I’m 38 and have almost $300k in my retirement accounts. Should I fire my financial advisor?

It can be tempting to take control of your own financial future by educating yourself and taking on more of a DIY (do-it-yourself) approach. Undoubtedly, with a growing number of resources out there and a ton of easy-to-use, low-cost products like ETFs (exchange-traded funds), there’s an upside to running your own portfolio. Notably, you’ll be able to pocket the fees you would have otherwise sent a financial advisor’s way. Indeed, it’s a good thing that many of today’s young people are forgoing the services of a financial planning pro.

That said, as I’ve explained in a number of prior pieces, one should understand themselves as an investor, especially in environments that are less than bullish. It’s easy to think you’re a genius when the market is going up as it has been for the past two years prior to the recent Trump tariff-fuelled correction in the S&P 500. But when the tides turn, your emotions stand to take a 180-degree turn, especially if you check your portfolio’s holdings every single day. Indeed, you can go from feeling like a genius to feeling a great sense of regret as impressive and timely portfolio gains are replaced by equally steep losses.

Indeed, it’s been shown that investing losses are much more painful than gains of the same amount. That’s why stocks tend to ascend gradually and then suddenly descend. In any case, I do believe that it takes time for new investors to learn how to navigate hard markets. The current tariff-fuelled one is a great opportunity to learn and grow as an investor.

Financial advisors can save inexperienced investors from themselves when the market starts moving lower.

A financial advisor could certainly save you from making devastating mistakes (speculating instead of investing, overpaying for mutual funds, or being too aggressive with retirement withdrawal rates) and help push you down a path that doesn’t entail liquidating stocks because you’re frightened of some catastrophic event (perhaps a lengthy, multi-year tit-for-tat trade war between the U.S. and numerous other nations). However, there comes a point where one may be fine handling turbulence on their own. The key for investors considering leaving their advisor is knowing when they’re ready. Indeed, it’s not hard to imagine many folks are leaving their advisors well before they’ve gotten the basics of investment down.

Of course, there are varying degrees of market plunges. The current correction seems more garden-variety than the more horrific ones (think the COVID crash or 2008 market meltdown in the face of the housing crisis) of the past. Either way, investors looking to cut costs should ask their advisors why they think they’re worth the percentage (or flat) fee they charge. Let’s check in on a specific case I came across on Reddit recently.

This Reddit user is thinking of flying solo with their finances.

The 38-year-old Reddit user has $300,000 in retirement accounts and seems to be doing a solid job of getting a head start on building their nest egg. Indeed, paying a 1% fee per year is rather hefty. And while they may be bringing less to the table in more recent years, especially with a set-and-forget investment plan, I think there’s room for further discussion.

If you hire an advisor, you should ask them to consistently demonstrate the value they’ve brought to the table in any given year. It’s their job not only to meet your many needs (investing, taxation, retirement planning) but to convince you their services are worth the price of admission.

For a Reddit user growing more comfortable with investing, there’s no shame in testing the waters with a DIY strategy for some time or finding a more affordable advisor who stands to be a better fit.

At the end of the day, if an advisor cannot prove they’re worth the added cost, it’s time to consider options, whether that entails moving to another advisor you have more chemistry with or flying solo. If in the next few months (either due to market volatility or gaps in knowledge) you find the DIY route isn’t for you, you can always rehire the same advisor or another one.

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