I'm really trying to make sure my Mom(65) has enough money in retirement and to pay for rising healthcare costs. She has 900k in an IRA managed by an local advisor that has a .5-1% fee scaling with AUM.
The advisors bought and sold 150k worth of ETFs in October in what looks like some kind of rebalancing.
The average expense ratio of these funds is .32% ranging from .03 (STIP) to .89 (FCPIX).
The holdings are 11 different ETFs/MFs that roughly equate to:
47% US equity
11% INT equity
38% BONDS us and corporate
~3% CASH
I tried to review each fund and some standouts that confused me included:
BKDV (.6 ER): Some kind of 'Value' US equities ETF
FCPIX (.89 ER): Why a high expense ratio International fund, seems like it's performance is slaughtered by FZILX, what am I missing?
FDRR (.15 ER): Not sure what this is trying to do that another simpler US equity etf would do instead, this doesn't seem to be outperforming anything.
Is it crazy to want to drop the advisor and just slam all 800k in a 2025 Target Date fund? Trying to balance simplicity for my mom, psychology with draw-downs, and not pay these guys 8k a year to move some ETFs around.
What are our options?
My mother, nearing retirement, has a 1% fee advisor managing her IRA, what are our alternatives?
byu/nothingornothing ininvesting
Posted by nothingornothing
5 Comments
keep the $ in the fam. invest for her
If he doesn’t have fiduciary duty you need to find an advisor that does.
They’re thieves and not magicians. You answered your own question.
Criminal, rollover to Fidelity and put it in a target date fund for her.
I mean you could certainly go self directed. But in that case, who is going to make the investment decisions?
It’s your mom’s account; is she comfortable managing it?
*You* managing it sounds like a recipe for disaster, to be honest.
Managed accounts aren’t for everyone, but they’re not inherently wrong either. There’s a time and a place for it.