Financial advisor help

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rabma00
Posts: 4
Joined: Thu Feb 18, 2021 10:58 am

Financial advisor help

Post by rabma00 »

Hi,

My wife and I have gone down the financial advisor route previously, had problems, and now have opinions on what we want and don’t want.

* We are NOT looking for an advisor to perform active fund management (e.g. day trading, options trading, etc.). This is what our previous manager did - we want to stay away from this.
* We are looking for an advisor to provide holistic approaches to a financial portfolio, such as:
* Legally reduce taxes through different strategies (start a business, form an LLC)
* Advise on purchasing invest properties
* Review current investment strategies, suggest modifications as needed, and advise on new approaches (e.g. backdoor Roth)
* Help structure a plan for low cost index investments (e.g. Vanguard 3-fund portfolio)
* We make ~$500K combined income per year with $2M in assets with a small amount of debt.

Could y’all recommend what kind of advisor would even meet these requirements? I keep coming across people who want us to invest in their funds.

Thank you!
Kelly
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Re: Financial advisor help

Post by Kelly »

Active management doesn't work . Google Rick Ferri for help.
Outer Marker
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Re: Financial advisor help

Post by Outer Marker »

If you don't want to do it yourself, Vanguard PAS checks nearly all your boxes. https://investor.vanguard.com/advice/fi ... r-services

You need a good accountant for business tax advice. It's a separate discipline.

Most here wouldn't recommend speculating on investment properties; neither will Vanguard.

Hope that's helpful. :beer
livesoft
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Re: Financial advisor help

Post by livesoft »

I have never come across any people who have advisors like you have described and I know quite a lot of people with advisors. The advisors always stick to mutual fund and ETF investments and do not ever get people into real estate deals (investment property. I know people who do use real estate as part of their scheme, but they actively seek out properties, tenants, and so on themsleves and do not have any advisors for this aspect of their net worth. They do use typical advisors for their stock market investments. Their accountants are nothing special as well.
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BolderBoy
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Re: Financial advisor help

Post by BolderBoy »

rabma00 wrote: Tue Apr 06, 2021 6:35 amCould y’all recommend what kind of advisor would even meet these requirements? I keep coming across people who want us to invest in their funds.
What you are describing would be the type of advisor that a very HNW person would hire as a full-time employee, dedicated to providing services just for that one client. Those types of advisors are very expensive.

Could you lower your expectations a bit?
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect
Flux Capacitor
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Re: Financial advisor help

Post by Flux Capacitor »

Every advisor I have met with your net worth wants your assets so they can put them in mutual funds and ETFs and then keep it there. They may occasionally replace a mutual fund or ETF here and there, but as long as they are close to your asset allocation, that’s all they do. None of them will know anything about taxes beyond capital gains tax, unless they were a tax focused CPA at one point, which is uncommon.

What you are describing is closer to a family office but your wealth isn’t anywhere close to warrant one.
Dave55
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Re: Financial advisor help

Post by Dave55 »

* Advise on purchasing invest properties

Do you mean you outright investing in properties? What type of properties? (Single family, commercial, multifamily, industrial, storage, office?)

Or do you mean investing in RE partnerships?

Dave
pkcrafter
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Re: Financial advisor help

Post by pkcrafter »

Welcome, rabma00

You've found Bogleheads and a lot of your questions can be answered by members who have knowledge and experience in the areas you are interested in, plus there is a lot of information in our Wiki. So, you might take each question one at a time.
rabma00 wrote: Tue Apr 06, 2021 6:35 am Hi,

My wife and I have gone down the financial advisor route previously, had problems, and now have opinions on what we want and don’t want.

* We are NOT looking for an advisor to perform active fund management (e.g. day trading, options trading, etc.). This is what our previous manager did - we want to stay away from this.
* We are looking for an advisor to provide holistic approaches to a financial portfolio, such as:
* Legally reduce taxes through different strategies (start a business, form an LLC)
* Advise on purchasing invest properties
* Review current investment strategies, suggest modifications as needed, and advise on new approaches (e.g. backdoor Roth)
* Help structure a plan for low cost index investments (e.g. Vanguard 3-fund portfolio)
* We make ~$500K combined income per year with $2M in assets with a small amount of debt.

All of your concerns can be answered because we have members experienced in all of the topics you've listed. Just deal with one at a time. Here is some information to start with.

https://www.bogleheads.org/wiki/Getting_started

https://www.bogleheads.org/wiki/Tax-eff ... _placement

viewtopic.php?f=10&t=88005

Could y’all recommend what kind of advisor would even meet these requirements? I keep coming across people who want us to invest in their funds.

Before seeking a good advisor, use the forum for feedback on each topic. Post in this format for best replies:

viewtopic.php?f=1&t=6212

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.
Rex66
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Re: Financial advisor help

Post by Rex66 »

You want a unicorn

You need to settle for a horse

Even at much higher net worth, there is substantial risk that it won’t work any better.

There just aren’t any great tax strategies that are hidden. Opening a business is only really an option when you already have a plan/idea
FoolStreet
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Re: Financial advisor help

Post by FoolStreet »

rabma00 wrote: Tue Apr 06, 2021 6:35 am Hi,

My wife and I have gone down the financial advisor route previously, had problems, and now have opinions on what we want and don’t want.

* We are NOT looking for an advisor to perform active fund management (e.g. day trading, options trading, etc.). This is what our previous manager did - we want to stay away from this.
* We are looking for an advisor to provide holistic approaches to a financial portfolio, such as:
* Legally reduce taxes through different strategies (start a business, form an LLC)
* Advise on purchasing invest properties
* Review current investment strategies, suggest modifications as needed, and advise on new approaches (e.g. backdoor Roth)
* Help structure a plan for low cost index investments (e.g. Vanguard 3-fund portfolio)
* We make ~$500K combined income per year with $2M in assets with a small amount of debt.

Could y’all recommend what kind of advisor would even meet these requirements? I keep coming across people who want us to invest in their funds.

Thank you!
This is what Bogleheads is for. Ask you questions here and we’ll take care of you.
suemarkp
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Location: Somewhere in WA State

Re: Financial advisor help

Post by suemarkp »

Too many places are siloed into narrow functions. There is a local place here that advertised they do investment, accounting, and taxes all under the same roof. I wish more did that as too many ignore tax issues or put you in things that give you annoying taxes (revised and re-revised k1 forms, late forms). I have no idea what they cost and it probably isnt cheap.

Is is madronafinancial.com in Everett, wa.
Mark | Somewhere in WA State
Rex66
Posts: 488
Joined: Tue Aug 04, 2020 5:13 pm

Re: Financial advisor help

Post by Rex66 »

Many places say they do lots under 1 roof

Rarely they do them all well
Thomas93
Posts: 82
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Re: Financial advisor help

Post by Thomas93 »

rabma00 wrote: Tue Apr 06, 2021 6:35 am Hi,

My wife and I have gone down the financial advisor route previously, had problems, and now have opinions on what we want and don’t want.

* We are NOT looking for an advisor to perform active fund management (e.g. day trading, options trading, etc.). This is what our previous manager did - we want to stay away from this.
* We are looking for an advisor to provide holistic approaches to a financial portfolio, such as:
* Legally reduce taxes through different strategies (start a business, form an LLC)
* Advise on purchasing invest properties
* Review current investment strategies, suggest modifications as needed, and advise on new approaches (e.g. backdoor Roth)
* Help structure a plan for low cost index investments (e.g. Vanguard 3-fund portfolio)
* We make ~$500K combined income per year with $2M in assets with a small amount of debt.

Could y’all recommend what kind of advisor would even meet these requirements? I keep coming across people who want us to invest in their funds.

Thank you!
I was looking for something like that and used a service that did my taxes and gave financial planning advice (like cash flow modeling) in quarterly meetings and wound up stopping as I thought it was disappointing and costly. The service was $15,000 per year and done by a subsidiary of Goldman Sachs. I used them for a couple years. People on this web site have given me better advice. (So I now pay an accountant $1,000 per year, come to this web site, and save $14,000 per year.)
123
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Joined: Fri Oct 12, 2012 3:55 pm

Re: Financial advisor help

Post by 123 »

The problem with seeking an "Adviser" for guidance on investment or real estate purchases is that often that is just an announcement of ignorance that the "Adviser" exploits. In recent years advisers have even modified their approach to provide "education" instead of a sales presentation. Of course the "education" establishes that their product fulfills the need.
The closest helping hand is at the end of your own arm.
whereskyle
Posts: 1543
Joined: Wed Jan 29, 2020 10:29 am

Re: Financial advisor help

Post by whereskyle »

rabma00 wrote: Tue Apr 06, 2021 6:35 am Hi,

My wife and I have gone down the financial advisor route previously, had problems, and now have opinions on what we want and don’t want.

* We are NOT looking for an advisor to perform active fund management (e.g. day trading, options trading, etc.). This is what our previous manager did - we want to stay away from this.
* We are looking for an advisor to provide holistic approaches to a financial portfolio, such as:
* Legally reduce taxes through different strategies (start a business, form an LLC)
* Advise on purchasing invest properties
* Review current investment strategies, suggest modifications as needed, and advise on new approaches (e.g. backdoor Roth)
* Help structure a plan for low cost index investments (e.g. Vanguard 3-fund portfolio)
* We make ~$500K combined income per year with $2M in assets with a small amount of debt.

Could y’all recommend what kind of advisor would even meet these requirements? I keep coming across people who want us to invest in their funds.

Thank you!
Rick Ferri. He's likely booked but consider reaching out.
"I am better off than he is – for he knows nothing and thinks that he knows. I neither know nor think that I know." - Socrates. "Nobody knows nothing." - Jack Bogle
Thomas93
Posts: 82
Joined: Sat Jan 16, 2021 6:19 am

Re: Financial advisor help

Post by Thomas93 »

whereskyle wrote: Tue Apr 06, 2021 4:43 pm
rabma00 wrote: Tue Apr 06, 2021 6:35 am Hi,

My wife and I have gone down the financial advisor route previously, had problems, and now have opinions on what we want and don’t want.

* We are NOT looking for an advisor to perform active fund management (e.g. day trading, options trading, etc.). This is what our previous manager did - we want to stay away from this.
* We are looking for an advisor to provide holistic approaches to a financial portfolio, such as:
* Legally reduce taxes through different strategies (start a business, form an LLC)
* Advise on purchasing invest properties
* Review current investment strategies, suggest modifications as needed, and advise on new approaches (e.g. backdoor Roth)
* Help structure a plan for low cost index investments (e.g. Vanguard 3-fund portfolio)
* We make ~$500K combined income per year with $2M in assets with a small amount of debt.

Could y’all recommend what kind of advisor would even meet these requirements? I keep coming across people who want us to invest in their funds.

Thank you!
Rick Ferri. He's likely booked but consider reaching out.
Rick Ferri on his side says ... "PLEASE NOTE: New client consultation times are completely booked through September"
Thomas93
Posts: 82
Joined: Sat Jan 16, 2021 6:19 am

Re: Financial advisor help

Post by Thomas93 »

suemarkp wrote: Tue Apr 06, 2021 2:52 pm Too many places are siloed into narrow functions. There is a local place here that advertised they do investment, accounting, and taxes all under the same roof. I wish more did that as too many ignore tax issues or put you in things that give you annoying taxes (revised and re-revised k1 forms, late forms). I have no idea what they cost and it probably isnt cheap.

Is is madronafinancial.com in Everett, wa.
madrona i think charges up to 1.25% of assets annually. i think they charge as a % of assets under management.
Topic Author
rabma00
Posts: 4
Joined: Thu Feb 18, 2021 10:58 am

Re: Financial advisor help

Post by rabma00 »

Thank you all for taking the time to respond! We truly appreciate it.

Well, it definitely seems like I was asking for too much :oops:! Sorry, I was just coming from a place of ignorance... I actually thought that this would be a thing :D.

It sounds like getting a good accountant checks a lot of the boxes for us, so we'll definitely start with that. However, we'll also look into the other recommendations as well (Rick Ferry, Vanguard PAS, etc.).

In regards to the real estate, we currently have a property that we rent out and its worked out well. I was kind of thinking of getting into more real estate, but not sure if I should purchase another residential home, or consider something else. And I really don't understand if or what the tax implications are of these decisions.

I'd love to spend more time learning about investments, taxes, etc.. it's just that I'm pretty limited on available time to take it on. When I start looking into things, I come across S-corps, Roth backdoors, forming an LLC, and it just takes me forever to work through the different permutations, so I stop looking into it, and move on.

For some background:
We kind of got burned with our first financial advisor. A short version of a long story is... we got an advisor, had kids, and didn't worry about finances. We had our bi-yearly checkups, it looked like everything was okay, but then after about 5 years (as the kids got bigger), I started digging into what he was doing while learning about basic investment strategies. After I learned about the 3-fund portfolio, I performed a basic back testing and saw that I would have been in a much better place if I just followed the 3-fund strategy. So, we got rid of him and moved everything over to a much simpler 3 fund approach, and paid off our debt.

I'll start poking at the recommendations, and see where that gets me. Again, thank y'all.
afan
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Re: Financial advisor help

Post by afan »

You want an hourly fee advisor.

Such a person sells advice only. They would not manage your investments. They would suggest what you should do and leave it to you to do it. They will charge you an hourly rate or maybe quote a fee for the initial consultation and advice, with hourly fees for any later work.

They will not charge an assets under management fee. They will not sell you insurance or investments of any kind. Since they will sell you nothing, they will not charge commissions.

Depending on the qualifications of the advisor and the complexity of your tax issues, you may also need to work with a tax expert like an enrolled agent, CPA, or tax attorney.

If it is just tax efficient investing, then your hourly adviser should be able help you.
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ruralavalon
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Re: Financial advisor help

Post by ruralavalon »

rabma00 wrote: Tue Apr 06, 2021 6:35 am Hi,

My wife and I have gone down the financial advisor route previously, had problems, and now have opinions on what we want and don’t want.

* We are NOT looking for an advisor to perform active fund management (e.g. day trading, options trading, etc.). This is what our previous manager did - we want to stay away from this.
* We are looking for an advisor to provide holistic approaches to a financial portfolio, such as:
* Legally reduce taxes through different strategies (start a business, form an LLC)
* Advise on purchasing invest properties
* Review current investment strategies, suggest modifications as needed, and advise on new approaches (e.g. backdoor Roth)
* Help structure a plan for low cost index investments (e.g. Vanguard 3-fund portfolio)
* We make ~$500K combined income per year with $2M in assets with a small amount of debt.

Could y’all recommend what kind of advisor would even meet these requirements? I keep coming across people who want us to invest in their funds.

Thank you!
It sounds like you want a fee only planner like Rick Ferri or Allan Roth or William Bernstein. Also perhaps a CPA or tax attorney.

Here are is an online book chapter to help you decide if you need or want an advisor: Chapter 10 – On Your Own or Hire 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. If you have gotten this far through the primer, you are already a more knowledgeable investor."

1) You could post your details on this forum for ideas, like this: Asking Portfolio Questions.

2) iHere are two resources for locating an advisor:
www.napfa.org;
www.garrettplanningnetwork.com.

3) Harry Sit who sometimes posts here offers this service to help locating an advisor your area: Advice-Only Financial.
Last edited by ruralavalon on Sat Apr 10, 2021 11:05 am, edited 1 time in total.
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Meg77
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Re: Financial advisor help

Post by Meg77 »

There are financial planners who do not manage assets at all and therefore do not charge fees as a % of assets under management. Such planners often charge a flat fee for a comprehensive plan that includes review of everything from insurance to estate planning, retirement projections using Monte Carlo simulations, even help budgeting or other items. The fee may range from $1500-$10,000 depending on the complexity of your situation and often you can then pay a much smaller annual retainer to update it. Implementing the plan would largely be up to you, or other paid advisors (estate planning attorneys, insurance agents, CPAs, or investment managers).

Finding one of these may be slightly more challenging; they usually work for themselves or for smaller RIA firms - not banks or large brokerage shops or robo advisors. The CFP "find a financial planner" tool can help.

https://www.letsmakeaplan.org/?gclid=Cj ... lsrc=aw.ds
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dbr
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Re: Financial advisor help

Post by dbr »

Just note that tax strategies involving setting up LLC's, businesses of different kind and advice on real estate investment are a whole different thing from the rest of your list.

Just expecting to pay someone to take over your lifetime financial affairs is unrealistic. Finding advice on ordinary stock and bond investing and personal taxation is relatively straightforward except that most people who so advertise are salesmen and not advisors or are offering a rip-off relationship. Getting business accounting and tax advice is possible but expensive. Guidance on real estate investing might not be something that can be had for hire but other people can comment on that.
mbt863
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Re: Financial advisor help

Post by mbt863 »

Harry is a boglehead and good place to start.....https://adviceonlyfinancial.com/
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