Who is the best financial advisor in The Villages?

[Kennekuk]

We are new in town looking for good advisor who will keep our best interest at heart.

[Maxman]

We are new in town looking for good advisor who will keep our best interest at heart.

Your best choice is to do it yourself through vanguard or Schwab. Keep it simple use passive index funds. Alternatively you could use Vanguards financial consulting service.

http://https://investor.vanguard.com/financial-advisor/financial-advice (https://investor.vanguard.com/financial-advisor/financial-advice)

Keep you fees as low as you can. There is no magic greater returns that an expensive (over .5%) adviser can give you. As I've said before over a ten year period simple index investing beats managed investments over 80% of the time. No body knows what the markets will do in the future. a simple three fund portfolio rebalanced once a year is all one needs.

http://http://www.bogleheads.org/wiki/Three-fund_portfolio (http://www.bogleheads.org/wiki/Three-fund_portfolio)

You can set up these accounts with an appropriate equites/bonds percentage that makes you sleep well.

If you want to use an advisor in the Villages, Charles Schwab Intelligent Portfolios is a low cost alternative. They invest in a broad range of index funds setup by your risk tolerance and age. They say it's got no fees, but require you to keep a portion in their money market account which is in effect a fee. If you need to see a local representative they have an office in Sumter Landing.

I Am not a financial adviser. So the advice here is only my personal opinion.

[rjm1cc]

What do you want?
Just watch investments? Take above advice. Also look at robo advisors from same firms.

[Chi-Town]

Since you are not looking to to self invest (smart move) Fross and Fross appears to be the cream of the crop in The Villages.

[Villageswimmer]

Your best choice is to do it yourself through vanguard or Schwab. Keep it simple use passive index funds. Alternatively you could use Vanguards financial consulting service.

http://https://investor.vanguard.com/financial-advisor/financial-advice (https://investor.vanguard.com/financial-advisor/financial-advice)

Keep you fees as low as you can. There is no magic greater returns that an expensive (over .5%) adviser can give you. As I've said before over a ten year period simple index investing beats managed investments over 80% of the time. No body knows what the markets will do in the future. a simple three fund portfolio rebalanced once a year is all one needs.

http://http://www.bogleheads.org/wiki/Three-fund_portfolio (http://www.bogleheads.org/wiki/Three-fund_portfolio)

You can set up these accounts with an appropriate equites/bonds percentage that makes you sleep well.

If you want to use an advisor in the Villages, Charles Schwab Intelligent Portfolios is a low cost alternative. They invest in a broad range of index funds setup by your risk tolerance and age. They say it's got no fees, but require you to keep a portion in their money market account which is in effect a fee. If you need to see a local representative they have an office in Sumter Landing.

I Am not a financial adviser. So the advice here is only my personal opinion.


Fan of Maxman's advice. Indexing thru Vanguard has worked well for us over the past 40 years.

[billethkid]

The best one is the one who helps you meet your financial goals. The good ones will offer to show you the track record on dollars invested vs plan one, five and ten years.

Also be on the look out for how they make their money with you as a client.

Usually two ways. One is flat fee based and this is usually more than made up in the invested returns. The second which I recommend against are those who make their money off the product they invest your money in. Here the incentive is for them to sell you something vs is it the best for your investment startegy.

Check the bigger banks like Wells Fargo and Chase who both have private banking investment and securities advisors....who are tied into their national securities investment and fund management systems.

Good Luck.

Lastly, don't limit your possibilities by only looking at the private investors that happen to be in TV.

[billybye]

Save yourself a lot of money and invest yourself in target date mutual funds - let the real experts pick the stocks and bonds, they know a lot more than any local adviser.
Set up a no load fund portfolio with Vanguard, Fidelity or T Rowe Price - you can't go wrong of any of these three.
I learned my lesson about expert broker advise long ago. Fortunately long enough ago to allow me to retire now.

[JGVillages]

Unless you desire to be very very pro-active with your porfolio I would not suggest handling it on your own. The market has been extrermely difficult to read in recent years, so for myself a financial advisor was necessary. She has structured a portfolio of stocks and bonds that have exceeded our goals the past 8 years. The advisor is Jayne Wakeman with Edward Jones in The Villages. I have dealt with numerous advisors to date and she is by far the best.

[Maxman]

Unless you desire to be very very pro-active with your porfolio I would not suggest handling it on your own. The market has been extrermely difficult to read in recent years, so for myself a financial advisor was necessary. She has structured a portfolio of stocks and bonds that have exceeded our goals the past 8 years. The advisor is Jayne Wakeman with Edward Jones in The Villages. I have dealt with numerous advisors to date and she is by far the best.

One question do you have any American funds through Edward Jones?

Edward Jones costs more in several ways:

1. The front load buying the fund (up to 5%)

2. Funds with higher expense ratios (1 to 2%)

3. Sales load for reinvesting capital gains or dividends (up to 5%)

Also, notice how frequently agents take family vacation trips internationally (probably some sort of sales incentive from Edward Jones or mutual fund family). Ultimately the investor is paying for these too.

[Lovey2]

Very pleased with Tom Ruggie at Ruggie Wealth Management. The great news is they now have an office in Pinellas Plaza.

Ruggie Wealth Management - Tavares, Florida (http://www.ruggiewealth.com/)

[FlamingoFlo]

If your regular bank have investment people meet with them. My advice is to pick three or four companies or people, meet with them and make up your own mind.
Everyone has different needs,expectations, and goals for their money.

[Maxman]

Interesting article on Edward jones
http://http://advisorhubinc.com/the-scientologists-of-the-financial-industryseriously/ (http://advisorhubinc.com/the-scientologists-of-the-financial-industryseriously/)

[Bonnevie]

Since you are not looking to to self invest (smart move) Fross and Fross appears to be the cream of the crop in The Villages.

I totally disagree that Fross and Fross are good. They are not fee only....they will put you into things that pay them high commissions. I realized that after going to the polo fields to watch them play polo....the amount of money under their control at a 1% fee couldn't possible pay for all they have.

go to Fidelity in Lake Sumter Landing. If you put your money with them you can either have them manage it for a fee, or they will advise you free and you have to make the changes. They also have low cost index funds.

[Cedwards38]

In my opinion, you are your own best financial adviser. There is plenty of library and internet material available to help you make good choices about investment. You do not have to pay someone a large fee to (1) determine your goals, (2) determine your risk tolerance, (3) select diversified investments. Keep your money and find some solid index funds. Just open an investment account where they don't charge you unless you trade. Yes, you can. Really, you can. No, seriously, you can. It's not rocket science.

[TNLAKEPANDA]

I like Morgan Stanley but my rep is out of Winter Park. He will come to the Villages to meet with you. I have been with him since 1992 and very pleased. He understand how to do proper asset allocations for retired folks.

[Chi-Town]

I totally disagree that Fross and Fross are good. They are not fee only....they will put you into things that pay them high commissions. I realized that after going to the polo fields to watch them play polo....the amount of money under their control at a 1% fee couldn't possible pay for all they have.

go to Fidelity in Lake Sumter Landing. If you put your money with them you can either have them manage it for a fee, or they will advise you free and you have to make the changes. They also have low cost index funds.
The polo matches, wine tastings, dinner dances, drive-in movies, golf get togethers, etc. are all part of networking. All successful companies do it. The question you should be asking is if you ever heard of a Fross and Fross disgruntled client?

[llaran]

Well should Fross and Fross put IRA $$ into Annuities??

[KayakerNC]

If your regular bank have investment people meet with them.

That may well be the worst investment advice I've ever read. :1rotfl:
Be wary of local banks selling annuities - MarketWatch (http://www.marketwatch.com/story/be-wary-of-local-banks-selling-annuities-2013-10-01)

[Jim 9922]

One bunch of advisors I would hesitate to use would those associated with many of the national banks such as Wells Fargo, Morgan Stanley, Bank of America, Chase, etc. All have been fine MILLIONS and MILLIONS in the US and internationally during the recent past for the financial and legal shenanigans of their officers, leaders, policy makers and department heads. Personally I'd also be embarrassed to work for such companies especially when one of their main products is "trust". If the top is rotten how bad is the rest of the operation??:shocked: To them, I think, scruples is something they just put on their toast to eat each morning.

[Maxman]

In my opinion, you are your own best financial adviser. There is plenty of library and internet material available to help you make good choices about investment. You do not have to pay someone a large fee to (1) determine your goals, (2) determine your risk tolerance, (3) select diversified investments. Keep your money and find some solid index funds. Just open an investment account where they don't charge you unless you trade. Yes, you can. Really, you can. No, seriously, you can. It's not rocket science.

It takes very little effort to do it yourself. I think the only reason people use a financial advisor is to calm their fears and keep them from bailing in a bear market. I find the cost of this hand holding to be extreme. I've learned through mistakes over the years not to use an advisor.

We have free resources now that we did not have 10-20 years ago. Those resources make it very easy to put your investments on auto pilot.

[DRandazzo]

Give Parady a chance. They have your goals first.
Good Luck

[Villageswimmer]

Give Parady a chance. They have your goals first.
Good Luck


Could you please elaborate?

[784caroline]

It takes very little effort to do it yourself. I think the only reason people use a financial advisor is to calm their fears and keep them from bailing in a bear market. I find the cost of this hand holding to be extreme. I've learned through mistakes over the years not to use an advisor.

We have free resources now that we did not have 10-20 years ago. Those resources make it very easy to put your investments on auto pilot.

MAXMAN...For someone comfortable and has experience or wanting to learn, I cannot disagree....doing It yourself may be best from a monetary perspective.. But even the best of the experienced (non-professional) person can get spooked in rough markets for most lack discipline, patience, and foresight. In the community we live, you or I may be very comfortable in making investment decisions for the family BUT what will happen when (Note not "IF" but "WHEN") the experienced person who handled all the investment is no longer with us or unable to make these decisions and now your spouse or other family member(s) are left with a pile of receipts and records of investments.

If we are now talking about the need for a Financial advisor, we must have done something right during our adult life. I believe it is crucial that we develop a relationship with a financial advisor who is more than simply a number you call and place orders or you stop by their office to make investment decisions. This relationship should include your spouse or other family members who they can get comfortable with and when the time does come , they can call and ask for help in guiding them. Over my career, I have or had accounts with many types of firms including Fidelity, T Rowe Price, some major brokerage houses etc. and although they offered advice and assistance on my holdings, the relationship, as I speak about, was just never developed.

Will you make a million bucks with these advisors that are discussed on TOTV, probably not but most likely your money will grow. It may take 6-12 months for them to really know your comfort level, and how aggressive or conservative you are, but you and your spouse will be meeting with them twice a year where your needs, goals, and desires are discussed. From the 3 big advisors discussed here (Fross, Baum, and Paraday) each brings something different to the table, deal with different type of clients, and what may be good for you, may not be for me, but in the big picture, its the relationship that matters most.

Here's to Good Investing!!

[PRpro]

I have heard nothing but great things about TB Financial Group just outside of The Villages in Fruitland Park. Liz Cornell is the financial retirement strategist you would be working with, and TB holds free educational seminars called Annuity University 101, which help you to understand the "tough" questions you may have that most investors won't talk about... I know that they advertise their seminars in the Daily Sun. My friends say they are very informative and knowledgeable and host awesome client socials as a bonus.

[l2ridehd]

Most if not all financial advisors do not have your best interest in mind. They have theirs. They will sell you products that pay them the highest commissions. No one will take care of your money like you will and it is really easy.

1. Determine the best asset allocation for you at your point in life based on your risk tolerance. There are many online tools that will help you do this. Age in bonds is a bit to simplistic for most people but not a bad place to start. I use 60% stocks and 40% bonds, but that is much higher risk then most retired folks should have. Try 50/50 or 40/60.
2. Buy a total stock market fund, a total international fund and a total bond fund from a very low expense mutual fund company. Vanguard, Fidelity or Schwab all have them. Buy them in a ratio of your desired asset allocation.
3. Re-balance once a year on your birthday.

Very simple, very low cost, and will beat the returns of all financial advisors. There are 100's of articles that will tell you that over any 10 year period in the history of the market that this approach will beat all actively managed portfolios and have lower downside risk. The only way you can achieve higher returns is to take higher risks and that will always have a down side.

I will be more than happy to help anyone set this type portfolio up for free. Have you do everything yourself so you know how to do it. I have managed mine like this for years. I do use some slight variations on this that add small cap and value funds, plus some international bonds, but I do not recommend that for others. Keep it simple with just 3 funds. Keep the bonds in tax deferred and the stocks in taxable if possible.

[manaboutown]

But where are the customers' yachts (or polo ponies)?

Once again I totally agree with l2ridehd.

[pbkmaine]

Most if not all financial advisors do not have your best interest in mind. They have theirs. They will sell you products that pay them the highest commissions. No one will take care of your money like you will and it is really easy.

1. Determine the best asset allocation for you at your point in life based on your risk tolerance. There are many online tools that will help you do this. Age in bonds is a bit to simplistic for most people but not a bad place to start. I use 60% stocks and 40% bonds, but that is much higher risk then most retired folks should have. Try 50/50 or 40/60.
2. Buy a total stock market fund, a total international fund and a total bond fund from a very low expense mutual fund company. Vanguard, Fidelity or Schwab all have them. Buy them in a ratio of your desired asset allocation.
3. Re-balance once a year on your birthday.

Very simple, very low cost, and will beat the returns of all financial advisors. There are 100's of articles that will tell you that over any 10 year period in the history of the market that this approach will beat all actively managed portfolios and have lower downside risk. The only way you can achieve higher returns is to take higher risks and that will always have a down side.

I will be more than happy to help anyone set this type portfolio up for free. Have you do everything yourself so you know how to do it. I have managed mine like this for years. I do use some slight variations on this that add small cap and value funds, plus some international bonds, but I do not recommend that for others. Keep it simple with just 3 funds. Keep the bonds in tax deferred and the stocks in taxable if possible.


Agree on all points.

[Villageswimmer]

Most if not all financial advisors do not have your best interest in mind. They have theirs. They will sell you products that pay them the highest commissions. No one will take care of your money like you will and it is really easy.

1. Determine the best asset allocation for you at your point in life based on your risk tolerance. There are many online tools that will help you do this. Age in bonds is a bit to simplistic for most people but not a bad place to start. I use 60% stocks and 40% bonds, but that is much higher risk then most retired folks should have. Try 50/50 or 40/60.
2. Buy a total stock market fund, a total international fund and a total bond fund from a very low expense mutual fund company. Vanguard, Fidelity or Schwab all have them. Buy them in a ratio of your desired asset allocation.
3. Re-balance once a year on your birthday.



Very simple, very low cost, and will beat the returns of all financial advisors. There are 100's of articles that will tell you that over any 10 year period in the history of the market that this approach will beat all actively managed portfolios and have lower downside risk. The only way you can achieve higher returns is to take higher risks and that will always have a down side.

I will be more than happy to help anyone set this type portfolio up for free. Have you do everything yourself so you know how to do it. I have managed mine like this for years. I do use some slight variations on this that add small cap and value funds, plus some international bonds, but I do not recommend that for others. Keep it simple with just 3 funds. Keep the bonds in tax deferred and the stocks in taxable if possible.

Agree...I think we need a Bogleheads club in TV. It would be fun to share these simple principles and save folks $ in fees. I consider it a hobby and there's always more to learn.

[Maxman]

MAXMAN...For someone comfortable and has experience or wanting to learn, I cannot disagree....doing It yourself may be best from a monetary perspective.. But even the best of the experienced (non-professional) person can get spooked in rough markets for most lack discipline, patience, and foresight. In the community we live, you or I may be very comfortable in making investment decisions for the family BUT what will happen when (Note not "IF" but "WHEN") the experienced person who handled all the investment is no longer with us or unable to make these decisions and now your spouse or other family member(s) are left with a pile of receipts and records of investments.

If we are now talking about the need for a Financial advisor, we must have done something right during our adult life. I believe it is crucial that we develop a relationship with a financial advisor who is more than simply a number you call and place orders or you stop by their office to make investment decisions. This relationship should include your spouse or other family members who they can get comfortable with and when the time does come , they can call and ask for help in guiding them. Over my career, I have or had accounts with many types of firms including Fidelity, T Rowe Price, some major brokerage houses etc. and although they offered advice and assistance on my holdings, the relationship, as I speak about, was just never developed.

Will you make a million bucks with these advisors that are discussed on TOTV, probably not but most likely your money will grow. It may take 6-12 months for them to really know your comfort level, and how aggressive or conservative you are, but you and your spouse will be meeting with them twice a year where your needs, goals, and desires are discussed. From the 3 big advisors discussed here (Fross, Baum, and Paraday) each brings something different to the table, deal with different type of clients, and what may be good for you, may not be for me, but in the big picture, its the relationship that matters most.

Here's to Good Investing!!

My spouse has no interest in or knowledge in investing. I have left her instructions to call Vanguard and go with their advisory account in the event of my death or becoming incapacitated. They currently charge .03% for that service
which is quite fair.

As for Fross, Baum, and Paraday stay well clear of them, as their super high advisory costs will take most if not all of your potential gains.

Just think about an annuity. You give an insurance company your money and tie it up for ten years. If you want it back before then they charge you a penalty on your money. Any rube can sell you an annuity. And I mean sell you!

As said before this is not rocket science. Take l2ridehd's advice.

[l2ridehd]

Part of the reason for keeping it so very simple and using just a 3 fund portfolio is so your spouse or someone with very limited experience and interest can continue to manage it.

I keep a book called for lack of a better name "my death book" and in there is all the information my wife will need when I go somewhere else. And a couple of pages are about how to manage our investments. I even include what to do if the market drops 10, 20, 30, 40, and 50%. When and how to re-balance. When to get more conservative. And why to manage it this way. What to do if she feels she can't manage it. How to un-freeze the credit reports, living will, when to turn off the machines, what to sell and what to keep. Even have anticipated values for land and other owned assets.

I have even written my own obituary and provided the deeds to our burial plot. Even who to officiate, who to hold the funeral, and have even purchased and installed the headstone. :wave:

[Bonnevie]

The polo matches, wine tastings, dinner dances, drive-in movies, golf get togethers, etc. are all part of networking. All successful companies do it. The question you should be asking is if you ever heard of a Fross and Fross disgruntled client?

yes, me. I did better managing my own.

[KayakerNC]

Dana Anspach;
"It still amazes me that so many people thing a stock broker or investment adviser has some stock-picking prowess, market knowledge, or timing insight that the rest of the world doesn’t have.
Think about it; if you truly had superior skill to time the market or pick stocks, you would trade your own account on a full time basis."

3 Reasons You May Be Focusing on the Wrong Retirement Goal (http://moneyover55.about.com/od/howtoinvest/fl/3-Reasons-You-May-Be-Focusing-on-the-Wrong-Retirement-Goal.htm?utm_source=exp_nl&utm_medium=email&utm_term=list_moneyover55&utm_campaign=list_moneyover55&utm_content=20150730)

[Chi-Town]

yes, me. I did better managing my own.
Bonnevie, good for you. I'm glad it has worked so well. I don't use Fross and Fross myself, but the OP's question concerned advisors in The Villages. I know a number of people who use them and are pleased with their choice.

[rhsgypsylady]

Has anyone used Blackston Financial on 466? What are your thoughts?

[Bonnevie]

Bonnevie, good for you. I'm glad it has worked so well. I don't use Fross and Fross myself, but the OP's question concerned advisors in The Villages. I know a number of people who use them and are pleased with their choice.

I don't entirely do it on my own now. I am using Fidelity which gives me the option of having them manage it for a fee, or to give free advice and I make the trades. I am doing a mix. If I can perform better using index funds then I will take over all my investments.

It wasn't until I went there that I fully discovered the mess that some of money was tied up in that I can not get it out of for years....

[Chi-Town]

I don't entirely do it on my own now. I am using Fidelity which gives me the option of having them manage it for a fee, or to give free advice and I make the trades. I am doing a mix. If I can perform better using index funds then I will take over all my investments.

It wasn't until I went there that I fully discovered the mess that some of money was tied up in that I can not get it out of for years....
Fidelity Freedom Funds which are target date funds are good choices also. I have one in a 401k that I haven't moved into an IRA.

[MoeVonB61]

Been with Fidelity a long time...TRUST them whole heartedly and the "advice" rather than "sales pitch". Nick Langler at Lake Sumter Landing....ALSO, their computer software programs to self analyze your portfolio against stock and bond indexes are OUTSTANDING....they "advise" and you can go home and easily do a reality check with their tools online AND implement yourself for free....LOVE their "NTF" no transaction fee queries.....I left Merill Lynch for them....!!

[kstew43]

Raymond James in Brownwood......so far so good....

[rjm1cc]

We are new in town looking for good advisor who will keep our best interest at heart.

Might consider keeping your old advisor. Use Skype and you can talk face to face.

[manaboutown]

I continue to use the advisors I have used since I was in my twenties and thirties who have done well for me plus myself. IMHO things have worked out very, very well!

[petsetc]

Another resource that I find to be good is Paul Merriman. If you goggle his name, his site will come up. He is a retired financial adviser (his credentials on his site), and he offers opinions and recommendations aimed at DIY. He also has 3 free e-books that might be enlightening to some, they were to me.

Hope this helps.

[Maxman]

There are lots of financial Advisors/ sales representatives in TV that are looking to sell retirees products that they may or may not need. Sometimes these commissions are 5% for A shares and above 10% for some insurance products.

I have mentioned this many times in the TOTV forum. If you hire an advisor, please make sure that they are a low cost, fee only advisor and a fiduciary for you 100% of the time.

Fee based is NOT the same as Fee Only! Please get your advisor to sign the below pledge.

The Pledge Most Advisors Won’t Sign! (http://www.integrityia.com/pledge-most-advisors-wont-sign-fiduciary/)

Sadly, you will find that most of the Advisors mentioned in this thread will NOT sign this pledge. They will give you all sorts of excuses but they won't sign it. For those of you who love your advisors at the local bank, Edward Jones, Morgan Stanley, Wells Fargo, Fross, Parady, Baum and others, please let the forum know if your advisor will be a fiduciary for you 100% of the time and sign the pledge.

Typically when we do a free 2nd opinion for clients above $500k in portfolio value, we find that there are many hidden fees and total investing expenses are much more than clients realize. If you need help, give us a call.

TOTV - Understand how you pay for financial services (https://www.talkofthevillages.com/forums/investment-talk-158/funds-ira-145647/index2.html#post1022528)

PS: For all of the Vanguard "do-it-yourself" fans, I like Vanguard. They are cheap and offer great exposure to market beta. That being said, building a market cap weighted 60/40% bond portfolio may not be your best strategy. Over the last 15 years (2000 to 2014), Vanguard LifeStrategy Moderate 60/40 (VSMGX) has returned 4.88% per year. Vanguard LifeStrategy Conservative 40/60 (VSCGX) has returned 4.94% per year. These returns are much lower than many investors expect. The major problem today is that future expected returns for both stocks and bonds are lower than historical averages. By targeting other asset classes, value companies, small cap companies, companies with high profit, companies with high investment and companies with momentum, you can potentially increase returns. If you want to learn more, check out our Why DFA page (http://www.integrityia.com/why-dimensional-dfa-vs-vanguard/). Watch some of the DFA videos at the bottom of the page.

It is easy to be a good investor in a raging bull market. As of 8/5/15, the SP500 has been up 15.66% per year (5 year compound rate of return). We have also had a 33 year bull market in bonds. The next 5 and 10 years will surprise many investors. A competent, low cost, fee only, fiduciary Advisor can add value to your portfolio. Most people need a coach.

Click here to subscribe to my blog (http://eepurl.com/vrjET)

Good luck,
Todd Moerman
We are a low-cost, fee-only fiduciary for our clients, no commissions
352-205-4377
CLICK HERE FOR WEBSITE ( http://www.integrityia.com/fee-only-the-villages-florida/)

---------------------------------------------------------------------

To my Advisor,

Given the current volatility of stock and bond markets, I wanted to make sure that I understand the foundation of our relationship. I have worked hard for my retirement savings and I want to make sure that my investments are aligned with my best interests and my goals.

Please answer the following:
Are you currently a fiduciary for me 100% of the time?
How do you and your firm get paid for my account? Please list all sources.
What were my total fees for 2014 & 2013 for my accounts? Please break out by Advisor fees, mutual fund expenses, 12b-1 fees, commissions, other fees.
What percent of my portfolio has commission products and 12b-1 fees? Mutual funds with A, B or C shares, UIT’s, closed-end funds, non-traded REITs, insurance?

Will you sign and agree to the following?
• I will be a fiduciary for you 100% of the time.
• I shall always act in good faith and with candor.
• I shall always put the client’s best interest first.
• I shall be proactive in my disclosure of any conflicts of interest that may impact you.
• I will provide to each client full and fair disclosure of all important facts, including full transparency of how we are paid by the client or other financial companies.
• I shall not accept any referral fees or compensation that is contingent upon the purchase or sale of a financial product.
• I shall disclose my advisor fee, any commissions, all operating expenses and any trailing advisor fees or 12b-1 fees.

FIDUCIARY \DEFINITION\: A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets for the benefit of the other person, rather than for his or her own profit. (source: Investopedia.com) \USAGE\: A registered investment advisor, who is held to a “fiduciary standard of care”, looks after the assets of another person on that person’s behalf, is fully transparent, and required to disclose any potential conflicts of interest

_____________________________ Name of Advisor (print)
_____________________________ Signature of Advisor
_____________________________ Date

I looked at the 10 year return on the life strategy moderate growth fund and its somewhat higher then the 15 year at 6.05%. With a 60/40 split this is in line with the DFA fund returns. Todd I think that you are one of the good guys, but for myself I can't see the value in your .6% fee. This would amount to a 10% fee on my returns over the last 10 years. That being said, I do think for someone that needs a personal relationship with an advisor you would be the way to go.

The following post shows the returns from the 3 fund portfolio over at bogleheads. http://www.bogleheads.org/blog/three-fund-portfolio-returns/

[California Sunshine]

Do you believe in the advice, "Follow the Money?" And I don't mean your money, I mean the money the broker is taking from your investment. Sales fees, investment fees, holding fees, commissions, loads, and much more taken from your investment is how the financial advisors can afford fancy offices with large staffs. Maxman (in his first post on this thread) is right on when he says indexed funds out perform 80% of managed funds. Get into Vanguard index funds and let the investment returns stay in your portfolio instead of funding the financial planners extravagant lifestyle.

[rubicon]

I had completed studies to be a financial advisor and as demonstrated here in this thread and the wide and varying opinions and the uncertain variables I decided against it. I do believe in long holding periods. I do believe in low fees. I do believe in diversification. I do believe in rebalancing. I do believe in exploring tax strategies. I do believe in structuring ladders. I do believe in continued investment savings and so we continue to save and invest

the FED scares the bejesus out of me and angers me because a decent interest return is important to seniors. What they and global leaders have wrought with all the QE is up for debate but in my mind has done more harm than good. The why the topic for another thread.

[tcxr750]

Regarding the perception of the performance of VSMGX and VSCGX relative to a diversified portfolio managed by an advisor with a 1% management fee.
Let's say you have a $1,000,000 portfolio (good luck) and take out 4% per year. You get $40,000 per year and your advisor gets $10,000 per year. In other words 20% of your annual withdrawals are not going to you. 10 years of advice = $100K.
I've been retired 10 years and can safely say that my advisors (see Barron's top 100 list) have allowed my account value to incur 20% losses during the Great Recession. The good news is that if you live long enough and don't make withdrawals eventually your portfolio will recover to it's original value. Unless of course your in the RMD phase. Enjoy!

[rjm1cc]

Regarding the perception of the performance of VSMGX and VSCGX relative to a diversified portfolio managed by an advisor with a 1% management fee.
Let's say you have a $1,000,000 portfolio (good luck) and take out 4% per year. You get $40,000 per year and your advisor gets $10,000 per year. In other words 20% of your annual withdrawals are not going to you. 10 years of advice = $100K.
I've been retired 10 years and can safely say that my advisors (see Barron's top 100 list) have allowed my account value to incur 20% losses during the Great Recession. The good news is that if you live long enough and don't make withdrawals eventually your portfolio will recover to it's original value. Unless of course your in the RMD phase. Enjoy!

Yes the fee is 25% of your "income".
Maybe the fee should be based the performance of the account.

[KayakerNC]

Yes the fee is 25% of your "income".
Maybe the fee should be based the performance of the account.

Actually the fee does vary with performance.
If the account value goes up..the fee goes up.
If the account goes down...so does the fee.

[l2ridehd]

Yes the fee paid an advisor goes up and down based on a % of your portfolio when your total value goes up and down. And this is exactly why most advisors try to sell you "things" you shouldn't buy so they get high commissions. And why they put you in investments that have higher risks then you should be taking so the potential returns may be higher. Think of it like this. You could put all your money in 20 different banks using CD ladders and have almost zero risk. You would also have VERY low returns. So you take 20% of your money and put it in stocks to improve your return.

You have also just increased your risk. And so you take 80% and put it in stocks and your risk goes much higher. Then you decide to put that 80% all in twitter stock and your risk of failure is now through the roof. You may get lucky and get a very high return, but your risk is still extremely high. So how do you balance risk and return? You set an asset allocation that you are comfortable with and then make sure your fixed income and your stock portion are both highly diversified. You have lots of different bonds and stocks. So if one should fail your returns have limited impact.

Lower your risk by having many different stocks and bonds by using index funds. Total stock market, total bond market and total international stock and bond funds accomplish that objective. Then get your expenses as low as possible so you keep a very high % of your returns. You can use a tool from Morningstar called Portfolio Xray to determine your total expenses. Mine are .011% for everything. That is for every $1000 invested, I pay $1.10 a year. All in mutual fund expense ratios. If your paying 1.5% a year then your paying $15.00 for every $1000 invested. Over time that adds up to very expensive advice. If you have a 1 million dollar portfolio you would pay just in advisor fees $15000 plus your also paying the expense ratios and loads for what ever investments your in. In this example I would pay $1100.00 a year. That means I would have a minimum of $15000 savings to invest even if the advisor also used very low cost funds. Most don't. Over ten years that's a huge advantage of $150,000 to re-invest. And I can almost guarantee that my downside risk is significantly lower.

[itnetpro]

One Word, VANGUARD they are the most reputable in my opinion. If you want to do it yourself go with their low cost targeted funds. If you feel more comfortable using an advisor they also offer that service. If I recall its .03% is the advisor fee. You will be assigned a personal advisor if your assets exceed 500k. I]

Me personally, I have been moving my personal portfolio from Fidelity to a Targeted Mutual Fund VanGuard account. I don't really think we need more then that at the moment.

My instructions to my wife are simple. If I die, since our holdings far exceed the $500K mark. I instructed her to contact Vanguard and have them manage her portfolio. She has no interested learning how to invest and I feel very confident in their ability to manage her assets in the event of my death.

John

[larcha]

The NYT has posted several articles on "Robo" investing. It a new trend where computer programs are used to help select and re-balance portfolios. Vanguard has a new service that's listed. One of these might be worth a look if you choose not to go it alone or hire an investment advisor. The internet based reporting provided by these services is usually excellent for tracking your investments. Please see the attached file and also "Financial Advice for People Who Aren’t Rich", [http://www.nytimes.com/2014/04/12/your-money/start-ups-offer-financial-advice-to-people-who-arent-rich.html].

[Maxman]

One Word, VANGUARD they are the most reputable in my opinion. If you want to do it yourself go with their low cost targeted funds. If you feel more comfortable using an advisor they also offer that service. If I recall its .03% is the advisor fee. You will be assigned a personal advisor if your assets exceed 500k. I]

Me personally, I have been moving my personal portfolio from Fidelity to a Targeted Mutual Fund VanGuard account. I don't really think we need more then that at the moment.

My instructions to my wife are simple. If I die, since our holdings far exceed the $500K mark. I instructed her to contact Vanguard and have them manage her portfolio. She has no interested learning how to invest and I feel very confident in their ability to manage her assets in the event of my death.

John

John agree on Vanguard but I want to point out a slight mistake. Vanguard charges .3% on its advisory services not .03%. Still this is a very low cost advisory service.

Jeff

[itnetpro]

John agree on Vanguard but I want to point out a slight mistake. Vanguard charges .3% on its advisory services not .03%. Still this is a very low cost advisory service.

Jeff

I just put too many zeros. All I remember is its a 3rd of a percent and thats pretty much the cheapest around. They basically are going to put you into their index funds. Depending on your tolerance for risk will dictate the mix of funds they will suggest.

But for most investors thats good enough.

We saved a lot over our lifetime so we are fortunate enough where we don't need to take much risk to stretch our assets to 100. If I can earn around 3% every year thats more then enough for us to live good.

Yea I know inflation will erode our assets at 3% but the math works...

John

[CassieInVa]

John, same boat here.... as long as we can keep up with inflation, we should be good. Don't have the stomach for too much risk. Vanguard indexes and other fixed price investments work. Stopped using financial advisors years ago due to fees.

[outlaw]

Yes the fee paid an advisor goes up and down based on a % of your portfolio when your total value goes up and down. And this is exactly why most advisors try to sell you "things" you shouldn't buy so they get high commissions. And why they put you in investments that have higher risks then you should be taking so the potential returns may be higher. Think of it like this. You could put all your money in 20 different banks using CD ladders and have almost zero risk. You would also have VERY low returns. So you take 20% of your money and put it in stocks to improve your return.

You have also just increased your risk. And so you take 80% and put it in stocks and your risk goes much higher. Then you decide to put that 80% all in twitter stock and your risk of failure is now through the roof. You may get lucky and get a very high return, but your risk is still extremely high. So how do you balance risk and return? You set an asset allocation that you are comfortable with and then make sure your fixed income and your stock portion are both highly diversified. You have lots of different bonds and stocks. So if one should fail your returns have limited impact.

Lower your risk by having many different stocks and bonds by using index funds. Total stock market, total bond market and total international stock and bond funds accomplish that objective. Then get your expenses as low as possible so you keep a very high % of your returns. You can use a tool from Morningstar called Portfolio Xray to determine your total expenses. Mine are .011% for everything. That is for every $1000 invested, I pay $1.10 a year. All in mutual fund expense ratios. If your paying 1.5% a year then your paying $15.00 for every $1000 invested. Over time that adds up to very expensive advice. If you have a 1 million dollar portfolio you would pay just in advisor fees $15000 plus your also paying the expense ratios and loads for what ever investments your in. In this example I would pay $1100.00 a year. That means I would have a minimum of $15000 savings to invest even if the advisor also used very low cost funds. Most don't. Over ten years that's a huge advantage of $150,000 to re-invest. And I can almost guarantee that my downside risk is significantly lower.

There are some interesting analyses, I think I read in John Bogle's first? book (Vanguard founder), that shows you can actually DECREASE an all bond portfolio risk while increasing returns, by including 10 or 20% equities. An interesting read.

[l2ridehd]

You're probably right "outlaw" I was just trying to show an example of the way folks should be thinking about stocks and bonds. There was also a recent article on lazy portfolio's that showed how very simple it was to manage your own with low risk and decent returns. I like Bernsteins or Yale University and their are billions invested that way. Last I read, Yales endowment fund was something like 15.9 billion? And they use a very simple low risk way to manage it for the past 50 years.

The very most important thing people miss when deciding to go with any advisor is that higher returns ALWAYS equals higher risk. And it's not their money they are going to lose, it's yours.

[outlaw]

You're probably right "outlaw" I was just trying to show an example of the way folks should be thinking about stocks and bonds. There was also a recent article on lazy portfolio's that showed how very simple it was to manage your own with low risk and decent returns. I like Bernsteins or Yale University and their are billions invested that way. Last I read, Yales endowment fund was something like 15.9 billion? And they use a very simple low risk way to manage it for the past 50 years.

The very most important thing people miss when deciding to go with any advisor is that higher returns ALWAYS equals higher risk. And it's not their money they are going to lose, it's yours.

Yes. I agree with you regarding simplicity. I still don't know why people don't just buy Vanguard target retirement funds based on risk tolerance, which V also offers on their website. I think if people took their risk tolerance survey, they would invest much more conservatively. the target retirement funds do all the rebalancing for you, daily I think, via the underlying index funds. there is no additional fees other than the extremely low fees associated with the individual funds. So simple; so cheap. V is the only company that is owned by the owners of the fund shares, which are the investors/customers/us. There is no other Vanguard "company" that must show a profit for their "company" shareholders, as in all other mutual fund companies, as far as I know. There are no brick and mortar branch offices with overheads. There is minimal marketing expenses. It truly is about the only game in town that has these characteristics.

[tcxr750]

I'm agreeing with the comments on Vanguard. I have four model portfolios that I've followed over the past year. Two were based on my experience with two different advisors (one on Barron's top 100 list for several years). The other two based on vanguard recommendations using their portfolio modeling on the website. Best YTD one of the Vanguard model portfolios. Worst the advisor on Barron's top 100 list.
Past performance is no indication of future results.
Another thing to consider. If your advisor has a 1% management fee for your 500K portfolio and you withdraw 4% per year. You get 20K and he gets 5K. In other words 20% of the $$$ coming out each year goes to your advisor. Not counting other fees and commissions.