Ask an Advisor: I Pay a 0.75% Fee on $1.5M Invested. How Do I Know If It's Worth It?

When assessing whether your retirement account is being well-managed, there are several key factors to consider. First, think about what you expect from the advisor and what services they provide. Some advisors offer comprehensive financial advice, while others specialize in specific areas like retirement or investment management.

Determine if the services you receive align with your needs and preferences. Next, evaluate the level of communication you have with your advisor. Communication frequency and quality are important, as you should feel comfortable discussing your financial situation and goals with them. Lastly, take a look at how your investments have performed.

Compare your returns to relevant benchmarks if your advisor claims to offer superior investment performance. If your advisor focuses more on planning, assess whether you're meeting your financial goals on schedule. Keep in mind that the 0.75% management fee you mentioned is within the normal range, but it's still essential to ensure that the services and performance justify the cost.

If you're unsatisfied with any aspect of your financial advisor's services, it may be worth considering finding a new advisor who better suits your needs.