Financial Advisor

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MBL
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Financial Advisor

Post by MBL » Sun Oct 13, 2019 7:44 am

I just saw in my local newspaper that the person we have been using as our financial advisor at our bank has been hired by another bank in town. Where does that leave us? We have a deferred annuity and Roth accounts with him. Will he expect us to move our accounts with him? Should we?

student
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Re: Financial Advisor

Post by student » Sun Oct 13, 2019 7:49 am

Maybe this is time to consider whether you need an advisor. Do you know the portfolio that he has designed for you?

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Brianmcg321
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Re: Financial Advisor

Post by Brianmcg321 » Sun Oct 13, 2019 7:56 am

Time to transfer everything to Vanguard.
Rules to investing: | 1. Don't lose money. | 2. Don't forget rule number 1.

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RickBoglehead
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Re: Financial Advisor

Post by RickBoglehead » Sun Oct 13, 2019 7:57 am

You have accounts with a financial institution, not an advisor. You will need to assess next steps. Given that you found this out by reading the paper, not hearing from the advisor directly, that shoukd tell you something.
Avid user of forums on variety of interests-financial, home brewing, F-150, PHEV, home repair, etc. Enjoy learning & passing on knowledge. It's PRINCIPAL, not PRINCIPLE. I ADVISE you to seek ADVICE.

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Wildebeest
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Re: Financial Advisor

Post by Wildebeest » Sun Oct 13, 2019 8:00 am

My suggestion would be to put your investments you have in the format below and request a review by this forum and then you have your answer if your advisor is worth following to the new bank.

.\Emergency funds: Three to six months of expenses (indicate if you have this, but it is generally not part of your asset allocation)

Debt: Indicate if you have any debt (credit card, school loans, car loans, mortgage) and the interest rate you are paying on each loan.

Tax Filing Status: (Single, Married Filing Jointly, Married Filing Separately, Head of Household, Qualifying Widow/Widower with Dependent Children)

Tax Rate: xx% Federal, xx% State

State of Residence:

Age:

Desired Asset allocation: xx% stocks / xx% bonds
Desired International allocation: xx% of stocks

Please provide a hint as to the size of your current total portfolio (as in high four-figures, mid five-figures, low six-figures, etc.) What might be appropriate for a very large portfolio might not be appropriate for a new investor.

Show us your current portfolio including all investment and retirement accounts (yourself and spouse or civil partner, if applicable) as it's important to look at the portfolio as a unified whole rather than look at accounts in isolation. Also include the available funds in your employer provided retirement plans.

Show each fund or holding as a percentage of the entire portfolio, not as a percentage of the account that holding is in. If this instruction is not clear, see the example under the Key Points section below. For example:

Current retirement assets

Taxable
xx% cash (for investing – do not include emergency funds)
xx% fund name (ticker symbol) (expense ratio)
xx% stock company name (ticker symbol)

His 401k
xx% fund name (ticker symbol) (expense ratio)
Company match?

His Roth IRA at Vanguard
xx% fund name (ticker symbol) (expense ratio)
xx% fund name (ticker symbol) (expense ratio)

His Rollover IRA at Schwab
xx% fund name (ticker symbol) (expense ratio)

Her 403b
xx% fund name (ticker symbol) (expense ratio)
Company match?

Her SIMPLE IRA at Fidelity
xx% fund name (ticker symbol) (expense ratio)

Her Traditional IRA at Vanguard
xx% fund name (ticker symbol) (expense ratio)
_______________________________________________________________
Note: Total percentage of all the above accounts together (not each account individually) should equal 100%.

Contributions

New annual Contributions
$xx his 401k (also specify any employer matching contributions)
$xx her 403b (also specify any employer matching contributions)
$xx his IRA/Roth IRA
$xx her IRA/Roth IRA
$xx taxable (for retirement, not short term goals)

Available funds

Funds available in his 401(k)
Fund name (ticker symbol) (expense ratio)
Fund name (ticker symbol) (expense ratio)
Fund name (ticker symbol) (expense ratio)

Funds available in her 403(b)
Fund name (ticker symbol) (expense ratio)
Fund name (ticker symbol) (expense ratio)
Fund name (ticker symbol) (expense ratio)

Questions:
1.

2.
The Golden Rule: One should treat others as one would like others to treat oneself.

retiredjg
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Re: Financial Advisor

Post by retiredjg » Sun Oct 13, 2019 8:02 am

MBL wrote:
Sun Oct 13, 2019 7:44 am
I just saw in my local newspaper that the person we have been using as our financial advisor at our bank has been hired by another bank in town. Where does that leave us? We have a deferred annuity and Roth accounts with him. Will he expect us to move our accounts with him? Should we?
Whether you follow him or not is entirely up to you.

This is a good time to consider if you need an advisor. And if you do, who should that advisor be.

My observation is that it is rare to get quality advice from an advisor at a bank. The products they sell are often high priced and sold more to make a profit for the salesperson and less for the benefit of the customer. The fact that you have a deferred annuity makes me wonder about the advice you've been getting. A deferred annuity is rarely a great choice, but they do pay nice commissions to the person who sells them.

Have you considered having the people here look at your portfolio and make suggestions? You can do that even if you do continue to use an advisor.

If you want an advisor, I would suggest Vanguard's Personal Advisory Service. They will set you up with a simple portfolio that is low cost. They do not profit from their suggestions - so there is no incentive to sell you something that is high cost or something that you don't need. They will also put you in a portfolio that you can manage yourself - when you are ready, you just cancel their service and do it yourself.

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Stinky
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Re: Financial Advisor

Post by Stinky » Sun Oct 13, 2019 8:06 am

RickBoglehead wrote:
Sun Oct 13, 2019 7:57 am
You have accounts with a financial institution, not an advisor. You will need to assess next steps.
This.

Your accounts are in exactly the same place as they were before - with a financial institution of some type.

You can expect that the "advisor" will reach out to you soon. His goal will be to roll over your accounts to the new firm that he's working for. If he's successful in getting you to roll over, he'll likely earn a new commission.

You should take control of your investments. Please post on the Forum in the template suggested, and you'll get a lot of good advice. And you'll earn more on your investments over time, because you won't be paying commissions to "advisors".

Best of luck to you.
It's a GREAT day to be alive - Travis Tritt

retiredjg
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Re: Financial Advisor

Post by retiredjg » Sun Oct 13, 2019 8:17 am

If you are interested in access to an hourly fee advisor, Rick Ferri (frequent poster here) has set up shop in the last few months.

https://rickferri.com

You can also get information about "advice only advisors" from tfb's website at https://adviceonlyfinancial.com The Finance Buff (tfb) is also a poster here.

sschullo
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Re: Financial Advisor

Post by sschullo » Sun Oct 13, 2019 8:20 am

Welcome to the forum,
Your question is similar to a question posed on the Dave Ramsey radio money show. The caller wanted Ramsey's 2nd opinion on a new car that the caller wanted to buy. Ramsey's immediate response is "this is the Dave Ramsey show and we never recommend purchasing a new car because of new cars are not an investment," etc).
When you asked about a financial adviser, this is the Boglehead forum and when it comes to advisers, we always recommend that you manage your money without an adviser.
You got great advice on how to do exactly that, advice that you will not get from a conflicted financial adviser, and the lower costs, and you will get better results.
Again, welcome to the forum.
Public School K-12 Educators: "Ask NOT what your annuity sales person can do for you, ask what you can do to be a Do-It-Yourselfer (DIY)."

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nedsaid
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Re: Financial Advisor

Post by nedsaid » Sun Oct 13, 2019 9:45 am

retiredjg wrote:
Sun Oct 13, 2019 8:02 am
MBL wrote:
Sun Oct 13, 2019 7:44 am
I just saw in my local newspaper that the person we have been using as our financial advisor at our bank has been hired by another bank in town. Where does that leave us? We have a deferred annuity and Roth accounts with him. Will he expect us to move our accounts with him? Should we?
Whether you follow him or not is entirely up to you.

This is a good time to consider if you need an advisor. And if you do, who should that advisor be.

My observation is that it is rare to get quality advice from an advisor at a bank. The products they sell are often high priced and sold more to make a profit for the salesperson and less for the benefit of the customer. The fact that you have a deferred annuity makes me wonder about the advice you've been getting. A deferred annuity is rarely a great choice, but they do pay nice commissions to the person who sells them.

Have you considered having the people here look at your portfolio and make suggestions? You can do that even if you do continue to use an advisor.

If you want an advisor, I would suggest Vanguard's Personal Advisory Service. They will set you up with a simple portfolio that is low cost. They do not profit from their suggestions - so there is no incentive to sell you something that is high cost or something that you don't need. They will also put you in a portfolio that you can manage yourself - when you are ready, you just cancel their service and do it yourself.
Very good advice above and for free. I want to second the advice that banks aren't the best place to get financial advice. You want somebody who is independent who does not have a sales manager over them, the pressure to produce is unreal and under those conditions it is impossible to get unbiased advice.
A fool and his money are good for business.

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unclescrooge
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Re: Financial Advisor

Post by unclescrooge » Sun Oct 13, 2019 9:51 am

RickBoglehead wrote:
Sun Oct 13, 2019 7:57 am
You have accounts with a financial institution, not an advisor. You will need to assess next steps. Given that you found this out by reading the paper, not hearing from the advisor directly, that shoukd tell you something.
Other than the fact that the advisor has a non solicit agreement and is legally prohibited from contacting existing clients what exactly is that supposed to tell us?

Tdubs
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Re: Financial Advisor

Post by Tdubs » Sun Oct 13, 2019 10:04 am

sschullo wrote:
Sun Oct 13, 2019 8:20 am
Welcome to the forum,
Your question is similar to a question posed on the Dave Ramsey radio money show. The caller wanted Ramsey's 2nd opinion on a new car that the caller wanted to buy. Ramsey's immediate response is "this is the Dave Ramsey show and we never recommend purchasing a new car because of new cars are not an investment," etc).
When you asked about a financial adviser, this is the Boglehead forum and when it comes to advisers, we always recommend that you manage your money without an adviser.
You got great advice on how to do exactly that, advice that you will not get from a conflicted financial adviser, and the lower costs, and you will get better results.
Again, welcome to the forum.
No, not always. We do advise you to search out advisors who charge by the hour rather than a percentage of your portfolio. And if you can't avoid the latter, keep expenses low, and seek out advisors with no personal stake in the funds selected. So Vanguard's personal advisors are often recommended.

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ruralavalon
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Re: Financial Advisor

Post by ruralavalon » Sun Oct 13, 2019 10:53 am

MBL wrote:
Sun Oct 13, 2019 7:44 am
I just saw in my local newspaper that the person we have been using as our financial advisor at our bank has been hired by another bank in town. Where does that leave us? We have a deferred annuity and Roth accounts with him. Will he expect us to move our accounts with him? Should we?
Here is a guide to help in deciding if you want or need an advisor: "The great paradox of using an advisor is that you must know some basics in order to evaluate the advice, and once you do, you also know enough to consider doing your own management." "Chapter 10 – On Your Own or Hire an Advisor".

1) You could post your financial details on this forum for ideas on investments and financial planning. Please see this for format: "Asking Portfolio Questions". I think that you will fund that simply gathering together all of your information together in one place will be helpful to you in understanding your situation and what you need to do. .

2) Vanguard offers a ”Personal Advisory Service” (PAS) that will give you advice and manage your investments for an annual fee of 0.3% of your investments. Fidelity and Schwab offer a similar service.

3) Harry Sit, who sometimes posts here, offers a service thru his blog to help people locate an advisor in their locality. "Advice-Only Search and Screening".

4) Two links for finding an advisor:
http://www.napfa.org/consumer/index.asp
http://www.garrettplanningnetwork.com/
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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Wiggums
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Re: Financial Advisor

Post by Wiggums » Sun Oct 13, 2019 11:19 am

Stinky wrote:
Sun Oct 13, 2019 8:06 am
RickBoglehead wrote:
Sun Oct 13, 2019 7:57 am
You have accounts with a financial institution, not an advisor. You will need to assess next steps.
This.

Your accounts are in exactly the same place as they were before - with a financial institution of some type.

You can expect that the "advisor" will reach out to you soon. His goal will be to roll over your accounts to the new firm that he's working for. If he's successful in getting you to roll over, he'll likely earn a new commission.

You should take control of your investments. Please post on the Forum in the template suggested, and you'll get a lot of good advice. And you'll earn more on your investments over time, because you won't be paying commissions to "advisors".

Best of luck to you.
I agree

Tal-
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Joined: Fri Apr 22, 2016 10:41 pm

Re: Financial Advisor

Post by Tal- » Sun Oct 13, 2019 12:37 pm

MBL wrote:
Sun Oct 13, 2019 7:44 am

... a deferred annuity ...
This is a pretty big reason to change financial planners. Generally speaking, if your financial planner was suggesting a deferred annuity, you need a new financial planner (or no financial planner).
Debt is to personal finance as a knife is to cooking.

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Mel Lindauer
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Re: Financial Advisor

Post by Mel Lindauer » Sun Oct 13, 2019 5:34 pm

retiredjg wrote:
Sun Oct 13, 2019 8:17 am
If you are interested in access to an hourly fee advisor, Rick Ferri (frequent poster here) has set up shop in the last few months.

https://rickferri.com

You can also get information about "advice only advisors" from tfb's website at https://adviceonlyfinancial.com The Finance Buff (tfb) is also a poster here.
Boglehead forum member and author, Allan Roth, CPA, MBA, CFP is also a fee-only advisor who I personally know and can recommend.
Best Regards - Mel | | Semper Fi

Topic Author
MBL
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Re: Financial Advisor

Post by MBL » Thu Nov 07, 2019 12:03 pm

Update... We moved our Roth IRAs to Fidelity and are self-managing. Very pleased with the transfer process. Everything transferred over in the same funds, then we sold everything and made our purchases. Best move ever!

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ruralavalon
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Re: Financial Advisor

Post by ruralavalon » Thu Nov 07, 2019 12:09 pm

MBL wrote:
Thu Nov 07, 2019 12:03 pm
Update... We moved our Roth IRAs to Fidelity and are self-managing. Very pleased with the transfer process. Everything transferred over in the same funds, then we sold everything and made our purchases. Best move ever!
Congratulations on the move and on switching to do it yourself investing.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

sschullo
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Re: Financial Advisor

Post by sschullo » Thu Nov 07, 2019 12:17 pm

Tdubs wrote:
Sun Oct 13, 2019 10:04 am
sschullo wrote:
Sun Oct 13, 2019 8:20 am
Welcome to the forum,
Your question is similar to a question posed on the Dave Ramsey radio money show. The caller wanted Ramsey's 2nd opinion on a new car that the caller wanted to buy. Ramsey's immediate response is "this is the Dave Ramsey show and we never recommend purchasing a new car because of new cars are not an investment," etc).
When you asked about a financial adviser, this is the Boglehead forum and when it comes to advisers, we always recommend that you manage your money without an adviser.
You got great advice on how to do exactly that, advice that you will not get from a conflicted financial adviser, and the lower costs, and you will get better results.
Again, welcome to the forum.
No, not always. We do advise you to search out advisors who charge by the hour rather than a percentage of your portfolio. And if you can't avoid the latter, keep expenses low, and seek out advisors with no personal stake in the funds selected. So Vanguard's personal advisors are often recommended.
Friends have told me that they cannot find an adviser who only accepts an hourly fee. I have reported one adviser to Garrett Planning Network and of course, Garrett was offended that one of their advisers violated the Garrett principle. Apparently, the only monitoring has to be the reporting of individual advisers who reject potential clients because they will not allow hour fee only.

Not sure how widespread this problem is.
Public School K-12 Educators: "Ask NOT what your annuity sales person can do for you, ask what you can do to be a Do-It-Yourselfer (DIY)."

pkcrafter
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Re: Financial Advisor

Post by pkcrafter » Thu Nov 07, 2019 3:07 pm

MBL wrote:
Thu Nov 07, 2019 12:03 pm
Update... We moved our Roth IRAs to Fidelity and are self-managing. Very pleased with the transfer process. Everything transferred over in the same funds, then we sold everything and made our purchases. Best move ever!
Very good. Now, do you still have investments through the bank? Getting a deferred annuity was a very expensive purchase, and investing through a bank for any investments is also very expensive.

What are you holding in the Roth now? Any other investments?


Paul
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.

Topic Author
MBL
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Re: Financial Advisor

Post by MBL » Tue Nov 12, 2019 8:44 am

Holding 3 index funds: FSPSX, FXAIX, FXNAX

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Wiggums
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Re: Financial Advisor

Post by Wiggums » Tue Nov 12, 2019 8:56 am

MBL wrote:
Thu Nov 07, 2019 12:03 pm
Update... We moved our Roth IRAs to Fidelity and are self-managing. Very pleased with the transfer process. Everything transferred over in the same funds, then we sold everything and made our purchases. Best move ever!
Congratulations. Well done...

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