I’m 28 living in an expensive city and I’ve been keeping a close eye on my finances for years, but I’m still a bit of a novice when it comes to investing

The internet has made it easier for people to learn more about finance and stay on top of their investments. A 28-year-old talked about this phenomenon in the Personal Finance Reddit community.

He posted that he has a $340k portfolio and is wondering if he still needs his financial advisor. He explained that his retirement accounts have been doing well, but the managed account has underperformed the S&P 500. Furthermore, he’s barely breaking even after you consider management fees. 

These are some of the things to consider if you are assessing whether a financial advisor still makes sense for you.

You Can Put Your Funds in an ETF

ETFs have made it a lot easier to invest in the stock market and achieve respectable returns. You can find funds that mirror the S&P 500 and the Nasdaq Composite. These funds outperform most active investors and allow passive investors to save a lot of money.

The Redditor mentions VTI and an S&P 500 index. Since the financial advisor has been underperforming these funds while charging high fees, it may make sense to use a passive fund instead of relying on the advisor.

Investors should look at a fund’s expense ratio, asset allocation, and other details before deciding which fund is right for them. Buying ETFs simplifies investing as well. You don’t have to craft a curated stock portfolio that contains dozens of holdings. A find manager can overlook a passive ETF at a fraction of the cost while delivering solid gains.

It’s Just Business 

Part of the Redditor’s hesitancy to leave the financial advisor is that the advisor is a family friend. The financial advisor has been managing the family’s finances for many years, but you have to look at results when making your decisions.

Every investor should pursue opportunities that maximize their returns. If a stock underperforms and looks like it will continue to underperform, most investors cut it from their portfolios.

You have to take the same approach with a financial advisor and any professional who is managing your portfolio. Letting feelings get in the way of rational decisions can make it take longer to achieve your long-term financial goals. You can also miss out on tremendous bull markets if an advisor underperforms the S&P 500.

The Redditor mentioned that he wants to take more risks since he is young. He’s not afraid of investing in growth stocks since the Redditor has plenty of time for those assets to rebound from corrections.

Look for a Fiduciary If You Want a Financial Advisor

Fiduciary advisors are required to serve in your best interest. Financial advisors without this label may promote financialproducts that give them the highest commissions, even if they don’t generate good returns for their clients. 

Fiduciary advisors can monitor portfolios and provide personalized answers to your questions. They can also help you navigate the ups and downs of financial markets. They also know more about finance than the average person. Financial advisors make more sense for high-earners with complicated finances.