Bank financial planner or independent financial planner, which one?

[Debfrommaine]

Any thoughts on using your bank investment firm or would you use an independent firm i.e. Fidelity, etc. for your financial advisor?

Thanks for your feedback.

[Stu from NYC]

Prefer to deal with someone who does not earn a commission buying and selling just selling you advise with no ax to grind.

[retiredguy123]

I would definitely not use a bank as a financial advisor. If you really need someone to advise you on investments, I would would hire a "fee only" financial planner, who is a fiducuary, and states it in writing. Fidelity Investments and Vanguard Investments are two excellent companies to deal with. And, whatever you do, DO NOT let someone talk you into transferring your money into an annuity. If you contact a commission based advisor, that is the first thing they will recommend to you, because it will make them a huge commission.

[Art cov]

In my opinion. Stay clear of banks!

[Boomer]

I would not use a bank.

The reason?

I don’t know if this is how it is in TV, but I know that there are banks in the city I’m from where tellers are instructed to pay special attention to customers who maintain large balances in their checking accounts. (They are told to be especially aware of older customers who can sometimes tend to keep larger balances.)

Then — as part of their “customer service” — the teller is supposed to suggest an introduction to the bank’s investment advisor. (I am pretty sure there are incentives for tellers who make these connections.)

How do I know this?

I know two people who have been tellers, one is a friend who retired from a tech career with a big company but wanted to work part time. She got a job at a branch of the biggest bank in the city.

She said the tellers were constantly pressured to sell, sell, sell — might be just a credit card, but even better, getting money into the hands of the bank’s investment department.

She would not do it. But she did not need the job so she was immune to pressure. She was also very good at being a teller so the boss left her alone.

The other story made my skin crawl. This one was from a woman who had worked as a teller in a downtown bank. She had been there for a long time, and knew many of her customers who had been coming to her window for years. I remember she said her customers were among the richest and the poorest in the city. She loved her job because she liked interacting with people and the day went by fast.

Then the bank was sold and Cruella DeVil was the new manager. The pressure was on to grab those big accounts for the bank.

One older lady had an especially large balance and the teller was told to reel it in.

The teller had known the woman as a customer for a long time. She said to the boss, “I can’t do that. I am afraid she is slipping into dementia.”

To which the boss replied, “So much the better.”

The teller quit.

The banks I am talking about are not in TV. But the stories I am telling you are the reason why I would never put investments in the hands of a bank. Whatever they are selling has to be super high commission to cause that kind of pressure on tellers.

I bank only with community banks, but I do not invest with them either. I have an aversion to big banks because of the stories I just told you. (I guess online banking has cut down on the in-person opportunities for “customer service.”)

Fidelity or Vanguard can help, as can others like them. You can arrange to talk with someone and see if you click. If you are rolling money from a 401(k) or a 403(b) into an IRA, they can help you do that so you don’t cause a tax consequence. They should also help you evaluate your risk tolerance. With companies like this, you also have the option to manage your own accounts.

(Oh my, you asked for the time, and I built you a clock. I must feel like typing tonight.)

Anyway, take your time and find your comfort zone.

Boomer

[dewilson58]

They all need to make money......fee based or buy/sell.
The fiduciary paper DOES NOT guarantee best interest.
Depending on your balance & your knowledge & your willingness to learn.......FA probably has no value.
All the information you need on investing & modeling is available without a FA.

But if you must......Understand Fees.

[Debfrommaine]

I really appreciate the feedback. It's a lot to figure out when I have no expertise in this area. I am trying to learn but need guidance to go in the right direction.

[MickeyStevens]

And, whatever you do, DO NOT let someone talk you into transferring your money into an annuity. If you contact a commission based advisor, that is the first thing they will recommend to you, because it will make them a huge commission.

Interesting, we put money into 3 annuities quite a few years ago, we now enjoy a steady stream of income each month from them.

[valuemkt]

I really appreciate the feedback. It's a lot to figure out when I have no expertise in this area. I am trying to learn but need guidance to go in the right direction.

Please be very careful and don;t rush into anything.

No on banks. That's pretty much universal.

Finding a fee only financial planner is good advice, but might be more difficult than it sounds.

I am not a fan of annuities. Opinions differ. I just read a book by a retirement expert that explained annuities and how they are constructed - it did not change my opinion one bit -

Going to Fidelity or Vanguard is good advice. Their products do not carry what is known as a front end load, which in many cases is over 5%. I have some money in Fidelity - they do not manage my account, but the local support I receive from them has been phenomenal.

Without reaching too far, it appears you may be single, or recently single. In addition to a financial plan, or part of it, you need to shield your money from any upcoming "relationships" you might get into. That would be an estate planner. There are plenty of them here as well. Do a search for Amy Pittman to get an idea of what services they provide.

Advice to do it yourself is ill advised. If by now you have not developed expertise or confidence in this arena, you definitely need help to construct a plan to grow and protect your assets.

God Luck

[petsetc]

My obligatory canned reponse...

In addition to all this good advice, take time to read Paul Merriman’s 3 free ebooks.
1. First-Time Investor
2. 101 Investment Decisions
3. Get Smart or Get Screwed (this is a MUST read)

Found at paulmerriman.com

[retiredguy123]

Interesting, we put money into 3 annuities quite a few years ago, we now enjoy a steady stream of income each month from them.
Many people don't know that a variable annuity is a life insurance policy. It is a contract, not a typical investment. In rare cases, an annuity can be an acceptable product. But, typically, a person who sells a variable annuity will receive an upfront commission of about 10 percent of the amount invested. So, if a client buys an annuity for $100K, the salesperson will get a windfall bonus of $10,000. That is why many annuities are sold to people who should not be buying them. The insurance companies are happy to pay these large commissions because they know that they will recover the money with the annual built-in management fees for the annuity contract itself, and also the management fees for the underlying investments that are made on behalf of the client as part of the annuity contract. Also, the annuity contract will have a "surrender charge" if the client wants to terminate the contract early, usually within 7 to 10 years after signing it. This is a penalty for early termination that many people end up paying. So, annuities are often pushed by salespeople just to get a commission, and not to assist the client with appropriate investments.

Annuity contracts are very lengthy and complicated, and the salesperson will not even let you read the contract until you have already paid for it. Last year, a friend asked me for advice on a specific annuity, so I called the insurance company and asked for a copy of the contract. The person I spoke to refused to provide it, got extremely angry, and hung up on me. I would not advise anyone to sign a contract that you cannot review before signing.

[Boomer]

Please be very careful and don;t rush into anything.

No on banks. That's pretty much universal.

Finding a fee only financial planner is good advice, but might be more difficult than it sounds.

I am not a fan of annuities. Opinions differ. I just read a book by a retirement expert that explained annuities and how they are constructed - it did not change my opinion one bit -

Going to Fidelity or Vanguard is good advice. Their products do not carry what is known as a front end load, which in many cases is over 5%. I have some money in Fidelity - they do not manage my account, but the local support I receive from them has been phenomenal.

Without reaching too far, it appears you may be single, or recently single. In addition to a financial plan, or part of it, you need to shield your money from any upcoming "relationships" you might get into. That would be an estate planner. There are plenty of them here as well. Do a search for Amy Pittman to get an idea of what services they provide.

Advice to do it yourself is ill advised. If by now you have not developed expertise or confidence in this arena, you definitely need help to construct a plan to grow and protect your assets.

God Luck


Debfrommaine,

The advice from valuemkt that I am quoting here is excellent.

Everything he has said is in your best interests.

You might want to call Fidelity and see if you can get an appointment to talk with someone in person. That would be a start.

If the money is sitting in the bank right now, don't feel like you have to make a decision right away. Leave it there, even though it is not making any interest, until you know how you want to handle investment possibilities. I strongly believe in maintaining a moat of cash around stock investments. We are never going to see the return on CDs that our parents got -- or even the 5% that some of us got several years ago. But sitting on some cash is never a mistake.

Please give consideration to every point valuemkt made in his post. (I don’t know Amy Pittman, but I especially like that valuemkt said to protect your assets -- and your privacy.)

Boomer

[Boomer]

I don't know why my last post showed up twice. The server seems to have gone haywire this morning.

[Stu from NYC]

Annuities are great, especially for the salesman selling them.

Old saying is annuities are never purchased they are sold.

[dewilson58]

Interesting, we put money into 3 annuities quite a few years ago, we now enjoy a steady stream of income each month from them.
The same thing can be said by putting your money in a checking account, or in your mattress............but at least with these options, no fees.


:ohdear:

[retiredguy123]

They all need to make money......fee based or buy/sell.
The fiduciary paper DOES NOT guarantee best interest.
Depending on your balance & your knowledge & your willingness to learn.......FA probably has no value.
All the information you need on investing & modeling is available without a FA.

But if you must......Understand Fees.
I agree that using a fiduciary doesn't guarantee good advice. But the financial industry is fighting tooth and nail against laws that require their advisors to be fiduciaries.

[STLRAY]

Avoid annuities and anyone pushing them. They are not looking out for you. Also do a “broker check” on them. Google it.

[Stu from NYC]

Unfortunately most people will not devote the time and effort to understand how to take care of their money and rely upon others sometimes with devastating effect.

[PugMom]

I would definitely not use a bank as a financial advisor. If you really need someone to advise you on investments, I would would hire a "fee only" financial planner, who is a fiducuary, and states it in writing. Fidelity Investments and Vanguard Investments are two excellent companies to deal with. And, whatever you do, DO NOT let someone talk you into transferring your money into an annuity. If you contact a commission based advisor, that is the first thing they will recommend to you, because it will make them a huge commission.

we use Fidelity, & are VERY pleased :MOJE_whot:

[manaboutown]

I would not use a bank.

The reason?

I don’t know if this is how it is in TV, but I know that there are banks in the city I’m from where tellers are instructed to pay special attention to customers who maintain large balances in their checking accounts. (They are told to be especially aware of older customers who can sometimes tend to keep larger balances.)

Then — as part of their “customer service” — the teller is supposed to suggest an introduction to the bank’s investment advisor. (I am pretty sure there are incentives for tellers who make these connections.)

How do I know this?

I know two people who have been tellers, one is a friend who retired from a tech career with a big company but wanted to work part time. She got a job at a branch of the biggest bank in the city.

She said the tellers were constantly pressured to sell, sell, sell — might be just a credit card, but even better, getting money into the hands of the bank’s investment department.

She would not do it. But she did not need the job so she was immune to pressure. She was also very good at being a teller so the boss left her alone.

The other story made my skin crawl. This one was from a woman who had worked as a teller in a downtown bank. She had been there for a long time, and knew many of her customers who had been coming to her window for years. I remember she said her customers were among the richest and the poorest in the city. She loved her job because she liked interacting with people and the day went by fast.

Then the bank was sold and Cruella DeVil was the new manager. The pressure was on to grab those big accounts for the bank.

One older lady had an especially large balance and the teller was told to reel it in.

The teller had known the woman as a customer for a long time. She said to the boss, “I can’t do that. I am afraid she is slipping into dementia.”

To which the boss replied, “So much the better.”

The teller quit.

The banks I am talking about are not in TV. But the stories I am telling you are the reason why I would never put investments in the hands of a bank. Whatever they are selling has to be super high commission to cause that kind of pressure on tellers.

I bank only with community banks, but I do not invest with them either. I have an aversion to big banks because of the stories I just told you. (I guess online banking has cut down on the in-person opportunities for “customer service.”)

Fidelity or Vanguard can help, as can others like them. You can arrange to talk with someone and see if you click. If you are rolling money from a 401(k) or a 403(b) into an IRA, they can help you do that so you don’t cause a tax consequence. They should also help you evaluate your risk tolerance. With companies like this, you also have the option to manage your own accounts.

(Oh my, you asked for the time, and I built you a clock. I must feel like typing tonight.)

Anyway, take your time and find your comfort zone.

Boomer

Beware of bank trust departments as well. I have heard of good solid stocks being sold and the proceeds "invested" in the bank's CDs.

[CoachKandSportsguy]

I am going to say that a Fidelity CFP is not a fiduciary but has a commission of assets under management. Now this is from long time fidelity managers who have left fidelity and i have worked with at my current employer(more than one). One of them was a colleague in my finance department and told me of inside stories within fidelity as well as his financial advisor from Fidelity and his response to certain questions. I have also seen some of Fidelity's AI recommendations, and I don't necessarily agree with 100% stocks for a new retiree.

Therefore, I would 100% recommend an independent fee only advisor, who actually will give you an excel model and provide different ETFs or mutual funds with expected capital gains returns and income returns. I want to take the CFP exam prior to relocating so that I can legally provide recommendations along with a model for you to manage your expected incomes, taxes, etc. as income and taxes etc can be a huge mystery for certain personality types.

finance sportsguy

[MickeyStevens]

The same thing can be said by putting your money in a checking account, or in your mattress............but at least with these options, no fees.


:ohdear:

And eventually the money in your mattress will run out. We'll have an unlimited stream until both my wife and I are dead. We have no children or siblings so it won't really matter what happens after.

[MickeyStevens]

we use Fidelity, & are VERY pleased :MOJE_whot:

Although we don't use Fidelity we use another national company and have for 25 years. We were able to retire earlier than we would have had we not had them manage our money.

[manaboutown]

Whatever you do, please do not get conned into a reverse mortgage by our local high pressure salesman!

[La lamy]

I got screwed so bad the first time I let an advisor deal with my investments. Lost a third of my savings. I decided to educate myself and do my own investing. Ignorance is not bliss when it comes to letting people use your money for their own greed or carelessness.

[dewilson58]

And eventually the money in your mattress will run out. We'll have an unlimited stream until both my wife and I are dead. We have no children or siblings so it won't really matter what happens after.
At an extremely low ROI rate.............same as mattress or savings accounts.


Unlimited?????.........:1rotfl:...........request your monthly payment to double, see how unlimited your stream is.

[l2ridehd]

There are several things in all these replies that may or may not be good advise. I will list what I would advise and I have been doing my own and helping others for a long time.

NO to annuities. They tie up your money, significantly increase your risk and reward the person selling it to you with your money.
Estate planning is good advise and I use Amy Pittman. She is very good.
NO to banks. Commissions are high, products are expensive and returns are usually lower then available.

I would contact Vanguard, Fidelity, and Schwab and ask them for a basic investment plan. Make them explain all costs and fees. Using any of those 3 will give you a low cost investment plan. Personally I use Vanguard and my total investment fee’s run about 1/10th of a % a year. Most advisors will charge you 1.5% or more each year plus trading costs. Index funds are your friend. Cost is low, risk is low and returns will typically beat the market. But talk to all 3 and make a decision who you are most comfortable with. Make them explain costs, risks, and expected returns. All 3 have very low cost low risk index funds that can be used to build a very diversified plan.

PM me if you have any questions and I will help you any way I can. I have managed my own for over 35 years and have been very happy with my returns.

[airdale2]

I would definitely not use a bank as a financial advisor. If you really need someone to advise you on investments, I would would hire a "fee only" financial planner, who is a fiducuary, and states it in writing. Fidelity Investments and Vanguard Investments are two excellent companies to deal with. And, whatever you do, DO NOT let someone talk you into transferring your money into an annuity. If you contact a commission based advisor, that is the first thing they will recommend to you, because it will make them a huge commission.
AND their free chicken dinners !

[SacDQ]

Check out Creative Planning they are also a fiduciary investment company with a great business model. We also used them to set up our Revocable Trust.

[richs631]

They all need to make money......fee based or buy/sell.
The fiduciary paper DOES NOT guarantee best interest.
Depending on your balance & your knowledge & your willingness to learn.......FA probably has no value.
All the information you need on investing & modeling is available without a FA.

But if you must......Understand Fees.

You hit the nail on it’s head. Your knowledge and willingness to learn

[SusanStCatherine]

Independent for sure!

Do not trust financial advice from a bank.

A certified fee-only fiduciary is the best person to hire for financial advice.

[DAVES]

Any thoughts on using your bank investment firm or would you use an independent firm i.e. Fidelity, etc. for your financial advisor?

Thanks for your feedback.

Actually, an impossible to answer question. We do not know you. Your finances. Your personality.

My view, I self manage my investments. Personality, I would not trust anyone else to do it. Were I to, and do it properly, it would be as much work as it is now. Hum, why did you do that? Was your goal to earn more commissions or to benefit me. Reality, no one works for free. Perhaps, that is not true. I do not pay myself anything for managing my money.

You can if, you wish find people to manage your money and for some it can be a good idea. People often do not understand. If you hire a manager you will pay them. They will put you into funds, ETFs etc. You will also pay the fund,ETF fees so you are paying twice.

Places like Fidelity and many others offer retirement date funds. You can easily compare results to the others-return, risk, fees etc. Perhaps, not true for many of us but, if you are willing to accept more risk for more return, it is you who puts in your retirement date. You do not need to put everything into the fund that says you will retire in 2025. You can put some in a fund that says you will retire in 2050 and except more risk in the hope of getting a higher return.

There is no shortage of brokerages. The biggest are Vanguard, Fidelity and T Rowe Price. Perhaps, I've missed some. Vanguard far as I know has no offices. If, you need advice it is mon to fri 9-5. T. Rowe has closed most if not all of their offices. Phone is also normal business hours. Fidelity has an office in Lake Sumter Landing. You can call
24 hours a day seven days a week and find someone qualified to help you. Sometimes
the person will tell you you need to call back, normal business hours and speak to.........
I do not go there often, but, complicated matters forms etc it is great to know you can get face to face help. I like their reports, perhaps because I am just used to them.
I regularly laugh that their reports keep me honest with myself. You made xx% this year
as opposed to as many of us do. I made 25% on xyz. OOPs I forgot that I lost 50% on zyx

[Jean G]

I’ve been very unhappy with my Fidelity representative. All I get are recommendations for assistance that is the highest commission for them. I have now hired a private individual that I am extremely happy with. He also does a first consultation for no fee. In the villages there are many people who are retired from the same profession who offer a great service for less money.

[Villagesgal]

The Villages has investment clubs where you can learn how to handle your own investments, join one or two. Stay away from banks, or if you have to make sure you speak with a licensed person, some have no securities or investment licenses. A local bank here trained a young teller to sell investment advice, no schooling or licenses. Why would you take advice from someone who is only trained to sell investments that make the bank money? I taught myself and am doing amazingly well, join a club, read every book you can about investing, watch videos on Vanguard.com, Fidelity.com and Transamerica.com. Financial advisors for the most part make their money from commissions they get by selling you products, not by following their own investment advice. You can do this yourself, just take the time to learn how. Good luck.

[WindyCityzen]

FEE FOR SERVICE ONLY. Look
At the website of the National Assn of Independent Personal Financial Planners.

[stevesliders]

Any thoughts on using your bank investment firm or would you use an independent firm i.e. Fidelity, etc. for your financial advisor?

Thanks for your feedback.

Royal fund management, Kelley Pyles, CFP

352 750-1637

[retiredguy123]

The problem is that anyone can call themselves a financial advisor. And, the people who need advice the most are the least able to tell the difference between a good advisor and one who only cares about making commissions. Learn as much as you can and buyer beware.

[cfhelz45]

Interesting, we put money into 3 annuities quite a few years ago, we now enjoy a steady stream of income each month from them.
I would use a firm like Wells Fargo Advisors. I would not use a bank.

[bp243]

Any thoughts on using your bank investment firm or would you use an independent firm i.e. Fidelity, etc. for your financial advisor?

Thanks for your feedback.

Whomever you choose, check their certification. A Certified Financial Planner (CFP) has the most rigorous certification to do your entire financial planning.

[Carla B]

I’ve been very unhappy with my Fidelity representative. All I get are recommendations for assistance that is the highest commission for them. I have now hired a private individual that I am extremely happy with. He also does a first consultation for no fee. In the villages there are many people who are retired from the same profession who offer a great service for less money.

Fidelity likes to promote their actively-managed funds.

[Debfrommaine]

Fidelity likes to promote their actively-managed funds.

What are these?

[Boomer]

. . .

[davem4616]

For decades my "financial advisor" was the investment option that I chose in the company's 401K plan, and I never gave it another thought....although I did belong to a stock club.

After seeing many folks in variety careers reinvent themselves and become an 'Investment Advisor' after they were laid off by taking a 30 day brokerage house training program I have become very cautious about people peddling stocks and bonds...doesn't matter which firm they represent. I only go with folks that have taken the time to become certified either as a CFA or a CFP....at least that gives me the sense that they are truly committed to investing in themselves vs. being a '30 day wonder' being told what positions the firm feels it's overweight in and should suggest to clients as an attractive buy opportunity

We have accounts with Fidelity and with Schwab (I left three others)...they provide decent advice, but you need to do your own homework....we've had them manage huge parts of our portfolio and we've self-directed it. I've always sensed that they where good on knowing when to sell (because their program algorithms knew when the market was tanking across the board) but just average on what to buy...their statement 'past performance is no indication of future results' has always felt like a CYA statement that held them blameless....like the weather forecast people explaining why they didn't get it right

I have a handful of stocks that I've really liked over the years, solid companies, with strong leadership and significant players in the market that they are in

I'm pretty much self-directed now

I can't overstate the joy comes from having an UTMA account with young grandson that is anxious to learn about investing....and he's come up with some selections that have yielded 20+% gains

Years ago I attended many 'free lunches' put on by 'investment people' that really were only interested in increasing the size of the money they managed, not the individual people....(well that was my sense anyway)....what was sad was the amount of old folks in those rooms hoping the guy had some kind of magic wand.

IMHO, I don't believe that annuities should be something that everyone immediately dismisses....yes there's a nice frontend payment for the seller. We got into a couple of deferred annuities after the 2008 crash because the wife wanted guarantees....earned 7% while the money was sitting there waiting for us to start taking it. no matter how flat the pancake is, there's always two sides to it

nothing beats the power of time and money....so educate your grandkids and reinforce that Bulls and Bears make money, but pigs generally lose

[rmd2]

I used to be in the stock market. Nothing exotic - just mutual fund stocks. Lost a LOT of money about 10 years ago. Now I just have CDs. I just had one 6% CD last year mature and a 5% CD this that matured. I still have 3% and 4% CDs. Two years ago the rates for CDs were 3.8%. Now they at .5% so there is nothing out there now but I still like CDs. When there is a good rate I lock them in for 5 to10 years. You can always take the dividends out at ANY time with no penalty. Anyone else involved in your money will have their hands in the till and you still won't be protected from loss. Absolutely don't get an annuity.

[rjm1cc]

My gut feeling is do not use a bank. My assumption is that the costs will be higher and the advice more aimed at the banks benefit than yours. I have talked to a few advisors. The one recommended by the bank teller, and had an office in the bank, was a very nice individual but had no professional certifications and did not seem to have a good grasp of the planning process. Don't even know if he knew the projected return on the investments he would recommend or the tax costs of his plan. I think he was basically a salesman. Had several meeting and his advice was the poorest of all the advisors I meet with. I think I have a good idea of what a planner should be able to do and it was not the banks planner. I also looked at the organization he was employed by and did not see any benefit to using the organization.

[Carla B]

What are these?

Here is a good explanation:
Actively Managed Funds vs. Passive Investing (https://www.thebalance.com/actively-managed-investing-vs-index-funds-2388517)

[jjombrello]

I would recommend independent and also recommend you talk to Cebert Wealth on 466. Excellent firm and very client oriented. Have done wonders for us.

[Bob45]

Going to Fidelity or Vanguard is good advice.

I've not heard ant comments on Ameriprise. Any advice would be welcomed.
Thanks, Bob

[dewilson58]

I would use a firm like Wells Fargo Advisors. I would not use a bank.
WFA is good.
Various relationship options.

[manaboutown]

I've not heard ant comments on Ameriprise. Any advice would be welcomed.
Thanks, Bob

I have used Ameriprise since the early 1970s when it was Olde Discount and am very happy with it for many reasons.

Having had a problem with Fidelity in the late 1960s I dropped it. I also use Vanguard and Schwab and am happy with both of them.

[Robin Hardwick]

We have used several but have had the best luck and made the most money with Creative Planning. They give incredible personalized investment service and guide with information that is clear and fully directed with us in mind. We use Andy Gryszowka @ 913-303-4454. Good luck!

[Bridget Staunton]

Stay away from Banks or Edward Jones. Prefer Schwab and if necessary Fidelity. My Financial Planner is in IL been with him for many many years. Turned everything over to him after I lost my stockbroker hubby. I would not go with anyone in FL

[dewilson58]

. I would not go with anyone in FL
Wow, not one good advisor in the whole state. :shocked:

[manaboutown]

Wow, not one good advisor in the whole state. :shocked:

Not since Bernie got put away. Florida's Palm Beach Rocked By Madoff Scandal : NPR (https://www.npr.org/templates/story/story.php?storyId=98317793)

[DAVES]

I would not use a bank.

The reason?

I don’t know if this is how it is in TV, but I know that there are banks in the city I’m from where tellers are instructed to pay special attention to customers who maintain large balances in their checking accounts. (They are told to be especially aware of older customers who can sometimes tend to keep larger balances.)

Then — as part of their “customer service” — the teller is supposed to suggest an introduction to the bank’s investment advisor. (I am pretty sure there are incentives for tellers who make these connections.)

How do I know this?

I know two people who have been tellers, one is a friend who retired from a tech career with a big company but wanted to work part time. She got a job at a branch of the biggest bank in the city.

She said the tellers were constantly pressured to sell, sell, sell — might be just a credit card, but even better, getting money into the hands of the bank’s investment department.

She would not do it. But she did not need the job so she was immune to pressure. She was also very good at being a teller so the boss left her alone.

The other story made my skin crawl. This one was from a woman who had worked as a teller in a downtown bank. She had been there for a long time, and knew many of her customers who had been coming to her window for years. I remember she said her customers were among the richest and the poorest in the city. She loved her job because she liked interacting with people and the day went by fast.

Then the bank was sold and Cruella DeVil was the new manager. The pressure was on to grab those big accounts for the bank.

One older lady had an especially large balance and the teller was told to reel it in.

The teller had known the woman as a customer for a long time. She said to the boss, “I can’t do that. I am afraid she is slipping into dementia.”

To which the boss replied, “So much the better.”

The teller quit.

The banks I am talking about are not in TV. But the stories I am telling you are the reason why I would never put investments in the hands of a bank. Whatever they are selling has to be super high commission to cause that kind of pressure on tellers.

I bank only with community banks, but I do not invest with them either. I have an aversion to big banks because of the stories I just told you. (I guess online banking has cut down on the in-person opportunities for “customer service.”)

Fidelity or Vanguard can help, as can others like them. You can arrange to talk with someone and see if you click. If you are rolling money from a 401(k) or a 403(b) into an IRA, they can help you do that so you don’t cause a tax consequence. They should also help you evaluate your risk tolerance. With companies like this, you also have the option to manage your own accounts.

(Oh my, you asked for the time, and I built you a clock. I must feel like typing tonight.)

Anyway, take your time and find your comfort zone.

Boomer

As to asked for the time and built a clock. Sadly many of the issues posted cannot be answered in one line and many try to do that.

Conflict of interest is sadly common. A family member was my accountant. A definite mistake. He started selling securities. Apparently legal. To me it is a conflict of interest. I bought a tax free bond from or through him. I discovered that I could have bought the same bond at the same time and paid less for it-raising my return. Reminder, family, reminder I paid him to be my accountant. I asked him about some bond or stock accounting issue and his reply was you did not buy it from me. I should have but never did. I later discovered we were paying him for accounting services almost twice what it should be.

Sadly, I could not even trust family.

Same guy, sold my mother at 86 years old, I discovered after she passed a tax freed bond fund with a 2% load and a 12b fee. I've had people tell me there is no such thing.
There is and my dirt bag relative sold it to my mother. I expect it is a criminal act.
I chose not to pursue it. Due to being a small theft, mom did not have much and it being family.

[DAVES]

Interesting, we put money into 3 annuities quite a few years ago, we now enjoy a steady stream of income each month from them.

There are no do-overs. The commissions are very high on annuities, the reason why they are aggressively sold. Depending on the type of annuity you buy part of the steady income is your own money. The money you paid for the annuity coming back to you, plus the return on where they invest your, now their money.

Simply put, no annuity sales person will ever say state the reality. If, you put in 10,000 and the commission is 20% including all the fees, you now have 8,000 trying get the financial return of 10,000.

[DAVES]

My obligatory canned reponse...

In addition to all this good advice, take time to read Paul Merriman’s 3 free ebooks.
1. First-Time Investor
2. 101 Investment Decisions
3. Get Smart or Get Screwed (this is a MUST read)

Found at paulmerriman.com

Free anything. You get nothing for nothing. When you sign up for any of these free books. Somehow they are making money. One common way they make money is they have a list that is salable. Name, e-mail address, interested in investing.

There are many free investing books. Some are even printed hard cover. Free only 14.95
to cover shipping and handling and I don't want to state the book or who is doing this but the DVD also being offered is another 14.95 to cover shipping and handling. The free book is only $30.

[DAVES]

Not since Bernie got put away. Florida's Palm Beach Rocked By Madoff Scandal : NPR (https://www.npr.org/templates/story/story.php?storyId=98317793)

Bernie Madoff was a very interesting con. The moral is of course if it sounds to good to be true it is not.

I knew someone who fell for it. Bernie was paying out more than normal market returns. He is/was Bernie Madoff people including the government who were supposed to investigate for fraud. They all knew him and knew him or thought he was honest.
They simply did not look. To get into his too good to be true you had to know someone.
People want to be in an exclusive group. I got in, you, well if you are nice to me, oh and buy me an expensive diner I will vouch for you.

Madoff is now back page news. His wife was on TV complaining that she is being shunned. Her exclusive beauty parlor does not want her business. Bernie used to a lavish life style is in jail. If, I recall his son committed suicide.

Years ago, some group called Wall Street something or other got my name. They would call regularly trying to sell me weird investments. I researched them on the internet
moving addresses all kinds of complaints. I recall reading the two partners were arrested and sent to jail.

[manaboutown]

If it is too good to be true, it is too good to be true.

Back in the early 1970's a fellow where I worked in Rochester, NY got involved in trading naked commodity options with a firm named Goldstein Samuelson. Seemingly he was making money hand over fist so I asked a friend of mine in NYC to check out their offices, which he did, even meeting my colleague's broker, Charlie. The GS office was located on the "seedy side" of Wall Street according to my friend. Anyway, I put in a few thousand and started trading, using an expensive commodity trading newsletter. On paper I soon multiplied my money so I asked the broker to send me a check for some of it. It was like pulling teeth but I finally got most of what I put into the account back. Eventually of course the firm went out of business. Later I discovered my colleague lost a lot, possibly even his house which he had mortgaged to trade more contracts. To get "even" I actually traded commodities for a while but when I found myself every evening on a payphone under a Moosehead in a hunting lodge in Maine during deer season checking on the recommendations of my newsletter service I cashed out. It was just too much. Potatoes and Copper got me better than even. When I quit my local (legitimate) commodities broker asked why I was quitting as I had done so well. I just told him it was too much stress for me.


"A new breed of commodity options which has proved quite popular in this country was the ingenious or misguided, depending upon one's point of view, creation of Harold Goldstein, the founder of the largest of the new naked commodity option firms. Beginning April 28, 1971, Mr. Goldstein parlayed, in less than two years, an investment of only $800 into Goldstein Samuelson, Inc.," a corporation with more than
100 outlets throughout the world selling over 175,000 options valued at $88 million.' 2 As a result of the phenomenal success of this enterprise,
other firms offering similar options were quickly formed.13 Although the majority of these firms, including Goldstein Samuelson, have been forced out of business, either because of bankruptcy or as a result of increased regulatory pressure, a small group of second generation firms, some operated by the promoters of the original companies, have begun to
appear in states which have not attempted to regulate trading in naked
14 options.
The financial bonanza began to evaporate for Harold Goldstein and the other naked commodity option dealers in October 1972, when the Oklahoma Securities Commission gave Goldstein Samuelson notice of its intent to issue a cease and desist order against the firm for violations of the state securities law.15 Public hearings were held in November 1972, and an order was issued barring further sales of naked options in late February 1973.16"

https://scholarship.law.wm.edu/cgi/viewcontent.cgi?article=2569&context=wmlr

After I had changed jobs and moved I dumped and lost a few thousand in cheap mining stocks through a Denver outfit in the late 1970s. The broker was a coworker's old college roommate. I was young and foolish. Luckily I had new a boss who was a stock market genius who got me on the right track. Live and learn, sometimes the hard way.

[manaboutown]

///

[CoachKandSportsguy]

I’ve been very unhappy with my Fidelity representative. All I get are recommendations for assistance that is the highest commission for them. I have now hired a private individual that I am extremely happy with. He also does a first consultation for no fee. In the villages there are many people who are retired from the same profession who offer a great service for less money.

Good for you!

They have some of the highest fees but you can't see them as they are in the return. . . And yes there are fees but you have to compare the returns to the fees, unless you are doing strickly index funds. . . My dad's trust is in Wells Fargo, and you can tell he is a CFP with a commission plan.

If you listen carefully, you can hear a person's motivation. And anyone working for and paid by their institution is not a fiduciary. . . sales rep with a certification

financeguy

[lawgolfer]

The best deal is to use Schwab. The second best is Fidelity. Both have offices in TV. You will be assigned to a broker. For certain, Schwab's brokers do not work on commission, an important fact as commissions and fees add up quickly. I don't know if Fidelity's brokers work on commission. If they do, the charge can't be much.

Put your money into "no-load" index funds, which do not charge an annual fee. These funds mirror the overall markets. There are index funds which mirror every sector. Thus, you can have one for the S&P 500, U.S. Treasury bills, emerging markets etc. Personally, I'd just put money in an S&P 500 index fund and forget about it. There will be ups and downs, periodic crashes and surges. However, over the course of modern history, the S&P has produced a 10% gain which is compounded every year. It is the best protection against inflation, which is almost certain to be caused by our present government.

The extra benefits of dealing with Schwab include a no-cost checking account and free ATM services. Schwab doesn't have its own ATM's, but reimburses its account holders for the charges when they use the ATM of another bank. If you travel overseas, this is a real benefit as overseas banks charge outrageous fees when you use their ATM to get a few bills in the local currency.

Other benefits at Schwab include no-cost stock trades if done by computer, easy access to your account on your computer or phone and no-cost wire transfers.

[petsetc]

Free anything. You get nothing for nothing. When you sign up for any of these free books. Somehow they are making money. One common way they make money is they have a list that is salable. Name, e-mail address, interested in investing.

There are many free investing books. Some are even printed hard cover. Free only 14.95
to cover shipping and handling and I don't want to state the book or who is doing this but the DVD also being offered is another 14.95 to cover shipping and handling. The free book is only $30.

Yes, you can pay to have them in other forms-Kindle,DVD, hardcopy

I can only assume you did not bother to try to download the FREE ebooks or to read them.

[RICH1]

Any thoughts on using your bank investment firm or would you use an independent firm i.e. Fidelity, etc. for your financial advisor?

Thanks for your feedback.
NEVER BUY AN ANNUITY... ever

[big guy]

I would definitely not use a bank as a financial advisor. If you really need someone to advise you on investments, I would would hire a "fee only" financial planner, who is a fiducuary, and states it in writing. Fidelity Investments and Vanguard Investments are two excellent companies to deal with. And, whatever you do, DO NOT let someone talk you into transferring your money into an annuity. If you contact a commission based advisor, that is the first thing they will recommend to you, because it will make them a huge commission.

I just went with Linn Financial.

[DaddyD]

Any thoughts on using your bank investment firm or would you use an independent firm i.e. Fidelity, etc. for your financial advisor?

Thanks for your feedback.

It sounds like you are new to the investing; if this is the case, my advice is to DO NOTHING until you've taken a little time to at least become a little educated about finances & investing.

I know it can be overwhelming, but you don't need to become an expert in a day. The absolute worst thing that could happen is you end up working with a stock broker or financial firms like Edward Jones. They will be super nice and sound so sincere, but they are in sales, and their first priority is to sell you whatever product or investments make them the highest commission!!

As others have stated, if for whatever reasons you're not willing to take the time to become educated, if you go with Charles Schwab, Fidelity, or Vanguard, you're very unlikely to get taken advantage of in a truly harmful way.

A GREAT resource is the community at Bogleheads.org - Index page (https://www.bogleheads.org/forum/index.php)

Getting started - Bogleheads (https://www.bogleheads.org/wiki/Getting_started)

This is a investment-related public forum. No one is allowed to sell anything or promote any products or services. Forum members are VERY helpful to new investors.

As others have previously mentioned, RUN AWAY from anyone trying to sell you a variable annuity!!! However, a SPIA (Single Premium Immediate Annuity) can be a reasonable option for certain people depending upon their age and goals. But you definitely need to become educated before buying any annuity.

GOOD LUCK!!!

[CoachKandSportsguy]

Whomever you choose, check their certification. A Certified Financial Planner (CFP) has the most rigorous certification to do your entire financial planning.

Has no bearing on the earnings motivation of said CFP, that's what you are missing. Many pass the test, most work for a corporation with an incentive plan.

finance guy

[Debfrommaine]

The Villages has investment clubs where you can learn how to handle your own investments, join one or two. Stay away from banks, or if you have to make sure you speak with a licensed person, some have no securities or investment licenses. A local bank here trained a young teller to sell investment advice, no schooling or licenses. Why would you take advice from someone who is only trained to sell investments that make the bank money? I taught myself and am doing amazingly well, join a club, read every book you can about investing, watch videos on Vanguard.com, Fidelity.com and Transamerica.com. Financial advisors for the most part make their money from commissions they get by selling you products, not by following their own investment advice. You can do this yourself, just take the time to learn how. Good luck.

Very interesting. After what amount of time educating yourself did you decide to do your own investing, months, years?

[Boomer]

Very interesting. After what amount of time educating yourself did you decide to do your own investing, months, years?


Debfrommaine,

I know you did not direct your question to me, but if I may barge in here, I would like to suggest a way for you to get your feet wet — tiptoe in.

Traditional investment advice says, “Buy what you know.”

I realize there may not be a comfort level with choosing individual stocks and that most people probably use funds or ETFs.

But picking just one stock and buying a few shares and then following it can be a good introductory experience. You will learn something about your risk tolerance because you will see how those ups and downs affect you. But don’t invest a really big amount — just some play money.

I think dividend paying stocks are worth learning about. But a lot of people think that is boring because dividend stocks usually do not take you on a rocket ride.

Dividend investors are in it mostly for the dividend — to get paid along the way. But that dividend must be sustainable so the stock must be chosen carefully — based on more than just the percentage yield.

If the yield looks too big, it could be that the stock is in trouble — or it could be that there’s an opportunity to buy on a low that you think is probably temporary — so you need to have an understanding of the company you are buying into. It’s good to be able to catch a dependable stock when it is taking a little hit.

But if a company cuts it dividend or it looks like it’s going to happen, that is not a good sign for a dedicated dividend investor who might see it as a reason to break up with a stock — even if it has been long held and previously dependable. GE is a glaring, ugly, clear example of this happening, starting in 2009 under CEO Jeffrey Immelt.

With all dividend stocks, as with every stock, the share price will vary, but if you pick the right stock, you will get paid quarterly — with 1/4 of the stated annual dividend.

You can take the dividend as income or you can reinvest it — your choice.

(OK, I don’t know if anybody is reading this, but I just wanted to try to help you and now I have to be somewhere at 4:00 so I can either delete this whole thing or come back later for Part II. I was getting ready to give you a suggestion about how to find a stock that you might feel comfortable with.

Since I have “invested” several minutes in this post, I think I will let it stay and return later for Part II?)

Boomer

[Stu from NYC]

Debfrommaine,

I know you did not direct your question to me, but if I may barge in here, I would like to suggest a way for you to get your feet wet — tiptoe in.

Traditional investment advice says, “Buy what you know.”

I realize there may not be a comfort level with choosing individual stocks and that most people probably use funds or ETFs.

But picking just one stock and buying a few shares and then following it can be a good introductory experience. You will learn something about your risk tolerance because you will see how those ups and downs affect you. But don’t invest a really big amount — just some play money.

I think dividend paying stocks are worth learning about. But a lot of people think that is boring because dividend stocks usually do not take you on a rocket ride.

Dividend investors are in it mostly for the dividend — to get paid along the way. But that dividend must be sustainable so the stock must be chosen carefully — based on more than just the percentage yield.

If the yield looks too big, it could be that the stock is in trouble — or it could be that there’s an opportunity to buy on a low that you think is probably temporary — so you need to have an understanding of the company you are buying into. It’s good to be able to catch a dependable stock when it is taking a little hit.

But if a company cuts it dividend or it looks like it’s going to happen, that is not a good sign for a dedicated dividend investor who might see it as a reason to break up with a stock — even if it has been long held and previously dependable. GE is a glaring, ugly, clear example of this happening, starting in 2009 under CEO Jeffrey Immelt.

With all dividend stocks, as with every stock, the share price will vary, but if you pick the right stock, you will get paid quarterly — with 1/4 of the stated annual dividend.

You can take the dividend as income or you can reinvest it — your choice.

(OK, I don’t know if anybody is reading this, but I just wanted to try to help you and now I have to be somewhere at 4:00 so I can either delete this whole thing or come back later for Part II. I was getting ready to give you a suggestion about how to find a stock that you might feel comfortable with.

Since I have “invested” several minutes in this post, I think I will let it stay and return later for Part II?)

Boomer

Well said.

People can spend a lifetime building a nest egg and should devote a sufficient amount of time learning how to invest it.

[Debfrommaine]

Debfrommaine,

I know you did not direct your question to me, but if I may barge in here, I would like to suggest a way for you to get your feet wet — tiptoe in.

Traditional investment advice says, “Buy what you know.”

I realize there may not be a comfort level with choosing individual stocks and that most people probably use funds or ETFs.

But picking just one stock and buying a few shares and then following it can be a good introductory experience. You will learn something about your risk tolerance because you will see how those ups and downs affect you. But don’t invest a really big amount — just some play money.

I think dividend paying stocks are worth learning about. But a lot of people think that is boring because dividend stocks usually do not take you on a rocket ride.

Dividend investors are in it mostly for the dividend — to get paid along the way. But that dividend must be sustainable so the stock must be chosen carefully — based on more than just the percentage yield.

If the yield looks too big, it could be that the stock is in trouble — or it could be that there’s an opportunity to buy on a low that you think is probably temporary — so you need to have an understanding of the company you are buying into. It’s good to be able to catch a dependable stock when it is taking a little hit.

But if a company cuts it dividend or it looks like it’s going to happen, that is not a good sign for a dedicated dividend investor who might see it as a reason to break up with a stock — even if it has been long held and previously dependable. GE is a glaring, ugly, clear example of this happening, starting in 2009 under CEO Jeffrey Immelt.

With all dividend stocks, as with every stock, the share price will vary, but if you pick the right stock, you will get paid quarterly — with 1/4 of the stated annual dividend.

You can take the dividend as income or you can reinvest it — your choice.

(OK, I don’t know if anybody is reading this, but I just wanted to try to help you and now I have to be somewhere at 4:00 so I can either delete this whole thing or come back later for Part II. I was getting ready to give you a suggestion about how to find a stock that you might feel comfortable with.

Since I have “invested” several minutes in this post, I think I will let it stay and return later for Part II?)

Boomer

Thanks to you and everyone who has responded to my post. I have learned a lot, even stock "words/terms" that I never knew before my post. Yes, educating one self is critical and by doing so it brings confidence. For instance, I did have monies in stocks before but when the market went down, my fear went up and out I went, mistake. I hope to gain enough confidence now to invest, as you suggested and others too, even one stock on my own, watch it and learn. Likely we will use Fidelity with the bigger monies and my goal is to understand how the stock world works in a way I can comprehend and leave it in for the long term. I look forward to Part 2, thank you!

[Stu from NYC]

Thanks to you and everyone who has responded to my post. I have learned a lot, even stock "words/terms" that I never knew before my post. Yes, educating one self is critical and by doing so it brings confidence. For instance, I did have monies in stocks before but when the market went down, my fear went up and out I went, mistake. I hope to gain enough confidence now to invest, as you suggested and others too, even one stock on my own, watch it and learn. Likely we will use Fidelity with the bigger monies and my goal is to understand how the stock world works in a way I can comprehend and leave it in for the long term. I look forward to Part 2, thank you!

Start reading a personal finance magazine like Kiplingers to teach you on the subject.

They have quite a few recommendations of no load mutual funds with good long term track records.

[l2ridehd]

I still would tell you to use index funds, not individual stocks. Maybe for some “fun” money a few stocks are OK. GoogleYale University endowment fund. Many billions of $$$$. Very successful returns for over 50 years. They basically use 4 Vanguard index funds for the majority of their money. Total stock market fund, total bond fund, total international stock fund and total international bond fund. If you do just these 5 things you can be a very successful investor, have very good returns and have a very low risk portfolio.

Learn about your risk tolerance
Learn about asset allocation
Understand expense ratios
Use those 4 funds for the majority of your money.
Rebalance once a year on your birthday

It really is that simple. As you grow more comfortable and see how this simple plan works, you can branch out just a little and add a small amount of complexity with a few other low cost funds and maybe boost your returns. But get started with just those 5 actions.

[TNLAKEPANDA]

I would recommend that you meet with Parady before you sign up with anyone. Best thing we ever did.

[SacDQ]

Go with an independent fiduciary company and create a revocable trust.
They don’t try to sell you anything, They will do a risk analysis with you and your spouse and structure you portfolio accordingly.

[retiredguy123]

I would recommend that you meet with Parady before you sign up with anyone. Best thing we ever did.
Parady will most likely try to sell you an annuity.

[dewilson58]

Parady will most likely try to sell you an annuity.

barf

[Stu from NYC]

Parady will most likely try to sell you an annuity.

Great money maker for the "advisor" not necessarily a good deal for the buyer.

As a wise man once said annuities are not bought they are sold.

[l2ridehd]

Parady used to have 3 or 4 full page adds in the Sun everyday. Didn’t it make you wonder how they were able to spend that much on advertising? I bet they sold a lot of very high commission Annunities. Personally that would be the very last place I would go. When someone tells you they can get you higher returns, there is only one way they can do that. TAKE MORE RISK WITH YOUR MONEY. That is the only way they can push returns. Sell you annunities, take more risk, use high commission products and then they can afford those ads. And why not, it’s your money at risk, not theirs. And the same logic applies to most other financial advisors. Expenses always hurt returns. So lower expenses is almost always better for you.

[retiredguy123]

Parady used to have 3 or 4 full page adds in the Sun everyday. Didn’t it make you wonder how they were able to spend that much on advertising? I bet they sold a lot of very high commission Annunities. Personally that would be the very last place I would go. When someone tells you they can get you higher returns, there is only one way they can do that. TAKE MORE RISK WITH YOUR MONEY. That is the only way they can push returns. Sell you annunities, take more risk, use high commission products and then they can afford those ads. And why not, it’s your money at risk, not theirs. And the same logic applies to most other financial advisors. Expenses always hurt returns. So lower expenses is almost always better for you.
Parady is a heavy pusher of annuities.

[Carla B]

Parady is a heavy pusher of annuities.

Yes, but, they throw good parties.

[Boomer]

. . . Never mind

[manaboutown]

Many factors have driven this long bull market. Historically low interest rates which were initially put in place to artificially stimulate the economy have continued. Relief from confiscatory taxes also helped. With what we are facing now after a 12 year bull market who knows? Multi trillion dollar stimulus "relief" is sure to result in crushing tax burdens. There comes a time to pay the piper as my father used to say. P/E ratios are currently very high. No one really knows where this market will be in a year or five. Right now I am treading lightly.

[dewilson58]

Right now I am treading lightly.

I have snow shoes on.

[SusanKD]

The banks usually have limited investment for you to choose from.

[dougjb]

There is a "financial advisor" at Wells Fargo who recently gave a seminar. He related how new legislation/regulation (during the prior administration) was lifting the requirement that financial advisors such as himself would no longer be required to serve in a fiduciary capacity to investors, i.e. bank customers who had been diverted to financial advisors such as himself. This mingling of banking services with investment advisory services, to me, is inappropriate. While monies on deposit with a federally insured bank (FDIC) are protected to hundreds of thousands of dollars, there is no such protection for those who work under a separate subsidiary of the bank holding company that is the employer of these so-called "financial advisors". When I heard the Wells Fargo financial advisor revel in the fact that he no longer had to serve as a fiduciary to investors, I blanched. There is only one reason a sound financial advisor would not like to serve as a fiduciary. Instead of being required to act in the investors best interest, the "financial advisor" could act in his own best interest, not his customers. I would never use a service associated with a bank holding company that employed "financial advisors". Best to go to a group like Vanguard or Fidelity.

[manaboutown]

Fiduciary duties: under what circumstances and conditions? It can get a little complicated. Best to have a contract drawn documenting an investment advisor's duties. It likely will cost more to obtain greater degrees of fiduciary duties. Here is how the SEC as of 2019 interprets fiduciary duty under the Investment Advisors Act of 1940.

https://www.sec.gov/rules/interp/2019/ia-5248.pdf

[dewilson58]

On the death of Bernie.

Bottomline...............Don't be blind. Understand. Ask questions. If it's too good to be true, probably.

[Jayhawk]

They have quite a few recommendations of no load mutual funds with good long term track records.

No-Load Fund Definition (https://www.investopedia.com/terms/n/no-loadfund.asp#:~:text=owns%20the%20fund.-,A%20no%2Dload%20fund%20is%20a%20mutual%20fund%20i n%20which,going%20through%20a%20secondary%20party) .

Why Are There Loads?


The justification for a load fund is that investors are compensating a sales intermediary such as a broker, financial planner, investment advisor or other professionals for their time and expertise in selecting an appropriate fund. Some investors find the paying of these fees bothersome. However, there is evidence that shows load funds can at times outperform no-load funds in some portfolios. Investors should carefully read all fund information and compare similar funds before investing.

Even no-load funds will carry fees that the investor must pay. All mutual funds carry one form or another of such fees and expenses, and the difference comes in how and when these charges are paid. Rather than charging an investor upfront, at the time of purchase, no-load fees earned are part of a fund’s average expense ratios (ER).

[Plinker]

My first investment, at the ripe old age of 28, was $1500 into the Vanguard Wellington fund. Their reputation and rock-bottom fees made Vanguard an easy choice. I have never owned an individual stock. I’m not suggesting that owning individual stocks is not a valid approach to long term success. It’s just that I am a follower of the KISS principal (Keep It Simple, Stupid). By choosing very low-cost mutual funds or ETF’s, diversified over various asset classes, I was able to avoid the average 1.5% (all in) annual fees of an actively managed account. The average fee in my Vanguard accounts is less than 0.2%. If you need help, Vanguard offers access to a CFP for a really low 0.3% AUM fee.
The main reason that the managers of actively managed accounts have great difficulty in outperforming their benchmark is that they are unable to overcome their AUM fees. Numerous studies have confirmed that around 90% of actively managed accounts fall short of their benchmarks. There are plenty of low-cost advisors, including robo advisors, that can be successfully utilized.
Over 3 decades of investing and several more decades of retirement will result in hundreds of thousands of dollars that will remain in your account and not in the advisors account.
My advice is to contact a fee-only (not fee-based) fiduciary planner and pay for a comprehensive plan that you can personally set up with a low-cost brokerage and never pay AUM fees.
I also agree with several posts that calling Parady or any other insurance/annuity salesman is a huge mistake.

[Jayhawk]

Parady will most likely try to sell you an annuity.

Parady will most definately try to sell you an annuity.

[Stu from NYC]

Parady will most definately try to sell you an annuity.

Reading his ads would have thought better of him but guess not.

[snbrafford]

I would say do not use a bank as once they get your money, that's the last you will hear from them. I use Edward Jones but from the responses - we all have our favorite ones. My EJ guy gets paid a commission every month on "managing" my money and it is clear on my activity reports what that is. We talk about every month and he offers suggestions on buying/selling stock and movement of money. My reason for saying this is that I get support and am involved in the decision making process but don't have to a financial expert and can just be retired. Find someone that involves you in the decision making process and is in contact with you after the initial sale. I've been with my guy for ten years. I would reinforce the comments about don't do an annuity - commission heavy.

[DAVES]

Any thoughts on using your bank investment firm or would you use an independent firm i.e. Fidelity, etc. for your financial advisor?

Thanks for your feedback.

We including me are confused. There is huge difference between a financial advisor and a person at a bank selling investments, an independent firm, or Fidelity. Fidelity is a brokerage, they sell investments. They do not. will not, for example supply tax advice.
If, you know the right questions to ask they will give you the right answers. If, you sell this it will be taxed as ordinary income. If, you hold it to xxxxx it is a long term gain so tax due may be half as much. I've never bought from someone in a bank. In the past,
thing have gotten quite confused. You used to have a checking account with a commercial bank and you would go to them for business banking needs. Today, what was a savings bank. Issuing mortgages from money on deposit in CDs etc is long gone.
Also, long gone is not just bank loyalty but customer loyalty as well.

Who to go to? If, you need and or want financial advice, you will want to establish a long term relationship with a full service broker. The cost will of course be higher. No one can or does work for free. Lower cost, there are the low cost brokerages. Fidelity, T Rowe Price, Vanguard are the big ones. If, I left anyone out I did not do so delibertly I know there are others.

[Boomer]

The Villages Investment Education Club will be discussing dividend investing on Thursday, April 22, at 3:00 — via Zoom.

If you google Villages Investment Education Club, it will take you to their website where you will find contact info and upcoming topics.

(I used to attend the in-person meetings sometimes if I was interested in the topic being presented. I have not yet tried it on Zoom. I appreciate that upcoming topics are announced so Villagers can pick and choose what they hope to learn more about. Over the years since the club started, they have presented a vast array of investment topics.)