How did you choose your financial advisor?

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  #1  
Old 06-09-2024, 12:44 AM
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AMB444 AMB444 is offline
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Default How did you choose your financial advisor?

Did you just stick with the same person from before you retired (stayed with employer advisor)?

Was there something about the one you have now? Something that they said that you decided to trust them and go all in?

What was important to you about what they told you during consults/phone conversations?

Are they basically all the same?

Also, if you "jumped ship" to another advisor what prompted that decision for you?

Thanks!
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Old 06-09-2024, 06:54 AM
retiredguy123 retiredguy123 is online now
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I have never had a financial advisor because I never saw any value to what they do. To me, investing your money is a DIY project.
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Old 06-09-2024, 07:15 AM
petsetc petsetc is offline
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I have been self-directed since 2005 and think it was the right choice since I am still comfortably retired.

In 2005 I contacted advisors (Certified Financial Planners) and they gave me a “list” of things that I need to collect including what my goals and desires present and the future. As I gathered that info, I discovered free resources that made me confident I should self-direct. I spent a lot of time doing it, but having done the leg work, here is the essence which should be easy to do.

My main recommendation is to read Paul Merriman’s 3 FREE ebooks.
1. First-Time Investor
2. 101 Investment Decisions
3. Get Smart or Get Screwed (read this first!)

Found at paulmerriman.com

Also on his site are recommended portfolios for using Vanguard, Fidelity, T.Rowe Price or Schwab for DYI'ers. Both tax deferred and tax efficient.

Much good info on his site, just ignore the puffery and sales pitches.

I have used his Vanguard sample portfolio since the beginning with slight modification from Boglehead portfolios and it is still my “go to” mix.

Initially, we also had two small annuities which were bad investments and we withdrew the 10% penalty free until they were gonw/

Also, if you want to know too much about annuities, listen to Stan The Annuity Man® | Brutally Honest Facts About Annuities podcasts.

Podcast - Have Fun With Annuities(R) | The Annuity Man

Last recommendation is FIRECalc: A different kind of retirement calculator , a Monte Carlo simulation of your future.

Depending on life, you may also need estate planning for which a financial advisor is not the guy.

JMHO
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Old 06-09-2024, 11:35 AM
village dreamer village dreamer is offline
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befor bankruptcy i picked the lowest bidder........
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Old 06-09-2024, 12:51 PM
manaboutown manaboutown is offline
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I keep my accounts at three separate brokerages one of which is Vanguard. The other two each arbitrarily assigned an advisor to my account. I never consult with them as I do not want to pay exorbitant AUM fees for advice I do not want or need but they are there for whenever a glitch of some sort occurs. If I ever feel I need an advisor I will find and use a fee-only one whom I can pay on an hourly basis.

As another poster did hereinabove I shall recommend a couple good reads. I think the OP will find, as will most folks, that indexing is the way to go, especially if you want to invest it and forget it except for a review a couple times a year.

"Winning the Loser's Game" by Charles B. Ellis and "The Four Pillars of Investing" by William J. Bernstein are the books.
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Old 06-09-2024, 12:55 PM
Plinker Plinker is offline
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Quote:
Originally Posted by retiredguy123 View Post
I have never had a financial advisor because I never saw any value to what they do. To me, investing your money is a DIY project.
Agree.
I’ve been with the same guy for 37 years. He told me he would never charge an AUM fee, never misappropriate a dime, always work in my best interest and never offer me a free dinner. I check in with him every morning when I’m brushing my teeth.
Seriously, you can do this on your own. Fidelity and Vanguard are great choices. “Bogle on Mutual Funds” is a great read.
Over a lifetime, you could easily have hundreds of thousands of additional retirement assets.
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Old 06-09-2024, 07:27 PM
CoachKandSportsguy CoachKandSportsguy is offline
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However, there are people who have no idea how to invest nor manage money. They are not interested in it, and are not numerically oriented.

We don't know how much money you have or need, but it's all about your lifestyle matching your monetary resources. A mismatch can be disastrous in one way, and very unsatisfying in the other direction. . . I would recommend interviewing independent CFPs, and asking questions about their costs, and their general strategies for people in your situation. .

Beware of annuities sales pitches, as well as all equity investments without any bond components. . . and remember that its all about after tax cash, never about total dollars or value in any one account.

good luck
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Old 06-10-2024, 04:44 AM
Cuervo Cuervo is offline
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Depending on what your needs, you might not need a financial advisor. Just compare your spending against your expenditures and the lifestyle you want to live. If you have enough income coming in and savings, you might be able to park your money in something secure and just live off the dividends. If on the other hand you are not in that position, even if you need an advisor, I suggest you keep an eye over their shoulder. Just remember it's not their money they're playing with.
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Old 06-10-2024, 05:11 AM
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I do my investments myself through Fidelity but in the past if I needed any advice I would go to a fee only financial adviser. They will definitely advise you and you don’t have to worry about them selling you stuff you don’t know anything about.
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Old 06-10-2024, 05:57 AM
rsmurano rsmurano is offline
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Do it yourself, but you should have asked this question decades ago. I read investment books everyday, there is always something to learn.

Never go with an annuity, you won’t experience the real gains and the costs are very high.

But you can’t throw a dart at a board of stocks symbols and expect to make a fortune. Decades ago, I bought subscriptions to Morningstar, motley fool, and somebody else to deep dive into why they were recommending certain stocks and funds. That was invaluable since, and I haven’t subscribed to any of these for decades.

I have a set of index funds and etfs that when I’m in the market, make me 20-35% over and over again for the past 2 decades. Plus a few stocks that have been very good for decades.

Learn to be a boglehead!
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Old 06-10-2024, 06:08 AM
Bness Bness is offline
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Default Fiduciary responsibility

Quote:
Originally Posted by AMB444 View Post
Did you just stick with the same person from before you retired (stayed with employer advisor)?

Was there something about the one you have now? Something that they said that you decided to trust them and go all in?

What was important to you about what they told you during consults/phone conversations?

Are they basically all the same?

Also, if you "jumped ship" to another advisor what prompted that decision for you?

Thanks!
I used to think I could handle it myself also, but the amount of time I spent payed very little. I still own stock in a treasure hunting company that has been successful until our government makes them give it back to a foreign country.
That being said, ETF's are the way to go. Edelman Financial Engines doesn't make money off of trades. They charge a flat percentage and my return has been over 6 percent including the fees.
Not saying my choice is the right one for you, but I got my time back and don't have to worry about my decisions or rebalancing my portfolio.
Just make sure you don't sign up with someone who makes money off of trades. There are a lot of schisters out there stealing your hard earned money and destroying people's wealth and retirement.
Good luck.
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Old 06-10-2024, 06:10 AM
KSSunshine KSSunshine is offline
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We are self-directed, but for a steak dinner we tried ARS. All they wanted to do was to sell an annunity which we had said initially we would not do. Claimed he was a fudiciary, but in his mind, only the Annunity was an option. Gave us a book to read for "how" to select an advisor, but he violated at least two major principles, so...we cancelled future appointments. Be wise.
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Old 06-10-2024, 06:14 AM
Harvin Harvin is offline
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You may want to consider a fee based adviser, less bias with investment recommendations since they don't earn commissions, try Garrett Planning Network

Vanguard is probably the lowest cost, they have excellent advisors and are very sharp with taxes relative to investing and withdrawals.
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Old 06-10-2024, 06:16 AM
BOWRUNNER BOWRUNNER is offline
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Quote:
Originally Posted by AMB444 View Post
Did you just stick with the same person from before you retired (stayed with employer advisor)?

Was there something about the one you have now? Something that they said that you decided to trust them and go all in?

What was important to you about what they told you during consults/phone conversations?

Are they basically all the same?

Also, if you "jumped ship" to another advisor what prompted that decision for you?

Thanks!
My advisor said don't let your wife have any credit cards, it worked well so far
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Old 06-10-2024, 06:49 AM
Bonnien Bonnien is offline
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Default Remember ENRon. way too many people had way too much money in that basket…..bad!!!!!

Smart investors always have more than one fiduciary…a fiduciary is someon that does not sell commissioned products…they charge a small percentage of you gains…so when your portfolio grows their compensation increases….never put all your eggs in one basket….
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