$7 Million Retiree Seeks Hourly Fiduciary Advice as AUM Fees Run Up to 1%
Updated
Updated · MarketWatch · Jul 5
$7 Million Retiree Seeks Hourly Fiduciary Advice as AUM Fees Run Up to 1%
1 articles · Updated · MarketWatch · Jul 5
Summary
A 62-year-old retiree with $7 million was advised to use an hourly or project-based fiduciary planner rather than pay a traditional assets-under-management fee for only twice-yearly check-ins.
Hourly planners typically charge $200 to $500, while project-based advisers charge $2,000 to $8,000; experts pointed to Garrett Planning Network and the CFP Board as places to find candidates.
CFP advisers said tax expertise should be vetted directly, ideally through a planner with CPA or EA credentials and experience integrating Roth conversions, retirement withdrawals and Medicare IRMAA surcharges.
$100,000 annual Roth conversions may not be optimal, one adviser said, because converting more before age 65 can sometimes beat years of higher required minimum distributions and recurring IRMAA costs later.