It's kind of interesting to watch this group of above-average people pile on when somebody criticizes planners and annuity salespeople. Not sure I understand the reason. Maybe it answers the question "Wadda you do all day?"
The subject has been covered, over and over and over and over; check the archives. Nobody is forcing anybody to use a planner or buy an annuity.
This post made me wonder:
So FAs do use Vanguard. Glad to see it.
I don't mean to be picking on you BWE, but it almost seems like before you saw FinanceDude's post your logic might have gone something like this:
Vanguard = good.
Planners = bad.
Therefore Vanguard and planners are mutually exclusive; planners do not use Vanguard.
Am I close? Of course planners use Vanguard.
...I don't say it too much, but you folks sure have a broad ass paint brush ...
I couldn't agree more.
...We have a tendency to narrowly interpret actions of those who appear to make different choices from those chosen by us.
Ha
Very well said.
It's the popular thing to believe that all financial advisors are crooks...just like all salespeople are shysters..sigh.
(Not that some aren't, of course, just not all.)
Flowers for you.
I am not sure what the rate might be but why not FA by the hour maybe $400 or so. It can't take but a few hours to figure out where folks are going and perhaps an hour a month beyond that.
Lots of FA's work this way. Here is an example:
Garrett Planning Network - Fee-Only, Hourly Financial Planning and Investment Advice
What I am confused about is why in a capitalist country otherwise fairly normal people are upset about what someone charges for a service that can be used or ignored. It's not like a toll on the only bridge between your job and your home. It isn't even like doctors' salaries or civil servant retirements. You think they aren't worth the money, you are free to bypass their door. You think you want the service, but cheaper, bargain with them, or shop around. There is no union.
I sometimes wonder if a lot of our board members wandered in here after things got too free in East Germany or Russia after 1989.
Ha
Good post. East Germany --
Ha, I agree it is odd. I mean, I don't buy hair color, but I'm not out there railing against the hairdressers who offer it.
Sarah, Sarah, don't you get it? If you don't use hair color (just because that is your choice) you should be telling everyone who does use it what a mistake they are making, and how the hair color industry is just a giant multilevel marketing machine designed to rip you off, and to add insult to injury you are required to compensate the cosmetologist who applied it! Lions and tigers and bears, Oh MY! The sky is falling and I can't get up!
...I will tell you why some people need a financial advisor... I had a BIL who was a perfect example... in most everything, he did his homework... he talked to people... he worked through the problem...
When it came to taxes and investing... he freaked out... not a simple freak out, but a complete change of personality, not thinking etc. etc. freak out... I would put together a plan and give him options... for this type of investment you can choose fund A, B or C... for this you choose M,N, or O... etc. etc.... this did not satisfy him.. in his freaked out voice he said 'just tell me where to put the money'...
Yes, a lot of people don't want the bother, or are not comfortable making the decision. They need advice.
And our forum tends towards a "pile on" mentality. Mention someone who lives less that a pure LBYM lifestyle and watch the crowds pile on with the criticism. Etc.
Perhaps it would be like participating in a computer hobbiest forum and suggesting a call to the "Geek Squad" would get a simple computer problem solved instead of learning how to handle it yourself.
Very good parallel. People must use Geek Squad or else it would have no reason to exist.
Having now working in this business through two major downturns I can say this. The advisors that kept their clients invested when their client's emotions were telling them differently have saved their clients many multiples of a lifetimes of their fees. I know this because I have seen it with my own eyes, and had dozens of those conversations with end clients.
Have seen people buy near the top then freak out
and sell at the bottom. Some good advice, if followed, would be worth a fraction of a percent of AUM.
You're right all of the above work with totally transparent billing without any profit motive, intentional over billing, or putting their interests before their clients
Thanks. That's the point I was trying to make.