Bill Schultheis new advisory service

[johnk]

Most people will be familiar with AssetBuilder / Scott Burns' advisory service which has been in operation since early last year I believe. There was an overall not too positive string here on Scott Burns' and AssetBuilder...

http://www.early-retirement.org/forums/f28/thoughts-scott-burns-34314.html

Now Bill Schultheis has started an advisory firm...

SagemarkWealth.com

I know, Schultheis was in the industry before becoming an author. His services seem more comprehensive and traditional than those of Burns. I believe his fees are .75%, at least for folks with modest assets.

Yet both espouse a buy and hold strategy for the most part. So beyond setting up what for some might be a complex, unified portfolio across taxable and retirement accounts and rebalancing, what do people make of the prospect of going with such an arrangement? John.

 

[Lsbcal]

...Now Bill Schultheis has started an advisory firm...

SagemarkWealth.com

I know, Schultheis was in the industry before becoming an author. His services seem more comprehensive and traditional than those of Burns. I believe his fees are .75%, at least for folks with modest assets.

Yet both espouse a buy and hold strategy for the most part. So beyond setting up what for some might be a complex, unified portfolio across taxable and retirement accounts and rebalancing, what do people make of the prospect of going with such an arrangement? John.

Isn't Schultheis whole thesis that you can do it yourself and here is a portfolio that is good for life? What happened to the Coffeehouse Portfolio main idea -- or was that just bait and switch?

If you are paying .75% for management and maybe also have to through in another .25% for the fund ER's then that's 1% total. For a 4% withdrawal strategy you've spent 25% of your income on this stuff.

I'll admit I've thought the Coffeehouse idea wasn't bad but that I could do better. But that's because I like to do this stuff and there are plenty of people who'd rather pay someone. If you are one of those, I would pay someone to help determine what my risk tolerance was so I could get an AA established. Then I'd go to Vanguard and buy a Lifestrategy fund or maybe Wellesley or Wellington or a combo. Vanguard will also do a yearly checkup for free and you can always pay them to do a bit more extensive workup.

 

[johnk]

vanguard

Hi Isbcal,

Thanks. I believe I am one who will appreciate some sort of reasonable / low-fee investment advisor. I've contacted Vanguard and can qualify for a financial plan if I move money over but checkups are for holders of $500,000 in assets I believe. I've heard mixed results on these. They don't, from what I hear, typically recommend their LifeStrategy funds or Target Retirement funds. So, although I'm reading up it is daunting to me even to consider whether to go with a portfolio recommended by Vanguard or just a LifeStrategy fund as you say, or as some others suggest, total stock market, ftse all word ex-us and a total bond... and among my four accts, taxable, trad. IRA and Roth, and 403b. I don't like relish these decisions. jk.

 

[Lsbcal]

... So, although I'm reading up it is daunting to me even to consider whether to go with a portfolio recommended by Vanguard or just a LifeStrategy fund as you say, or as some others suggest, total stock market, ftse all word ex-us and a total bond... and among my four accts, taxable, trad. IRA and Roth, and 403b. I don't like relish these decisions. jk.

John, I perhaps made this sound a bit too simple. Over a period of years you will find almost everyone modifying portfolios even after saying this is a virtually permanent implementation. Opinions vary and markets change. For instance, VG was saying only up to 20% international in equities and now some of their offerings have a higher allocation. At times some asset classes become wierdly overextended, like large growth in the 1999-2000 period. You will never find a consensus on investment choices even among so-called experts.

I'm sure you will probably get more opinions here. You could look for a local fee only planner but I don't know the best way to go about this. There is Rick Ferri who is a low cost planner and has a solid reputation. Check out what he says at the Bogleheads site and you might try his book on All About Asset Allocation at the library. I think he is in Texas but personally I'd prefer just phone contact anyway, as it actually improves the information flow and you don't want a relationship (I hope) just good informed advice. If you could do the actual actions of moving your money you will save a lot.

 

[ats5g]

I guess it depends on what you get for that 0.75%. Rick Ferri is just an investment manager, and doesn't do a lot of financial planning. He has said in the past that for people that need financial planning, he recommends some members of the Garret Financial planning network.

- Alec

 

[Ed_The_Gypsy]

As I recall, Schultheis recounted that so many people came to him with their money that he couldn't say no.

Some people need hand-holding. (So do I, but I prefer someone prettier than ol' Bill. Oh. Money. No, I am perfectly able to lose money on my own, thanks.)

From "The Life of Brian" (IIRC):
Brian: "You have to work it out for yourselves."
Crowd: "YES! We have to work it out for ourselves! BRIAN! BRIAN!"

 

[samclem]

I don't have any problem with a guy like Schultheis hanging out a shingle. He's told people how to do it for themselves, and probably believes most people can. Obviously, based on what we see around us, most people don't/won't/can't.

Which is more respectable?
"You can do this yourself if you'll spend the time, I've written a book that can help you do it. You don't need to pay me or anyone else any money. If you want me to do it for you, I'll charge you .75%"
" All of this is very complicated, and few people can do it. It takes years of training. Seriously, you won't be able to do a good job on your own. Give me XX percent and I'll do it for you and you won't have to worry about a thing."

Plus, if you hire Schultheis you can read his book and know what his approach is. Going to another financial planner--it takes quite a few questions to figure out where the guy's head is at.