Consultation from a CFP

[gcgang]

I've always wondered about this. The advice here to use an hourly fee based planner sounds good, over one that charges for AUM. But if you're a good planner, working hard to educate yourself and do your research and have a good name and lots of referrals, do you really want irregular hourly clients, or do you want a regular steady client base? Are the less successful planners that can't hold a client base the ones that go hourly? What would you do if you were a financial planner?

I think your planner was spot on, except for the scare tactic of "everything's in decline!", although it all is in decline

If I were in private practice, for a one off like this, I think I'd have to charge close to $5k. The odds of doing it on the cheap hoping to get the OP as a regular client are pretty low.

 

[HI Bill]

What a depressing thing to say. And possibly incorrect on some fronts.

Good point...I expect to be socially and financially better off in retirement, at least initially! Sounds like a fear-tactic canned response for 65+ year-olds.

 

[Golden sunsets]

I didn't read through every response, but isn't there a source somewhere of fee only planners with the certifications you are seeking that would provide a potential list. DH and I consulted a fee only CFP in 2008, shortly after DH's retirement. We also had a good handle on our finances and were only looking for the proverbial thumbs up.

We met with the planner twice, as I recall, the first time to provide info and answer his questions, and the second time to receive his report, which was delivered as a thick stack of scenarios he had run. The cost as I recall was $2000 +/-.

He did give us valuable inputs on claiming SS, life insurance and potential cancelation of a second to die policy we had purchased years before as an estate planning vehicle. It was worth it.

Good point...I expect to be socially and financially better off in retirement, at least initially! Sounds like a fear-tactic canned response for 65+ year-olds.

 

[joeea]

I didn't read through every response, but isn't there a source somewhere of fee only planners with the certifications you are seeking that would provide a potential list.

This might be one place to start:
https://www.letsmakeaplan.org/

 

[tb001]

This might be one place to start:
https://www.letsmakeaplan.org/

Thanks, that’s very helpful. Oddly enough, the first person who popped up was a fee only planner who shares office space and is a relative of a new dr I saw for the first time today. Very strange!

 

[Jerry1]

Thanks, that’s very helpful. Oddly enough, the first person who popped up was a fee only planner who shares office space and is a relative of a new dr I saw for the first time today. Very strange!

The internet knows who you are and is directing you to the most appropriate candidate. Nothing strange about that at all.

 

[Dtail]

I'll add that I agree with the comments that unless you have a few very specific questions, you likely are in much better shape to evaluate your plan than a CFP. We had an hour long call with a CFP from Vanguard to review our plan. We spent 40 minutes of that time with me explaining why he was wrong on SS estimates and walking him through our unique situation.

He then put together a plan showing 66% success rate, largely because the tax burden he assumes ends up adding another 60k/yr to our burn rate, at least for the first 5 years where he details the info. We're supposed to have a follow up call, but I suspect it's going to be pretty useless.

I've been trying to find a second opinion because in spite of hearing me spend 40 min educating the CFP during our first call, my DH still assumes I'm making an error in my calculations because he's an *expert.* And of course, he's put the seed of doubt into my head, despite me running taxes 5 different ways and sending numbers to our accountant to run. (who came up with estimates very close to mine, with the caveat that she missed 3K of additional deductions which I caught)

I'm coming to the conclusion that no one cares about your financial health as much as you do, so at some point, if you're sure you've done the work, you have to trust yourself.

Exactly.
Said it before. One could study day and night, but not be able to perform appendix surgery for example.
But that doesn't mean one can't become expert enough to analyze and invest like the "pros".
Many folks just can't grasp this concept.

As one simple example, would Fidelity, Vanguard, Schwab, etc ever recommend using a Credit Union for a CD investment - of course not.

 

[target2019]

This might be one place to start:
https://www.letsmakeaplan.org/

I searched my zip, and found it is loaded up with Ameriprise consultants.

A positive note is that there is a link with each that leads to FINRA Broker Check.

 

[DrRoy]

I had a FA at ML for a few years for 1% of assets/yr. After his return performance lagged mine I fired him and took things over myself again. I wanted to find a fee only FA to do a pre-RE review. I never found someone to do it on that basis, and one FA that I considered told me that I did not need a FA and to just carry on. In the end that is what I did.

 

[BeachOrCity]

I met with one planner provided as a benefit from my employer and my long time account to review my plans. Which I presented to them in a PowerPoint.

Nothing earth shattering but they did have a few good pieces of advice that at the time I had not thought of:
1. Determine your asset allocation by asking yourself if stocks declined by 50% would you still retire now.
2. Take advantage of a leave of absence before deciding whether to retire
3. Don’t be afraid of your relatively high allocation to real estate.

 

[FinanceGeek]

Here's a network of fee-only financial planners to check...


https://garrettplanningnetwork.com

 

[SecondCor521]

I agree with all the other posters who say that nobody cares more about your money than you, and that nobody knows your situation better than you.

That being said, I think it's still a decent idea, at least once, to have someone look over a plan to check for major mistakes or potential optimizations. For software developers, it'd be the same idea as a code review.

 

[SumDay]

Here's a network of fee-only financial planners to check...


https://garrettplanningnetwork.com

We found ours here: https://www.napfa.org/

She's a CFP and a CPA, and can do our taxes if we want (we don't). I was using her for asset allocation advice, but feel like I've got that under control. Next visit will be some tax planning. We only go about every other year. WELL worth her fees.

 

[LarryMelman]

We found ours here: https://www.napfa.org/

She's a CFP and a CPA, and can do our taxes if we want (we don't). I was using her for asset allocation advice, but feel like I've got that under control. Next visit will be some tax planning. We only go about every other year. WELL worth her fees.

What are her fees, may I ask?

 

[SumDay]

I think our first was around $2500, and depending on length of tune-up visits, she starts at $400, which we were doing EOY before we retired. I enjoyed going and having her ask us why we weren't retired yet.

What are her fees, may I ask?

 

[Helen]

We met with someone from Garrett Network a few years before we retired. I wanted my spouse to hear from someone other than me that we had enough to pull the plug.

The report we got back was so full of errors that we ended up with a full refund. I was shocked at the poor quality and the number of errors. She was off by $10k on our social security, our pension amount the first year was wrong, she omitted assets (she said she did it on purpose to be conservative) mixed pretax and post tax dollars together, left column headers off. She sent back a corrected report and said she considered it completed. I told her I would take it to arbitration and she sent back a check for the full amount.

As others have said, by the time you know enough to know if the CFP is any good, you know enough to do it yourself.

We do use a CPA to do our taxes and to get advice on things that impact our taxes, but we've never employed another CFP.

 

[thefinancebuff]

I have looked at possibly taking some of the individual courses online that are requirements for CFP, as an option. I have not found anything at local community colleges.

The CFP Board lists CFP training programs by state. See if there's a program at a college near you if you prefer a local program.

https://www.cfp.net/become-a-cfp-professional/find-an-education-program

 

[Luck_Club]

+1
With an introductory letter like that, I can’t imagine any professional would be eager to take on a client that is probably more successful than they are (could be any field of practice). I’m not clear on what your goals are but looks like you’ve won the game and need big picture planning (eg wealth preservation, tax and estate planning, etc).

+1

 

[LOL!]

There is probably a sweet spot for one's assets: So large that one's doesn't have to worry or plan about anything, but not so large that one needs to do any estate planning. That is, one can totally eff up everything and still be in great shape: That's the Sweet Spot.

I think I'm in the Sweet Spot, so I cannot imagine using any professional help. Hate me. I don't care.

 

[WhenIsItTime]

I had a family referral relationship with a RJ advisor locally. Based on my role with a mega-corp he recruited me as a client gently over time. I have to date given him 8% of my assets, yet he periodically reviews my entire portfolio (I provide data) and makes overall recommendations of course including transfer/conversion of portion outside RJ to something inside RJ. I've said no to some and yes to others. Also had the opportunity to visit RJ in St Petersburg, FL to talk to other advisors related to my specific situation. Was all very helpful. I believe we have a win-win relationship.

Cliff notes: Doesn't have to be all or none.

 

[Paisano]

I'll preface this by saying that I have no ties, financial or otherwise to Harry, but my wife and I used Harry Sit (The Finance Buff blog), who for $200 gave us three names of hourly fee only financial planners in our "area". We do not live in a major metropolitan area so our "area" is pretty large. We talked to the three and chose the one that seemed to be the best fit to prepare a financial plan for us. All three were solid recommendations and we had a hard time choosing between two of three. I believe that any of the three he recommended could provide the review the OP is interested in.

 

[zippy2020]

I had a family referral relationship with a RJ advisor locally. Based on my role with a mega-corp he recruited me as a client gently over time. I have to date given him 8% of my assets, yet he periodically reviews my entire portfolio (I provide data) and makes overall recommendations.......Cliff notes: Doesn't have to be all or none.

Exactly. An ethical CFP will require you meet his/her minimum investment portfolio, but no way would you ever have to turn over 100% of assets. In fact, it wasn't unusual, when I worked at an independent CFP's office, that a client would be recommended to have part of their portfolio held apart, at another brokerage, so they could do riskier investments on their own that the CFP could not recommend due to his fiduciary responsibilities.

Also, although brokerages have CFPs, be aware the majority of them are young and just starting out. They can be eager (which is good) but are also inexperienced (which is not). If the CFP hasn't been handling client portfolios through at least one recessions they're not worth hiring - and a tip: that's what the CFPs say to each other.

Frankly, I'd make that two recessions of experience, LOL.

The OP has sizable assets. I agree estate and tax planning are more important than advice on NW, except for insurance. It is not unusual to have grown one's NW without thinking about how that can change other future issues. I took this off the web, but it's a fairly comprehensive list:

"...Specific estate planning objectives in addition to preparing a distribution plan for estate assets, may include some additional planning to accommodate issues such as:

• Estate Taxes
• Business Continuity Succession
• Family Business Succession
• Charitable Planning
• Special Needs or Pre-Medicaid
• Generational Planning
• Spousal Planning
• Funeral Expenses and Burial Costs "

 

[BeachOrCity]

I'll preface this by saying that I have no ties, financial or otherwise to Harry, but my wife and I used Harry Sit (The Finance Buff blog), who for $200 gave us three names of hourly fee only financial planners in our "area". We do not live in a major metropolitan area so our "area" is pretty large. We talked to the three and chose the one that seemed to be the best fit to prepare a financial plan for us. All three were solid recommendations and we had a hard time choosing between two of three. I believe that any of the three he recommended could provide the review the OP is interested in.

He charged you 200 just to give you the names Did he state that he was not getting a referral commission from the fee only planners?

I suspect that he may be getting a slice of your fee only charges as well?

 

[meekie]

My work has a financial advisor that meets with people here. They can do fee only, or %. I actually talked to them for 30 minutes for free and got quite a few good tips. I'm thinking about getting a withdrawal plan from them eventually, they charge $250 an hour with a 6 hour retainer, which he says is usually enough for a withdrawal plan and review.

If LA area means Los Angeles, I can PM you their contact info if you want, as I'm in San Diego.

 

[Paisano]

He charged you 200 just to give you the names Did he state that he was not getting a referral commission from the fee only planners?

I suspect that he may be getting a slice of your fee only charges as well?

Beach, that is correct, $200 for the names and contact information only. He makes/takes no commission from the planners. For us it was a good investment. A link to his description of his service is here: https://adviceonlyfinancial.com/?utm_source=thefinancebuff.com&utm_medium=referral&utm_campaign=menu