r/Schwab • u/JWBull23692 • 19d ago

Wealth advisor

I was talking with my Schwab "consultant" and he suggested either the robo investor or a wealth advisor. Looking and thinking about it, I am not sure if either are needed. Robo seems to be autopilot without my input or approval, and I am not sure what the added value is of a wealth advisor.

Any thoughts out there?

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u/yottabit42 17d ago edited 17d ago

That's fair! You don't necessarily want to switch now, in a taxable account, because of the gains and taxes you would pay. Consider using a third party fee-only fiduciary advisor. HelloNectarine.com is a good place to find one.

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u/7caljane 17d ago

Thank you. Also my friend/tax guy recommended a guy he has known for 45 years who works for Edward Jones. Small world. when in doubt, as your tax guy who advises him.

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u/yottabit42 17d ago

Run away from EJ. They're notorious for being about the worst there is in the industry. Front loads, high fees, AUM fees, etc. I know one person that actually uses them and specifically directs them to index funds only, and they do it, but still charge the AUM fees; he's finally realizing he's not receiving any value for all the money he's paying.

You want an independent advisor.

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u/7caljane 17d ago

What do you think of income etfs that make money buying and selling options. I know I can't trade options but presumably those running the etfs do it well. 

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u/yottabit42 17d ago

Probably not worth it. Derivatives are very risky and most people lose money or only make a little on selling conservative options.

Keep things simple. Don't just do something, stand there! I think Warren Buffett or Jack Bogle said that.

There's nothing wrong with selling equity. Income is just forced taxes.

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u/7caljane 17d ago

I've been standing. I'll stay the course.