JBmadera
Recycles dryer sheets
Thank you for posting, what an inspiring story. Congrats!!
While we learned that we could do better on our own, she did have us in a fairly balanced AA, she didn't churn, and she kept me from diving headlong into tech funds in 1999 (probably saving us a fortune). It was very difficult to tell her we were bailing on her since it was impossible to explain our leaving without essentially saying she was not serving our interests.
We simply assumed that people that successful knew what they were doing. But you know what they say about assume.
My take was that she saved him some money but still had him in expensive investments. A better advisor would have saved more.So, she saved you a fortune by keeping you from doing stupid investing, and you rewarded her by leaving? Uh, ok........
I understood the FA knew what she was doing (charging high fees) but the friends that recommended her did not.How did your FA not know what she was doing?
Here's my advice: Don't drink Drano and don't jump in front of the subway. Please send me $50. And keep sending me the money every year (otherwise, I guess you'll be an ingrate and worthy of an "uh, ok . . . ")So, she saved you a fortune by keeping you from doing stupid investing, and you rewarded her by leaving? Uh, ok........
Please reread the post. Donheff said his friends didn't know what they were doing [implied: by wasting their money through an expensive management structure rather than finding a lower-cost one--or doing it themselves]How did your FA not know what she was doing?
Both questions were answered by others but I will add my ditto. Since I had no idea what I was doing, my FA did save me a good deal of money by steering me toward a diversified portfolio keeping me from jumping heavily onto the tech bandwagon. And she didn't abuse me in the manner described for Ameriprise. Nevertheless, once I learned just a little about investing I realized she had me in too many funds with redundant assets. She periodically switched to new funds for incoming $ which insured a steady flow of commissions and loads, and they all carried substantial expenses for that helpful management they exercised. My conclusion was that I could do better in a diversified set of index funds, i.e., she was not (or at least no longer) serving my interests. I like her and didn't feel she was abusing me so I felt bad when I left since the implicit message was clearly that I had concluded that a financial ignoramus (me) could do better than her after a few months of reading. Sadly, I believe that conclusion was accurate.So, she saved you a fortune by keeping you from doing stupid investing, and you rewarded her by leaving? Uh, ok........
How did your FA not know what she was doing?
As to FAs, I am not opposed to using them. I would recommend that people who feel they need one select a fee only adviser and focus on passive funds, something like DFA.
And I would agree with them that there is no need to spend your money with DFA - DIY instead. But I think you are better with them than with someone picking and choosing managed funds. We will never know for sure.Frankly, most folks on here wouldn't pay for an advisor that offers DFA. I have a relationship with a DFA advisor and refer business to him, but I share in a percentage of the management fee......
And I would agree with them that there is no need to spend your money with DFA - DIY instead. But I think you are better with them than with someone picking and choosing managed funds. We will never know for sure.
One year already? I remember your first post like it was yesterday!
Congratulations on all your successes.
+?? I too remember your first post and it's unbelievable it was already 1 year ago. I'd love to read more such 'turn-around' stories either financial or personal especially when knowledgeable people spend time advising for FREE.
Even when you can make a good case (with real numbers, etc)?I've sure had lousy luck, even when advice was sought. Someone made the decision to go with the current FA, and I've found that this person shoots the messenger.
I know a couple who are still with Edward Jones because that's where Grandpa bought his stocks. The account has been through probate not once but twice, and that's where it still is today.Sadly, he didn't because his late wife had chose the adviser and he liked her.
samclem said:Even when you can make a good case (with real numbers, etc)?
That's a tough situation. If you get only a grudging OK for a DIY approach and there's any adverse result (whether or not the FA would have prevented it) you can be in a bad spot.
Very cool! I met a guy this weekend who retired, starting riding a bike again and lost 60 or 70 pounds in 1.5 years.
If you guys really like cycling, check into some of the week long organized rides. BRAG (Georgia) is my favorite. Florida has one. Virginia, NC and Tennessee each have one. The granddaddy is RAGBRAI (Iowa). It is really fun to spend a week doing nothing but riding, eating and sleeping with a thousand or more like minded souls, moving from one small town to the next. My goal when I hit ER, or relatively so since I'm older than you, is to ride a couple of those a year. Unfortunately, my wife isn't into cycling, so I probably won't be doing a century in every state!
Good inspiration!
I've sure had lousy luck, even when advice was sought. Someone made the decision to go with the current FA, and I've found that this person shoots the messenger.
Even when you can make a good case (with real numbers, etc)?
That's a tough situation. If you get only a grudging OK for a DIY approach and there's any adverse result (whether or not the FA would have prevented it) you can be in a bad spot.
Right. There seems to be no real upside, unless it is someone that you really care about.
Some time ago I posted about nephew paying over 3 percent ER in a 403(b) - still there as far as I know.
1) In one minute, based on the collective information of hundreds (thousands?) of successively retired people, I can tell you the basics of how to manage your retirement investments yourself. Give me another five if you want more detailed background info.
2) In one more minute, I can explain how much you can spend and provide a high confidence level that you will outlive your portfolio. Give me another five if you want more detailed background info.
3) In one more minute, I can explain why relying on an outside adviser is most likely the most dangerous approach you can take with your retirement portfolio. Give me another five if you want more detailed background info.
If they can't listen to the advice of successfully retired people (walking the walk) presented in three, one-minute chunks, there's no hope for them.
-ERD50
I think what this forum needs to give out certificates so we can have a fancy initials behind our name when we dispenses financial advice. (My apologizes to the folks with CFPs, CPAs, and CFAs). Something like a Certified Wise Money Guy/Gal, from the Early Retirement Institute.
That'd get just about as much respect as signing my name with LCDR USN RET...I think what this forum needs to give out certificates so we can have a fancy initials behind our name when we dispenses financial advice. (My apologizes to the folks with CFPs, CPAs, and CFAs). Something like a Certified Wise Money Guy/Gal, from the Early Retirement Institute.
I'm opting for CAPT USAF RESIGNEDThat'd get just about as much respect as signing my name with LCDR USN RET...
Frankly, most folks on here wouldn't pay for an advisor that offers DFA. I have a relationship with a DFA advisor and refer business to him, but I share in a percentage of the management fee......
I do recall an impassioned post or two from nun that was chastising DFA for not selling to the VG/Fido crowd, but they have no plans to do it in the foreseeable future, and their growth in assets seems to speak that their business model is working, since they manage $160 billion or so.......
I considered using DFA, and some bogleheads use them and more would use them if they didn't require going through a DFA approved broker (and thus adding to costs). Their ER fees aren't bad at all. Alan Roth wrote an article about comparing Vanguard vs DFA and which was better. The bottom line was "it depends" and "who knows going forward" DFA vs. Vanguard - Which is better? - CBS MoneyWatch.com.
DD