FA's & Fp articles

[gregory r.]

My B-I-L told me he and his DW are planning to go to Raymond James to have their retirement plan assessed, commented on, and further advised on. I told him to make sure they get a fee only (hrly fee preferable) just for one time "review". Any good articles on here about the pitfalls and be ware's of the FA/FP industry. I could explain them fairly well but I think he's better off reading for himself. Fee based verse fee only verse hourly rate, etc.

 

[Gotadimple]

Raymond James does this often. They do provide a canned plan based on a multi-page questionnaire for a flat fee. Along with the plan you get a consultation about where you are and what to think about. No pressure to invest with them. If someone is looking for specific investment advice, they don't get it with this plan and meeting. Unless they want someone to handle their money, which is what RJ really wants to do.

I took a community college continuing education course about retirement planning that was run by a Raymond James financial advisor. Sure he was looking for clients, but for a small fee he was willing to run a plan and talk to you about where you were and what you wanted in retirement. What he told me helped me to see that I was on the right track.

My experience FWIW.

Rita

 

[DrRoy]

Search other threads on "Financial advisor" and show him one that you like.

 

[MRG]

Might want to read this link.

https://www.raymondjames.com/legal-...osures/mutual-fund-investing-at-raymond-james

From the link:
Your financial advisor

In connection with many mutual fund investments, you may be subject to the payment of a commission or load as described above. A description of commissions that are payable with respect to a particular mutual fund investment is disclosed in the prospectus of the mutual fund. A portion of the commission payment received by Raymond James is paid to your financial advisor. Regardless of commissions charged by the various mutual funds available to you at Raymond James, the compensation formula used to determine the amount of payment received by your Raymond James financial advisor is the same – this includes those mutual funds that are managed by affiliates of Raymond James. Different classes of the same mutual fund will generally have different associated on-going expenses (these on-going expenses are also described above), and your financial advisor may receive more or less compensation depending on the mutual fund share class you purchase. For instance, over time your financial advisor may receive more compensation if you invest in Class C shares of a mutual fund than if you were to invest in Class A shares of the same mutual fund as a result of Class C shares generally having higher 12b-1 fees than Class A shares. Raymond James does not provide cash or non-cash compensation incentives to financial advisors for selling certain mutual funds or share classes.

 

[LOL!]

Read the book from William Bernstein: The Investor's Manifesto

Here are the table of contents: http://www.efficientfrontier.com/files/TIM.pdf

The chapter on advisors is titled "Muggers and Worse"

 

[easysurfer]

I recently ended my relationship with a fee only planner that I hired years back when making to move to FIRE. The planner said, due to newer paperwork or filing requirements, went from fee only to a subscription model. I said a subscription model didn't work for me, so wished her well but said to remove me as one of her clients.

 

[Gotadimple]

You know we are supposing the OP's brother in law is planning on investing with the FA. Perhaps they are only interested in having a retirement plan review (which they can also get from Fidelity, Vanguard, or Schwab for free).

I think the OP's advice is still good, along with helping his B-I-L understand the costs of using a full service brokerage as his investment advisor.

- Rita

 

[haha]

I recently ended my relationship with a fee only planner that I hired years back when making to move to FIRE. The planner said, due to newer paperwork or filing requirements, went from fee only to a subscription model. I said a subscription model didn't work for me, so wished her well but said to remove me as one of her clients.

I understand her POV, and your response. An adviser has lot of overhead, and not a little legal exposure, what with constantly changing attitudes and expectations. You get married under one set of rules, and divorced under a completely different set.

Any adviser who understands the business is going to try to move clients from a one-off or occasional billing, to a quarterly or more frequent billing.

People have to be able take care of themselves, or pay enough to make it worthwhile for someone else to take care of them. Which may turn out to be more than expected.

Ha

 

[Skeptic]

Perhaps they are only interested in having a retirement plan review (which they can also get from Fidelity, Vanguard, or Schwab for free).

- Rita

What is this free retirement plan review of which you speak? My 401k is with Fidelity, so I got a free consultation with a Fidelity rep. But all the fellow did was to do data entry on their retirement planning web interface while I watched and then try to sell me an annuity.

 

[nun]

Tell your BIL to post his questions here or at bogleheads.org. He'll get lots of free, no nonsense advice.

 

[socca]

This "financial advisor", if guilty, is an outlier, but nevertheless reading this short article might encourage a healthy skepticism:

Ex-Morgan Stanley financial adviser arrested in fraud case

 

[Gotadimple]

What is this free retirement plan review of which you speak? My 401k is with Fidelity, so I got a free consultation with a Fidelity rep. But all the fellow did was to do data entry on their retirement planning web interface while I watched and then try to sell me an annuity.

That's the one! But you have to be a customer to get to the software. Really, if you approach any of these three as a potential client you may get something for free. My point is there is a difference between visiting a broker who offers a financial plan review (and potential sales pitch) and signing up for assets under management (which is what Raymond James wants you to do) without understanding the costs.

I believe this is what the OP is concerned about.