Financial Advisors - Fees

W@P said:
Have you got skin in the game?
I know nothing you are right.

Are you happy to pay that amount of money for nothing?
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I know what advisors do.

You don’t know how ro manage a R50 million portfolio which is why your dad got the advisor.

But yes, fire the advisor, lose millions and learn the hard way.

Or grow up, let the advisor keep doing his job,. In the meantime educate yourself and take over when you know what you are doing.

And P.S

Fees can be negotiated.
 
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Pegging said:
I know what advisors do.

You don’t know how ro manage a R50 million portfolio which is why your dad got the advisor.

But yes, fire the advisor, lose millions and learn the hard way.

Or grow up, let the advisor keep doing his job,. In the meantime educate yourself and take over when you know what you are doing.

And P.S

Fees can be negotiated.
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My problem is, what is it that he is doing?
He is doing nothing. He gave advice on what to do with x and y money, which I understand. But after that he does nothing.

I am aware that the fees can be negotiated. He has not done a single transaction in how many years. Money was invested in certain funds and left there to grow.

I am not saying I want to cash out the whole shebang and moer it into something different. It can keep going as is. Just without his fees.

I feel my dad never had the courage or whatever to end this guy's services. And it snowballed.

And you are right I don't know how to manage a R10bar or R50bar portfolio. But I know that the fees that I am paying are not worth it.

And WTF should fees be negotiated in the first place? Charge more than is needed and if the client cries then you bring it down.

GTFO.
 
W@P said:
But I know that the fees that I am paying are not worth it.

And WTF should fees be negotiated in the first place? Charge more than is needed and if the client cries then you bring it down.

GTFO.
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It sounds like you won the lotto and not sure how to handle the situation on top of grieving. You might be right, but you might also make the worse decision your father tried to prevent. It might be good to take a step back, let the emotions calm dawn, and then make wise decisions.
 
W@P said:
My problem is, what is it that he is doing?
He is doing nothing. He gave advice on what to do with x and y money, which I understand. But after that he does nothing.

I am aware that the fees can be negotiated. He has not done a single transaction in how many years. Money was invested in certain funds and left there to grow.

I am not saying I want to cash out the whole shebang and moer it into something different. It can keep going as is. Just without his fees.

I feel my dad never had the courage or whatever to end this guy's services. And it snowballed.

And you are right I don't know how to manage a R10bar or R50bar portfolio. But I know that the fees that I am paying are not worth it.

And WTF should fees be negotiated in the first place? Charge more than is needed and if the client cries then you bring it down.

GTFO.
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Make a two hour appointment with the advisor and let him explain what your dad’s instructions were.
The advisor would have managed the money according to those goals.
Make sure you know exactly how the money is invested and what the investment instruments are.

You need to decide along with whoever else in your family what the new goals are.
If that means that the portfolio changes as a result then you have to understand the implication like tax etc.

It’s the advisors job to explain all these things to you.
Right now he knows more than you do.
 
Pegging said:
How on earth is that related?


Did you maybe design your house yourself because you are a qualified architect?
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It's exactly the same thing. He's currently paying this guy a loyalty fee for work he did many years ago. There's no reason to keep paying him.

OP should find a financial advisor he has an appointment with twice a year. He pays advisor an hourly rate for the appointment and then a further amount if adjustments need to be made. This yearly subscription for doing nothing is BS.
 
Speedster said:
It's exactly the same thing. He's currently paying this guy a loyalty fee for work he did many years ago. There's no reason to keep paying him.

OP should find a financial advisor he has an appointment with twice a year. He pays advisor an hourly rate for the appointment and then a further amount if adjustments need to be made. This yearly subscription for doing nothing is BS.
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No it’s not.
And you know nothing about what his father did.
 
Speedster said:
Nope. He paid the architectural fees when the house was designed and built. Now the architect just scores a fat bonus every year because he can.
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The Architect designed the house and now he wants to leave it standing without any maintenance.

The best would be to seek alternative professional advice before make what seems to be an emotional decision.
 
Speedster said:
It precisely is.

And I never said I did, so no need to create strawmen either.
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Sure. I am sure that you often chat to your architect to change your house design. Great example.

Also great that you are not a financial advisor.
 
Speedster said:
It's exactly the same thing. He's currently paying this guy a loyalty fee for work he did many years ago. There's no reason to keep paying him.

OP should find a financial advisor he has an appointment with twice a year. He pays advisor an hourly rate for the appointment and then a further amount if adjustments need to be made. This yearly subscription for doing nothing is BS.
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100% this.

He doesn’t need to get rid of the financial advisor/s, just change the way they get paid for services rendered.
 
RedViking said:
The Architect designed the house and now he wants to leave it standing without any maintenance.

The best would be to seek alternative professional advice before make what seems to be an emotional decision.
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It’s a great example actually.

You’d only get the architect back in when you want to make alterations.

Same with the investment portfolio.

Outside of that there is no reason for the architect to he paid or involved.
 
W@P said:
He goes on about how he has been with my family for 15 years and we would not be in this financial position if it was not for him.
Fokof man. You gave advise. These investments were started and left to grow over the years. You did fokol in between.

Tunes me about how much experience he has and how educated he is. Fakoff.

This is without the share portfolio.
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Just on principle, I would terminate. He sees this as his assets.
 
Pegging said:
Sure. I am sure that you often chat to your architect to change your house design. Great example.
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I made some renovations at the previous place. I set up a meeting with the architect, he heard my goals and drew up the necessary changes. I paid him for it.

Should I ever decide to make changes to our current house, I'll do the same.

If you read my posts again you'll be surprised to see that I haven't advocated for him going DIY. On the contrary. He could find the best FA in the country, pay him R50k an hour and still be saving a significant amount.
 
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