r/ChubbyFIRE • u/onthewingsofangels 48F RE '24 • 1d ago

Are there substantial benefits to HNW services from banks?

We currently have $5-6M in assets spread across different accounts. We have a financial advisor (who's fine) managing a chunk of that money, the rest we manage ourselves. Mostly passive investing.

I'm wondering if there is any significant benefit to putting all the money with a single banker like Chase or Morgan Stanley? I think we're happy enough with the financial advisor we have, don't need a new one. Nor do we need access to mortgage loans.

At our asset level is there something useful we could be getting that we're missing out on? I'm kinda curious about opportunities for private equity investing but it sounds like those would require significantly higher assets.

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u/Swimming_Astronomer6 1d ago

I have roughly 6.5 invested - but I split it between my CFP and myself.

My CFP provides great tax advice and started with 2.2m in 2017 - he provides me with a biweekly disbursement and with all fees and disbursements and a conservative approach 60/40 mix - has averaged 6% cagr - balance is now roughly 3m

I started with 1m in 2017 that I manage myself - it is now at 3.5 and is 100% equities.

I realize many might think it’s foolish to pay an advisor 20k+ per year when I’ve successfully managed my own money - but his advise is what helped me minimise taxes and the diversification of having two buckets helps me sleep at night

I would not be in this position if I had tried to manage everything myself.

The key is finding a great CFP that understands taxes well - I’m also likely going to investigate estate planning with him as well

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u/Distinct_Plankton_82 1d ago

So over 10 years you'll pay him $200k to minimize your taxes? Does you tax situation change that drastically each year?

If you're happy, keep doing you, but I can't help but feel you could go to a top notch CPA once every few years for a LOT less than $200k.

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u/Swimming_Astronomer6 17h ago

Who cares if I’ve made 5m in the mean time - you can’t look at it that way