Non-Managed Portfolios… Investment Consultant?

[KateM]

Hello everyone,

I am new to the group and am so glad that I found you all! I have been reading up on all the forums, especially the ones directed to newbies like me. I was wondering if anyone has insights on the following:

I have my investments at Fidelity under their “premium services”, which is free (not a managed account). They helped me set up my initial investment strategy a couple years ago. I am a novice at investing and had big hopes and dreams about educating myself and managing the investments. However, I have a demanding job and have not been able to do that. Therefore, I have not done any rebalancing and I just keep pumping cash into my money market account. I feel paralyzed with reinvesting the cash. Not sure if they are still the right funds, right timing, etc. I’m sure I’m leaving money on the table but don’t want to pay the 1%+ for a managed account.

Has anyone used a investment consultant that you’d meet with a couple times per year for advice/rebalancing and just pay an fixed/hourly rate? If so, any recommendations on an independent consultant.

A little about me: 40 years old. $2.7M in investments, planning on FI in ~5 years once I hit $4M.

 

[travelover]

I'd consider opening a target fund that roughly corresponds to your anticipated retirement date. Just dump the money in there. It automatically re-balances stocks vs bonds and adjusts the ratio as you approach retirement.

Edited to add it looks like Vanguard's target funds have a much lower expense ratio than Fidelity's.

https://www.fidelity.com/mutual-funds/fidelity-fund-portfolios/freedom-funds

https://investor.vanguard.com/mutual-funds/profile/VTTVX

 

[Out-to-Lunch]

I'd consider opening a target fund that roughly corresponds to your anticipated retirement date. Just dump the money in there. It automatically re-balances stocks vs bonds and adjusts the ratio as you approach retirement.

Edited to add it looks like Vanguard's target funds have a much lower expense ratio than Fidelity's.

https://www.fidelity.com/mutual-funds/fidelity-fund-portfolios/freedom-funds

https://investor.vanguard.com/mutual-funds/profile/VTTVX

Fidelity also has a separate series of target-date INDEX funds with ER's of about 0.12. They go by the names "Fidelity Freedom Index 20XX Fund"

https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/SHDOCS/FDKLX/hosts/sh_comm_pmqa.002216.RETAIL_pdf.pdf

 

[Aerides]

Sounds like you could use a Fiduciary for the type of discussion and assistance you mention.

As far as Fido, many of their index funds are fee free, or nearly, like FSKAX, which is where I have a big chunk of my fidelity stuff.

 

[KateM]

Thank you all for the insights and advice, I really appreciate it. I am doing a deep dive into those suggestions.

 

[travelover]

Fidelity also has a separate series of target-date INDEX funds with ER's of about 0.12. They go by the names "Fidelity Freedom Index 20XX Fund"

https://www.fidelity.com/bin-public...DKLX/hosts/sh_comm_pmqa.002216.RETAIL_pdf.pdf

Good catch - these index funds are the ones I would consider

 

[Sojourner]

Has anyone used a investment consultant that you’d meet with a couple times per year for advice/rebalancing and just pay an fixed/hourly rate? If so, any recommendations on an independent consultant.

Yes, I met with a fee-only financial advisor many years ago, and he gave me some good advice about the amounts I could/should be investing (given my income at the time) and what my asset allocation should be. Cost me about $1,500 total, and it was money well spent, given that it prompted me to get serious—finally—about getting fully invested in the markets and reducing my cash hoard.

In your particular case, though, I am not sure an investment advisor would be quite as helpful. If you'd be willing to share more details with us about your investments (amounts, percentages, and specific funds), then we would be able to give you all the investment advice you'll likely need, for free.

 

[latexman]

I have my investments at Fidelity under their “premium services”, which is free (not a managed account). They helped me set up my initial investment strategy a couple years ago. I am a novice at investing and had big hopes and dreams about educating myself and managing the investments. However, I have a demanding job and have not been able to do that. Therefore, I have not done any rebalancing and I just keep pumping cash into my money market account. I feel paralyzed with reinvesting the cash. Not sure if they are still the right funds, right timing, etc. I’m sure I’m leaving money on the table but don’t want to pay the 1%+ for a managed account.

Has anyone used a investment consultant that you’d meet with a couple times per year for advice/rebalancing and just pay an fixed/hourly rate? If so, any recommendations on an independent consultant.

I have Fidelity Premium Services also, and I have an assigned adviser as part of that. Her contact information is near the upper right hand side on the home page of my account. Do you have an adviser there?

My experience the last five years or so is, I've visited or Zoomed with my adviser at least once a year, sometimes twice a year. My DW went with me to two of these visits. In addition to the scheduled visits, I've called and e-mailed her about 2-5 times a year with questions and asking for help. I've almost always gotten same-day or next-day replies from her, or her assistant. And, yes, it is free, and they have never suggested I am abusing the privilege.

If you have such an adviser, and I'm thinking you should in Premium Services, I'd suggest you already have an investment consultant at no cost. You just need to use them.

 

[MRG]

I have Fidelity Premium Services also, and I have an assigned adviser as part of that. Her contact information is near the upper right hand side on the home page of my account. Do you have an adviser there?

My experience the last five years or so is, I've visited or Zoomed with my adviser at least once a year, sometimes twice a year. My DW went with me to two of these visits. In addition to the scheduled visits, I've called and e-mailed her about 2-5 times a year with questions and asking for help. I've almost always gotten same-day or next-day replies from her, or her assistant. And, yes, it is free, and they have never suggested I am abusing the privilege.

If you have such an adviser, and I'm thinking you should in Premium Services, I'd suggest you already have an investment consultant at no cost. You just need to use them.

+.5

It depends on the branch. I had a great experience in KC. When I moved to the Denver branch I was assigned a dirty rotten annuity salesman who wasted a couple days. When I complained to the branch manager he fired me.

I roasted the manager on a Fidelity review and suggested someone from any other branch might have someone who could assist me with my needs. I have met with the new guy a couple times and he seems to be very interested in selling. Not sure what value he is going to add to me. Enjoy your advisor but beware when things change.

 

[latexman]

It depends on the branch. I had a great experience in KC. When I moved to the Denver branch I was assigned a dirty rotten annuity salesman who wasted a couple days. When I complained to the branch manager he fired me.

I roasted the manager on a Fidelity review and suggested someone from any other branch might have someone who could assist me with my needs. I have met with the new guy a couple times and he seems to be very interested in selling. Not sure what value he is going to add to me. Enjoy your advisor but beware when things change.

I've had my current adviser about 2-3 years. The one before her, which I had for 3-4 years before her was just as good. Neither has tried to sell me anything. Of course, I made it clear to both I wasn't interested in anything, especially annuities. Once they saw my retirement model, I think they understood. I have a defined benefit pension and SS that covers our expenses, so I just don't need anymore annuities. And, my IRA and Roth IRA hold my BTD money.

Sorry your advisers haven't been as good. Better luck on the next one.