Financial advisor for flat fee or hourly? Not tied to any financial services

[redspot321]

Hello~!
Any recommendations for a financial advisor that would "teach" me how to manage my retirement? I don't have time to take courses or really read up for that matter but I do have questions that require verbal conversation.

Explain drawdown options, retirement account rules, etc

I'm not looking to invest with anyone. Just need guidance at this point.

 

[Koolau]

Most of the general topics of "manage your retirement" you can probably learn right here. What I struggle with is the interplay and intricacies of such things as taxes, gotchas such as IRMAA and NIIT, estate planning, insurance management, charity giving, various other "limits", etc.

So far, I've just faked it and done okay (well, in the past 20 years.) Before I found this site, I was all over the place on investing and fell victim to the dreaded sales-person-as-financial-advisor.

This site has really helped me though I don't claim to be an expert.


Oh, and welcome to the Forum!

 

[Taxman59]

I second Koolau's advice. This site has a wide range of people with a wide range of experience. we can give you the answers you need to just about any question you may have. Post your questions, and the members here will help you on your journey.

 

[Koolau]

At least ask around here for the "big" stuff and then perhaps seek a Financial Advisor to critique the plan you come up with. Get to know the terms and lingo so you can converse with a FA.

If you are a complete beginner, then my suggestion would be to save, save, save and THEN invest once you get some confidence that you know what you're doing. If you want to dive into the investing world, I'd suggest the so-called "couch-potato" Asset Allocation. You invest in 2 or maybe 3 low-cost funds from one of the big houses such as Schwab, Fidelity, Vanguard, etc. The funds should compliment each other - trying to balance safety, growth, time-frame, etc. Emphasize Roth IRAs over Traditional IRAs within the bounds of taxes. Above all, run a financial calculator on your current situation (such as FIRECalc.)

If you already have an investment "plan" present it here and let folks critique it for "free." (Remember, our advice is free and worth every penny you pay for it.) IOW get help in your confidence level here and THEN hire a CFP or equivalent.


As far as actually finding a Financial Advisor, I'd suggest hourly-fee-for-service only and ask friends who they use. CFP is likely the credential you'd be looking for, but you still have to be careful not to w*rk with anyone who is trying to sell you something.

Good luck.

 

[EastWest Gal]

Hang out here and read. Another resource is Bogleheads.org. Of particular interest to you might be the link to their main page, which has many articles which may answer your questions, without having to sign up. You only sign up if you want to post, just like here.

I think if you have specific questions, you can search the forums of both sites and get a good discussion. A fee-only financial planner will cost you $300-500/hour, and you won't learn as much as you can by exploring the resources here. If you meed with a planner for an hour, how much of that information will you actually retain? By reading multiple resources here and at Bogleheads, your retention will be vastly better. Then, if you need specific questions answered, and have something of a plan, a CFP can review the plan. This saves you both time and money.

Here is the link:

Bogleheads

 

[Koolau]

Hang out here and read. Another resource is Bogleheads.org. Of particular interest to you might be the link to their main page, which has many articles which may answer your questions, without having to sign up. You only sign up if you want to post, just like here.

I think if you have specific questions, you can search the forums of both sites and get a good discussion. A fee-only financial planner will cost you $300-500/hour, and you won't learn as much as you can by exploring the resources here. If you meed with a planner for an hour, how much of that information will you actually retain? By reading multiple resources here and at Bogleheads, your retention will be vastly better. Then, if you need specific questions answered, and have something of a plan, a CFP can review the plan. This saves you both time and money.

Here is the link:

Bogleheads

Agree that Bogleheads has lots of resources to help you learn but just be advised that participating at Bogleheads (interacting on the forum) is a different animal than participating here. We are much less "focused" here and, dare I say it, a generally friendlier group (heh, heh, with the occasional curmudgeon thrown in for good measure. )

 

[Lorenzo]

Hello~!
Any recommendations for a financial advisor that would "teach" me how to manage my retirement? I don't have time to take courses or really read up for that matter but I do have questions that require verbal conversation.

Explain drawdown options, retirement account rules, etc

I'm not looking to invest with anyone. Just need guidance at this point.

You say you have questions that require verbal conversation yet you apparently haven't done any reading on any of this, so how do you know that a little reading wouldn't answer some of those questions? I suppose what I am saying is that it might be a good idea to get the lay of the land, so to speak, by doing a little reading, and that may prepare you to ask more focused questions.

I read a few books, starting with the easy to read classic "How to Make Your Money Last--The Indispensable Retirement Guide" by Jane Bryant Quinn, which I felt was kind of like Retirement Finance For Dummies (which I don't doubt is a real book, too). Then Wade Pfau's "Retirement Planning Guidebook," which was so comprehensive as to lose me at times. Most of the basics, such as withdrawal methods, and rules about various types of accounts, can be found in threads here on ER.org. If you start reading a bit here, you will see that the same topics come up again and again, and a pattern or outline will emerge of some basic things that people do to "manage their retirement."

I came to ER.org asking about an hourly fee-only advisor, but I am beginning to believe that by the time I have educated myself enough to have some focused questions to ask the advisor I will already know the answers to those questions. Oh, I will inevitably have questions, but they won't be the broad questions I thought I would need to ask when I first found this site. There are lots of great folks here who will answer questions, and the option to hire an hourly or flat-fee advisor for advice or to double-check something always remains available.

 

[Koolau]

You say you have questions that require verbal conversation yet you apparently haven't done any reading on any of this, so how do you know that a little reading wouldn't answer some of those questions? I suppose what I am saying is that it might be a good idea to get the lay of the land, so to speak, by doing a little reading, and that may prepare you to ask more focused questions.

I read a few books, starting with the easy to read classic "How to Make Your Money Last--The Indispensable Retirement Guide" by Jane Bryant Quinn, which I felt was kind of like Retirement Finance For Dummies (which I don't doubt is a real book, too). Then Wade Pfau's "Retirement Planning Guidebook," which was so comprehensive as to lose me at times. Most of the basics, such as withdrawal methods, and rules about various types of accounts, can be found in threads here on ER.org. If you start reading a bit here, you will see that the same topics come up again and again, and a pattern or outline will emerge of some basic things that people do to "manage their retirement."

I came to ER.org asking about an hourly fee-only advisor, but I am beginning to believe that by the time I have educated myself enough to have some focused questions to ask the advisor I will already know the answers to those questions. Oh, I will inevitably have questions, but they won't be the broad questions I thought I would need to ask when I first found this site. There are lots of great folks here who will answer questions, and the option to hire an hourly or flat-fee advisor for advice or to double-check something always remains available.

For books, "The Millionaire Next Door" is very basic and more toward the inspirational side of the genre - but a good read if you're just starting.

 

[Lorenzo]

For books, "The Millionaire Next Door" is very basic and more toward the inspirational side of the genre - but a good read if you're just starting.

I encouraged my wife, who has but a handful of years to go before retirement yet never had any interest in this stuff, to read it. Better late than never.

 

[OldShooter]

... I don't have time to take courses or really read up for that matter but I do have questions that require verbal conversation. Explain drawdown options, retirement account rules, etc ...

I dunno. Books have been written about these questions. Even if you're willing to spend the money you'll just scratch the surface trying to do it with even hours of conversation. Here's an easy start:

• "The Coffee House Investor" by Bill Schultheis https://www.amazon.com/Coffeehouse-Investor-Wealth-Ignore-Street/dp/159184584X (This is Bill's first book; read it before reading his second one.)

And a little deeper dive:

• "The Bogleheads Guide to Investing" by Taylor Larimore et al Amazon.com

 

[Lorenzo]

I dunno. Books have been written about these questions. Even if you're willing to spend the money you'll just scratch the surface trying to do it with even hours of conversation. Here's an easy start:

• "The Coffee House Investor" by Bill Schultheis Amazon.com (This is Bill's first book; read it before reading his second one.)

And a little deeper dive:

• "The Bogleheads Guide to Investing" by Taylor Larimore et al Amazon.com

These are about building wealth, not spending it down in retirement, which if I understand correctly is where the OP is now.

There is a Bogleheads Guide to Retirement Planning book. I found it to be a little disjointed, though I'm sure each section has good information.

 

[savory]

Redspot321, I went back to your original message where you asked the following:

Again, I feel I have plenty of money for years 55 - death. What should I do over the next 5-9 years?

Is 9% a good rate for projecting future amount of my nest egg? 10.2% is historical average.
What do I do with my savings over the next 5-9 years?
1. Continue to invest in retirement accounts and looks for early out / no penalty clauses if I want to retire at 50?
2. Invest in taxable investments?
3. Blow it until I retire?
4. Combination of above

I think a good next step is to work with one or more of the retirement calculators. The calculators will ask you many questions but are set up to not leave you hanging. You can experiment with different rates of return for example or increasing/reducing spending. It might relieve you of the assumptions you think you could be missing. Or at least raise the issue a little more directly, leading you to execute more research. Many people here like Firecalc. I also like Fidelity's retirement calculator.

Another way would be to go to a CPA or similar and ask them to help you build a plan. In my mind an expensive approach but not unreasonable. I would start with one of the free ones I mentioned above and even if that does not work for you, it will guide you in the conversation with a CPA or another type of financial advisor.

I might be missing what you are needing. So, the good part of the forum is you can move on with no hard feeling.

 

[donheff]

Any recommendations for a financial advisor that would "teach" me how to manage my retirement? I don't have time to take courses or really read up for that matter but I do have questions that require verbal conversation.

Welcome to the forum. I agree with what others are saying. Bite the bullet and read some of the easy stuff, like Jane Bryant Quinn's book. If you are not willing to put a little time in, how will you even know what questions to ask? And how will you know if the answer is good, or self-serving?

Try asking a couple of your question here and see what you get. In short order you may find yourself becoming more and more knowledgeable.

 

[Sunset]

Welcome to the forum. I agree with what others are saying. Bite the bullet and read some of the easy stuff, like Jane Bryant Quinn's book. If you are not willing to put a little time in, how will you even know what questions to ask? And how will you know if the answer is good, or self-serving?

Try asking a couple of your question here and see what you get. In short order you may find yourself becoming more and more knowledgeable.

Agree.
Reading isn't that hard. These are not math books

I know when first starting out, I didn't know stuff, and the Financial Advisor which was really a sales person sold me on a FRONT END loaded fund I was suckered into it.

Had I read just a few books from the library, I could have avoided that as it's so basic.

 

[braumeister]

Hello~!
Any recommendations for a financial advisor that would "teach" me how to manage my retirement? I don't have time to take courses or really read up for that matter but I do have questions that require verbal conversation.

The OP hasn't been back, but this statement made me think. Without making any effort to learn, how would you know whether the answers you get are any good? There are tons of "financial advisors" who will give you quick, glib answers to your questions, but they may not be worth anything in your individual case.

 

[RamStride]

Hello~!
Any recommendations for a financial advisor that would "teach" me how to manage my retirement? [...]

I'm not looking to invest with anyone. Just need guidance at this point.

At least ask around here for the "big" stuff and then perhaps seek a Financial Advisor to critique the plan you come up with. Get to know the terms and lingo so you can converse with a FA. [...]

Same here. Looking for someone to critique my number and provide SS and tax planning recommendation.

Over the past couple of weeks I started contacting advisors for introduction calls. I met with a AUM first a few weeks ago. Yesterday I talked to a second advisor to talk specifically about fee-only. Today, I have 3 more calls scheduled.

My conversation with the advisor yesterday was interesting. I started saying I was a DIY investor, a E-R and Bogleheads forum member and explained that I was looking for someone to confirm or correct my numbers, assumptions. Also, to provide a plan/roadmap for conversions, RMDs, SS, etc. I asked what software he used for plans (e.g. RightCapital) and he said eMoney. He then gave me a quote for $3500 for a comprehensive review/plan and two meetings for discussions. He may have an idea he is not going much from me and will just punch some numbers an let the software come up with a report.

Lastly I asked if he had other hourly services for follow up questions but he said they don't do that anymore because they mainly focus on AUM customers.

 

[TheWizard]

It's true that nobody cares more about your financial well-being than you do.

There are dozens of focused topics having to do with money management before and then during retirement. Too many to address all at once.

So define your initial questions now and then grow from there...

 

[SnowballCamper]

If you want someone to teach you in person, most colleges / universities offer a personal finance class. My real learning started at this site Reading Room where there are numerous academic articles. This will take a bit longer, but was time well spent for me. If you can't distill your questions into a written post, then this might not be the place for you. Good luck.

 

[RamStride]

[...]. My real learning started at this site Reading Room where there are numerous academic articles. This will take a bit longer, but was time well spent for me. [...]

That is indeed a LOT of reading. I'll bookmark it and browse the topics sporadically.

 

[SnowballCamper]

Yeah, and a lot of it is a little bit old by now, but mostly from peer reviewed articles. It's definitely not the fluff you get from MSNBC, Kiplinger's, etc.

 

[RamStride]

I talked to 3 other advisors yesterday. All were mostly interested in Fee-Only (AUM) services and no keen on working for a flat-fee or hourly. It takes time off from managing their AUM clients.

One advisor offered an option to provide a Core Financial report (i.e. basic review, tax projection, strategy overview), 2 meetings for a 3-month term for $3500. The second option was for a Comprehensive report for AUM service, 4-5 meetings in year 1 and 2 yearly meetings thereafter for a start-up fee of $2500 and a yearly fee of $15k/yr.

Here is the interesting and most significant part of it. I received a 60-page sample report for the Comprehensive plan. It summarized three scenarios of which one was using conversions. The report encompassed mostly, if not all, of the items that we can probably prepare DIY. It had a Monte Carlo summary and graphs with projected portfolio balances, outflows/inflows, etc. generated using one of the major financial software names.

I am not yet bought in on the idea of the value, teaching or otherwise, that a Fee-only or Flat-fee advisor can offer other than providing answers to situations much faster and taking the load of DIY'ers form actively handling their investments.

 

[easysurfer]

When I first glanced at the thread title, I thought it read "How Can I flee from my Financial Advisor?"

 

[Koolau]

The OP hasn't been back, but this statement made me think. Without making any effort to learn, how would you know whether the answers you get are any good? There are tons of "financial advisors" who will give you quick, glib answers to your questions, but they may not be worth anything in your individual case.

Of course, you could say the same thing about a doctor, so I suppose the most important thing in choosing a FA would be to check his/her credentials. My understanding is that the "gold standard" is having CFP Certification credentials and be considered a fiduciary. Not sure how you would check this, but I assume there is a way to do so.

Then, for me, I would never do the AUM thing. I don't think I need that much help. There have been times when I would have liked to run some "thinking" and maybe some figures past an expert but I never carried through. I went so far as to check for a local "CFP" but that was as far as I got.

 

[ncbill]

Same here. Looking for someone to critique my number and provide SS and tax planning recommendation.

Over the past couple of weeks I started contacting advisors for introduction calls. I met with a AUM first a few weeks ago. Yesterday I talked to a second advisor to talk specifically about fee-only. Today, I have 3 more calls scheduled.

My conversation with the advisor yesterday was interesting. I started saying I was a DIY investor, a E-R and Bogleheads forum member and explained that I was looking for someone to confirm or correct my numbers, assumptions. Also, to provide a plan/roadmap for conversions, RMDs, SS, etc. I asked what software he used for plans (e.g. RightCapital) and he said eMoney. He then gave me a quote for $3500 for a comprehensive review/plan and two meetings for discussions. He may have an idea he is not going much from me and will just punch some numbers an let the software come up with a report.

Lastly I asked if he had other hourly services for follow up questions but he said they don't do that anymore because they mainly focus on AUM customers.

Pay the one-time fee for access to Right Capital first to see if you think you'll actually get any additional value from something or someone else.

I bought from this guy.

Watch his YT videos as well.

 

[OldShooter]

Of course, you could say the same thing about a doctor, so I suppose the most important thing in choosing a FA would be to check his/her credentials. My understanding is that the "gold standard" is having CFP Certification credentials and be considered a fiduciary. Not sure how you would check this, but I assume there is a way to do so.

Then, for me, I would never do the AUM thing. I don't think I need that much help. There have been times when I would have liked to run some "thinking" and maybe some figures past an expert but I never carried through. I went so far as to check for a local "CFP" but that was as far as I got.

Be very careful. Holding a CFPdoes not make the person a fiduciary. The person may be a fiduciary by virtue of his employer being a registered investment advisor but stand alone the CFP is not a fiduciary.