Financial Advisor Mandatory?

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Nissanzx1
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Financial Advisor Mandatory?

Post by Nissanzx1 » Sat Aug 11, 2018 7:36 am

I am 40, wife is 35. $535K Net Worth. $125K Gross Income. Zero Debt. Saving near 18% in a mix of 401K's and Roth IRA's. no children currently.

Do we need a financial advisor? (Two absolutely terrible experiences with financial advisors in the past who tried to sell us insurance we don't need)

We have a couple that we are good friends with that constantly speak of their advisors advice. They even consult with them before buying appliances or furniture...

Thanks in advance.

livesoft
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Re: Financial Advidor Mandatory?

Post by livesoft » Sat Aug 11, 2018 7:48 am

Of course not.

Your friends probably don't even know if their advisors are even helping them or not --- even if they think the advisors are helping them.

Also many people like to abdicate their personal responsibility and have someone else to blame. If that's you, then you do need an advisor.
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student
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Re: Financial Advidor Mandatory?

Post by student » Sat Aug 11, 2018 7:55 am

I don't think anybody on this forum will recommend that you get a financial advisor. If you absolutely do not want to spend any time on investment, then just use a target fund, preferably low cost and index, such as those from Vanguard or Fidelity.

Swampy
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Re: Financial Advidor Mandatory?

Post by Swampy » Sat Aug 11, 2018 7:57 am

NO!

Financial advisors are usually hazardous to your wealth.

Educate yourself. Since you are a relative newcomer, I suggest you read Bogle's, Ferri's, Bernstein's and Larimore's works (I'm not offering a complete list of equally great authors here on Bogleheads ONLY for brevity's sake). It'll take a few months to absorb this information. It'll be time well spent (and money saved)! The books are usually available for FREE at your local public library.

PS Forget what your friends say about their 'advisor.' They don't know what they don't know - it's noise.
Last edited by Swampy on Sat Aug 11, 2018 3:17 pm, edited 1 time in total.
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jharkin
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Re: Financial Advidor Mandatory?

Post by jharkin » Sat Aug 11, 2018 8:08 am

Swampy wrote:
Sat Aug 11, 2018 7:57 am
NO!

Financial advisors are usually hazardous to your wealth.

Educated yourself. Since you are a relative newcomer, I suggest you read Bogle's, Ferri's, Bernstein's and Larimore's works (I'm not offering a complete list of equally great authors here on Bogleheads ONLY for brevity's sake). It'll take a few months to absorb this information. It'll be time well spent (and money saved)! The books are usually available for FREE at your local public library.

PS Forget what your friends say about their 'advisor.' They don't know what they don't know - it's noise.
+ 1000000000000
Over their lifetime your friends will loose 6 (maybe 7 if they are high NW) figures to that advisor in fees,etc. Dont do it!

From the list of authors above, I would suggest to start first with the Bogleheads Guide to Investing (Larimore). Its the foundation that everything else builds on.

Get it from the reading list: https://www.bogleheads.org/RecommendedReading.php

Grt2bOutdoors
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Re: Financial Advidor Mandatory?

Post by Grt2bOutdoors » Sat Aug 11, 2018 8:19 am

View the thread on “threats to ones financial well-being”. You don’t need a “guy”.
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mhalley
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Re: Financial Advidor Mandatory?

Post by mhalley » Sat Aug 11, 2018 1:17 pm

Bogleheads believe that most everyone can be a diy investor, but if you do need one you need to minimize expenses. A compromise is to hire vanguard pas for 6 mos and get educated the diy. Wci has a good summary of advisor value here.
https://www.whitecoatinvestor.com/value-of-an-advisor/

JoeRetire
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Re: Financial Advidor Mandatory?

Post by JoeRetire » Sat Aug 11, 2018 2:01 pm

Nissanzx1 wrote:
Sat Aug 11, 2018 7:36 am
Do we need a financial advisor?
Are you capable of and willing to do everything financial yourself?
Do you want to do it yourself?

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mickeyd
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Re: Financial Advidor Mandatory?

Post by mickeyd » Sat Aug 11, 2018 2:06 pm

Financial advisors and wealth managers are not in the business of giving advice. Rather, they are in the business of getting paid to give advice.

You can probably do it yourself.
Last edited by mickeyd on Sat Aug 11, 2018 4:07 pm, edited 1 time in total.
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gunn_show
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Re: Financial Advidor Mandatory?

Post by gunn_show » Sat Aug 11, 2018 2:07 pm

Nissanzx1 wrote:
Sat Aug 11, 2018 7:36 am
I am 40, wife is 35. $535K Net Worth. $125K Gross Income. Zero Debt. Saving near 18% in a mix of 401K's and Roth IRA's. no children currently.

Do we need a financial advisor? (Two absolutely terrible experiences with financial advisors in the past who tried to sell us insurance we don't need)
No. Same age. Much higher NW and gross, no debt, closer to 30-50% savings rate. Follow the boglehead way. Read JL Collins book simple path to wealth. Find the free PDF "If you can get rich slowly" by Bernstein. There, you are all set!

Plus you already answered your own question - you are 0 for 2. Trying to go 0 for 3?
Nissanzx1 wrote:
Sat Aug 11, 2018 7:36 am
We have a couple that we are good friends with that constantly speak of their advisors advice. They even consult with them before buying appliances or furniture...
wut??? like... wut? No offense, are they rich? Or just suckers? I have to imagine this costs money for every phone call. So they really need help deciding between GE Profile and Whirlpool every time from a financial advisor at probably $100-150 / hr? Dude, a $17 consumer reports subscription answers that for a tiny fraction of the cost...

Do your friends also keep up with the Jones' and buy new cars every 3 years? Do you do the same? I don't do a LOT of the things I see my peers doing. And there is a reason I am wealthier than most of them.
"The best life hack of all is to just put the work in and never give up." Bas Rutten

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arcticpineapplecorp.
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Re: Financial Advidor Mandatory?

Post by arcticpineapplecorp. » Sat Aug 11, 2018 2:15 pm

Nissanzx1 wrote:
Sat Aug 11, 2018 7:36 am
I am 40, wife is 35. $535K Net Worth. $125K Gross Income. Zero Debt. Saving near 18% in a mix of 401K's and Roth IRA's. no children currently.

Do we need a financial advisor? (Two absolutely terrible experiences with financial advisors in the past who tried to sell us insurance we don't need)

We have a couple that we are good friends with that constantly speak of their advisors advice. They even consult with them before buying appliances or furniture...

Thanks in advance.
That depends. What appliances and furniture are the advisor specifically recommending? :wink:
"Invest we must." -- Jack Bogle | “The purpose of investing is not to simply optimise returns and make yourself rich. The purpose is not to die poor.” -- William Bernstein

Jack FFR1846
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Re: Financial Advidor Mandatory?

Post by Jack FFR1846 » Sat Aug 11, 2018 2:30 pm

I can see where an advisor would help (himself) even when buying furniture......

Your friends: "hey advisor, we want to buy some model XYZ couches from Big Box Furniture for $1000. What do you think?"

Advisor: "No, that's a big mistake that will cost (me). Buy those XYZ (exact same) couches from SmallButMyRelative Furniture. I'll get you an 80% discount and they'll only cost you $2000." (the advisor takes a $500 referral fee)
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DanMahowny
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Re: Financial Advidor Mandatory?

Post by DanMahowny » Sat Aug 11, 2018 2:37 pm

Your friends are probably very gullible and are easily duped into believing their advisor is a trusted professional.

Anyone that is super-dependent on their financial advisor is likely being taken advantage of.
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BL
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Re: Financial Advidor Mandatory?

Post by BL » Sat Aug 11, 2018 3:00 pm

Here is a quick free way to help you figure this out:
https://www.etf.com/docs/IfYouCan.pdf
It is 16 pages written by a recommended author, Dr William Bernstein, who sometimes posts here.
Note what he says about advisors in Hurdle #5.

You can get (free) advice here if you post in recommended format, see sticky top of Help topics.

If you don't want to do this, consider Vanguard's PAS, as they are reputable, cheap, and give you good index funds.

JW-Retired
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Re: Financial Advidor Mandatory?

Post by JW-Retired » Sat Aug 11, 2018 3:16 pm

Nissanzx1 wrote:
Sat Aug 11, 2018 7:36 am
Do we need a financial advisor? (Two absolutely terrible experiences with financial advisors in the past who tried to sell us insurance we don't need)
Two terrible experiences and you are game to try a FA again? I can't think of much to say about the folly of using advisors that would beat that!
Maybe read William Bernstein's very short book "If You Can" for Millennials. https://www.etf.com/docs/IfYouCan.pdf

Also, you have 77 posts here. Haven't you seen plenty here about this already?
JW
PS: I see BL was quicker about "If You Can" but I'll add my endorsement to his.
Last edited by JW-Retired on Sat Aug 11, 2018 3:19 pm, edited 1 time in total.
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FIREchief
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Re: Financial Advidor Mandatory?

Post by FIREchief » Sat Aug 11, 2018 3:17 pm

Nissanzx1 wrote:
Sat Aug 11, 2018 7:36 am
I am 40, wife is 35. $535K Net Worth. $125K Gross Income. Zero Debt. Saving near 18% in a mix of 401K's and Roth IRA's. no children currently.

Do we need a financial advisor? (Two absolutely terrible experiences with financial advisors in the past who tried to sell us insurance we don't need)

We have a couple that we are good friends with that constantly speak of their advisors advice. They even consult with them before buying appliances or furniture...

Thanks in advance.
If I were in your situation (and I once was), I would just put 100% into a US Total Market index fund and go live my life. Check back fifteen or twenty years from now.... :sharebeer
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

lostdog
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Re: Financial Advidor Mandatory?

Post by lostdog » Sat Aug 11, 2018 3:20 pm

No, you don't need a financial advisor. Read Taylor Larimore's book, "The Boglehead's guide to the Three Fund Portfolio.". You can also contact Vanguard PAS to get you started and then cancel them later.

Continue to post here with questions. People here will help you for free.
Vanguard Total World Equity Index - The rational portfolio

lostdog
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Re: Financial Advidor Mandatory?

Post by lostdog » Sat Aug 11, 2018 3:21 pm

FIREchief wrote:
Sat Aug 11, 2018 3:17 pm
Nissanzx1 wrote:
Sat Aug 11, 2018 7:36 am
I am 40, wife is 35. $535K Net Worth. $125K Gross Income. Zero Debt. Saving near 18% in a mix of 401K's and Roth IRA's. no children currently.

Do we need a financial advisor? (Two absolutely terrible experiences with financial advisors in the past who tried to sell us insurance we don't need)

We have a couple that we are good friends with that constantly speak of their advisors advice. They even consult with them before buying appliances or furniture...

Thanks in advance.
If I were in your situation (and I once was), I would just put 100% into a US Total Market index fund and go live my life. Check back fifteen or twenty years from now.... :sharebeer
+1. OR

Vanguard Total World Index and get on with your life.
Vanguard Total World Equity Index - The rational portfolio

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BL
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Re: Financial Advidor Mandatory?

Post by BL » Sat Aug 11, 2018 4:36 pm

lostdog wrote:
Sat Aug 11, 2018 3:21 pm
FIREchief wrote:
Sat Aug 11, 2018 3:17 pm
Nissanzx1 wrote:
Sat Aug 11, 2018 7:36 am
I am 40, wife is 35. $535K Net Worth. $125K Gross Income. Zero Debt. Saving near 18% in a mix of 401K's and Roth IRA's. no children currently.

Do we need a financial advisor? (Two absolutely terrible experiences with financial advisors in the past who tried to sell us insurance we don't need)

We have a couple that we are good friends with that constantly speak of their advisors advice. They even consult with them before buying appliances or furniture...

Thanks in advance.
If I were in your situation (and I once was), I would just put 100% into a US Total Market index fund and go live my life. Check back fifteen or twenty years from now.... :sharebeer
+1. OR

Vanguard Total World Index and get on with your life.
+1
Or a Vanguard Target Date Fund in 401k and Roth IRA.

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FIREchief
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Re: Financial Advidor Mandatory?

Post by FIREchief » Sat Aug 11, 2018 5:11 pm

Any of the above (but not ALL of the above). 8-)

I'm US centric, so I don't care about EU news, Turkey news, China news, etc. I prefer that, while others have different preferences (not that there's anything wrong with that). Any of these are so far away from that ugly term "financial advisor" that they should work out great. :beer
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

viz
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Re: Financial Advisor Mandatory?

Post by viz » Sun Aug 12, 2018 12:41 am

Nissanzx1 wrote:
Sat Aug 11, 2018 7:36 am
I am 40, wife is 35. $535K Net Worth. $125K Gross Income. Zero Debt. Saving near 18% in a mix of 401K's and Roth IRA's. no children currently.

Do we need a financial advisor? (Two absolutely terrible experiences with financial advisors in the past who tried to sell us insurance we don't need)

We have a couple that we are good friends with that constantly speak of their advisors advice. They even consult with them before buying appliances or furniture...

Thanks in advance.
Why do you think you need a financial advisor? Do you have a plan you want to get reviewed and get a second set of eyes? Or do you want someone who manages your account?
I would consider a planner for review as long as it is an advisor who charges per hour or a fixed price. You can get great advice on this forum but there can be special circumstances that you don't want to discuss in public.
I would not sign up for AUM based planner. I would never talk to an advisor for a appliance purchase. I might consider for a home purchase.

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StormShadow
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Re: Financial Advisor Mandatory?

Post by StormShadow » Sun Aug 12, 2018 1:34 am

Nissanzx1 wrote:
Sat Aug 11, 2018 7:36 am
Do we need a financial advisor?
Nope.
Nissanzx1 wrote:
Sat Aug 11, 2018 7:36 am
They even consult with them before buying appliances or furniture...
Same response to the financial advisor question... you can do this yourself.

The Wizard
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Re: Financial Advisor Mandatory?

Post by The Wizard » Sun Aug 12, 2018 6:35 am

Would be nice if the OP would com back and see if there were any answers to his question...
:)
Attempted new signature...

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Re: Financial Advisor Mandatory?

Post by sschullo » Sun Aug 12, 2018 6:56 am

As others have said a FA is never mandatory. You have asked this question on Bogleheads, and of course, most will say no.

Perhaps this should be another discussion but the OP asks a frequent question. I thought I had an answer for those people in the grey area who are savvy enough to find us here, but not savvy enough to be a DIYer, and from people I know. My response has been to find an FA on NAPFA and Garrett. One colleague had a negative experience with a Garrett adviser (who had been taken off the list). So I am not sure because of the take over of the AUM by the industry and how NAPFA and Garrett monitor their members. The retainer is no help either. I have seen fiduciary FA charge $5000 for $100,000 in assets because they only get .25% for $2 million or more in assets.

People need help and but the FA industry charges too much, especially for people less than million in assets. There are no easy answers because by the time you can adequately monitor a FA, you become a DIYer.
What a conundrum!
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)."

PhilosophyAndrew
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Re: Financial Advisor Mandatory?

Post by PhilosophyAndrew » Sun Aug 12, 2018 7:09 am

OP, you know one couple who believes the answer you to your question is “yes” answer many hundreds who have strongly argued (in the various threads of this forum, and in the wiki), that the answer is “no.”

My question for you: After evaluating the various arguments you have considered, what is your view, and why? This is a decision that you neeed to own, and so you should reach your own answer after appropriate rational consideration.

My suggestion, in addition to assessing the argument available on this site, is to post a request for portfolio advice and see whether the advice that BH provide about your specific circumstances makes sense to you. Folks here and generous with their replies and generally give substantive, relevant advice. This will allow you to have a clearer vision of how to develop your own investment plan, if you decide to abandon financial advisors after your two negative experiences.

If you wish to do this, there is a specific requested format for portfolio reviews that you can find on that section of the forum.

Good luck making your decision!

Andy.

Nissanzx1
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Re: Financial Advisor Mandatory?

Post by Nissanzx1 » Sun Aug 12, 2018 11:16 am

Thank you to everyone who took time to reply.

I have some new books to read, homework I guess you can say. Thanks for the recommendations!

I guess we felt that we were somehow missing out or unsophisticated after speaking to our friends (even though I promise that was not their intention as these are probably the nicest people we know). They are young with children and are trying to make the right decisions. The advisor recommended to keep their high Balance student loans (male half is PhD) and even just recommended a car loan (if you can imagine). It's just so interesting to see so many different ideas in the personal finance space. I just didn't expect the Financial Advising business to be such shark-infested waters, but on the other hand, why would I expect anything else?

We have another couple that we know and they shared last night at dinner that they pay 3.5% per year for their 2 advisors. Crazy stuff, I just politely nodded. Male half said as long as they were "making him money," that he was ok with the fees.

I will at some point dig up our asset allocation and ask in the proper forum and format for some advice there. Thanks again!

Cwise
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Re: Financial Advisor Mandatory?

Post by Cwise » Sun Aug 12, 2018 2:16 pm

Nissanzx1 wrote:
Sun Aug 12, 2018 11:16 am
Thank you to everyone who took time to reply.

I have some new books to read, homework I guess you can say. Thanks for the recommendations!

I guess we felt that we were somehow missing out or unsophisticated after speaking to our friends (even though I promise that was not their intention as these are probably the nicest people we know). They are young with children and are trying to make the right decisions. The advisor recommended to keep their high Balance student loans (male half is PhD) and even just recommended a car loan (if you can imagine). It's just so interesting to see so many different ideas in the personal finance space. I just didn't expect the Financial Advising business to be such shark-infested waters, but on the other hand, why would I expect anything else?

We have another couple that we know and they shared last night at dinner that they pay 3.5% per year for their 2 advisors. Crazy stuff, I just politely nodded. Male half said as long as they were "making him money," that he was ok with the fees.

I will at some point dig up our asset allocation and ask in the proper forum and format for some advice there. Thanks again!
Of course the advisor doesn’t want them to pay down loans. Means more money to invest and more money into paying down advisor’s loans.

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Stinky
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Re: Financial Advisor Mandatory?

Post by Stinky » Sun Aug 12, 2018 2:38 pm

Nissanzx1 wrote:
Sun Aug 12, 2018 11:16 am
Thank you to everyone who took time to reply.

I have some new books to read, homework I guess you can say. Thanks for the recommendations!

I guess we felt that we were somehow missing out or unsophisticated after speaking to our friends (even though I promise that was not their intention as these are probably the nicest people we know). They are young with children and are trying to make the right decisions. The advisor recommended to keep their high Balance student loans (male half is PhD) and even just recommended a car loan (if you can imagine). It's just so interesting to see so many different ideas in the personal finance space. I just didn't expect the Financial Advising business to be such shark-infested waters, but on the other hand, why would I expect anything else?

We have another couple that we know and they shared last night at dinner that they pay 3.5% per year for their 2 advisors. Crazy stuff, I just politely nodded. Male half said as long as they were "making him money," that he was ok with the fees.

I will at some point dig up our asset allocation and ask in the proper forum and format for some advice there. Thanks again!
Trust me, you’re a lot smarter than your friends. Follow some of the excellent advice above, and you’ll be well ahead.

BTW, 3.5% in annual fees is absolutely insane. Sounds like that couple has two advisors at 1.75% each - just plain nuts!
It's a GREAT day to be alive - Travis Tritt

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FIREchief
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Re: Financial Advisor Mandatory?

Post by FIREchief » Sun Aug 12, 2018 4:15 pm

Nissanzx1 wrote:
Sun Aug 12, 2018 11:16 am
We have another couple that we know and they shared last night at dinner that they pay 3.5% per year for their 2 advisors.
Yikes!!!!!! And they're even telling others about this? That is crazy. :annoyed
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

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arcticpineapplecorp.
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Re: Financial Advisor Mandatory?

Post by arcticpineapplecorp. » Sun Aug 12, 2018 5:33 pm

Nissanzx1 wrote:
Sun Aug 12, 2018 11:16 am
We have another couple that we know and they shared last night at dinner that they pay 3.5% per year for their 2 advisors. Crazy stuff, I just politely nodded. Male half said as long as they were "making him money," that he was ok with the fees.
He's ok with the fees because he doesn't realize that he's giving away over 60% of his wealth over the next 30 years (or over 70% over the next 40 years). This chart below only goes up to 3% (not the 3.5% you mention):

http://web.archive.org/web/201611100649 ... f-returns/

Ask him how he feels to put up 100% of the capital, take 100% of the risk, but only get 30% (or less possibly) of the return? Seems like a great deal...for the advisor!

Image
Last edited by arcticpineapplecorp. on Sun Aug 12, 2018 8:43 pm, edited 2 times in total.
"Invest we must." -- Jack Bogle | “The purpose of investing is not to simply optimise returns and make yourself rich. The purpose is not to die poor.” -- William Bernstein

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nedsaid
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Re: Financial Advisor Mandatory?

Post by nedsaid » Sun Aug 12, 2018 6:24 pm

Nissanzx1 wrote:
Sat Aug 11, 2018 7:36 am
I am 40, wife is 35. $535K Net Worth. $125K Gross Income. Zero Debt. Saving near 18% in a mix of 401K's and Roth IRA's. no children currently.

Do we need a financial advisor? (Two absolutely terrible experiences with financial advisors in the past who tried to sell us insurance we don't need)

We have a couple that we are good friends with that constantly speak of their advisors advice. They even consult with them before buying appliances or furniture...

Thanks in advance.
So far, so good. If you have accumulated that kind of net worth at a relatively young age, you are doing some things right.

Really, what you pay for when you pay for advice is the advisor's experience. If he has been in the business for a while, he has seen hundreds of client personal situations, their mistakes, and the things they did right. An experienced advisor has seen people make the same mistakes over and over and hopefully can keep you from having to experience those yourself, hopefully saving a lot of anguish and money.

Keep in mind that there is a big difference between a financial planner and a portfolio manager. That is a person who looks at your entire financial picture and the other one who manages assets. Do you need a big picture look at everything? Do you want someone to manage your investment portfolio?

Problem is, it is not easy to tell who is truly good and who is not. You also need to be in alignment philosophically. For example, if you are committed to indexing, Ameriprise is not for you. You need to understand the investment philosophy that underlies the advisor's recommendations. If you both are in agreement, it makes the relationship much easier. It makes no sense to pay for advice that you disagree with and won't follow. You also want to get the advice at a reasonable cost.

So for example, if you have a $500,000 portfolio and he charges a 1% Assets Under Management fee, that is $5,000 a year. Of course, the fees will grow as the portfolio grows. How much financial advice can you buy for $5,000 a year? Quite a lot actually. You could probably buy a comprehensive financial plan for $5,000 from a financial planner and then see the planner a couple times a year for check-ups. Paying for advice by the hour, your subsequent costs will be much less than $5,000. You can execute the plan yourself with low-cost investment products.

Pretty much, I am saying that it is more cost effective to pay for advice by the hour.

Too many advisors are actually just salespersons, you want objective advice and not just someone who sells you stuff. One place to start is the Garrett Planning Network. Another place is Vanguard Personal Advisory Service, which has an Assets Under Management fee of 0.30% a year, much less than the 1% industry standard, or the 1.35% paid at Edward Jones. I would also explore advisors that offer the Dimensional Fund Advisors (DFA) funds.

There is a lot of overlap between financial planning and portfolio management. Some advisors do one or the other, some do both. So you have to know what you want and seek out the person who can help you. A portfolio manager might not have the expertise to help you with such things as insurance, budgeting, and estate planning. A financial planner probably knows the fundamentals of building a portfolio but might not want to manage a portfolio for you.

My opinion is that people need financial planning more than they need portfolio management. This is true largely because the state of financial education in this country is just not very good.

If portfolio management is what you want, you can look at Target Risk Funds, which operate at a given risk level like conservative, moderate, or aggressive. Vanguard calls their version of these funds LifeStrategy Funds. For retirement accounts, you can buy a Target Date Retirement fund with a date that comes closest to your projected retirement date. These funds start out very aggressive when you are young and become more conservative as you get older. You buy the fund, and the mutual fund company manages the portfolio for you. I call this poor man's portfolio management and these funds are as good as portfolios put together by financial advisors. You pay only the expense ratios of the underlying funds, you don't pay an Assets Under Management fee to an advisor.
A fool and his money are good for business.

Doctor Rhythm
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Re: Financial Advisor Mandatory?

Post by Doctor Rhythm » Sun Aug 12, 2018 11:04 pm

Keep in mind that anyone and their cat (https://www.forbes.com/sites/fredericka ... 9e4827621a) can call themselves a financial advisor. Unless your financial situation is very unusual (you didn't provide details, but what you've stated seems pretty boring - that's a good thing) or you have a track record of making bad decisions, I don't think an advisor will be of much help.

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Re: Financial Advisor Mandatory?

Post by MikeG62 » Mon Aug 13, 2018 7:24 am

Nissanzx1 wrote:
Sun Aug 12, 2018 11:16 am


...We have another couple that we know and they shared last night at dinner that they pay 3.5% per year for their 2 advisors. Crazy stuff, I just politely nodded. Male half said as long as they were "making him money," that he was ok with the fees.
Don't ever take any financial advice from these friends.
Real Knowledge Comes Only From Experience

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FIREchief
Posts: 2446
Joined: Fri Aug 19, 2016 6:40 pm

Re: Financial Advisor Mandatory?

Post by FIREchief » Mon Aug 13, 2018 11:55 am

MikeG62 wrote:
Mon Aug 13, 2018 7:24 am
Nissanzx1 wrote:
Sun Aug 12, 2018 11:16 am


...We have another couple that we know and they shared last night at dinner that they pay 3.5% per year for their 2 advisors. Crazy stuff, I just politely nodded. Male half said as long as they were "making him money," that he was ok with the fees.
Don't ever take any financial advice from these friends.
If they are that clueless, I wouldn't take any kind of advice from them. If I want to throw away money, I'm sure I can figure that out just fine on my own. :twisted:
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

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greg24
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Re: Financial Advisor Mandatory?

Post by greg24 » Mon Aug 13, 2018 12:12 pm

Nissanzx1 wrote:
Sun Aug 12, 2018 11:16 am
The advisor recommended to keep their high Balance student loans (male half is PhD) and even just recommended a car loan (if you can imagine).
....
they pay 3.5% per year for their 2 advisors.
!!!!RUN AWAY!!!!

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DaftInvestor
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Re: Financial Advisor Mandatory?

Post by DaftInvestor » Mon Aug 13, 2018 12:27 pm

How sad your friends can't make a decision on when/what/if for furniture and appliance buying without consulting a Financial Advisor.
If it were me, I'd be embarrassed to state this.
Its one thing to pay a one-time fee for a Financial Advisor to have him give you advise on how your are doing and maybe help you with budget/cash-flow - but for every decision in your life is taking it too far.
I used a financial adviser once and was actually given some wrong/misleading information. Ever since that I only trust myself and my own research.

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Taylor Larimore
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Bogleheads Guide About Financial Advisors ?

Post by Taylor Larimore » Mon Aug 13, 2018 12:43 pm

lostdog wrote:
Sat Aug 11, 2018 3:20 pm
No, you don't need a financial advisor. Read Taylor Larimore's book, "The Boglehead's guide to the Three Fund Portfolio.". You can also contact Vanguard PAS to get you started and then cancel them later.
Bogleheads:

It is true that a simple total market index fund portfolio eliminates or minimizes the need for a financial advisor. However, many of us can benefit by using a good, low-cost advisor.

Page 15 in "The Investors' Guide to The Three-Fund Portfolio":
I am not saying to avoid all advisors. For those who really need one, a low-cost advisor can be worth the fees charged. A good fiduciary advisor can provide service that many investors may not be able to handle themselves. For example, a good advisor will:

* Help determine your goals and determine how much you'll need to save to reach those goals
* Help structure your most appropriate asset allocation
* Help you stay-the-course during Bear Markets
* Help with insurance needs (including life, disability, and health care)
* Give advice about taxes, social security, annuities, tax-loss harvesting, rebalancing, order of withdrawals, estate planning and other financial matters
Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

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