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The Great Wealth Transfer is well underway, with reports estimating that $6 trillion already changed hands in 2025 (1). And that’s only a slice of the $105 trillion set to pass from baby boomers to their heirs, according to a 2024 study from Cerulli Associates (2).
Consider Cadie — a lucky millennial who has inherited a significant investment portfolio from her deceased parents, to the tune of $2 million. There’s just one hitch: The money is managed by their long-time advisor, who charges a whopping 1.75% on the total.
Cadie isn’t sure what to do.
She’s torn: On the one hand, since the portfolio has strong returns, why fix what ain’t broke? On the other hand, she could opt for a robo-advisor or do it herself and save a significant amount.
This can be a difficult decision, rife with guilt and obligation, especially if your parents have worked with their advisor for decades.
Here’s what Cadie can consider.
A financial advisor can do a lot of things for Cadie.
Given the size of the portfolio, they can assist her with portfolio management, investment strategy, performance reporting and aligning asset allocation with risk tolerance. They can also create a personalized plan to help her meet her retirement goals and adjust the portfolio as needed.
However, behavioral coaching can be one of the most valuable things a financial advisor can offer. A skilled advisor can help ease the negative emotions that arise during financial planning and decision-making.
They do this by “working with you to co-develop a plan with clear, measurable, time-bound goals,” says Kellen Thayer, a financial advisor with Advisor.com.
“It’s not what you make, it’s what you keep,” adds Thayer. “Advisors help you develop a plan, stick to it, and can help you to avoid costly mistakes that may exceed any fees you pay them over the long term.”
That in itself might be enough to convince Cadie to stick with her advisor.
If you’re in a similar situation to Cadie and finding it difficult to make sense of the noise and emotion, now could be the right time to get in touch with a financial advisor through Advisor.com, an online platform that connects people with wealth experts.
Advisor.com does the heavy lifting for you, vetting advisors based on track record, client ratios and regulatory background. Plus, their network comprises fiduciaries, who are legally required to act in your best interests.
Get matched with an advisor for free in three easy steps:
Step 1: Answer a few quick questions about yourself and your financial goals.
Step 2: Advisor.com will match you with a vetted advisor who can provide you with a personalized plan to meet your goals.
Step 3: Book a free, no-obligation consultation to confirm if your match is right for you.
Once you’ve got the right financial advisor in your corner, the next step is getting a clear picture of your finances.
Read More: I’m almost 50 years old and don’t have retirement savings. Is it too late?
No matter where your money is going or how much you’re taking in, however, it’s worth remembering that professional advice isn’t free: Advisors typically charge a percentage of the assets under management (AUM), ranging from 0.5% to 2%.
In Cadie’s case, a 1.75% fee isn’t out of line for a full-service wealth management firm, meaning that for a $2 million portfolio, she could pay around $35,000 annually.
But there are upsides. With AUM, for instance, the fee serves as an incentive to maximize returns. In other words, growing her assets is in her advisor’s best interests. So, if the returns are exceptional, then the higher rate may be worth it.
Cadie could also explore other options, such as an annual retainer or flat fee for specific services.
But if those costs are still looking too heavy, she might try to handle a portion of the money management herself. She could even work with an advisor who charges by the hour or project, with fees ranging from $130 to $300 per hour.
Another important thing to do is to weigh the costs of professional advice against the long-term benefits.
For instance, research from SmartAsset shows how valuable having a professional advisor can really be (4). Annually, those with advisors are estimated to gain an additional 2.39% to 2.78% premium over those without an advisor.
Over a lifetime, that means those who employ a financial advisor can see an estimated 36% to 212% more dollar value to their bottom line, depending on when they start investing.
Working with an advisor may have made all the difference for Cadie’s parents.
Alternatively, robo-advisors charge lower fees, but you won’t get the human touch. You simply can’t get the same personal connection and customization with an algorithm as you can with another human.
Of course, it’s also possible to get the best of both worlds.
With Vanguard, you can connect with a personal advisor who can help assess how you’re doing so far and make sure you’ve got the right portfolio to meet your goals on time.
But Vanguard’s hybrid advisory system also combines advice from professional advisors and automated portfolio management to make sure your investments are working to achieve your financial goals.
All you have to do is fill out a brief questionnaire about your financial goals, and Vanguard’s advisors will help you set a tailored plan, and stick to it.
Once you’re set, you can sit back as Vanguard’s advisors manage your portfolio. Because they’re fiduciaries, they don’t earn commissions, so you can trust that the advice you’re getting is unbiased.
Ultimately, if you’re in a situation like Cadie, it’s probably a good idea to have a detailed conversation before firing your parents’ advisor to assess if they’re the right fit for your goals.
If you opt to shop around after that, finding one for yourself might be a tall task, with almost 400,000 financial advisors in the nation.
There’s also the possibility of managing the money completely on your own, but you should be financially literate and feel comfortable enough to invest according to your financial goals.
If you choose to manage the portfolio yourself, it’s important to understand how to build and maintain a diversified portfolio that aligns with your goals. You’ll probably also need to adjust asset allocation as you age and rebalance periodically. In this case, you could also consider paying for hourly or project-based advice when needed.
No matter what you decide, it doesn’t have to be forever. The real key goal is to start building sustainable wealth-building habits.
“People often say they will start investing tomorrow, but tomorrow never arrives,” says Thayer. “A financial advisor can be the accountability partner they need to ensure they don’t put off what they know they should be doing until it’s too late.”
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Realtor.com (1); Cerulli Associates (2); SoFi (3); SmartAsset (4)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
