Question: “I am 40 years old. Five years ago, I inherited an IRA worth $650,000 and kept the money with the same financial company. Today my portfolio has grown to nearly $1,000,000. That said, I recently had an expert consultant do a deep-dive analysis of my entire account and found that nearly one-third of the investments are underperforming. Is this normal? How should I go about finding the best financial planning company, with transparency, as I’m planning to move my entire portfolio?”
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Answer: Going from $650,000 to $1 million in the last five years is a good return. “The other good news is that if one-third of your investments are underperforming, it means two-thirds of the investments are at least doing what they are expected to do or over-performing,” says Andrea Clark, certified financial planner at The Table Financial Planning.
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What’s more, Clark says she has a colleague who subscribes to the motto that if there isn’t something you really hate in your portfolio, then you are not well-diversified. “The economy does not treat all asset classes equally and sometimes the old rules of thumb get turned on their heads. Rule of thumb: we tend to see bonds do better when stocks are down. Except for the last five years,” says Clark.
Under- or over-performing also depends on the benchmark you’re using. Before making any moves, it would be helpful to know what the basis for your conclusion of underperforming is. “Underperforming what exactly? If the portfolio is, say, 70% stock and 30% bonds, and that was chosen after speaking with the client about her needs and goals for the money, then by definition 30% of it is not expected to grow the same as the rest, but is expected to provide stability,” says certified financial planner Cristina Guglielmetti at Future Perfect Planning.
For his part, Dustin Suttle at Suttle Crossland Wealth Advisors agrees that it’s important to clarify what underperforming really means. “Is it compared to the overall market, a specific benchmark, or just another adviser’s expectations? Without context, that can be misleading,” says Suttle.
U.S. stocks have outperformed much of the international market in recent years. “I’ve been hating my lagging international investments in my well-diversified portfolio, but now I’m glad I have them because they are shining in 2025. Spreading your money out across all the different asset classes in every kind of economic market without trying to time the market means that some investments will win and some will lose. But over the very long haul, you win, and that is the ultimate goal,” says Clark.
Another thing to consider: “It’s unclear from your timeline whether this inheritance falls under the pre- or post-SECURE Act rules. Either way, that’s an important consideration that needs to be addressed,” says Guglielmetti. Here is what that might mean for you.
What should I look for in a new financial planner?
All that said, inherited portfolios often need updating, especially if the investments weren’t selected with your unique goals or risk tolerance in mind. “If you’re considering a change, look for a fee-only fiduciary who can explain their investment philosophy clearly and has no incentive to steer you toward products they’re paid to sell,” says Suttle.
You can find a fee-only CFP using the National Association of Personal Financial Advisors (NAPFA), CFP Board, or this free tool from our partner SmartAsset that can match you to a fiduciary adviser. Working with a CFP means the professional has completed extensive education requirements, passed exams, performed thousands of hours of work-related experience and they adhere to a fiduciary duty, meaning they’re required to put your best interests ahead of their own.
Remember that investment advisers don’t have crystal balls. “Getting a second opinion about your holdings from a fee-only fiduciary planner might be a good idea for peace of mind, but you might find your well-diversified portfolio is doing exactly what it needs to do to meet your goals. If you or your portfolio doesn’t have goals, a comprehensive planner can help with that as well,” says Clark.
Have an issue with your financial planner or looking for a new one? Email questions or concerns to picks@marketwatch.com.
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