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Old 10-03-2015, 08:41 AM   #21
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Moving funds to another place is a royal pain...but once its done you can manage your own money so easily it will boggle your mind. You dont have to have any knowledge at all. You dont need to be constantly monitoring your money. "Managing your money" will consist of putting it into 3-4 funds and looking at it once a year.

You hire a pro when you cant do something yourself. I hire a plumber when I have a foundation leak because I dont know how and dont have the tools to fix it.

Anyone can manage their own money. Its amazingly easy with virtually no knowledge or tools.
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Old 10-03-2015, 08:56 AM   #22
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Moving funds to another place is a royal pain...but once its done you can manage your own money so easily it will boggle your mind. You dont have to have any knowledge at all. You dont need to be constantly monitoring your money. "Managing your money" will consist of putting it into 3-4 funds and looking at it once a year.

Anyone can manage their own money. Its amazingly easy with virtually no knowledge or tools.
For beginners or someone who doesn't want to learn, you can even skip the whole managing your money thing by using a balanced fund (Vanguard Balanced, Wellesley, Wellington, LifeStrategy, Target Retirement, Managed Payout).

The only issue with moving a large amount in a taxable account is possible tax consequences.
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Old 10-03-2015, 09:12 AM   #23
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Thank you all for your responses. I've read enough on this forum to know most would recommend handling our investments ourselves. I'll admit up until this ultimatum we had been very happy with how our finances have been handled. He was very helpful when my husband decided to retire early. I know 63 isn't early to many of you but he had planned to work to full retirement age until the 60 hour weeks and no time to take vacations started to wear on him and me too. Retiring a few years earlier was a good decision and we've loved the first six months.

I really don't know where this came from. I was up front with what we had when we talked the first time. He always has business cards and wanted us to recommend him to people we knew. He never said "just your rich friends". We never did but if someone would have asked for a recommendation for a financial advisor I would have given them his name. While we aren't rich I think a 1.4 million dollar portfolio is still substansial and will do us well. We are not big spenders. We like to garden and our idea of a great vacation is to attend major league baseball games. And we eat before we go and take our own water, no $9.00 a can beer for us.

Fortunately we didn't get mad and leave the office in a huff. As a matter of fact I think he believes we will transfer our 401K to him. I think this is good as he is now taking care of most of our life savings and I don't want an angry man doing this. I also have trust in the company he is affiliated with.

My next move is going to be to contact the main office and let them know what happened and see what their reaction to this treatment is. We will leave this advisor but we want to make a good decision and not do anything rash. I really believe taking our time will lead to the best decision. At this point we may go out on our own although we've used others for many years to help us and we've done well. I didn't realize Vanguard has advisors for a lower fee and that may be a good option for us.

I guess I knew what I would hear when I posted but it makes me feel good to know that I'm not over reacting and this really was an outrageous thing for a professional to do. I will let you know what I hear back from the Wealth Enhancement Group. I may hear nothing which will be all the more reason to get out quick.

Thanks again for all the responses.
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Old 10-03-2015, 10:16 AM   #24
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...... I also have trust in the company he is affiliated with.........
How much are you paying a year to have them manage your money?
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Old 10-03-2015, 10:49 AM   #25
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Two really good articles (book reviews) on this subject:


Book Review - DIY Financial Advisor: A Simple Solution To Build And Protect Your Wealth | Seeking Alpha


Book Review: DIY Financial Advisor | Seeking Alpha
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Old 10-03-2015, 11:58 AM   #26
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Take your money and run. I've never heard of such a demand. Seems you are doing better without him anyway.
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Old 10-03-2015, 12:18 PM   #27
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There's one reasonable possibility here, although it's unreasonable that he wouldn't tell you, that there is a minimum amount for investment. I know one company that has a $2m minimum. Less than that and you don't get "full service" it's possible that he is part of that full service. I know the management of this company and they feel that clients under 2m don't cover costs.

So in your case maybe the minimum is 1m and your non 401k assets are close or under that?


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Old 10-03-2015, 01:10 PM   #28
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You have not said where the advisor has your money invested, but I'd bet we are talking about load funds which could probably be replaced by a like no-load fund that would give you better performance at a lower cost.
If your passive 401K is outperforming the advisor, it is time for a change for sure.
IMO, Vanguard or Fido is the way to go, whether you DIY or use their advisory services.
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Old 10-03-2015, 01:31 PM   #29
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The only issue with moving a large amount in a taxable account is possible tax consequences.
Yes, you would have to find out exactly how various things would be moved. If it's stock in Apple or a standard mutual fund, they should be able to move it to the new firm with no tax consequences at all. If it's a weird proprietary fund that the current firm offers but the new one doesn't, they may want to liquidate it and just move the cash, which WOULD have tax consequences. A customer service person at the new fund should be able to answer your questions on that.
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Old 10-03-2015, 02:28 PM   #30
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There's one reasonable possibility here, although it's unreasonable that he wouldn't tell you, that there is a minimum amount for investment. I know one company that has a $2m minimum. Less than that and you don't get "full service" it's possible that he is part of that full service. I know the management of this company and they feel that clients under 2m don't cover costs.

So in your case maybe the minimum is 1m and your non 401k assets are close or under that?


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Then why have the account for so long when it was not that large


I think the FA is getting greedy.... and a greedy FA is one you do not want... if they cannot make money by investing your money like they would invest their money.... well, bye-bye....


Then again, as I and others have said, some FA are really bad at their own investments.... so even the above might not be the way to go...
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Old 10-03-2015, 02:59 PM   #31
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Then why have the account for so long when it was not that large

...

Possibly because the initial understanding with the firm was to take 401k under management as well. What say you OP?


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Old 10-03-2015, 04:22 PM   #32
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Hey, this is an epiphany, and this is your chance to set yourself free from this idiot. Also, this is time for you and your husband to learn how to do it yourself
and profit from it, and anyway, you need to do it to take care of yourself. Only you can do the best job if you study it.

Study and read all you can. Then get the whole amount out of the firm and just invest it yourself with Vanguard or Fidelity. With that amount, somebody from these firms will even advice you for free. They may even facilitate the transfer...

I consider using a FA a complete waste of time and energy. I don't know how much you pay for it, but most charge 1% of the whole amount in good and bad times. In hypothetical 40 years, you will lose 40% of your asset.

My advice is to do it yourself. Just me, I consider taking care of my portfolio a core pursuit or part time job in ER. It's like a hobby farm, but I only have to use a computer, a phone and bunches of notebooks.
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Old 10-03-2015, 04:41 PM   #33
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Absolutely leave, low- cost broad index fund portfolio can be established with little research and fidelity or vanguard will treat you well. Congrats on retirement


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Old 10-03-2015, 04:43 PM   #34
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Possibly because the initial understanding with the firm was to take 401k under management as well. What say you OP?
I think you are reaching.
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Old 10-03-2015, 04:48 PM   #35
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In addition to any management fee, what are the fund expense fees for your investment with this fee? You may have done well with the firm, but could be doing even better on your own or with a lower cost advisor.
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Old 10-03-2015, 05:29 PM   #36
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How much are you paying a year to have them manage your money?
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In addition to any management fee, what are the fund expense fees for your investment with this fee?.........
I suspect the OP does not know the answer and would be somewhat shocked to see it expressed as a $/year figure.
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Should we stay
Old 10-04-2015, 12:48 AM   #37
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Should we stay

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In addition to any management fee, what are the fund expense fees for your investment with this fee? You may have done well with the firm, but could be doing even better on your own or with a lower cost advisor.

Some places have 0 fees. The 1% pays for everything. Im not recommending a 1% company. Just that there are many ways these firms work.


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Old 10-04-2015, 11:25 AM   #38
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Here's another GO vote. You appear to be much milder mannered than me. You can do this yourself and it will save yourself $$$. All the other responses represent good insight.
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Should we stay
Old 10-04-2015, 12:17 PM   #39
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Should we stay

DH and I left a FA and moved my IRA to Vanguard (thanks to reading and learning from this forum). We were paying about 1% year, but they were about to increase the cost. I looked at what I had paid them over the years and decided it was time to move it to Vanguard. I just kick myself for the five years that they managed the investment. I chalk it up to the cost of "live & learn".
Another GO vote here.


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Old 10-04-2015, 04:09 PM   #40
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If you have over 1 million with Vanguard you are a Flagship member and get free suggestions from a financial advisor - no sales stuff.

I would have smiled at this guy, shook my head and left. Move your money for sure IMO. Report his behavior to management and tell them he will cause others to run to Vanguard or other advisors. How this man thought he could strong arm clients is beyond comprehension. If I were an advisor - keeping the client happy and confident in my service would be #1 - not my personal income. Or at least I would not be so obvious

Fire the bum!
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