large volume trade cost much more. Both are only a few key strokes for the agent.

My issues is that if the agent is giving me a hot stock tip then the fee is justified. If I am calling them to buy a certain stock then it should be lower priced.