I have a family member with close to $1m in assets with a financial planner. She doesn’t know what she’s doing but made some great bets with her heart like 20 years ago (chipotle, Panera, apple). She moved to a financial planner a few years ago, before Panera was purchased and went private.
She came to me confused about her CFPs latest statement and asked me to help her understand it. I quickly realized it was all the same individual stocks she had purchased and almost $200k in cash, which I determined was from the sale of Panera. She’s been paying for a CFP to “help manager her retirement”, but I found that the CFP has been charging a hair over 1% annually to do literally nothing.
I’m going with her tomorrow to meet with the CFP and fire her ideally, but is it unreasonable to threaten reports to SEC/CFP board and demand fees returned? My family member came to her in a vulnerable time (post divorce) and trusted her to help, but she’s done literally nothing.
She is officially a CFP, works for a firm (Woodbury Financial), and charges like 1.35%. She gave my family member a survey at the onset (risk tolerance, etc… family member said low risk tolerance….) and said she would help aggregate accounts and handle things. She did aggregate accounts but has made literally 0 transactions for over 25-30k in fees. I’m personally appalled, but is this SEC/CFP complaint worthy?
My intention is to help manage the money, it’s a mix of tax advantaged and brokerage accounts, would like to move into S&P 500 mutual funds. She has 5-10 years til retirement. I expect she’ll have a significant tax burden to move the brokerage accounts to S&P but she understood that and thinks the diversification makes sense.
Any help or guidance appreciated.
Submitted March 25, 2022 at 12:47AM by ok-ngineer https://ift.tt/x2ZBE5a
