My mom uses an advisor that charges a 1.6% AUM fee that will go down when she reaches a certain amount. He uses 'Target allocation ETFs' from different firms (Blackrock & Fidelity). He uses her risk tolerance to choose which one to put her in. She is currently in BTAEHX.
Because of her risk tolerance her portfolio is made up of two t-bills that are ~80% of her portfolio ~2 years out, at 3.75% & ~4%.
She is early 50s & has no financial interest. She is afraid of the stock market. She & her financial advisor have no real goals yet. ~400k total. No real income or expenses. Just started early 2024. She needs direct advice for her situations, which her CFP has many credentials.
Is her CFP a good fit? I'm worried they have no goal. Is AUM fee ok? Basically is there any reason to be worried about our CFP? He follows my moms risk tolerance & follows premade ETF portfolios made by big firms.
Is there a better option for her? She needs a direct path & I'm not seeing the plan. The ~20% she has in stocks is a big deal for her.
I figured now is a good time to ask this because shes losing money on the fee and stocks at this point.
Is there a better community to post this?