Choosing a Financial Planner or Investment Advisor (HowTo ?)

[kpbdy99]

This whole "Work with a fiduciary" thing is a fabulous marketing ploy, nothing else. I know fiduciaries I wouldn't trust with my dog, let alone my money. And yet, as an apparently-inherently-evil, comissioned insurance agent, I've never worked against or sold anything that was not in my client's best interest. Fiduciary is a word, not sainthood or genetic credibility.

As for finding and adviser? Meet with several. Ask your friend or professional advisers for referrals to financial advisers they have experience with and trust.

 

[DHK]

You should make a few ''test questions'', on which you will have an correct answer, and give them to the advisor, see how he will respond to them.

The correct answer to that b******* is to get the f out of my office. You just failed the client test.

 

[Tahoe Ray]

This whole "Work with a fiduciary" thing is a fabulous marketing ploy, nothing else. I know fiduciaries I wouldn't trust with my dog, let alone my money. And yet, as an apparently-inherently-evil, comissioned insurance agent, I've never worked against or sold anything that was not in my client's best interest. Fiduciary is a word, not sainthood or genetic credibility.

It's really the best thing that happened to commissioned salespeople, though.

I get a huge chunk of my personal production from these centers of influence.

Clients still need commission-based products so if you work those fiduciaries as referral sources, you can get a ton of "lay-down" insurance sales.

After all, proper insurance is still part of any comprehensive financial plan.

 

[LostDollar]

I don't know

You can read the previous posts in the thread for some suggestions.

You must know a little bit about choosing a financial advisor because your very first post was about the financial advisor you chose and how you soon were going to have more money.

 

[virginuso]

I would recommend that you choose a financial planner. Even if there is not such a big difference between these 2 jobs, the investment advisor is practically based only on investments. Still, the financial planner is based on investments, retirement, wealth, etc. So I think it will be much more beneficial for you. That's what I chose. I am an investor, and I sought the help of a financial planner from a company in Lake Oswego, who helped me do many things smartly. So, I think in your case, it also will be better to opt for a financial planner.

 

[LostDollar]

It will be better to choose a Financial Planner. It will be more useful.

If that is a serious answer, your comment is debatable. The financial planner I was given an opportunity to choose would NOT have been more useful than target date low fee funds at Schwab, Fidelity, or TIAA.

 

[Tahoe Ray]

If that is a serious answer, your comment is debatable. The financial planner I was given an opportunity to choose would NOT have been more useful than target date low fee funds at Schwab, Fidelity, or TIAA.

Dude, you crack me up sometimes.

Actual investments are a tiny part of most people's account performance. Investor behavior (and allocation) accounts for almost everything.

If you had a "planner" telling you that they were going to charge you 1.5% and pick mutual funds, then that is just a terrible planner.

A decent planner is holistic, focusing on how to best save for retirement, taxes, risk management etc. They often recommend low-fee funds as well.

There is an entire movement of planners who don't even charge based on AUM. They work on retainer or hourly.

Not having a decent planner can cost you a lot more than you know.

 

[LostDollar]

Actual investments are a tiny part of most people's account performance. Investor behavior (and allocation) accounts for almost everything.

@junkman had that conversation with me several years ago. His recommended reading was a bit heavy for me but Millionaire Teacher worked fine.

There is an entire movement of planners who don't even charge based on AUM. They work on retainer or hourly.

we have had that discussion before too. The planners in my location charge based on assets under management and most have minimum asset requirements that I would not meet.

Dude, you crack me up sometimes.

Actual investments are a tiny part of most people's account performance. Investor behavior (and allocation) accounts for almost everything.

If you had a "planner" telling you that they were going to charge you 1.5% and pick mutual funds, then that is just a terrible planner.

A decent planner is holistic, focusing on how to best save for retirement, taxes, risk management etc. They often recommend low-fee funds as well.

There is an entire movement of planners who don't even charge based on AUM. They work on retainer or hourly.

Not having a decent planner can cost you a lot more than you know.

Since I don't know what I don't know, I don't know, but I suspect a planner is not going to be much help at this time. My 401K has lost 20% +/-. That and RMD's based on close to an all-time market high will create a funds drop that the account will not be able to recover from in my reasonable remaining life expectancy. And the funds in Cr Union savings accounts are at least not evaporating like gasoline in Death Valley.

A decent planner is holistic, focusing on how to best save for retirement, taxes, risk management etc. They often recommend low-fee funds as well.

Some of that is rather like hiring a cpa to do your taxes. I use H&R block tax software. If I were to compare two numbers [Cash - HR Block software cost - taxes] vs [Cash - CPA fees-taxes] the HR block software option would leave me more cash, EVEN IF the CPA option got more tax deductions. (And I did discover I made a mistake in my return this year which must be corrected and I have to figure out the way to do it. However, again I don't believe paying a CPA or tax preparer will be a cost effective way to approach the issue.)

 

[guidanceimc]

I think it's great that you're using H&R Block tax software to do your taxes. It's definitely a cost-effective option compared to hiring a CPA, especially if you have a relatively simple tax situation. And if you made a mistake in your return, don't worry, you can always correct it. The important thing is to take the time to do it right.

 

[PrivClientSG]

Doing your own taxes -- and cutting your own hair -- to save money "seems" like a good idea to most people. Especially the general public. To a quality advisor, it is a foolish idea. I do not work with a client who insists on doing their own taxes (albeit, my clients do not have simple, straightforward tax returns -- but even their children -- we get a professional to do it, and the client or child never balks).

That said, I see fee based professionals, commissioned salespeople at insurance GA's, wirehouses, and RIA's, still calling themselves financial planners. I see them calling themselves financial advisors, financial consultants, and wealth management advisors. It's all terminology. Yes, compliance is straightening this out.

My point -- there are top professionals, top quality, integrity, excellent people -- in each category. Being a member of one category doesn't make you good, great, bad, dishonest, or honest.