Financial Advisor: Yes or No

[AbbA]

I also have a dedicated advisor from FIDO. I would never pay for one again.

Does this mean you had a FA outside of FIDO whom you fired and now you're happy with the FREE adviser as FIDO?

I don't know if the colors of various FA's at FIDO differ or not. When I moved my 401k from one employer to another, I had to discuss some stuff with FIDO that is the benefit/401k administrator for this employer. I probably got a robo type FA or not an FA at all because his answers to my questions were the same as on the Internet. After the call I thought to myself "and people pay a percentage of their assets for such advice?" Maybe FIDO has different categories of FA's.

 

[Dtail]

Does this mean you had a FA outside of FIDO whom you fired and now you're happy with the FREE adviser as FIDO?

I don't know if the colors of various FA's at FIDO differ or not. When I moved my 401k from one employer to another, I had to discuss some stuff with FIDO that is the benefit/401k administrator for this employer. I probably got a robo type FA or not an FA at all because his answers to my questions were the same as on the Internet. After the call I thought to myself "and people pay a percentage of their assets for such advice?" Maybe FIDO has different categories of FA's.

If you have 1+mm in investments and are a Private Wealth client, you typically have a dedicated FA, who you can receive a decent level of free advice.

 

[Bir48die]

This is a good example of a question that could be looked up in a hundred past threads. You have "x" group that is all about self management under any circumstance. Others just keep quiet if they use a person. Rinse and repeat

 

[COcheesehead]

Depending on where you live. I use the Denver branch, after I fired the dirty rotten annuity salesman they gave me, well sorry you can call the 800 number. For the record we have over a million in Fidelity assets and no CFP for me.

If I didn't have an issue with all assets being in one data center I would move everything to Vanguard. At this time they have the service advantage for my situation.

My sister has about $350,000 at Fido and she has an advisor. I have millions at Fido and do not. If you can figure out how they supply advisors, you are better than me.

 

[travelover]

This is a good example of a question that could be looked up in a hundred past threads. You have "x" group that is all about self management under any circumstance. Others [-]just keep quiet[/-] pay and pay if they use a person. Rinse and repeat

 

[ckelly78z]

As far as investments, and allocations, I am confident in my own abilities. It is the tax advantages/penalties/loop holes that I don't understand, and may be the only reason I would approach a FA in the future. I would have a real problem with paying a periodic bill for someone else to manage my investments, when I have seemed to beat the market almost every year (including 2008, and last year's 4Q debacle).

 

[Midpack]

As far as investments, and allocations, I am confident in my own abilities. It is the tax advantages/penalties/loop holes that I don't understand, and may be the only reason I would approach a FA in the future. I would have a real problem with paying a periodic bill for someone else to manage my investments, when I have seemed to beat the market almost every year (including 2008, and last year's 4Q debacle).

Make sure you ask about taxes. I don’t know about Fidelity, but Vanguard basically refuses to advise on taxes specifically - will always suggest we find a tax advisor on our own. What little “advice” they give is so general it’s useless for me at least. I’d hate to see you commit to fees with an FA and not get what you’re primarily after.

 

[Jerry1]

I had the same experience with Fidelity. They will help you invest, but they are not what I would call a financial advisor. My FA is very conscious and proactive about my taxes. With such a high percentage of our net worth in pre tax accounts, it’s very important to manage taxes appropriately.

 

[Helen]

I don't know if the colors of various FA's at FIDO differ or not. When I moved my 401k from one employer to another, I had to discuss some stuff with FIDO that is the benefit/401k administrator for this employer. I probably got a robo type FA or not an FA at all because his answers to my questions were the same as on the Internet. After the call I thought to myself "and people pay a percentage of their assets for such advice?" Maybe FIDO has different categories of FA's.

They definitely vary. I had one assigned to me when I requested some accounts be transferred from Vanguard. He made a lot mistakes due to sloppiness so we had to go in three times to meet with him. The third time was a slimy sales pitch. I sent an email to the branch manager requesting him to be removed from my account. I told him if we ever had another experience like that we'd move to Schwab.

I have no doubt there are good FAs at Fido, we just have avoided FAs for the most part.

 

[scrabbler1]

They definitely vary. I had one assigned to me when I requested some accounts be transferred from Vanguard. He made a lot mistakes due to sloppiness so we had to go in three times to meet with him. The third time was a slimy sales pitch. I sent an email to the branch manager requesting him to be removed from my account. I told him if we ever had another experience like that we'd move to Schwab.

I have no doubt there are good FAs at Fido, we just have avoided FAs for the most part.

Back in 2008-2010, I had several different Account Executives with Fido because each one I was assigned to kept leaving the local office. While most of the AEs I have had over the years, including the one I have been with since 2010, were very good, one of them was lousy. Mr. Pushy wanted me to give him control of my portfolio for an AUM fee. After one forgettable 2-hour meeting with him, I set a letter to his boss, the office manager, asking to be switched to a different AE. He switched me to the one I have now.

 

[OldShooter]

... And my 1% AUM guy is still ahead after 5 years. He's a statistical anomaly I guess.

Or, more commonly, the total return of the customer account is being compared to the nominal return of the benchmark (reported price change year over year) instead of the benchmark total return.

 

[RobbieB]

Nah, I compared it to the fido 500 total return graphs FXAIX on their own site.

 

[BeachOrCity]

Nah, I compared it to the fido 500 total return graphs FXAIX on their own site.

Good for you !

Is your FA picking individual stocks? No bonds I assume (or you manage your bonds yourself).

Just curious what the secret sauce your FA has?

 

[kgtest]

My first answer is no.


My second is also no.


But my third is do what makes you sleep better at night. If having a FA makes you think you are doing better and they are looking after you interests then go for it. But be aware that the stats show they do not do better AND they are not looking out for you.

That's right. RobbieB and a few other's sleep very well at night after paying the advisors to do what they do.

Me, I am a control freak, especially with my money. Good or bad, I am going about it on my own. There is no special sauce, just grit and grind...DCA and AA rebalance.

 

[RobbieB]

It's not just him, it's the whole Merrill thing. He get's the company intel and then his group do their own backround stuff. Yeah about 60-80 individual stocks and trading at least a dozen a year. No trading cost of course. Yup just equities, bonds elsewhere, they told me upfront they don't like bonds.

And they're not that much over either, just a percent or 2, but that's including the fee. Thus what I've been saying; If I'm paying a 1 percent fee but making 2% more than benchmark is it worth it?

Of course not. It's just not possible according to experts as I'm often told. Over and over again. By lots of people here who tell me that FA's only put you into high front end load mutual funds and churn like crazy. Sharks and thieves with their hands in your pockets. I laugh every time I hear it. Must be those "other" guys.

My guys put dough in my pocket!

 

[gerntz]

This is a good example of a question that could be looked up in a hundred past threads. You have "x" group that is all about self management under any circumstance. Others just keep quiet if they use a person. Rinse and repeat

not quiet

 

[DrRoy]

Does this mean you had a FA outside of FIDO whom you fired and now you're happy with the FREE adviser as FIDO?

I don't know if the colors of various FA's at FIDO differ or not. When I moved my 401k from one employer to another, I had to discuss some stuff with FIDO that is the benefit/401k administrator for this employer. I probably got a robo type FA or not an FA at all because his answers to my questions were the same as on the Internet. After the call I thought to myself "and people pay a percentage of their assets for such advice?" Maybe FIDO has different categories of FA's.

That is correct. The former FA was at ML. After a number of years of managing part of my money, his overall return (before fees) was below mine so I fired him. The FIDO guy is there if I need something, although in the last couple years I have not.

 

[pb4uski]

....And my 1% AUM guy is still ahead after 5 years. He's a statistical anomaly I guess.

He just hasn't regressed to the mean yet. [emoji3]

 

[pb4uski]

My sister has about $350,000 at Fido and she has an advisor. I have millions at Fido and do not. If you can figure out how they supply advisors, you are better than me.

+1. I have well over $250k with Fido and no advisor that I know of.

 

[RS53576GG]

I checked my Fidelity statements and they have "Premium Services" in the upper left corner of each page and "Your Financial Consultant" on the front page with a name and phone number. It's the same person I receive emails from with info about webinars and onsite seminars at their local office. Maybe this will be helpful to those who are wondering if they have a financial consultant.

 

[OldShooter]

... And they're not that much over either, just a percent or 2, but that's including the fee. Thus what I've been saying; If I'm paying a 1 percent fee but making 2% more than benchmark is it worth it?

Of course not. It's just not possible according to experts as I'm often told. ...

Speaking as an adherent to passive investing, I would say: First, good! Second, of course what you are getting is possible. The research says that prices are basically random, just like casinos. So of course there are streaks; they are not only possible, they are expected.

Some streaks can go on for a long time, like Bill Miller at Legg Mason. IIRC his streak ran for something like ten years before he blew up and lost more money for his investors than he had ever made for them. Statisticians calculated the probability of someone turning in such a streak at 17%.

The problem that leads to passive investing is that the data says that it is impossible to identify the winners prior to the streak. Afterwards it's easy of course.

But, hey, if it's working for you -- good. Hopefully your horse will keep winning.

 

[BoodaGazelle]

We have been Fidelity Premium customers for many years. While we like our advisor, he doesn’t offer much in the way of the “A” in “FA”. Of course, DW says this is because I mostly manage our assets myself, and he does not push anything else on us.

I assume (hope) that if and when I really need specific advice, I will be able to get it.

p.s. I used to invest for dividend income (mostly Dogs of the Dow style), but now I have moved to more Boglehead style.

 

[LarryMelman]

I have had investments at Fidelity since the 1980's. Until March, I had just under $2M total there (in taxable accounts and IRA's) and my statements said "Private Client Group". I was never assigned an advisor, never invited to anything by the local offices. When I would (rarely) see someone in the office, I knew their planning tools better than the reps did.

I pulled my IRA's out in March, after they told me "my relationship with Fidelity was insufficient" to continue getting free use of Turbo Tax which they had given me for 2-3 years previously. They still have a taxable account worth mid-6-figures. Statements continued to say "Private Client Group" until June when they started to say "Premium Services".

I moved my IRA's to Schwab for a fairly substantial cash bonus and free trades. They regularly invite me to seminars and stuff. After over 30 years of basically being ignored by Fidelity, I rather enjoy the attention.

 

[RS53576GG]

I moved my IRA's to Schwab for a fairly substantial cash bonus and free trades. They regularly invite me to seminars and stuff. After over 30 years of basically being ignored by Fidelity, I rather enjoy the attention.

That's interesting. I have nearly equal amounts with Fidelity and Schwab and Schwab has never invited me to anything. Maybe Fidelity has lower thresholds for being invited, but it doesn't appear that this is the case. Perhaps they have a list of clients who they are more engaged with. I tend to keep in touch with my Fidelity rep more often than my Schwab rep. I've met my Schwab guy a couple times and made it clear I was handling my own investments so maybe they noted this in my file and are leaving me alone. If they have good seminars and decent food I may have to reconsider my approach to Schwab!

 

[T-Minus]

I hired a “for fee” FA as a pre-retirement sanity check, just to be sure that I wasn’t missing anything (I wasn’t). Turns out, this guy told me I could be spending a lot more than I was planning to. I didn’t adjust my spending, but mentally it gave me a bit of comfort knowing that my safety margins were greater that I’d planned. But that’s the only FA I’ve used. And, my portfolio has matched market performance almost exactly with my overall portfolio expense ratio being 0.07%, so drag is minimal.

Schwab regularly invites me to seminars, speakers, etc. I’ve only been to one, but the time I went dealt with the automatic portfolios they were pushing at the time (lunch was free). I decided not to invest, but did enjoy a nice chef salad, and got the chance to rub elbows with some higher-net individuals in my community.