I’m looking for some financial advice and would appreciate any insights anyone could provide. Here’s a quick snapshot of my situation:
- Age: 43
- Income: ~$180k/year
- Family: Married with one child (age 3)
- Current Financial Advisor: Charges 1% AUM fee annually
- Investment Start: Began investing at age 38 (very late, I know :( - but my parents didn't teach me anything about investing and finance, and I didn't get serious about it till way late in my 30s).
Accounts:
- 401k
- Standard individual brokerage account
- 529 plan for my child (~$10k)
- Standard IRA
- Roth IRA
Total Investments: ~$260k
Home: Owned with a 2.5% mortgage rate (lucked out during COVID)
Debt: None
Investment Returns: Average of 4-5% over the past 4 years
I initially hired my financial advisor because I lacked the time and financial literacy to manage my investments. He’s been managing my portfolio for the past four years, and while he’s a good guy and I have no major issues with him, I’m starting to question the value I’m getting for the 1% fee.
Many of my financially savvy friends suggest I could potentially achieve better returns by investing in several low-cost index funds myself. I’ve heard that low-cost index funds can be a great option, but I’m still somewhat hesitant because of my past lack of financial literacy and time constraints.
Goals:
- Build a nest egg for my wife and me.
- Ensure my child has a solid financial foundation and doesn’t start late like I did.
Additional Info:
- My wife works part-time as a freelance marketer, earning between $40-50k/year.
- We want to secure a comfortable future for our family and ensure our child has financial support when they need it.
I’m at a crossroads and would love to hear your thoughts on whether it’s smarter to continue with my financial advisor or switch to managing my investments through low-cost index funds. What would you do in my situation? Any advice or personal experiences would be greatly appreciated!
Many thanks for taking the time to read this and any advice shot my way.
Submitted May 19, 2024 at 08:07PM by ConditionLopsided https://ift.tt/Si4usEh
