Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 03-16-2021, 04:25 PM   #81
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 14,327
Quote:
Originally Posted by braumeister View Post
It's worth remembering that the average financial advisor has a considerable outlay for expenses. AFAIK the typical budget looks something like this:
Yeah, birthday cards are a big part of it. I've got millions with Vanguard and Fidelity and never one damn birthday card.
travelover is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-16-2021, 04:31 PM   #82
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jan 2018
Location: Tampa
Posts: 9,820
Quote:
Originally Posted by travelover View Post
Yeah, birthday cards are a big part of it. I've got millions with Vanguard and Fidelity and never one damn birthday card.
Fidelity sends me a bd card. Maybe your jokes are too sophisticated for them.
__________________
TGIM
Dtail is offline   Reply With Quote
Old 03-16-2021, 04:32 PM   #83
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 14,327
Quote:
Originally Posted by Dtail View Post
Fidelity sends me a bd card. Maybe your jokes are too sophisticated for them.
What? Now I'm jealous.
travelover is offline   Reply With Quote
Old 03-17-2021, 11:30 AM   #84
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
target2019's Avatar
 
Join Date: Dec 2008
Location: Stuck in the mud somewhere in the NJ swamp
Posts: 8,380
How long a firm has been around is not necessarily a good indicator of the salesman you meet with. I once ate dinner with a Merril Lynch salesman FA in a nice neighborhood steak house. It was 7/8/2009 and he was out about $75 for the meal, I guess. He rambled the entire time, spoke of the many mistakes of the president, and told me about his portfolio that protected him from these mistakes.

In the 90 minutes I was able to ask one question, "What do you think of Cisco." His answer was that they were a good company, and paid a 3% dividend." Now that I look back, I realize he was a genius, knowing about Cisco's first dividend to be paid on Mar 29, 2011.

He admitted he was forced out of a local bank before ML. I also learned later he owned the local strip mall video store.

I'm sure your FA is much better, but had to tell of one experience I had.
target2019 is offline   Reply With Quote
Old 03-17-2021, 11:36 AM   #85
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 8,711
Quote:
Originally Posted by target2019 View Post
How long a firm has been around is not necessarily a good indicator of the salesman you meet with. ... I'm sure your FA is much better, but had to tell of one experience I had.
Again I'll recommend https://brokercheck.finra.org/ as an imperative first step. You'll get employment history, licensing, customer complaints, etc. One important check box is whether the individual is licensed to sell securities or is just insurance licensed.
__________________
Ignoramus et ignorabimus
OldShooter is offline   Reply With Quote
Old 03-17-2021, 11:48 AM   #86
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
target2019's Avatar
 
Join Date: Dec 2008
Location: Stuck in the mud somewhere in the NJ swamp
Posts: 8,380
Yes indeed, he was in the FINRA site in 2009 when I checked him out for AARP. And then there's the rest of the story...
target2019 is offline   Reply With Quote
Old 03-17-2021, 02:53 PM   #87
Recycles dryer sheets
 
Join Date: Jan 2012
Posts: 140
Quote:
Originally Posted by target2019 View Post

He admitted he was forced out of a local bank before ML. I also learned later he owned the local strip mall video store.

I'm sure your FA is much better, but had to tell of one experience I had.
Yeah, the guy I spoke to did not own a video store.
ProGolferWannabe is offline   Reply With Quote
Old 03-17-2021, 03:44 PM   #88
Recycles dryer sheets
 
Join Date: Jul 2020
Location: Sector 001 - Alpha Quadrant
Posts: 187
Former FA here. I've worked for ML, Smith Barney, Fidelity, Schwab over a 25 year career.

IMHO, if you need advice and someone to talk to, stick to Vanguard PAS or Schwab Intelligent Portfolios Premium.

Everything else, really is just smoke & mirrors.
Ncc1701 is offline   Reply With Quote
Old 03-17-2021, 06:20 PM   #89
Thinks s/he gets paid by the post
Markola's Avatar
 
Join Date: Nov 2013
Location: Twin Cities
Posts: 3,274
Quote:
Originally Posted by Ncc1701 View Post
Former FA here. I've worked for ML, Smith Barney, Fidelity, Schwab over a 25 year career.

IMHO, if you need advice and someone to talk to, stick to Vanguard PAS or Schwab Intelligent Portfolios Premium.

Everything else, really is just smoke & mirrors.


Thanks for adding to the discussion from your experienced perspective. There is clearly a market need for the service and it’s just a matter of keeping costs down, as these two programs you mentioned do well.
Markola is offline   Reply With Quote
Old 03-17-2021, 09:25 PM   #90
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 6,973
I hate the guys that hide their AUM scheme by claiming “we do better when you do better”, which obscures the fact that
If your account loses money, they still get paid handsomely.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is offline   Reply With Quote
Old 03-17-2021, 09:29 PM   #91
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 14,327
Quote:
Originally Posted by jazz4cash View Post
I hate the guys that hide their AUM scheme by claiming “we do better when you do better”, which obscures the fact that
If your account loses money, they still get paid handsomely.
They merely forgot to mention that "we do fine when you do worse, too."
travelover is offline   Reply With Quote
Old 03-18-2021, 04:50 AM   #92
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jan 2018
Location: Tampa
Posts: 9,820
Quote:
Originally Posted by Ncc1701 View Post
Former FA here. I've worked for ML, Smith Barney, Fidelity, Schwab over a 25 year career.

IMHO, if you need advice and someone to talk to, stick to Vanguard PAS or Schwab Intelligent Portfolios Premium.

Everything else, really is just smoke & mirrors.
And there you have it from the horse's mouth.
__________________
TGIM
Dtail is offline   Reply With Quote
Old 03-18-2021, 08:27 AM   #93
Thinks s/he gets paid by the post
flintnational's Avatar
 
Join Date: Mar 2008
Location: Atlanta Suburb
Posts: 1,499
Quote:
Originally Posted by Markola View Post
Sure. Vanguard Personal Advisor Services (VPAS) has its own proprietary software,.......
Markola, nice summary. Thank you.

For those that might be interested, here is a link to the Vanguard white paper on their dynamic retirement spending model.
__________________
"Oh, twice as much ain't twice as good
And can't sustain like one half could
It's wanting more that's gonna send me to my knees" - John Mayer
flintnational is offline   Reply With Quote
Old 03-18-2021, 08:38 AM   #94
Thinks s/he gets paid by the post
bclover's Avatar
 
Join Date: Mar 2015
Location: philly
Posts: 1,198
So I have a FA and have no problem with it. He is fee only.
So I hate managing money with the heat of 10 suns. my late husband handle all of it with my blessings. When he died we still had small children so I had to take over. Now imo I do not believe all the bogleheads that swear you could do it yourself with just reading a few books.
I brought every thing from the millionaire next door to rich dad poor whatever and every thing in between. lol, I probably could have retired early on all the books I brought and never finished.

I'm happy although now that I'm retiring and probably simplifying I'll probably cut down on the number of times I call him up.
__________________
My darling girl, when are you going to realize that being "normal" is not necessarily a virtue? it sometimes rather denotes a lack of courage~Aunt Francis
bclover is offline   Reply With Quote
Old 03-18-2021, 08:40 AM   #95
Moderator
braumeister's Avatar
 
Join Date: Feb 2010
Location: Flyover country
Posts: 21,730
Quote:
Originally Posted by bclover View Post
now that I'm retiring and probably simplifying I'll probably cut down on the number of times I call him up.
That's the key point. Simpler is just ... easier. Not to mention more understandable and less tricky to manage.
__________________
I thought growing old would take longer.
braumeister is offline   Reply With Quote
Old 03-18-2021, 09:21 AM   #96
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 8,711
Quote:
Originally Posted by bclover View Post
So I have a FA and have no problem with it. ....
There is always a lot of FA bashing here, and IMO many of them deserve it. But there are good FAs and there are clients that need FAs. Here's a story:

DS has a (platonic) woman friend, call her Emily, whose mother died last year. Emily is in her 50s. For at least ten years prior, Emily lived in the basement apartment of mom's house and took care of mom 24x7. Prior to that she had worked as an aide in a nursing home. From time to time mom would give Emily money for groceries, for Emily's clothes, etc. but Emily never had any understanding about her mom's money. Emily typically shopped for clothes at Goodwill.

When mom died and the estate got sorted out there was stock portfolio that included $3/4M of 3M stock plus a rental house in LA. We don't know exactly but the total probably pushes $2M. Emily has no clue what to do with this money or with her formerly penurious lifestyle. She would be a juicy target for charlatans and hucksters.

Fortunately, DW and I were able to refer Emily to an FA firm that we know. The owner of that firm, an experience mom, has taken Emily's life under her wing, managing the money and coaching Emily on her financial and personal future. This is not a situation for a DIY or Boglehead scenario. The FA is providing huge value to Emily's life.
__________________
Ignoramus et ignorabimus
OldShooter is offline   Reply With Quote
Old 03-18-2021, 09:41 AM   #97
Recycles dryer sheets
 
Join Date: Jul 2020
Location: Sector 001 - Alpha Quadrant
Posts: 187
Quote:
Originally Posted by OldShooter View Post
There is always a lot of FA bashing here, and IMO many of them deserve it. But there are good FAs and there are clients that need FAs. Here's a story:

DS has a (platonic) woman friend, call her Emily, whose mother died last year. Emily is in her 50s. For at least ten years prior, Emily lived in the basement apartment of mom's house and took care of mom 24x7. Prior to that she had worked as an aide in a nursing home. From time to time mom would give Emily money for groceries, for Emily's clothes, etc. but Emily never had any understanding about her mom's money. Emily typically shopped for clothes at Goodwill.

When mom died and the estate got sorted out there was stock portfolio that included $3/4M of 3M stock plus a rental house in LA. We don't know exactly but the total probably pushes $2M. Emily has no clue what to do with this money or with her formerly penurious lifestyle. She would be a juicy target for charlatans and hucksters.

Fortunately, DW and I were able to refer Emily to an FA firm that we know. The owner of that firm, an experience mom, has taken Emily's life under her wing, managing the money and coaching Emily on her financial and personal future. This is not a situation for a DIY or Boglehead scenario. The FA is providing huge value to Emily's life.

Not minimizing what the FA does for Emily, as I stated, I used to provide those services myself but my point is Emily can have the same level of hand holding with a CFP and an index fund portfolio for a total cost of around 40bps using VPAS or SIP Premium. The only difference is that Schwab or Vanguard would meet virtually rather than in person with those lower cost services. To me, it's not a huge sacrifice given that Emily is probably paying the FA 150% more than those services.
Ncc1701 is offline   Reply With Quote
Old 03-18-2021, 09:43 AM   #98
Thinks s/he gets paid by the post
Ready's Avatar
 
Join Date: Mar 2013
Location: Southern California
Posts: 3,944
Emily was lucky to have the help of someone who could guide her to a financial advisor that was vetted by someone who knows what they are doing. What would have happened if you were not there to guide her and she ended up with some random person at Edward Jones?
Ready is offline   Reply With Quote
Old 03-18-2021, 09:51 AM   #99
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
target2019's Avatar
 
Join Date: Dec 2008
Location: Stuck in the mud somewhere in the NJ swamp
Posts: 8,380
Quote:
Originally Posted by ProGolferWannabe View Post
Yeah, the guy I spoke to did not own a video store.
Ok. We're at the anecdote level of thread development. Most responses prove nothing, but steam gets let off.

The FINRA site does have data points, but a clean sheet there does not guarantee anything.
target2019 is offline   Reply With Quote
Old 03-18-2021, 09:56 AM   #100
Thinks s/he gets paid by the post
 
Join Date: Jun 2017
Location: Western NC
Posts: 3,636
Quote:
Originally Posted by rt-texas View Post
Just my 2 cents worth...

1.1% AUM on lets say 2.5M is $27,500 per year. You can hire someone by the hour to complete a plan for you that addresses all you questions and gives you good roadmap for a whole lot less. A 1.1% drag on my portfolio is not something I would want to voluntarily initiate. You can revisit as needed and pay for updates and you won't be seeing thousands coming out of your portfolio every quarter.

https://www.napfa.org/

Also, if I were to hire someone, for me, they would need to be a fiduciary.

I know Fidelity has some kind of advisors service available. As well, when I had some health issues, I turned over our portfolio to Vanguards PAS for a year at a cost of .3 of AUM while I focused on my health. This is what my wife will do when I shuffle off permanently.

If you can run FireCalc you can use Open Social Security and get a real good idea which way to go with that. https://opensocialsecurity.com/

Last, but not least; I can invest in a lot of education on retirement and finance for $10k plus a year.

Just my opinion.
One financial blogger offers a "find me a fee-only advisor" service:

https://adviceonlyfinancial.com/how-...d-advice-only? utm_source=thefinancebuff.com&utm_medium=referral& utm_campaign=post

I used the above service a few years ago when I found myself facing a particular financial quandary...was happy with the recommendations...all were ~$2000 for a one-off plan, IIRC.

My situation resolved itself before I needed to choose one, however, so I ended up not employing any of them.
ncbill is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Hiring a Financial Planner meleana FIRE and Money 126 02-04-2019 08:46 PM
advisor or no advisor frank FIRE and Money 10 04-29-2014 06:58 AM
Questions to ask your financial advisor before hiring??? Midpack FIRE and Money 20 12-19-2012 05:36 PM
hiring an advisor Eyerishgold FIRE and Money 43 08-30-2007 11:27 PM
Is your union hiring your financial advisor with your dues? Nords Young Dreamers 3 05-03-2006 08:37 AM

» Quick Links

 
All times are GMT -6. The time now is 02:53 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2022, vBulletin Solutions, Inc.