How frequently is it okay to check in with an investment advisor?

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S17C
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How frequently is it okay to check in with an investment advisor?

Post by S17C »

I've had Fidelity for quite a while for CDs (risk averse investments). I'm going to step a little out of my comfort zone and get into mutual funds. I'm planning to go with an national investment firm's local branch and pay $125 annual fee for a basic account. For that fee, I get assigned to an investment advisor I could consult about investments.

Just wondering for that $125 how often I could check in with that investment advisor when I'm not placing an order? Just to see his/her opinion of my current holdings, if any are underperforming or at risk of huge losses, etc. Would a short phone call or e-mail every month be excessive? Or, is the investment advisor mostly meant for advising when making investments (i.e. giving their firm cash)?
Last edited by S17C on Sun Mar 12, 2017 10:21 am, edited 1 time in total.
livesoft
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Re: How frequently is it okay to check in with my investment advisor?

Post by livesoft »

Oh, my goodness!

One should only use investments which have performance that doesn't matter what an investment advisor sales rep or even you yourself think about it.
Last edited by livesoft on Sun Mar 12, 2017 10:36 am, edited 1 time in total.
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cheese_breath
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Re: How frequently is it okay to check in with an investment advisor?

Post by cheese_breath »

How frequently do you want to hear his sales pitch?
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kelway
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Re: How frequently is it okay to check in with an investment advisor?

Post by kelway »

Never. In my experience, it can only influence you toward a much more complex portfolio. I just went down that path after having a crisis of confidence and am just now about to undo it all. It doesn't mean I was necessarily advised incorrectly, but incorrectly for ME.
Last edited by kelway on Sun Mar 12, 2017 10:58 am, edited 1 time in total.
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FrugalInvestor
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Re: How frequently is it okay to check in with my investment advisor?

Post by FrugalInvestor »

The adviser's primary purpose is to help you make decisions that will make the investment firm and the adviser money. The adviser is a salesperson. The best way to get into mutual funds is to educate yourself by reading this forum and follow the guidelines you will find here. One of those guidelines is typically "don't use an adviser." There are exceptions but they are few.
Have a plan, stay the course and simplify, but most importantly....Ignore the Noise!
dbr
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Re: How frequently is it okay to check in with an investment advisor?

Post by dbr »

The best advice is never, as in don't start.
AlohaJoe
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Re: How frequently is it okay to check in with an investment advisor?

Post by AlohaJoe »

I would guess that $125 a year entitles you to about 15 minutes a year of phone consultation, if that.

I can't imagine any scenario where they'd give you monthly check ups for that price.
JFP_SF
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Re: How frequently is it okay to check in with an investment advisor?

Post by JFP_SF »

S17C wrote:I've had Fidelity for quite a while for CDs (risk averse investments). I'm going to step a little out of my comfort zone and get into mutual funds. I'm planning to go with an national investment firm's local branch and pay $125 annual fee for a basic account. For that fee, I get assigned to an investment advisor I could consult about investments.

Just wondering for that $125 how often I could check in with that investment advisor when I'm not placing an order? Just to see his/her opinion of my current holdings, if any are underperforming or at risk of huge losses, etc. Would a short phone call or e-mail every month be excessive? Or, is the investment advisor mostly meant for advising when making investments (i.e. giving their firm cash)?
if you have a fidelity account with any significant amount of money, you've already been assigned a rep there. You can meet with him for free if you like.
pkcrafter
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Re: How frequently is it okay to check in with an investment advisor?

Post by pkcrafter »

S17C wrote:I've had Fidelity for quite a while for CDs (risk averse investments). I'm going to step a little out of my comfort zone and get into mutual funds. I'm planning to go with an national investment firm's local branch and pay $125 annual fee for a basic account. For that fee, I get assigned to an investment advisor I could consult about investments.

Just wondering for that $125 how often I could check in with that investment advisor when I'm not placing an order? Just to see his/her opinion of my current holdings, if any are underperforming or at risk of huge losses, etc. Would a short phone call or e-mail every month be excessive? Or, is the investment advisor mostly meant for advising when making investments (i.e. giving their firm cash)?
OK, you are very risk averse, but if you buy a mutual fund, what is an advisor going to be able to tell you about it? If you are talking about holding some equity, after you buy it, you just hold it. There is really nothing more to discuss. If you keep asking an advisor for his opinion, he going to suggest changes because it makes money for the company and for him. Maybe you just want someone available to talk to, but a paid person isn't your best option. Better to come on the board here and express your worries. :happy

So, IF you are considering some equity, I will suggest you stay at Fidelity and buy target retirement 2005, which is 33% equity. Vanguard's targe retirement income fund is about the same, 30% equity. One other possibility is Vanguard's life strategy income fund at 20% equity. I should note that none of these funds has enough equity to create long term retirement funding unless your savings rate is very high. Having said that, these funds will provide experience with equities and once you get used to them you can increase equity.

If you are actually considering a non-equity fund, then let us know and we can focus on that.

Paul
Last edited by pkcrafter on Sun Mar 12, 2017 9:34 pm, edited 1 time in total.
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
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BL
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Re: How frequently is it okay to check in with an investment advisor?

Post by BL »

No one cares about your money like you do, so do some reading and choose something simple, diversified, and low-cost (low-Expense Ratio). Your idea will likely mean transferring a lot of money over time for no advantage.

Do some reading here in the Wiki and suggested books, videos. Here is a great little pdf of only 16 pages to get you going- read it more than once:
https://www.etf.com/docs/IfYouCan.pdf

A single balanced fund is probably a great way to get started. Vanguard has Life Strategy and Target date funds. At Fidelity, look hard for the index target funds.
Otherwise a Total stock market, total international, and total bond would be fine.

Check in here often and read what interests you. Ask a few questions, especially put your information in Asking Portfolio Questions format to get specific suggestions.
retiredjg
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Re: How frequently is it okay to check in with an investment advisor?

Post by retiredjg »

S17C wrote:I'm going to step a little out of my comfort zone and get into mutual funds. I'm planning to go with an national investment firm's local branch and pay $125 annual fee for a basic account. For that fee, I get assigned to an investment advisor I could consult about investments.
If having a good advisor only cost $125 a year, people (even Bogleheads) would be all over it. That is not what we hear though. All we hear about are high fees and being sold stuff that people don't really need and can't get out of without paying a surrender fee.

For that reason, I think you may not yet know the whole story about whatever firm you are considering.

If your national investment firm is Edward Jones, Raymond James, Ameriprise, or a bank....you are considering what is likely to be a very bad deal for you. If your firm is Vanguard or Fidelity or one of the other respected brokerages we talk about here, I don't think we've heard about a $125 a year plan. If your firm is one that uses fiduciaries and DFA funds, I'm sure they don't have a $125 a year plan. And the robo-investor firms can be low cost, but they are AUM, not $125 a year.

So....just what firm are you looking at?
sco
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Re: How frequently is it okay to check in with an investment advisor?

Post by sco »

There is pretty much no way this will cost you only $125 a year... maybe that in addition to a bunch of high load (commission) funds...
Dottie57
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Re: How frequently is it okay to check in with an investment advisor?

Post by Dottie57 »

JFP_SF wrote:
S17C wrote:I've had Fidelity for quite a while for CDs (risk averse investments). I'm going to step a little out of my comfort zone and get into mutual funds. I'm planning to go with an national investment firm's local branch and pay $125 annual fee for a basic account. For that fee, I get assigned to an investment advisor I could consult about investments.

Just wondering for that $125 how often I could check in with that investment advisor when I'm not placing an order? Just to see his/her opinion of my current holdings, if any are underperforming or at risk of huge losses, etc. Would a short phone call or e-mail every month be excessive? Or, is the investment advisor mostly meant for advising when making investments (i.e. giving their firm cash)?
if you have a fidelity account with any significant amount of money, you've already been assigned a rep there. You can meet with him for free if you like.

+1

Also, while my Fidelity rep is a nice guy, he only calls ME when he wants me to do something that benefits him. I think he also believes what benefits him benefits me. Annuities, moving all my 401k to Ira (it adds to $ underneath his clients -No AUM)
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Pajamas
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Re: How frequently is it okay to check in with an investment advisor?

Post by Pajamas »

You shouldn't have to pay anything for a basic account unless it is a 401(k) or similar that has an annual fee of $15 or $20.

If you are paying $125 for a basic account plus outrageous commissions on everything you invest in, you should be able to drop by anytime you want to, even if it is just for a cup of coffee and a chat about the weather. They should have doughnuts, too.
Last edited by Pajamas on Mon Mar 13, 2017 10:01 am, edited 1 time in total.
sambb
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Re: How frequently is it okay to check in with an investment advisor?

Post by sambb »

run away from that advisor
put your money in a balanced fund and learn for decades, or leave it there.
LarryAllen
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Re: How frequently is it okay to check in with an investment advisor?

Post by LarryAllen »

sco wrote:There is pretty much no way this will cost you only $125 a year... maybe that in addition to a bunch of high load (commission) funds...
Exactly. $125 is probably the minimum fee just to be a customer. The high fees you might pay are what give you the right to call occasionally. However, there should be little need to call them. I would say once or twice a year to know you are on track should be more than enough. I am sure your guy will call you on your birthday too! :)
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Bogle_Feet
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Re: How frequently is it okay to check in with an investment advisor?

Post by Bogle_Feet »

S17C wrote:I've had Fidelity for quite a while for CDs (risk averse investments). I'm going to step a little out of my comfort zone and get into mutual funds. I'm planning to go with an national investment firm's local branch and pay $125 annual fee for a basic account. For that fee, I get assigned to an investment advisor I could consult about investments.

Just wondering for that $125 how often I could check in with that investment advisor when I'm not placing an order? Just to see his/her opinion of my current holdings, if any are underperforming or at risk of huge losses, etc. Would a short phone call or e-mail every month be excessive? Or, is the investment advisor mostly meant for advising when making investments (i.e. giving their firm cash)?
For $125 a month a can guarantee you that you will NOT be dealing with a fee-only fiduciary. You will be paying for a salesman. Like paying a car dealer for the so-called "privilege" of selling you a car! I sure wouldn't do that.

Commission hungry advisors LOVE (with capital letters) people who are ignorant about 1) bonds 2) index funds. They use your fear of the stock market to sell you annuities and other garbage, without educating you about stock/bond diversification. And they use your false belief that you can "beat the market" to sell you (expensive) actively managed mutual funds. You want PASSIVELY managed mutual funds -- AKA "index funds" like SPY and BND. And you don't want to be getting in and out of investments. Instead just hold and percentage rebalance.
If you are risk averse then have you studied the returns of a bond heavy portfolio? http://investingadvicewatchdog.com/imag ... 2-year.jpg
How bonds protect during recessions and depressions? http://investingadvicewatchdog.com/imag ... 0-2015.jpg
http://investingadvicewatchdog.com/imag ... -chart.jpg
Putting money in CD's is not investing. Never bear too little risk. This will cost you a LOT of money over time.
PFInterest
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Re: How frequently is it okay to check in with an investment advisor?

Post by PFInterest »

At minimum you'll have 125 less than me....
James2
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Re: How frequently is it okay to check in with an investment advisor?

Post by James2 »

I have an advisor that I pay for advice. He does not get anything from me in the form of other fees. I just like to be able to bounce stuff off him from time to time. For instance when I was changing jobs, he was helpful to talk to regarding some benefits I had never heard of before. In addition, he double checks my wife's RMD withdrawals from an inherited IRA.

We meet once a quarter or whenever I have a question that I want to bounce off of him, but I do pay more than $125.

James
Johnny99
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Re: How frequently is it okay to check in with an investment advisor?

Post by Johnny99 »

I've posted my current situation elsewhere on this board and am having a hard time wrapping my head around even a simple strategy. I've done a lot of reading here, seen the Bogleheads videos and do see it as the best, clear path forward. But how do I translate everything I have into that path?

Is it reasonable to hire a fiduciary to map out an initial plan?
retiredjg
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Re: How frequently is it okay to check in with an investment advisor?

Post by retiredjg »

Johnny99 wrote:I've posted my current situation elsewhere on this board and am having a hard time wrapping my head around even a simple strategy. I've done a lot of reading here, seen the Bogleheads videos and do see it as the best, clear path forward. But how do I translate everything I have into that path?

Is it reasonable to hire a fiduciary to map out an initial plan?
There are people who will help you with a plan with their fee based on an hourly rate. But before you try that, I'd suggest you post your information in the format that people here use and see if you get more concrete guidance than before.

You did post a lot of information, but it having it in "our format" provides information you left out, some of it critical, and it puts information where people know to look for it. That makes it easier for people to help you. That means you get more help.

It is some work to get it done but most people say it is very helpful to do. If you need help in doing it, just ask.

I would not erase what you already have. Type it out in a word processing program (forget the formatting cause it won't work) and then copy and paste that into a new post or insert it at the bottom of your first post. Add "second request - updated info" or something like that to your title to attract attention. That may help you get the help you are looking for.
Brucie
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Re: How frequently is it okay to check in with an investment advisor?

Post by Brucie »

Definitely save the $125.

I bet if you post more detail on your situation on here you will get much better and more important "unbiased" advice, from some very smart people.

Post things like "what you have now and how it is invested".
what are you investing for- retirement, or down payment on a house, or kids education.
what investment options do you have thru your employer- 401k, 403b.

Read some books by John Bogle, or Charlie Ellis.
Once you understand the basic concept of why index funds have outperformed, and most likely will continue to outperform, it the becomes where to place your investments. That will be driven by your goals for investing.
spectec
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Re: How frequently is it okay to check in with an investment advisor?

Post by spectec »

If I had an investment advisor, I'd probably be calling him every day with the same question. "You haven't done anything stupid with my money have you? Like change my asset allocation or invest the equity portion in anything other than Total Stock Market Index?" After a while, he'd fire ME.
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers
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