Does anyone here with net worths north of $1 mil use financial advisors?

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Dick D
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by Dick D » Mon Jan 22, 2018 8:55 pm

No. I have looked at it a few times, but could never see the advantages of using an fa.

sj1961
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by sj1961 » Mon Jan 22, 2018 8:58 pm

delamer wrote:
Mon Jan 22, 2018 8:29 pm
sj1961 wrote:
Mon Jan 22, 2018 7:51 pm
Wow, I find this fascinating. We have been really negligent with diligence as far as financial planning. Luckily about 5 years I did allow fidelity to manage some money for me, which has done really well even after the fees. I am excited to be here and learn how to take charge over our financial future.

What I find fascinating is the experience so many here have also had with professionals who are really not up to par. I can relate so much to the phrase above that someone realized they were educating the 'expert' instead of visa versa. So frustrating!

How does one find someone reliable? I have tried word of mouth and referrals from friends but have been disappointed.

Why do you feel the need to find someone?
Currently I am need of tax assistance with advising on some college and tax strategies to make sure I am following a correct path.

We also need some help in organizing all our assets and a blueprint for our retirement (10 years).

We have a lot of disparate financial assets in savings (too too much cash), 401K in multiple employers, IRAs, Roth IRAs, Managed funds, managed IRA, RSUs,individual stocks, mandatory incentive comp deferrals, pension plans and a non qualified defreded plan. I am sure there is more I have left out. :)

Doctor Rhythm
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by Doctor Rhythm » Mon Jan 22, 2018 9:44 pm

My spouse and I are 50, and we just hit $4M in retirement savings this month. Until this past year, I never saw the need to meet with a financial advisor, mainly because all I ever did was contribute (maxing out tax-protected accounts first, using a moderately aggressive-to-aggressive allocation strategy). Lately however, I'm in the process of moving savings into more tax-efficient accounts, such as transferring post-tax contributions from my DCP to a Roth. Speaking with a advisor (in my case for free, through my employer's relationship with Fidelity) was tremendously helpful for clarifying tax implications and regulations around my options. A lot of the information was confirmatory ("Am I right that doing [x] won't generate a tax bill?"), but even that was helpful because it gave me confidence to make changes that I was hesitant about due to uncertainty.

Thus, I endorse meeting with an advisor periodically or on an ad hoc basis to answer questions and check to see if you are missing out on tax-reducing strategies. I'm less enthusiastic about using an advisor to recommend asset allocation and certainly not to recommend specific products.

InMyDreams
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by InMyDreams » Mon Jan 22, 2018 9:45 pm

sj1961 wrote:
Mon Jan 22, 2018 7:51 pm
Wow, I find this fascinating. We have been really negligent with diligence as far as financial planning. Luckily about 5 years I did allow fidelity to manage some money for me, which has done really well even after the fees. I am excited to be here and learn how to take charge over our financial future.

What I find fascinating is the experience so many here have also had with professionals who are really not up to par. I can relate so much to the phrase above that someone realized they were educating the 'expert' instead of visa versa. So frustrating!

How does one find someone reliable? I have tried word of mouth and referrals from friends but have been disappointed.
You may find this thread interesting
viewtopic.php?f=2&t=229065&p=3560170#p3560170

Captain kangaroo
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by Captain kangaroo » Tue Jan 23, 2018 1:06 am

28 years old, roughly 2,000,000 invested.

No financial advisor, a slightly modified 3 fund ETF portfolio with fido...

..but..

When I get married and have kids in the next few years, I will go with one that I know of who seems really good, friends use his firm and he invests 90% in index funds.

The 1% AUM fee I will pay is worth the peace of mind knowing my wife and kids will be able to go on with life and not have to worry about how to manage this much money if I suddenly kick the bucket.

Until then though, I love going it alone, it's almost a fun hobby for me learning and researching.

purpleKatz
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by purpleKatz » Tue Jan 23, 2018 12:33 pm

I don't - but I've advised a brother to. He's a believer of index funding and understands completely that he can do exactly what the advisor is doing in very little time. However, when it comes to finance, he's has no inclination and no desire to handle the details. He'll leave a year's salary in a bank account because he "doesn't have time" to deal with it. The quarterly phone meeting with his FA situates him and relieves him of stress. It may not be the best financial move - but as long as someone is taking care of it that's not him- he's happy.

WhyAmeriprise
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by WhyAmeriprise » Tue Jan 23, 2018 8:58 pm

Captain kangaroo wrote:
Tue Jan 23, 2018 1:06 am
The 1% AUM fee I will pay is worth the peace of mind knowing my wife and kids will be able to go on with life and not have to worry about how to manage this much money if I suddenly kick the bucket.
If you're handling so much on your own now, why not just make the plans known, but keep on doing your DIY until you can't?

spankasmurf
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by spankasmurf » Sun Jan 28, 2018 3:54 pm

No. I took the advice of a FA once and paid large fees and lost over half my investment. Decided then to own my future finances - at least when it went bad, it would be my fault. Did my own research, made my own decisions. Had some success, had some failures but now at $1.5million in retirement and fluid funds with 15 yrs to retirement. I've thought about hiring a FA to get some advice as I get closer to retirement and I would use a fixed fee advisor.

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Pajamas
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by Pajamas » Sun Jan 28, 2018 4:02 pm

Money Market wrote:
Fri Oct 20, 2017 4:56 pm
According to this guy on reddit (he's in the industry and is pretty vocal there),
That should tell you all you need to know right there.

MrMojoRisin
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by MrMojoRisin » Sun Jan 28, 2018 4:13 pm

Our investment portfolio is close to 1M and if you add our house and other property into that as "net worth" we qualify.

I am new to this forum and took charge of my investments just in the last couple of years or so. I have a fair but not great understanding of the investment world.

Just recently my wife and I have gone to a "Hourly Fee Only" CFP for a review of how we are standing. We are in pretty decent shape but he had some suggestions for us in the matter of rolling some of my wife's employer sponsored investments into existing Vanguard Roth when she retires. This was not something I had thought of though I'm certain most members of this board would have thought of it.

So yes, we do use a FP, but it is on an hourly basis, no AUM fee.

Philly_fan
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by Philly_fan » Sun Jan 28, 2018 4:14 pm

I pay a boglehead-like ria/cfp for one hour of his time each month. Every month i pay whether I use an hour of his time or not. He doesn't touch my money, he just gives advice. He's helped me on various financial planning things, and he would help my wife if I pass away before her. He's an insurance policy.

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Hawaiishrimp
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by Hawaiishrimp » Mon Jan 29, 2018 1:31 am

I had one for precisely a month and then I fired him. It costs me too much money (1%). [OT comment removed by moderator prudent]
I save and invest my money, so money can make money for me, so I don't have to make money eventually.

Mr Chill
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by Mr Chill » Mon Jan 29, 2018 2:05 am

One of the "financial advisors" at Wells Fargo stuck over $100k of my folks assets into a variable annuity, inside of an IRA. Because my mom was too close to retirement age, it forced an RMD BEFORE the annuity reached maturity. This, of course, triggered what would have been a surrender charge to take the RMD. I threw a royal fit and they managed to offset the cost of the surrender charge penalties, but I'll be damned if you don't do your own research to backup what any "advisor" says. I'm sure there are good ones out there, and the more complex your situation, the more specialized advice probably can help you. But for simple investing, there's probably nobody more vested in you than YOU.

dbp7777
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by dbp7777 » Mon Jan 29, 2018 8:14 am

Yes. Taylor Larimore.

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backofbeyond
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by backofbeyond » Mon Jan 29, 2018 11:42 am

My financial advisor is my personal trainer. Really.

Who generated the initial income that went into my portfolio? Who studied the bogle ways of becoming a millionaire? Who will ultimately decide when I retire? The answer is: me.

So if you have one "asset" that is totally responsible for your wealth, what should you do? Hint: Take really really really good care of it

Health is the First part of gaining long term Wealth.
The question isn't at what age I want to retire, it is at what income. - George Foreman

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Taylor Larimore
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by Taylor Larimore » Tue Jan 30, 2018 1:02 pm

Does anyone here with net worths north of $1 mil use financial advisors?
dbp7777 wrote:
Mon Jan 29, 2018 8:14 am
Yes. Taylor Larimore.
dbp7777:

Your statement is incorrect.

My net worth is under $1mil and I do not use an advisor.

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

DrGoogle2017
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by DrGoogle2017 » Tue Jan 30, 2018 1:18 pm

Haha, I think he meant Taylor Larimore as his advisor.

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Taylor Larimore
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by Taylor Larimore » Tue Jan 30, 2018 1:21 pm

DrGoogle2017 wrote:
Tue Jan 30, 2018 1:18 pm
Haha, I think he meant Taylor Larimore as his advisor.
That could be an even bigger mistake.

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

Cruise
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by Cruise » Fri Feb 09, 2018 8:39 pm

JaneyLH wrote:
Sun Jan 21, 2018 10:35 pm
radiowave wrote:
Fri Oct 20, 2017 5:25 pm
RadAudit wrote:
Fri Oct 20, 2017 5:21 pm
My FA is Bogleheads.org, the books, the wiki ... Their charge for AUM seems reasonable.

Many thanks to all.
+1 :)
They never asked how we invest, but did express some envy of our vacation travel. Had they asked, I would have told them we travel on the money we avoid paying on AUM fees.

I have been looking into around the world cruises... and I realized my husband and I could do one every 2 years with just the fees we saved when we fired our investment advisor.
Yes!

bikechuck
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by bikechuck » Fri Feb 09, 2018 9:34 pm

My wife and I have a bit less than 20% of our portfolio with TIAA and my former employer's contract with them came with a provision where we can meet with one of their advisors at no cost.

A few years prior to my retirement we decided to take advantage of doing so. I am very happy that I did. We were matched with an individual who gave us some very helpful suggestions which we have taken advantage of. Most of them were opportunities that brought no additional funds to TIAA.

This person helped us understand how to do back door roths which is something we should have started earlier than we did and he helped us through our first year of doing so. He helped me understand that I could do a mega back door Roth using an after tax 401K and since he knew I wanted low fees and Vanguard funds he told me to set up my Roth with Vanguard rather than going with a Vanguard ETF using TIAA. During our first review he noticed that I had a fixed annuity paying 4.5% at another insurance company and he encouraged me to call them, refresh my knowledge of the product and see if I could add money to it. Turns out I could and the new money earns a guaranteed minimum 4.5% with no time or other restrictions on withdrawing the money. He helped me understand an NUA opportunity that I had with company stock from a former employer and helped me through every step of the process.

He is a great listener, my wife who hates this stuff attends our meetings. We have been meeting with him two or more times a year as we prepared for our 2017 retirements but I suspect that will drop off to once a year going forward.

Between his help and help from Bogleheads we have not felt the need to pay for financial advice.

tesuzuki2002
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by tesuzuki2002 » Thu Mar 08, 2018 3:40 am

Money Market wrote:
Fri Oct 20, 2017 4:56 pm
According to this guy on reddit (he's in the industry and is pretty vocal there), he claims that for a guy with $1.5 mil of assets, he needs an fiduciary FA for tax-efficient investing.

https://www.reddit.com/r/investing/comm ... t/dongtig/

My thought is if I had a two or three-fund portfolio, wouldn't it be as simple as investing in TSM, ITSM (international), muni's in taxable, and other bonds/stocks/reits in tax-deferred? Obviously, this may change according to someone's marginal tax rates, but I'm just surveying around if you guys are inclined to have an FA help you for tax-efficient allocations. I'm of the opinion that I don't really need one based on my future tax rates since it would be as simple as putting muni's in my taxable.

Edit: Sorry, I should have mentioned, a fee-only, fiduciary financial advisor.
Edit 2: Thank you all for responding! I have read each of your responses and it's been enlightening to read the situations of a diverse group of millionaires.

I realized I do have a financial advisor, and his name is part of the title of this forum!
NO

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oriol
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by oriol » Thu Mar 08, 2018 6:15 am

Only if you feel lonely...

f35phixer
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by f35phixer » Thu Mar 08, 2018 6:29 am

i have an account with Fidelity and it's in the high 6 figures, so i get a personnel advisor. We meet once a year and talk, i have done all my own buying selling of mutual funds. She/Fidelity isn't charging me are they? They just get money from the ER of each fund right? Or have i been duped? I will be puttting my portfolio out pretty soon for a judgement and questions about selling and going to a three fund soon.

rixer
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by rixer » Thu Mar 08, 2018 8:55 am

I don't use a FA. Our portfolio is in a simple Lifestrategy Fund. There is nothing to advise, I hold the fund and decide what to withdraw each year.

scrabbler1
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by scrabbler1 » Thu Mar 08, 2018 9:18 am

f35phixer wrote:
Thu Mar 08, 2018 6:29 am
i have an account with Fidelity and it's in the high 6 figures, so i get a personnel advisor. We meet once a year and talk, i have done all my own buying selling of mutual funds. She/Fidelity isn't charging me are they? They just get money from the ER of each fund right? Or have i been duped? I will be puttting my portfolio out pretty soon for a judgement and questions about selling and going to a three fund soon.
You probably have what I have with Fidelity - a personal Account Executive, an advisor who doesn't charge me a fee. I still manage my account but I meet with my AE every 12-18 months to discuss things and to update my data in Fido's RIP program (I am an early retiree). It's good to have someone with Fido who knows my personal situation in case I have a sensitive question and I don't want to explain the specifics of my personal situation to a unknown phone rep. Only FIdo clients who have sufficiently large holdings with Fido are eligible for this.

RudyS
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by RudyS » Thu Mar 08, 2018 10:30 am

dbp7777 wrote:
Mon Jan 29, 2018 8:14 am
Yes. Taylor Larimore.
+1 And the other BH's as well.

Joylush
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by Joylush » Thu Mar 08, 2018 5:21 pm

hicabob wrote:
Fri Oct 20, 2017 6:56 pm
I think most bogleheads have personal finance as a useful hobby, which puts us among a select few but with interesting attributes, among them being we are quite unlikely to employ a finance manager due to the overhead cost.
Very well said!

f35phixer
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by f35phixer » Thu Mar 08, 2018 5:38 pm

scrabbler1 wrote:
Thu Mar 08, 2018 9:18 am
f35phixer wrote:
Thu Mar 08, 2018 6:29 am
i have an account with Fidelity and it's in the high 6 figures, so i get a personnel advisor. We meet once a year and talk, i have done all my own buying selling of mutual funds. She/Fidelity isn't charging me are they? They just get money from the ER of each fund right? Or have i been duped? I will be puttting my portfolio out pretty soon for a judgement and questions about selling and going to a three fund soon.
You probably have what I have with Fidelity - a personal Account Executive, an advisor who doesn't charge me a fee. I still manage my account but I meet with my AE every 12-18 months to discuss things and to update my data in Fido's RIP program (I am an early retiree). It's good to have someone with Fido who knows my personal situation in case I have a sensitive question and I don't want to explain the specifics of my personal situation to a unknown phone rep. Only FIdo clients who have sufficiently large holdings with Fido are eligible for this.
Thanks S, Yup, thats what i thought, i just wanted to double check. I always talk to her about my equally large TSP that i say i will roll in 15 months into Fido as a carrot. But now that they have changed the way we can now take a monthly withdrawl out of TSP i think i will do that at a 4 % rate and wait till FRA to start SS... vise rolling to Fido.

CedarWaxWing
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by CedarWaxWing » Thu Mar 08, 2018 5:49 pm

FRANK2009 wrote:
Wed Oct 25, 2017 8:55 am
Not quite north of a million, but really close. I met with a planner ONCE. My curiosity was cured. All he wanted to do was put me in an annuity. When I declined, he wanted 2-4% to manage my portfolio. When I told him that I doubted that he could beat my index funds, he said that he know "when to get in and out of stocks". Meeting over. Mr. Bogle is my planner even if he doesn't know it.
He was screening you as much as you were screening him. He exceeded his ignorance quotient and he knew you were not going to be dumping "easy money" in his lap. Good job!

M

MathWizard
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by MathWizard » Thu Mar 08, 2018 6:07 pm

No. Nobody cares more about my retirement than me, so I invest my time in it.

I was once approached by people who were looking for quants, so I have the analytical skills,
but I prefer to only worry about my own money.

sls239
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by sls239 » Thu Mar 08, 2018 9:08 pm

This sounds like the typical guy that thinks being a millionaire must mean doing something much more dramatic than saving 20% of your under $100k income for 15 years and investing it in total market funds.

Hint: it doesn't.

jminv
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by jminv » Thu Mar 08, 2018 10:18 pm

I haven't used a FA to date. I could, however, have benefited from it earlier in my investment 'hobby' if it had been a boglehead like cfp. Generally, though, making mistakes was part of the process of learning and it didn't take me long to figure out what I was doing. I do wish I had found this forum years ago once I had that figured out since it's a number of like minded people.

I could see using a fixed fee FA when I am older to provide services for my wife in case something happens to me. I have told her what to do, of course, but having it arranged might be preferable.

A boglehead like FA would be beneficial for a lot of people out there who really don't know what they're doing. I'm hopeful, too, that the industry will change with the fidcuriary responsibilities they now have plus the general trend toward low cost index funds, robo advisers, and FA fee compression. I'm in the states for a week and I can't believe how often I hear people talking about hot stocks, tech in general, lyft driver talking about series E funding, and on and on (last person not a millionaire, but an example). It's actually a little worrisome. I'd much rather hear people talk about their index funds, how they're situated, retirement plans, like here on this forum but instead there's a lot of get rich quick thinking. These people could really use this help and a lot of them are actually quite well educated, highly paid professionals. I made my money through hard work and thrift. I grew it through good investing. A lot of people have trouble with the thrift part or rational investing. Those are the people a FA would be good for and there are millionaires among them. As I alluded to, a FA would probably also be good for anyone inheriting your millions who isn't as interesting in investing as we all are.

I mentioned before that I treat investing as a 'hobby' but I would also say it's akin to a game. I like seeing my wealth grow. This led me to pick the most optimal strategy to do this which is a smart investment plan and a lot of thrift. Even though I have money, you wouldn't know it. I think this probably applies to a lot of people on this forum, ie, it's a hobby/game, thrift is something in your nature, and people wouldn't know you have what you have. We seem to plan a lot and analyze most everything. I don't know how common we are but I have a feeling that we're rather rare.

BoglePablo
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by BoglePablo » Sat Mar 10, 2018 10:59 am

A few years ago I accepted an offer from a Vanguard rep to review my financial situation. I stated that my primary goals were to retire by X and fund my kids tuition. I believe I made clear I was DIY. The conversation consisted of this person saying "yes you are on the right track, is there anything else I can do for you" in a <2min phone call. I was disappointed
A few years earlier I helped my family member with a similar discussion with Vanguard, the rep provided him with a detailed written plan summarizing his current assets and potential reallocation, ideas for simplification, etc. A couple of followup conversations as well


Jnick55
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by Jnick55 » Sat Mar 10, 2018 9:07 pm

I am in my early 60s and have built a low eight figure investment portfolio.

I considered using a financial advisor many times over the years and would have benefited from doing that 25 or 30 years ago when first starting investing. There was just so little financial advice available then as compared to now, and so much of it was unreliable and not empirical. There was no resource like Bogleheads then, or at least none of which I was aware. I was always deterred, though, by the high fees and dubious credentials of the few financial advisors whom I considered.

I made a sizable Roth conversion about eight years ago that was stupid and that I would not have made if I had a financial advisor to bounce the idea off of. Still, it was not so stupid and did not turn out so badly as to allow a financial advisor who counseled me against the idea to have earned a typical assets under management fee.

I have since learned enough from Bogleheads and other resources that I have come to view our personal investment management as a hobby about which I feel confident. But I use Vanguard Personal Advisor Service as a restraint on the otherwise impulsive investment decisions that I might make. The portfolio management that I get from PAS might or might not be worth the fee. But I believe that the restraint on the otherwise solitary and impulsive decisions that I would probably make has been worth the relatively low fee.

ny_knicks
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by ny_knicks » Sat Mar 10, 2018 9:48 pm

Parents were with Edward Jones. 20+ funds w/ expense ratios over .80%. Front-loads. 1.25% of AUM per year. Started talking w/ them about annuities. What a mess. Luckily this was only for about 3 years. Returns were positive but low compared w/ rally in the market.

Convinced them to go with Vanguard PAS last year. Invested in 6 index funds. .30% management fee. No pushing products. In fact, I asked them to inquire about some actively managed Vanguard funds and the advisor refused to invest in them. I think there is limits to what they are allowed to do. While not ideal, I feel much better about the situation.

They have no interest in doing this on their own and lack the discipline to stick to their plan. Vanguard PAS is probably as good as it will get for them.

Longtermgrowth
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by Longtermgrowth » Sat Mar 10, 2018 11:38 pm

No, thanks mainly to this site. I actually found this site when researching variable annuities, having a bad feeling in my gut about putting a good chunk of what I wanted in stocks into one, which is what the family advisor *cough* salesman *cough* was pushing.
I listened to a pitch from another bank that some money was with, and they wisely advised against annuities at my age, but wanted to put all stock allocation in about 9 individual stocks and a few REITs.

Any reading on here will steer one away from the bank wealth management division, along with doing anything as foolish as the above mentioned recommendations.

Investing becomes so simple once reading enough on this wonderful forum, I can't imagine paying to have someone else do what I've come to enjoy.

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randomizer
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by randomizer » Sat Mar 10, 2018 11:41 pm

No FAs for me.
87.5:12.5, EM tilt — HODL the course!

penumbra
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Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by penumbra » Sun Mar 11, 2018 1:30 am

We have been lucky enough to accumulate well into a 8 figure portfolio. I’ve been interested in finance since I began working. In business life, I was responsible for finding investment advisors for a large prefessional groups pension plan, and switched advisors a few times. In the process I learned quite a bit about investing and advisors. Self management was not an option in that arena. We were fortunate to find acceptable affordable managers. For my own accounts, however, I have always managed everything. It’s not that tricky if you’re truly interested, but not everyone is. I went through a phase decades ago accumulating a variety of limited partnerships in real estate, oil and gas, and a few trendy other areas. Over the years I learned this was unnecessarily complicated and unnecessary financially as well. Now they’re all gone, thank goodness. It’s quite possible to handle all this yourself, and to have fun doing it. This board has been the best single source of overall guidance and perspective, though there are a dozen other sites I check with great frequency.. Best of luck to all!!!

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mhadden1
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Joined: Tue Mar 25, 2014 8:14 pm
Location: North Alabama

Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by mhadden1 » Sun Mar 11, 2018 2:23 am

No FA for me. I try to keep it simple. So far so good.

My mother has a FA. Loads and high ERs. :x But, she is pushing 90 and, while a clever college graduate, is nowheresville regarding investments. Like a lot of people she needs help, and I mostly don't want it to be me, because I don't want either of us to ever feel bad about it. Could she get better/cheaper help? Sure, probably, but due to a comfort level with the FA, built-capital gains and such her cake is mostly baked. Who will do better in the end? Hopefully it will be quite a while before we know. :happy
Oh I can't, can I? That's what they said to Thomas Edison, mighty inventor, Thomas Lindberg, mighty flyer,and Thomas Shefsky, mighty like a rose.

MikeG62
Posts: 2298
Joined: Tue Nov 15, 2016 3:20 pm
Location: New Jersey

Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by MikeG62 » Sun Mar 11, 2018 7:24 am

No I do not.
Real Knowledge Comes Only From Experience

snowox
Posts: 306
Joined: Wed Nov 08, 2017 9:17 am

Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by snowox » Sun Mar 11, 2018 7:26 am

North of a Million, retired and use a Vanguard adviser who I feel does have my best interest in mind. We work together as opposed to him just telling me what to do.

R. ANDERSON
Posts: 19
Joined: Sat Mar 10, 2018 10:35 am

Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by R. ANDERSON » Sun Mar 11, 2018 7:40 am

Consider the possibility that paying a financial adviser for a few sessions might help your spouse, child, parent or any significant other better understand their options should something happen to you. And understanding it before something happens could lessen their bewilderment and grief. At very least, YOU will have pre-screened someone THEY can feel they can trust about financial issues like taxes.

MikeG62
Posts: 2298
Joined: Tue Nov 15, 2016 3:20 pm
Location: New Jersey

Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by MikeG62 » Sun Mar 11, 2018 8:28 am

R. ANDERSON wrote:
Sun Mar 11, 2018 7:40 am
Consider the possibility that paying a financial adviser for a few sessions might help your spouse, child, parent or any significant other better understand their options should something happen to you. And understanding it before something happens could lessen their bewilderment and grief. At very least, YOU will have pre-screened someone THEY can feel they can trust about financial issues like taxes.
Or you could walk your spouse, SO, child or other beneficiaries through their options while you are alive and accomplish much the same thing. I have not only done this, but have prepared a very lengthy word documents which walks my wife through the things she would need to do should I predecease her. She has read this document (more than once) and we have discussed it and I have answered her questions. It's not a perfect solution, but I sleep better at night from having done it.

Problem with picking an advisor is what if you live for decades after making the selection (I am only 55 and DW 53). That person may well be gone by the time she needs to contact them.

It's not a bad idea if your SO is apt to get more out of someone else telling them the same thing you would tell them or if you are much older than I am and much closer to your SO needing the contact person.
Real Knowledge Comes Only From Experience

brucebuck1010
Posts: 10
Joined: Wed Feb 07, 2018 4:39 pm

Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by brucebuck1010 » Sun Mar 11, 2018 8:37 am

We went to a fee-only FA last year to make sure our finances were in order, as I plan to retire in two years. Guess what? He had us fire my Morgan Stanley FA and had us switch to Vanguard Index Funds. I am now a Boglehead and I haven't looked back!

-Bruce

R. ANDERSON
Posts: 19
Joined: Sat Mar 10, 2018 10:35 am

Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by R. ANDERSON » Sun Mar 11, 2018 9:14 am

Spot on Mike G62. Lots of what we do or don't do in life is influenced by our age. A fiduciary financial adviser can help someone become more savvy if they have never had to think much about money because someone else has always taken care of that and that is the case for some. The great thing about all you documents is that they can be updated periodically to reflect the most current situation. Peace of mind trumps subliminal anxiety.

FoolStreet
Posts: 899
Joined: Fri Sep 07, 2012 12:18 am

Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by FoolStreet » Sun Mar 11, 2018 9:57 am

sj1961 wrote:
Mon Jan 22, 2018 8:58 pm
delamer wrote:
Mon Jan 22, 2018 8:29 pm
sj1961 wrote:
Mon Jan 22, 2018 7:51 pm
Wow, I find this fascinating. We have been really negligent with diligence as far as financial planning. Luckily about 5 years I did allow fidelity to manage some money for me, which has done really well even after the fees. I am excited to be here and learn how to take charge over our financial future.

What I find fascinating is the experience so many here have also had with professionals who are really not up to par. I can relate so much to the phrase above that someone realized they were educating the 'expert' instead of visa versa. So frustrating!

How does one find someone reliable? I have tried word of mouth and referrals from friends but have been disappointed.

Why do you feel the need to find someone?
Currently I am need of tax assistance with advising on some college and tax strategies to make sure I am following a correct path.

We also need some help in organizing all our assets and a blueprint for our retirement (10 years).

We have a lot of disparate financial assets in savings (too too much cash), 401K in multiple employers, IRAs, Roth IRAs, Managed funds, managed IRA, RSUs,individual stocks, mandatory incentive comp deferrals, pension plans and a non qualified defreded plan. I am sure there is more I have left out. :)
Why not create a new thread and ask your questions here for free, first?

BogleLearner
Posts: 58
Joined: Thu Sep 17, 2015 4:21 pm

Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by BogleLearner » Sun Mar 11, 2018 11:46 am

We use occasional review sessions with our Vanguard advisor. We are thankful for guidance through this
forum and for Jack Bogle's advice through his books. Most of our investments are on track thanks to index
fund investing. The investments that are not quite on an ideal track are because of advice given by a couple
of FA's that our family had used! Wish we could have turned back the clock and avoided them!

Kaktus
Posts: 73
Joined: Sun Apr 10, 2016 1:57 pm

Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by Kaktus » Mon Mar 12, 2018 2:40 am

Interesting to see peoples understanding of FA.
Just two more reflections.
1 to be able to judge if a financial advisor gives you sound advice and charges reasonably you need to have knowledge yourself. And when you have aquired that level of knowledge you no longer need a financial advisor. Unless, I suppose, you have a veru complex financial situation.
2. I got involved in a terrible mess in a real estate deal some years ago. I realized then that that mess would have been avoided if there hadnt been an agent between the buyer and seller. Both buyer and seller thought "great, there is an agent involved, he is a pro, he will make sure everything is ok, so that i dont have to understand and check this myself". But this agent just wanted to get the deal through so that he could leave for his vacation. And he knew exactly what is just enogh for him to say and do not to be held responsible. I am sure there are many good advisors out there, but I think the system encourages analogous behaviour when it comes to finances.

All the best

CurlyDave
Posts: 1423
Joined: Thu Jul 28, 2016 11:37 am

Re: Does anyone here with net worths north of $1 mil use financial advisors?

Post by CurlyDave » Mon Mar 12, 2018 5:28 am

Never tempted to use an FA. Not even once.

Think "if this guy is such a hot shot financial wiz, why is he working instead of being retired?"

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