A dear friend of mine is nearing the end of the divorce process and will soon be in possession of a reasonably-sized cash settlement along with some property/business that will likely be sold in the not too distant future. She has no investment experience, nor do I believe she has the interest in learning more than the bare minimum. She has turned to me for advice as she knows I manage my own finances and have done well. She also has other friends advising her. At this point I am afraid she is on the verge of being sucked into a relationship with a Financial Advisor with an Investment/Insurance firm (recommended by a friend). I am trying to find a reasonable alternative for her, knowing that she just wants someone to tell her what to do.
I am looking at the Schwab website and see that they have various "Intelligent" services that might work for her. Because she will be looking for a new home for existing IRA/401(k) as well as a place for the new money, I am thinking she could consolidate all of her assets with Schwab, which would make the Intelligent Income product more useful. I don't really see the cash position or number of positions being much of an issue. Also the $300 one-time + $30/mo for unlimited access to a personal advisor sounds much more reasonable than the price she would pay for hand-holding from the aforementioned Financial Advisor.
I am not willing to get too deep into the weeds of her finances in advising her because I don't really feel qualified. My own financial success comes with a lot more margin to make mistakes than what she will have. I plan to call Schwab today and ask more questions so that I have a better understanding of how the portfolios work before I present my advice to her.
She is 65 and will probably end up with about $1M when all is said and done. I believe her SS will be relatively low and there are no pensions.
Thoughts on this as an alternative?
