WSJ on firing your financial advisor

[MBAustin]

Two interesting articles in the online WSJ that I found via Twitter:

Why I Fired My Financial Adviser - WSJ

How to Fire Your Financial Adviser - WSJ

Basically, the first article is a horror story from someone who admits he should have trusted his instincts sooner, and the second gives tips for those who are thinking of firing their FA. The first one also points out that even an expert in the business has a hard time finding a good FA.

 

[LOL!]

Thanks for pointing these out.

One conclusion I have is that WSJ editors do not accumulate much wealth by their early 60's … even if they cover wealth management.

 

[mickeyd]

Thanks for the link FBAustin. Luckily my wife is currently sleeping with her FA and I am sleeping well. Unfortunately there are many, many tales about FAs that are no better than thieves. You can not dupe yourself. At least, that's the way that I see it.

 

[clifp]

OMG I can't believe that a long time editor of the WSJ, wealth management section no less, would not only get an adviser but do such a poor job in finding one.

 

[photoguy]

I've been surprised at the number of financial journalists and bloggers who have terrible personal finances. I think somehow they just get assigned the topic area without really knowing much


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[foxfirev5]

This situation reminds me of a visit I made to a District Managers home few years back at megacorp. He had a very upscale home until you stepped inside -nothing. One end table and a couple chairs and that was it. He told me he had come across hard times and was looking to dump the house (1995 not 2009). No huge medical bills or other calamity just poor management. I couldn't believe that our company had this guy telling our distributors how to run their businesses.
My take on it - Keep your eyes open, do your own research and education, take responsibility and do it yourself.

 

[jayc]

How do you read more than 2 sentences of this article and not subscribe?
Thanks.

 

[MichaelB]

How do you read more than 2 sentences of this article and not subscribe?
Thanks.

Reading a link has never been a requirement to posting a comment in a thread. . Some do look interesting but I don't bother clicking on WSJ links because I'm not a subscriber.

 

[tricky88]

Honestly, Jason Zweig is the only WSJ writer I pay attention to.

 

[jerome len]

I'm my own FA but who should do it when I'm old and senile? That's what I worry about.
So far I've thought about a very basic trust with Vanguard managing my money....I've known independent FA's that have taken 80 year olds into expensive annuities for the commission.....and the 80 year old's kids had very little financial knowledge and they trusted the FA when they shouldn't have. My kids are very honest but could care less about managing money.....not much I can do about that. I gave them subscriptions to Money Mag....they don't read it.

And, WSJ writers are usually young, they don't make a ton of money so they dont have enough cash to need an FA. I knew many of them in my past life......today, newspapers are having a tough time.....writers just can't command big incomes. But, WSJ writers write for wealthy and successful readers.....and WSJ, for me, is worth reading....weekend edition especially along with Barrons are the only two papers I still read for financial updates.

So, again, who manages my money when I can't do it because I'm old and senile....what ideas do you have?

 

[MRG]

How do you read more than 2 sentences of this article and not subscribe?
Thanks.

I just googled some keywords and found that article for free.

Sent from my SAMSUNG-SGH-I337 using Early Retirement Forum mobile app

 

[rothlev]

http://online.wsj.com/articles/why-i-fired-my-financial-adviser-1409323717

 

[rothlev]

somehow i got a free article by googling too, but I see it did not work in the link

 

[Chuckanut]

The best financial advice usually comes with some grey hairs attached. There are a few newbies that give good advice, IMHO.

Personally, I am fond of Jonathan Clements.

Jonathan Clements's guide to personal finance

 

[tfudtuckerpucker]

Here's a short description of how the "free access to premium sites" works.

 

[Sarah in SC]

I like Clements and Zweig as well. And I use the Google trick to read articles behind the paywall.

 

[LOL!]

I like Clements and Zweig as well.

One of the reader comments to the article was

Do you ever read or talk to Jason Zweig or Jonathan Clements?

Ouch!

 

[MBAustin]

Here's a short description of how the "free access to premium sites" works.

And I use the Google trick to read articles behind the paywall.

Thanks for pointing this out. We subscribe to the WSJ and so I have digital access; I forgot to log out to check to see if it was free or not.

 

[Walt34]

I too just search on the article title and that gets a free link.

 

[cooch96]

I just fired my FA. My taxable account is now with Vanguard and the Roth transfer check is in the mail. The FA was an old friend of the family, so things got a bit awkward, but his mother shook my hand at my sister's wedding two weeks ago. I guess all bridges aren't burned.

On another note, I'm also concerned about financial decisions during senility. DW has zero interest in finance; she approaches the whole thing like Scarlett Ohara, "fiddle dee dee, a man will take care of me." That's not going to change ever. And I'm not the sharpest tool in the shed either. The whole concept of bond fund values changing with interest will not sink in, nor will anything more exotic. I'm comfortable sticking with an AA for each stage of my life, but I'd like to be clever enough to fully comprehend futures,muy ing on margin, etc. If I can't figure that stuff out now, will I be buying magic beans, annuities, and term life insurance in 30 years?

 

[jazz4cash]

• I guess I never dreamed that an FA would have carte blanche like this.
• I can't imagine there was no discussion/agreement on how the transferred funds would be invested (advisor sold existing positions generating long and short term gains)
• The FA continued to act with no regard for the investor's wishes. It appears the investor was not told before or immediately after a trade and had to check his account to find out what was being done.
• I am curious how long it took to get his funds out of that firm.
• The investor has a lot of responsibility for letting the FA run wild like that. He asked a lot of questions before taking the plunge but it didn't help.

Imagine how badly an average investor would be taken advantage of. It would years (if ever) before they recognized they made a mistake.

 

[Mulligan]

I'm my own FA but who should do it when I'm old and senile? That's what I worry about.
So far I've thought about a very basic trust with Vanguard managing my money....I've known independent FA's that have taken 80 year olds into expensive annuities for the commission.....and the 80 year old's kids had very little financial knowledge and they trusted the FA when they shouldn't have. My kids are very honest but could care less about managing money.....not much I can do about that. I gave them subscriptions to Money Mag....they don't read it.

And, WSJ writers are usually young, they don't make a ton of money so they dont have enough cash to need an FA. I knew many of them in my past life......today, newspapers are having a tough time.....writers just can't command big incomes. But, WSJ writers write for wealthy and successful readers.....and WSJ, for me, is worth reading....weekend edition especially along with Barrons are the only two papers I still read for financial updates.

So, again, who manages my money when I can't do it because I'm old and senile....what ideas do you have?

Well maybe you would feel comfortable letting this young whippersnapper take your assets to manage since he is the overseer of 950 million dollars.

http://en.m.wikipedia.org/wiki/Irving_Kahn


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[razztazz]

I'm my own FA but who should do it when I'm old and senile? That's what I worry about./QUOTE]

Maybe this will put your mind at ease. If you are that old or, really any age, and senile you have no long term. It's over Pop. You're just running out the clock. Why are you worrying about investment returns?

Unless something happens very suddenly and in an unforeseen way (and these things usually don't) you will have plenty of time to cash-out of everything and just put it in a money market fund or bank account and just spend it down. There will still be a lot left. In fact you will likely have plenty oft time to get a lawyer/trustee to tie up your loose ends for you while you take your long ride into the final sunset.

 

[explanade]

I thought financial media can't buy stocks or other financial instruments.

Perhaps they have to have some kind of a blind trust?

Some actually have jobs with banks before they become reporters.

 

[Katiek]

I thought financial media can't buy stocks or other financial instruments.

Perhaps they have to have some kind of a blind trust?

Some actually have jobs with banks before they become reporters.

The article said he could own diversified funds, but not individual stocks.