- Thread starter
- #21
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Choosing a Financial Planner or Investment Advisor (HowTo ?)
- Thread starter LostDollar
- Start date
Professionals chose their business models.
That's his.
It's obviously not unreasonable for his clients. Just for you. So you wouldn't be part of his ideal client profile.
That's why there are so many different types of advisors. Some assist the DIY, some have full discretion. Some charge commissions, some charge AUM, some charge hourly.
Different strokes and all...
- 4,992
Not if most of those clients own businesses, have unique investments like real estate/private placement investments and children have passive income from investments that are taxed differently based on kiddie tax laws, etc.
For the average middle class retiree with just social security, some bank interest & income from RMD/annuity/pension, tax return is a 5-10 min annual update & may not require a professional tax preparer & many times doesn't even require a person to even file a tax return. But that is not a common segment of retiree engaging the services of a financial planner/fee based planner
- 10,806
Some advisors only work with HNW clients or business clients who absolutely need professional tax advice. Not doing so would be putting the advisor at risk of potential legal blowback. Often the advisor has to consult with the CPA on certain issues and needs expert answers on the clients specific situation. If the financial planner is the only professional in the picture, and they are highly involved with taxation issues.... they are the only one who has any liability in the situation... and they are not a tax professional.
So it absolutely makes sense for someone who works that market to have that requirement.
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Regarding who does and does not need a Financial Planner.... we first must define "Financial Planner".
Asset Allocation is not a Financial Plan.
A target rate of return is not a Financial Plan.
Taking 4% for retirement income is not a Financial Plan.
A financial product is not a Financial Plan.
If that is all you receive from your "financial planner".... you dont have a financial plan... and they are not acting as a true Financial Planner for you.
There are many "ASSET MANAGERS" and "INVESTMENT ADVISORS" who call themselves "Financial Planners". Managing assets and advising on investments is only PART of a financial plan.
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Who can benefit from a Financial Plan?
Anyone with a medium amount of assets or above.
I just spoke to a "do it yourselfer" the other day. He has a $30k tax hit this year simply because he did not know what he did not know in regards to Bonds he inherited from his father. Had he sought professional advice... even just an asset manager... he would have known how to spread that tax hit out over 5 or 6 years. The net opportunity loss is even greater than $30k if that money could have stayed working longer.
I could fill two pages up with stories of people who have taken huge financial losses because they simply were not financial experts. Even if they had just had professional tax advice at the end of the year (and fully disclosed their financial picture), many of the issues could have been averted.
Often it just comes down to trust. Its a hard thing to come by. Most people who have had a bad experience never trust again or even deal with an advisor ever again. But they need to...
And its especially true once they hit retirement. Constantly researching financial products/theories/issues/taxes/etc. is how many do-it-yourselfers spend their retirement.
Constant doubt about the decisions they make... constant double checking of sources to ensure their decisions are correct.... or even just to get the info needed to make the decision, much less time spent to decide.
It is a huge source of stress for many..... its also a huge amount of time and energy spent on the issue.... and neither of those things are part of anyones desired retirement plan. They happen because of a lack of trust.
The other issue is cognitive ability. People say they are going to get their finances in a position where it doesnt matter..... that is not a thing unless you are destitute.
At some point, you will not be able to handle your own financial decisions. Even people dealing with recovery from surgery or something like that often have major issues dealing with finances because of the mental toll the process and meds take. They absolutely need a PROFESSIONAL who can help guide them and their family through everything. Your kids or spouse has to play catchup, and they are not a professional... so you essentially just took all of your stress/time/energy and forced them to take that on now that you cant.
I would argue that the middle class benefit from a financial advisor much more than the wealthy do. Most truly wealthy people already have a certain amount of financial sophistication vs. the middle class.
So it absolutely makes sense for someone who works that market to have that requirement.
---
Regarding who does and does not need a Financial Planner.... we first must define "Financial Planner".
Asset Allocation is not a Financial Plan.
A target rate of return is not a Financial Plan.
Taking 4% for retirement income is not a Financial Plan.
A financial product is not a Financial Plan.
If that is all you receive from your "financial planner".... you dont have a financial plan... and they are not acting as a true Financial Planner for you.
There are many "ASSET MANAGERS" and "INVESTMENT ADVISORS" who call themselves "Financial Planners". Managing assets and advising on investments is only PART of a financial plan.
---
Who can benefit from a Financial Plan?
Anyone with a medium amount of assets or above.
I just spoke to a "do it yourselfer" the other day. He has a $30k tax hit this year simply because he did not know what he did not know in regards to Bonds he inherited from his father. Had he sought professional advice... even just an asset manager... he would have known how to spread that tax hit out over 5 or 6 years. The net opportunity loss is even greater than $30k if that money could have stayed working longer.
I could fill two pages up with stories of people who have taken huge financial losses because they simply were not financial experts. Even if they had just had professional tax advice at the end of the year (and fully disclosed their financial picture), many of the issues could have been averted.
Often it just comes down to trust. Its a hard thing to come by. Most people who have had a bad experience never trust again or even deal with an advisor ever again. But they need to...
And its especially true once they hit retirement. Constantly researching financial products/theories/issues/taxes/etc. is how many do-it-yourselfers spend their retirement.
Constant doubt about the decisions they make... constant double checking of sources to ensure their decisions are correct.... or even just to get the info needed to make the decision, much less time spent to decide.
It is a huge source of stress for many..... its also a huge amount of time and energy spent on the issue.... and neither of those things are part of anyones desired retirement plan. They happen because of a lack of trust.
The other issue is cognitive ability. People say they are going to get their finances in a position where it doesnt matter..... that is not a thing unless you are destitute.
At some point, you will not be able to handle your own financial decisions. Even people dealing with recovery from surgery or something like that often have major issues dealing with finances because of the mental toll the process and meds take. They absolutely need a PROFESSIONAL who can help guide them and their family through everything. Your kids or spouse has to play catchup, and they are not a professional... so you essentially just took all of your stress/time/energy and forced them to take that on now that you cant.
I would argue that the middle class benefit from a financial advisor much more than the wealthy do. Most truly wealthy people already have a certain amount of financial sophistication vs. the middle class.
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PrivClientSG
Guru
- 377
Opinions vary.
PrivClientSG
Guru
- 377
I think for the most part, everyone agrees -- fiduciary or not, CFP or not, commissioned salesperson or not, no title, category or label automatically and unconditionally makes you honest, operate with integrity, etc. Nor does it make you good or bad at what you do.
I've seen people in every category who are excellent practitioners. I've also seen people in every category who are dishonest and completely incompetent. There are bad apples in every basket.
I've seen people in every category who are excellent practitioners. I've also seen people in every category who are dishonest and completely incompetent. There are bad apples in every basket.
Lloyds of Lubbock
Guru
- 753
As an agent you have to build your practice.
In the office I worked with prior to retirement: A decision was made that we would only entertain clients for premium financing.
We staffed a loan department, an inforce department, a plan design department and these departments serviced the agents.
If you were referrred to us and you were 30ish married two kids and needed financial advice, we then referred you to an affiliated agent that we vetted.
Same thing for DI, 412 e3 and so on.
When you build out you practice you need to feed it with the right clientele or you will waste money and time.
So what PrivClient is doing is reasonable in his (or hers) marketplace.
It is pure Richard Weylman target marketing
In the office I worked with prior to retirement: A decision was made that we would only entertain clients for premium financing.
We staffed a loan department, an inforce department, a plan design department and these departments serviced the agents.
If you were referrred to us and you were 30ish married two kids and needed financial advice, we then referred you to an affiliated agent that we vetted.
Same thing for DI, 412 e3 and so on.
When you build out you practice you need to feed it with the right clientele or you will waste money and time.
So what PrivClient is doing is reasonable in his (or hers) marketplace.
It is pure Richard Weylman target marketing
PrivClientSG
Guru
- 377
I like Richard, and his work. I've seen him speak before several times.
- 11,503
Jim Ruta will be hosting Richard Weylman for Jim's SOLIS (School of Life Insurance Selling) program on May 9th at 1pm Eastern:
Richard Weylman - May 9th 1PM ET
Orphaned at age 6, Richard lived in nineteen foster homes and attended eleven different schools. Rather than becoming victim of those circumstances he overcame them and has had remarkable business success including as an award-winning general sales manager of Rolls Royce to heading sales and marketing for the Robb Report- A Magazine for the Luxury Lifestyle from its inception until its record liquidity event.
A Hall of Fame inducted Keynote speaker Richard is also the recipient of the 2022 Keynote Presentations Specialist of the Year (USA): by Wealth & Finance International Media. In addition, he is the recipient of the Customer Experience Global Influencer award by Engati Global in both 2021 and 2022.
He is the author of three international best sellers, the latest of which, The Power of Why: Breaking Out in a Competitive Marketplace is in seven languages and is also a CEO Reads best seller. Christopher Forbes, Vice Chairman of Forbes Media, calls Richard's extraordinary insights and dynamic prescriptive presentations on business growth, and creating client advocacy "brilliant." Finally, he is a Horatio- Alger nominee for his philanthropic work on behalf of orphans and widows.
For more information on Jim Ruta's SOLIS program, here's a link:
[EXTERNAL LINK] - Join SOLIS, the School of Life Insurance Selling
Richard Weylman - May 9th 1PM ET
Orphaned at age 6, Richard lived in nineteen foster homes and attended eleven different schools. Rather than becoming victim of those circumstances he overcame them and has had remarkable business success including as an award-winning general sales manager of Rolls Royce to heading sales and marketing for the Robb Report- A Magazine for the Luxury Lifestyle from its inception until its record liquidity event.
A Hall of Fame inducted Keynote speaker Richard is also the recipient of the 2022 Keynote Presentations Specialist of the Year (USA): by Wealth & Finance International Media. In addition, he is the recipient of the Customer Experience Global Influencer award by Engati Global in both 2021 and 2022.
He is the author of three international best sellers, the latest of which, The Power of Why: Breaking Out in a Competitive Marketplace is in seven languages and is also a CEO Reads best seller. Christopher Forbes, Vice Chairman of Forbes Media, calls Richard's extraordinary insights and dynamic prescriptive presentations on business growth, and creating client advocacy "brilliant." Finally, he is a Horatio- Alger nominee for his philanthropic work on behalf of orphans and widows.
For more information on Jim Ruta's SOLIS program, here's a link:
[EXTERNAL LINK] - Join SOLIS, the School of Life Insurance Selling
I hate that everyone does all of these things in the middle of the day in the middle of the week.
Can we get some really early/late webinars?
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