POLL: Do you have a financial advisor?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
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Do you pay a financial advisor?

Yes, 5 figure or less portfolio
1
0%
No, 5 figure or less portfolio
15
6%
Yes, 6 figure portfolio
0
No votes
No, 6 figure portfolio
103
39%
Yes, 7 figure or more portfolio
13
5%
No, 7 figure or more portfolio
130
50%
 
Total votes: 262

sunnyday
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POLL: Do you have a financial advisor?

Post by sunnyday » Thu Mar 20, 2014 4:48 pm

There have been some recents posts about paying for a financial advisor. I'm curious to see how the numbers break down.

dimdum
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Re: POLL: Do you have a financial advisor?

Post by dimdum » Thu Mar 20, 2014 5:57 pm

Yes and its called "bogleheads.org"

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FelixTheCat
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Re: POLL: Do you have a financial advisor?

Post by FelixTheCat » Thu Mar 20, 2014 6:08 pm

I had a Dean Witter broker. I was told my portfolio went up 15-20% per year. One day, I calculated my initial deposits and saw the same total on the current statement. I realized it took me five years to get back that 4.75% front-end load.

I had a financial adviser. He sold me term life, whole life and invested my 80K IRA and turned it into a 40K IRA.

Now, my financial adviser is Me and the Bogleheads.
Felix is a wonderful, wonderful cat.

kerplunk
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Re: POLL: Do you have a financial advisor?

Post by kerplunk » Thu Mar 20, 2014 6:09 pm

My financial advisor is this forum. Where is that option? :D

You guys are pretty awesome. :beer

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FrugalInvestor
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Re: POLL: Do you have a financial advisor?

Post by FrugalInvestor » Thu Mar 20, 2014 6:32 pm

kerplunk wrote:My financial advisor is this forum. Where is that option? :D

You guys are pretty awesome. :beer

Same here - I voted "no" but I do, the Bogleheads!!
IGNORE the noise! | Our life is frittered away by detail... simplify, simplify. - Henry David Thoreau

herbie
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Re: POLL: Do you have a financial advisor?

Post by herbie » Thu Mar 20, 2014 6:32 pm

I had one of the traditional sort and found that he was not acting in my best interests.

I now manage my own funds but have consulted with an hourly fee-based adviser to get a second opinion and look for missed opportunities.

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Clark & Addison
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Re: POLL: Do you have a financial advisor?

Post by Clark & Addison » Thu Mar 20, 2014 6:38 pm

There is a guy who comes into our school twice a year as he works for one of our 403b vendors. I used to consider him my financial advisor, until I realized how much he was actually costing me. Most of my financial advice now comes from this forum and the books that I have read that have been suggested on this forum.

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ERMD
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Re: POLL: Do you have a financial advisor?

Post by ERMD » Thu Mar 20, 2014 6:42 pm

my financial advisor is john "muggsy" boges.
between scotch and nothing, i'll take scotch. -- faulkner

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LadyGeek
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Re: POLL: Do you have a financial advisor?

Post by LadyGeek » Thu Mar 20, 2014 6:43 pm

This thread is now in the Personal Finance (Not Investing) forum (financial advisor).

Hopefully, these distinctions are clear:

- Investment adviser, who manages your investments
- Financial planner, who does Financial planning
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

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pennstater2005
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Re: POLL: Do you have a financial advisor?

Post by pennstater2005 » Thu Mar 20, 2014 6:58 pm

Yeah. Me and all y'all bogleheads.
Last edited by pennstater2005 on Thu Mar 20, 2014 7:42 pm, edited 1 time in total.
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Leif
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Re: POLL: Do you have a financial advisor?

Post by Leif » Thu Mar 20, 2014 7:11 pm

I have a low cost advisor for a few reasons. Although you didn't ask since most here do not use an advisor I'll mention why I decided to use one.

First and foremost, my wife doesn't have a clue, and doesn't want to have a clue. So if I pass first at least someone I know can help her.

Second, while the Bogleheads is a truly excellent source of advice it is nice to bounce an idea or two off someone that is very familiar with my portfolio.

Third, my advisor provides me with DFA access which I find useful for certain asset classes.

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tfb
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Re: POLL: Do you have a financial advisor?

Post by tfb » Thu Mar 20, 2014 8:25 pm

I don't have one now but I will after I talk to Vanguard.
Harry Sit, taking a break from the forums.

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Zabar
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Re: POLL: Do you have a financial advisor?

Post by Zabar » Thu Mar 20, 2014 8:51 pm

I have a low-cost advisor with whom I'm very pleased. She was recommended by my CPA. Her approach is similar to mine: almost all of the money goes into no-load index and index-like (e.g., some DFA funds) ETFs and mutual funds. She sells no products and receives no commissions. She's highly cost-sensitive with respect to transaction fees and expense ratios. There's no churning: we sold only one investment for nonperformance during the past two years.

The value I receive, which I believe is worth the fees, is that she helps me plan much more than my investments. I think of our relationship as akin to that between a CEO and a CFO: The CEO provides the vision and goals; the CFO figures out how to make that vision a reality without taking too much risk.

Yes, I learn a lot from books and Bogleheads, but I don't view this as an either/or situation.

bighatnocattle41
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Re: POLL: Do you have a financial advisor?

Post by bighatnocattle41 » Thu Mar 20, 2014 9:59 pm

No. Seven figure
if you live below your means, financial security is attainable

Grt2bOutdoors
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Re: POLL: Do you have a financial advisor?

Post by Grt2bOutdoors » Fri Mar 21, 2014 9:05 am

Once upon a time, I worked at a major wirehouse many of you are familiar with (not EJ) which required me to use their broker as my financial advisor for any trades I made on a public exchange. I really detested that "perk" :annoyed , because I was forced to pay higher than normal commissions and I knew more about the markets and securities than the FA. To make it worse, I had to deal with a shady character whose job it was to sell inappropriate investments to unsuspecting marks so that he could generate a higher paycheck. One time, he tried to sell me some "crap" and I had to pull him aside and have a few words, after that he left me alone. Something about my use of certain acronyms which were all above board put the fear of God into him.

Other than that, no, I will never use a financial advisor, even if I become incapacitated, I've left instructions on what is to be or should be done. And what is to be avoided like the plague.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

carolinaman
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Re: POLL: Do you have a financial advisor?

Post by carolinaman » Fri Mar 21, 2014 9:09 am

The results are not surprising. After all, this is a premoninantly DIY forum which skews the results as opposed to a broader audience.

steve_14
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Re: POLL: Do you have a financial advisor?

Post by steve_14 » Fri Mar 21, 2014 10:04 am

johnep wrote:The results are not surprising. After all, this is a premoninantly DIY forum which skews the results as opposed to a broader audience.
I don't know if that 's true. I have no particular DIY bias. I'm more than happy to pay one third party to compose my investments (index fund), and another party (investment company) to maintain them. I'd say folks here are simply educated regarding investing, so know that a) you can't do better than low fee index funds and b) allowing others to control your life savings is a dangerous proposition.

Jack FFR1846
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Re: POLL: Do you have a financial advisor?

Post by Jack FFR1846 » Fri Mar 21, 2014 10:09 am

Pole needs higher portfolio limits.
Bogle: Smart Beta is stupid

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FrugalInvestor
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Re: POLL: Do you have a financial advisor?

Post by FrugalInvestor » Fri Mar 21, 2014 10:59 am

Jack FFR1846 wrote:Pole needs higher portfolio limits.
'More' should cover it.
IGNORE the noise! | Our life is frittered away by detail... simplify, simplify. - Henry David Thoreau

chaz
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Re: POLL: Do you have a financial advisor?

Post by chaz » Fri Mar 21, 2014 11:24 am

dimdum wrote:Yes and its called "bogleheads.org"
Me too.
Chaz | | “Money is better than poverty, if only for financial reasons." Woody Allen | | http://www.bogleheads.org/wiki/index.php/Main_Page

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White Coat Investor
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Re: POLL: Do you have a financial advisor?

Post by White Coat Investor » Fri Mar 21, 2014 11:38 am

Why would someone with an advisor be spending much time here? Part of the point of having an advisor is so you don't have to spend time in places like Bogleheads.org. I see that as a major value add. If you're going to learn all about portfolio construction and appropriate investing, the benefit of the advisor is going way down in my opinion.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course

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steve roy
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Re: POLL: Do you have a financial advisor?

Post by steve roy » Fri Mar 21, 2014 11:54 am

I have a flagship advisor, but that's it.

Reason being, I had a broker advisor for years, and the gent cost me a good deal of money. I've done fine using bogleheads, using Vanguard, and leaving it at that. I have no plans to change my current program.

Jack FFR1846
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Re: POLL: Do you have a financial advisor?

Post by Jack FFR1846 » Fri Mar 21, 2014 12:08 pm

FrugalInvestor wrote:
Jack FFR1846 wrote:Pole needs higher portfolio limits.
'More' should cover it.
Yah, but I have seen posters now and then mention that they have 8 figure portfolios. I wonder how many and if they pay someone to watch their investments. I sort of look at 7 figures as the level that's needed to retire for most people, but getting more would be interesting to see. Maybe give me an incentive to save more somehow. :beer
Bogle: Smart Beta is stupid

Grt2bOutdoors
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Re: POLL: Do you have a financial advisor?

Post by Grt2bOutdoors » Fri Mar 21, 2014 12:28 pm

Jack FFR1846 wrote:
FrugalInvestor wrote:
Jack FFR1846 wrote:Pole needs higher portfolio limits.
'More' should cover it.
Yah, but I have seen posters now and then mention that they have 8 figure portfolios. I wonder how many and if they pay someone to watch their investments. I sort of look at 7 figures as the level that's needed to retire for most people, but getting more would be interesting to see. Maybe give me an incentive to save more somehow. :beer
4% of a million is $40K pre-tax. After tax, let's say it's $30K - not enough to own your own paid off home, pay real estate taxes and eat if you live in NY/NJ/CT - hence your wording of "most".
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

dad2000
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Re: POLL: Do you have a financial advisor?

Post by dad2000 » Fri Mar 21, 2014 12:38 pm

With 185 votes in at this point, no Bogleheads with under $1M in their portfolio use an advisor. I'd be curious to know:

a) A little more about the portfolio size (maybe <$2M, <$5M, <$10M, >=$10M)
b) Their primary reason for using an advisor (ie investment advice, tax advice, estate planning, etc.)
c) Is the advisor fee or AUM based?

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Bounca
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Re: POLL: Do you have a financial advisor?

Post by Bounca » Fri Mar 21, 2014 12:47 pm

I feel bad for the guy reading this who has the 4 - figure portfolio.

James2
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Re: POLL: Do you have a financial advisor?

Post by James2 » Fri Mar 21, 2014 12:55 pm

Yes, fee based advisor for investment advice, tax advice, college planning, estate planning, etc...

Grt2bOutdoors
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Re: POLL: Do you have a financial advisor?

Post by Grt2bOutdoors » Fri Mar 21, 2014 12:55 pm

Bounca wrote:I feel bad for the guy reading this who has the 4 - figure portfolio.
I don't.
My portfolio at one time was 2 figures - that's right, $20! If anything, those who have less, start with less should use these polls as a motivating factor to save more, invest more, earn more. Don't be discouraged, we all were crawling before we walked, we were walking before we ran. Things take time usually.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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sunnywindy
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Re: POLL: Do you have a financial advisor?

Post by sunnywindy » Fri Mar 21, 2014 1:06 pm

No free Advisor (RIA, CFA, or otherwise) because I did give a (small) donation to bogleheads.org! I've learned so much and want to keep my (and others) investment knowledge expanding so I'd encourage others to contribute to this site if you think it helped you make money.
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letsgobobby
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Re: POLL: Do you have a financial advisor?

Post by letsgobobby » Fri Mar 21, 2014 1:13 pm

I'm not surprised that 90%+ of respondends do not have an advisor.

I'm also not suprised that greater than 50% of respondents have a 7 figure + portfolio.

Another reminder that this group is financially far different from typical Americans. Even if the core advice of Bogleheadism can be generalized, a lot of the specific execution strategies either don't apply or aren't needed by most.

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frugaltype
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Re: POLL: Do you have a financial advisor?

Post by frugaltype » Fri Mar 21, 2014 1:46 pm

Grt2bOutdoors wrote:
Jack FFR1846 wrote:
FrugalInvestor wrote:
Jack FFR1846 wrote:Pole needs higher portfolio limits.
'More' should cover it.
Yah, but I have seen posters now and then mention that they have 8 figure portfolios. I wonder how many and if they pay someone to watch their investments. I sort of look at 7 figures as the level that's needed to retire for most people, but getting more would be interesting to see. Maybe give me an incentive to save more somehow. :beer
4% of a million is $40K pre-tax. After tax, let's say it's $30K - not enough to own your own paid off home, pay real estate taxes and eat if you live in NY/NJ/CT - hence your wording of "most".
Federal tax is probably $0 taking deductions into account. And many people also have Social Security. There's a whole world outside of New York City. I read some of the lifestyle articles in the Times, and it's like they're on a different planet.

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Leif
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Re: POLL: Do you have a financial advisor?

Post by Leif » Fri Mar 21, 2014 2:09 pm

EmergDoc wrote:Why would someone with an advisor be spending much time here? Part of the point of having an advisor is so you don't have to spend time in places like Bogleheads.org. I see that as a major value add. If you're going to learn all about portfolio construction and appropriate investing, the benefit of the advisor is going way down in my opinion.
I actually enjoy reading and discussing finance matters. As for why I have an advisor I listed those in my previous post.

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Meg77
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Re: POLL: Do you have a financial advisor?

Post by Meg77 » Fri Mar 21, 2014 2:10 pm

There are a lot of different types of financial advisers, and some can be very useful in certain situations. I've had friends really benefit from a few hours with a fee only (i.e. by the hour) planner who helped them set goals and pick investments and some basics. You can read a lot on the internet, but some people just like having a relationship or a professional verify what they should be doing. I have a friend who is a CFP who also uses an Ameriprise financial planner and puts all her money there (makes no sense to me but they are friends and she likes the accountability - I guess kind of like hiring a trainer just to get you to show up). I have a CPA I use as an "adviser" and have an insurance broker I bounce ideas off too. Nobody can be an expert in everything. One day I'm sure I'll hire an estate planning attorney. Also some boutique firms do comprehensive financial plans and coordinate with or act as a client's entire team (the CPA, the attorney, the trust officer, the private banker, the insurance agent, the investment manager) to make sure everybody is on the same page and all documents, titles, beneficiaries and plans align. This can be really valuable and plans start around $1500 with a modest annual retainer - not too bad.

I interned with Smith Barney in college in their Wealth Management division, and I really respected the team of Consultants I worked with. They charged 0.75-1.5% of the portfolio under management each year for their services, and their clients had 7 figure portfolios and up. One guy focused on marketing, one was a CFA who analyzed and picked the funds/investments they recommended, and one was a team leader type who dealt mostly with the clients - quarterly meetings, etc. I - the unqualified college intern - was the one personally responsible for creating the bound presentations each client got every quarter and updating their Asset Allocation charts with our re-balancing recommendations. The most valuable thing I learned in that internship was that I'd never need to hire my own financial planner. The easiest part of these guys' jobs was picking an asset allocation model and having somebody (me, that year) figure out the client recommendations. I'm not saying the clients got ripped off necessarily; many of them were older widows who needed to be able to call someone for even basics like ordering new checks; others were busy executives who knew a lot about making money but nothing about managing it and could afford to delegate that.

All that is fine if you know what you're getting and don't mind paying for it. Just remember But really, don't think you're paying for performance. Investing itself is really not rocket science despite the jargon and expensive marketing materials and software simulations and guys in suits taking you to a nice lunch. As we bogleheads know!
"An investment in knowledge pays the best interest." - Benjamin Franklin

cherijoh
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Re: POLL: Do you have a financial advisor?

Post by cherijoh » Fri Mar 21, 2014 2:19 pm

Bounca wrote:I feel bad for the guy reading this who has the 4 - figure portfolio.
I'm not sure I'd agree. I know I have seen posts here from teenagers or early 20-somethings who were asking advice on where to invest their Roth IRA. I wish the Bogleheads had ben around when I had a 4-figure portfolio! Who knows how much better off I would be now. 8-)

shorvath
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Re: POLL: Do you have a financial advisor?

Post by shorvath » Fri Mar 21, 2014 3:27 pm

Bounca wrote:I feel bad for the guy reading this who has the 4 - figure portfolio.
Four figures here, and proud of it, especially considering that I am a grad student who just started investing this past august. So spare me your sympathy :P
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goblue100
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Re: POLL: Do you have a financial advisor?

Post by goblue100 » Fri Mar 21, 2014 4:11 pm

Grt2bOutdoors wrote:
Bounca wrote:I feel bad for the guy reading this who has the 4 - figure portfolio.
I don't.
My portfolio at one time was 2 figures - that's right, $20! If anything, those who have less, start with less should use these polls as a motivating factor to save more, invest more, earn more. Don't be discouraged, we all were crawling before we walked, we were walking before we ran. Things take time usually.
I remember when I first started getting interested in investing(1983), I bought a Money magazine and one of the articles was where to invest $1,000, $5,000, or $10,000 right now. I thought I might be able to get $1,000 together if I really saved, but the idea of someone having $10k to plunk down at will seemed ludicrous to me. Only someone extremely rich would be able to do that, or so I thought. 30 Years later I'm in the mid 6 figure range. So yes, if you are just starting out, take heart. Consistency and time can lead to good things. I'm sure many others have done better than me, but I'm happy where I am.

Also, no adviser for me, but at some point I may consider a low fee one for reasons others have stated, a spouse with no desire to learn about managing money. If something happened to me I would like to have someone she could lean on.
Can't take it with you when you're gone | But I want enough to get there on - Rollin with the flow - Jerry Hayes

NorCalDad
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Re: POLL: Do you have a financial advisor?

Post by NorCalDad » Fri Mar 21, 2014 4:38 pm

cherijoh wrote:
Bounca wrote:I feel bad for the guy reading this who has the 4 - figure portfolio.
I'm not sure I'd agree. I know I have seen posts here from teenagers or early 20-somethings who were asking advice on where to invest their Roth IRA. I wish the Bogleheads had ben around when I had a 4-figure portfolio! Who knows how much better off I would be now. 8-)
I feel bad for the guy who has the 4-figure portfolio and isn't reading this. If you're here, chances are you will eventually reach the 7-figure club.

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frugaltype
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Re: POLL: Do you have a financial advisor?

Post by frugaltype » Fri Mar 21, 2014 5:27 pm

Grt2bOutdoors wrote: My portfolio at one time was 2 figures - that's right, $20! If anything, those who have less, start with less should use these polls as a motivating factor to save more, invest more, earn more. Don't be discouraged, we all were crawling before we walked, we were walking before we ran. Things take time usually.
I remember the days of my 2 figure portfolio in grad school :)

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