independent 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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SSM1
Posts: 8
Joined: Wed Sep 26, 2018 2:47 pm

independent advisor

Post by SSM1 » Thu Oct 11, 2018 10:02 pm

Looking to work with a new independent hourly advisor. credentials are CFP EA CPA.
Early retirement advice re: unemployed x 1.75 yrs at age 61, asset allocation, tax-efficiency distributions, possible Roth conversion vs.proceeds from taxable acct., LTC planning, social index fund, etc. What do you think?
Hourly rate = $150
Initial exploratory meeting = N/C
First meeting to collect and sign documents = $75 ( ? )
What should I look for in the contract?
Any concerns about providing paper copies of statements and prior financial plans including VG?
Thank you.

bloom2708
Posts: 5015
Joined: Wed Apr 02, 2014 2:08 pm
Location: Fargo, ND

Re: independent advisor

Post by bloom2708 » Fri Oct 12, 2018 9:20 am

Why not spend time here? Ask your questions (as many as you want for $0).

Those fees will add up. Fast. Nobody knows your scenarios like you. It will be difficult to find someone not selling something with higher fees than you should be paying. There are threads on virtually all topics here that can be searched.

Why not spend 30-60 days reading and following threads, watching the videos, reading the Wiki entries and Getting Started.

See if a plan you control starts to form. Low cost, broad based market index funds. Just a few funds. Tax efficient.

Welcome and hop on board. $0/hour. Thousands of advisors at your service.
Last edited by bloom2708 on Fri Oct 12, 2018 11:04 am, edited 1 time in total.
"We are not here to please, but to provoke thoughtfulness." --Unknown Boglehead

123
Posts: 3913
Joined: Fri Oct 12, 2012 3:55 pm

Re: independent advisor

Post by 123 » Fri Oct 12, 2018 9:38 am

SSM1 wrote:
Thu Oct 11, 2018 10:02 pm
...First meeting to collect and sign documents = $75 ( ? ) ...
This would concern me greatly. Sounds like he may intend to take over your money and accounts and then just bill you.

f you use this financial advisor you pay $150 an hour for one person. If you ask here you pay $0 for hundreds of eyeballs, quite a few of who may comment. We don't sell anything except self-sufficiency.

The preferred way to post your situation is at viewtopic.php?t=6212

Most of the questions asked in our preferred posting format is the same stuff your financial advisor will ask anyway, if he doesn't ask in the same detail there may be something wrong, he may prefer to sell you something versus working with you.
The closest helping hand is at the end of your own arm.

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djpeteski
Posts: 693
Joined: Fri Mar 31, 2017 9:07 am

Re: independent advisor

Post by djpeteski » Fri Oct 12, 2018 9:43 am

I would agree with the other posts. What is so uncommon about your situation? From what you posted so far, nothing.

The first thing you need to do is to figure out if you can retire. If the answer to that is "No", you need to find a way to get working again. While not easy in execution, those are pretty strait forward questions and commonly asked here and responded to with excellent advice.

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goingup
Posts: 3319
Joined: Tue Jan 26, 2010 1:02 pm

Re: independent advisor

Post by goingup » Fri Oct 12, 2018 10:01 am

Based on what I've read on the forum, a financial planning "work up" usually runs $1000-$2000. Are you prepared for that? It's also not uncommon for the advisor to try to convince you to let him manage your assets aka an AUM arrangement.

That said, many people find meeting with a financial planner worthwhile. Personally, I'm really hesitant to share personal/financial info. I'd use retirement calculators, this forum, my existing investment firm advisor, and our CPA before I'd employ a new advisor. Maybe that's too cautious.

Dottie57
Posts: 4835
Joined: Thu May 19, 2016 5:43 pm

Re: independent advisor

Post by Dottie57 » Fri Oct 12, 2018 10:04 am

Never sign a contract befor you read and understand the contract.

moehoward
Posts: 255
Joined: Mon Mar 05, 2018 10:16 am

Re: independent advisor

Post by moehoward » Fri Oct 12, 2018 10:14 am

SSM1 wrote:
Thu Oct 11, 2018 10:02 pm
Looking to work with a new independent hourly advisor. credentials are CFP EA CPA.
Early retirement advice re: unemployed x 1.75 yrs at age 61, asset allocation, tax-efficiency distributions, possible Roth conversion vs.proceeds from taxable acct., LTC planning, social index fund, etc. What do you think?
Hourly rate = $150
Initial exploratory meeting = N/C
First meeting to collect and sign documents = $75 ( ? )
What should I look for in the contract?
Any concerns about providing paper copies of statements and prior financial plans including VG?
Thank you.
Hourly rate $150? Wow. Tell you what, I will do the same for you and not charge you anything. Hmm, maybe a beer.

SSM1
Posts: 8
Joined: Wed Sep 26, 2018 2:47 pm

Re: independent advisor

Post by SSM1 » Tue Oct 16, 2018 7:15 pm

This is a Garrett Network NAPFA planner with CPA CFP. He bills hourly at $150 to the .25 hr.. However, it's a single individual. I will question the fee/s and also post on the forum as suggested. I am not interested in AUM, even with the Vanguard PAS.

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Toons
Posts: 13063
Joined: Fri Nov 21, 2008 10:20 am
Location: Hills of Tennessee

Re: independent advisor

Post by Toons » Tue Oct 16, 2018 8:22 pm

Live Beneath Your Means.
Save and invest in
Total Stock Market Fund.Total International,Total Bond(Assess Tax Situation)
Stay Away From Debt.
Don't become house poor.(15 yr. mortgage,pay off early)
Max out any tax free,tax deferred investment vehicles afforded to you ,401k Roth,,,etc.
Put the compounding machine to work For You.

Good Free Advice To Start.
It has served us well over the decades. :mrgreen:
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

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arcticpineapplecorp.
Posts: 3513
Joined: Tue Mar 06, 2012 9:22 pm

Re: independent advisor

Post by arcticpineapplecorp. » Tue Oct 16, 2018 8:52 pm

"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

J295
Posts: 1764
Joined: Sun Jan 01, 2012 11:40 pm

Re: independent advisor

Post by J295 » Tue Oct 16, 2018 9:40 pm

OP. How did you land with this particular advisor?

ralph124cf
Posts: 2059
Joined: Tue Apr 01, 2014 11:41 am

Re: independent advisor

Post by ralph124cf » Tue Oct 16, 2018 10:09 pm

A CPA for $150/hr. is cheap. Will he also do your taxes at that rate?

Ralph

SSM1
Posts: 8
Joined: Wed Sep 26, 2018 2:47 pm

Re: independent advisor

Post by SSM1 » Tue Oct 16, 2018 10:21 pm

Thank you, all respondents.
I found this new financial planner on the Garrett Financial Planning network. He is in NAPFA, has CFP and CPA and bills hourly. I am not interested in AUM or a big complex financial plan.
Unfortunately, I could not find any reviews on him thru Google or on his LinkedIn profile. I will check the professional association links posted in this thread.
Note: I did post request for input on another forum with the format recommended -- for feedback from BH experts on AA, positions, early retirement, etc.

Momus
Posts: 538
Joined: Tue Feb 21, 2012 9:23 pm

Re: independent advisor

Post by Momus » Tue Oct 16, 2018 10:38 pm

Advisor just takes money and doesn't bring anything to the table. You can do this yourself and come out ahead, but yea go ahead if you need some handholding and getting charged more and charged for no reason (seeking confirmation what's already been said here).

ProfWengen
Posts: 20
Joined: Sat Oct 06, 2018 9:15 pm

Re: independent advisor

Post by ProfWengen » Wed Oct 17, 2018 12:46 am

ralph124cf wrote:
Tue Oct 16, 2018 10:09 pm
A CPA for $150/hr. is cheap. Will he also do your taxes at that rate?

Ralph
I agree, $150 per hour for a CPA is reasonable. Location makes a big difference though, a CPA CFP in Manhattan is going to command more than one in Macon.

User avatar
White Coat Investor
Posts: 13601
Joined: Fri Mar 02, 2007 9:11 pm
Location: Greatest Snow On Earth

Re: independent advisor

Post by White Coat Investor » Wed Oct 17, 2018 9:43 am

SSM1 wrote:
Thu Oct 11, 2018 10:02 pm
Looking to work with a new independent hourly advisor. credentials are CFP EA CPA.
Early retirement advice re: unemployed x 1.75 yrs at age 61, asset allocation, tax-efficiency distributions, possible Roth conversion vs.proceeds from taxable acct., LTC planning, social index fund, etc. What do you think?
Hourly rate = $150
Initial exploratory meeting = N/C
First meeting to collect and sign documents = $75 ( ? )
What should I look for in the contract?
Any concerns about providing paper copies of statements and prior financial plans including VG?
Thank you.
Good credentals.

Fair rate.

No, you're going to have to share your financial info with your advisor.

Make sure the contract specifies how you break up.

And remember that social investing generally has lower returns.
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

nick evets
Posts: 166
Joined: Wed Mar 01, 2017 5:40 pm

Re: independent advisor

Post by nick evets » Wed Oct 17, 2018 10:43 am

Momus wrote:
Tue Oct 16, 2018 10:38 pm
Advisor just takes money and doesn't bring anything to the table. You can do this yourself and come out ahead, but yea go ahead if you need some handholding and getting charged more and charged for no reason (seeking confirmation what's already been said here).
Interesting.

Do you feel that the 'free advice over the internet' model is more beneficial than paid professionals in other areas, or just financial planning? I'm not challenging your assertion - just curious. It strikes me, having read this forum for about a year, often Bogleheads have this "AA mentality" where any other approach is useless, and the unfortunate is doomed to failure -- there's a powerful, collective reinforcement going on.

This forum was very helpful in helping my wife and I decide to unwind from our advisor and AUM arrangement. OTOH, I've looked back on some of the actively managed funds she was in, and they're doing quite well. So, much as I'd like to, I can't objectively say his management was evil. And, prior to this forum, I bought individual stocks in a couple of companies that I was personally familiar with and expected to do well (LUV and FFIV, back in 2011ish) and was very lucky I guess, but glad I didn't know better.

I understand the BH philosophy, but don't see how every advisor can be categorically dismissed. There's some gray here, IMO -- not all black and white, but again IMO.

sco
Posts: 826
Joined: Thu Sep 24, 2015 2:28 pm

Re: independent advisor

Post by sco » Thu Oct 18, 2018 12:20 am

ProfWengen wrote:
Wed Oct 17, 2018 12:46 am
ralph124cf wrote:
Tue Oct 16, 2018 10:09 pm
A CPA for $150/hr. is cheap. Will he also do your taxes at that rate?

Ralph
I agree, $150 per hour for a CPA is reasonable. Location makes a big difference though, a CPA CFP in Manhattan is going to command more than one in Macon.

I can tell you for a fact that a CPA in Manhattan KS does not make substantially more than one in Macon MO.

Housedoc
Posts: 204
Joined: Thu May 24, 2018 4:25 pm
Location: Alabama

Re: independent advisor

Post by Housedoc » Thu Oct 18, 2018 6:39 am

I tried an advisor a few yrs back. After 11 months I fired him. Do it yourself, a few funds will work at a low cost firm. Why have an advisor who drives a nicer car and lives in a nicer house than you? Keep your money by paying yourself.

moehoward
Posts: 255
Joined: Mon Mar 05, 2018 10:16 am

Re: independent advisor

Post by moehoward » Thu Oct 18, 2018 9:18 am

nick evets wrote:
Wed Oct 17, 2018 10:43 am
Momus wrote:
Tue Oct 16, 2018 10:38 pm
Advisor just takes money and doesn't bring anything to the table. You can do this yourself and come out ahead, but yea go ahead if you need some handholding and getting charged more and charged for no reason (seeking confirmation what's already been said here).
Interesting.

Do you feel that the 'free advice over the internet' model is more beneficial than paid professionals in other areas, or just financial planning? I'm not challenging your assertion - just curious. It strikes me, having read this forum for about a year, often Bogleheads have this "AA mentality" where any other approach is useless, and the unfortunate is doomed to failure -- there's a powerful, collective reinforcement going on.

This forum was very helpful in helping my wife and I decide to unwind from our advisor and AUM arrangement. OTOH, I've looked back on some of the actively managed funds she was in, and they're doing quite well. So, much as I'd like to, I can't objectively say his management was evil. And, prior to this forum, I bought individual stocks in a couple of companies that I was personally familiar with and expected to do well (LUV and FFIV, back in 2011ish) and was very lucky I guess, but glad I didn't know better.

I understand the BH philosophy, but don't see how every advisor can be categorically dismissed. There's some gray here, IMO -- not all black and white, but again IMO.
I'm sure your advisor was fine and suggested good investments but I don't think that's the point. With investment returns being equal, it boils down to fees. What can't you buy investments that your financial planner suggested? This forum is internet advice, I absolutely agree but the majority of the people here read something and then research it. IMHO, I do think it's black and white.

bloom2708
Posts: 5015
Joined: Wed Apr 02, 2014 2:08 pm
Location: Fargo, ND

Re: independent advisor

Post by bloom2708 » Thu Oct 18, 2018 9:46 am

nick evets wrote:
Wed Oct 17, 2018 10:43 am
Momus wrote:
Tue Oct 16, 2018 10:38 pm
Advisor just takes money and doesn't bring anything to the table. You can do this yourself and come out ahead, but yea go ahead if you need some handholding and getting charged more and charged for no reason (seeking confirmation what's already been said here).
Interesting.

Do you feel that the 'free advice over the internet' model is more beneficial than paid professionals in other areas, or just financial planning? I'm not challenging your assertion - just curious. It strikes me, having read this forum for about a year, often Bogleheads have this "AA mentality" where any other approach is useless, and the unfortunate is doomed to failure -- there's a powerful, collective reinforcement going on.

This forum was very helpful in helping my wife and I decide to unwind from our advisor and AUM arrangement. OTOH, I've looked back on some of the actively managed funds she was in, and they're doing quite well. So, much as I'd like to, I can't objectively say his management was evil. And, prior to this forum, I bought individual stocks in a couple of companies that I was personally familiar with and expected to do well (LUV and FFIV, back in 2011ish) and was very lucky I guess, but glad I didn't know better.

I understand the BH philosophy, but don't see how every advisor can be categorically dismissed. There's some gray here, IMO -- not all black and white, but again IMO.
If there are a bunch of "good" approaches, then the difference is the higher expense ratios and fees. That is enough of a difference. No other reason is needed.

https://www.dinkytown.net/java/compare- ... -fees.html
"We are not here to please, but to provoke thoughtfulness." --Unknown Boglehead

nick evets
Posts: 166
Joined: Wed Mar 01, 2017 5:40 pm

Re: independent advisor

Post by nick evets » Thu Oct 18, 2018 10:46 am

moehoward wrote:
Thu Oct 18, 2018 9:18 am
I'm sure your advisor was fine and suggested good investments but I don't think that's the point. With investment returns being equal, it boils down to fees. What can't you buy investments that your financial planner suggested? This forum is internet advice, I absolutely agree but the majority of the people here read something and then research it. IMHO, I do think it's black and white.
The OP is talking about a couple hundred dollars in fees -- let's say $1000 -- for hourly advice from a CFP/CPA, with some tax-specific questions and strategies, as well as some LTC questions, etc. That price doesn't exactly strike me as excessive: we're not talking about AUM fees, etc.

The response is overwhelming: Don't waste your money. We (forum members) will help you for free.

SSM1
Posts: 8
Joined: Wed Sep 26, 2018 2:47 pm

Re: independent advisor

Post by SSM1 » Wed Oct 24, 2018 4:07 pm

Thank you. The independent advisor was helpful. Seeking BH input on early retirement and portfolio on other forum post.

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