Jill on Money with Jill Schlesinger

Episode Title: Is the Fee Worth It?
Date: September 12, 2025
Host: Jill Schlesinger, CFP®
Featured Caller: Mark from Nevada

Episode Overview

In this episode, Jill Schlesinger takes a call from Mark, a financially successful small business owner in his early 60s, who is grappling with the value of ongoing advisory fees on his considerable investments. Their conversation explores when professional financial management is worth the fee, how to assess the concrete value of advice, and what alternatives exist—especially when family and future planning are at stake. True to Jill’s approachable and jargon-free style, the episode offers actionable insights for listeners at any asset level.

Key Discussion Points & Insights

Mark’s Situation and Core Question

• Caller Profile:

  • Mark, 62, with a wife (61); both work full time in their small business, nearing retirement phase
  • Primary assets include two large SEP IRAs, a substantial taxable brokerage account, other liquid/investment assets, and real estate (primary home, cottage, office, land)
  • Planning to slow down, travel more, and possibly retire within a year

• Main Issue:

  • Recently moved investments (SEP IRAs and brokerage) to an advisor with an annual fee of 0.6% (approx. $51,000/year on $8.8M assets)
  • Wonders: Is the advisor’s ongoing fee worth it, especially since he managed well on his own and sees minimal activity/interaction?

• Jill’s Response:

  • Validates concern: High fees can be surprising, especially for “set and forget” portfolios with minimal ongoing service
  • “I hate having to pay fees. That’s the worst. I don’t care if you’re doing your job. I just don’t want to.” (Jill, 03:59)
  • It’s critical to assess what’s included: Investment management only, or broader financial planning and tailored advice?

Asset & Account Breakdown (06:13–10:27)

• Major Holdings:
  • Mark’s SEP IRA: $4.7M
  • Wife’s SEP IRA: $500K
  • Joint (Taxable) Brokerage Account: $3.6M ($1.7M unrealized gains)
  • Small inherited IRA ($16K), secondary brokerage ($335K), investment club share ($80K), cash ($100K)
  • Real estate: Primary residence ($650K, no mortgage), cottage ($500K, no mortgage), office/commercial building ($400K, no mortgage), other vacant land

The Fee Structure & What You Get (07:39–09:29; 12:24–14:53)

• Fee Details:

  • 0.6% on all managed assets, including “passive” brokerage account where little activity occurs
  • Mark’s discomfort: Passive accounts are still included in fee calculation

• Jill’s Key Insight:

  • Fees may be justified if advisor is delivering more than just asset allocation—e.g., comprehensive tax, estate, and withdrawal strategies
  • “If it’s just like they’re sitting there, then you don’t need them… But if they’re giving you real customized financial planning solutions, that’s worth something.” (Jill, 13:00)

Planning Issues That Justify Advice (13:00–15:34)

• Tax Planning:

  • Large pre-tax (SEP IRA) balances mean huge required minimum distributions (RMDs) and related taxes at age 75
  • $1.7M in unrealized gains in the brokerage context—potential for tax loss/gain harvesting, gifting, or use of Donor Advised Funds

• Estate & Family:

  • Mark is considering who will manage things if he’s unable—doesn’t want to “leave a mess” for his wife
  • Financial advisor can provide continuity and support for spouse/family who may not be as hands-on

• Charitable & Gifting Strategies:

  • Discussed but not yet implemented, e.g., Donor Advised Funds for tax-efficient giving
  • “That donor advised fund makes a lot of sense with regard to the SEPs.” (Mark, 15:00)

Alternatives & Next Steps (16:43–19:16)

• Self-Management vs. Professional Help:

  • Mark enjoys DIY investing, but worries about his wife’s comfort/knowledge if something happens to him
  • Jill suggests interviewing other advisors—preferably fee-only Certified Financial Planners (CFP®), possibly with flat-fee or hourly models

• Jill’s Actionable Advice:

  • “You could benefit from talking to a certified financial planner who’s not associated with some big, huge firm that has a different lens through which to look at this kind of wealth.” (Jill, 18:40)
  • Try out several planners for comprehensive planning, not just investment management—tax, withdrawal, estate, spousal onboarding

Notable Quotes & Memorable Moments

• On Fee Shock:

  • “I was a little bit taken aback with those fees.” (Mark, 03:59)
  • “Maybe you don’t have to sell anything. Okay, so you got a bunch of money. Now you’re paying a fee for that. You’re probably not used to it.” (Jill, 07:39)

• Relatable Validation:

  • “For everyone listening, you don’t have to have $8 million to call in. You know, forget about the numbers. The total numbers are different for each of us, but the situation is quite common.” (Jill, 19:17)

• Defining True Value:

  • “The reason I like the advisor relationship is because it’s usually beyond money management. It’s… financial planning… to develop a strategy for how we’re going to manage the money… because we have a ticking tax time bomb.” (Jill, 13:26)

Important Timestamps

• 03:27: Mark introduces question about advisory fees on large SEP IRAs
• 04:42–05:30: Mark and wife’s gradual move toward business succession and retirement
• 06:13–07:26: Inventory of investment and brokerage accounts
• 08:07–08:41: Fee details—advisor includes passive accounts, annual fee >$51K
• 09:57–10:23: Additional asset overview (cash, investment club, real estate)
• 11:06–11:31: Retirement spending target (~$150K annually)
• 13:00–14:53: Jill’s breakdown of when ongoing advisory fees might be worth it
• 15:00: Discussion of Donor Advised Fund and minimal active management
• 16:43–17:09: Do you want to manage money yourself?
• 18:40–19:16: Jill recommends interviewing other planners for a comprehensive plan

Takeaways for Listeners

• Don’t be shy about questioning hefty advisory fees—assess if you’re getting meaningful, ongoing financial planning and strategy in return, not just asset allocation.
• Asset management becomes more complex with higher balances, not just from an investing but also a tax and estate perspective; professional help can be a wise investment—but you should shop around.
• If you’re the primary “money person” in your relationship, building a team or support system for your spouse is essential for peace of mind and continuity.

Final Thought

“Try to do something nice for someone else today. Change your work, change your wealth, change your life.”
— Jill, [21:37]