2-3 years ago this board helped me talk my sister into moving her money to fidelity and learning about investments. As it turns out she did move her money and used a fidelity planner to help.
She likes the planner and she did ok so she wants to keep using him. She called me today from his office.
Here is the problem. He has left fidelity and is working for best as I can tell so far Soverign Bank? She is in all cash right now , I suspect he advised her to do that so she could move her money to him
She is 53 retired, has approx 1 million in retirement accounts, probably another 100 or so in after tax.
She has paid company paid retirement benefits. Her expenses are running 5k per month and I told her that is high and suggested she either cut them or work part time for a while. She is single and has no children.
The planner is suggesting 700k go into a family of funds with a 2 percent load. The other 300k go into (here we go again) a variable annuity. He has her sold on the (guarenteed) floor of 20k per year at age 59. She called me from his office and put me on speaker.
I rather bluntly suggested she should not purchase the annuity or the funds, should go back to fidelity or vanguard or even to a fee only planner who I interviewed with her a few years ago. She is coming over tonight with the prospectus, I told the planner to give her the contract and wants me to explain to her why she should not do what he is telling her to.
I am relatively savvy with my own investments but I am not really qualified to tell her what to do. I suggested she at the least get a second opinion from a fee only planner before she pulls the trigger. I am not looking forward to studying a prospectus that I probably won't understand.
Do you agree with my suggestion that she run from this planner and find a good fee only since she is unable or unwilling to do it herself?
Or use another fidelity or vanguard planner? She seems to like the planner she has now and I think she really trusts him, though I do not. I also realize this is really not my business but she is asking for my advice, though I think she is leaning towards not taking it.
Sorry for the ramble, she just called me from his office and I am wound up.
thanks in advance for your advice,
Mike
She likes the planner and she did ok so she wants to keep using him. She called me today from his office.
Here is the problem. He has left fidelity and is working for best as I can tell so far Soverign Bank? She is in all cash right now , I suspect he advised her to do that so she could move her money to him
She is 53 retired, has approx 1 million in retirement accounts, probably another 100 or so in after tax.
She has paid company paid retirement benefits. Her expenses are running 5k per month and I told her that is high and suggested she either cut them or work part time for a while. She is single and has no children.
The planner is suggesting 700k go into a family of funds with a 2 percent load. The other 300k go into (here we go again) a variable annuity. He has her sold on the (guarenteed) floor of 20k per year at age 59. She called me from his office and put me on speaker.
I rather bluntly suggested she should not purchase the annuity or the funds, should go back to fidelity or vanguard or even to a fee only planner who I interviewed with her a few years ago. She is coming over tonight with the prospectus, I told the planner to give her the contract and wants me to explain to her why she should not do what he is telling her to.
I am relatively savvy with my own investments but I am not really qualified to tell her what to do. I suggested she at the least get a second opinion from a fee only planner before she pulls the trigger. I am not looking forward to studying a prospectus that I probably won't understand.
Do you agree with my suggestion that she run from this planner and find a good fee only since she is unable or unwilling to do it herself?
Or use another fidelity or vanguard planner? She seems to like the planner she has now and I think she really trusts him, though I do not. I also realize this is really not my business but she is asking for my advice, though I think she is leaning towards not taking it.
Sorry for the ramble, she just called me from his office and I am wound up.
thanks in advance for your advice,
Mike