My mother, nearing retirement, has a 1% fee advisor managing her IRA, what are our alternatives?
I'm really trying to make sure my Mom(65) has enough money in retirement and to pay for rising healthcare costs. She has 900k in an IRA managed by an local advisor that has a .5-1% fee scaling with AUM.
The advisors bought and sold 150k worth of ETFs in October in what looks like some kind of rebalancing.
The average expense ratio of these funds is .32% ranging from .03 (STIP) to .89 (FCPIX).
The holdings are 11 different ETFs/MFs that roughly equate to:
47% US equity
11% INT equity
38% BONDS us and corporate
\~3% CASH
I tried to review each fund and some standouts that confused me included:
BKDV (.6 ER): Some kind of 'Value' US equities ETF
FCPIX (.89 ER): Why a high expense ratio International fund, seems like it's performance is slaughtered by FZILX, what am I missing?
FDRR (.15 ER): Not sure what this is trying to do that another simpler US equity etf would do instead, this doesn't seem to be outperforming anything.
Is it crazy to want to drop the advisor and just slam all 800k in a 2025 Target Date fund? Trying to balance simplicity for my mom, psychology with draw-downs, and not pay these guys 8k a year to move some ETFs around.
What are our options?