Any advice on hiring a financial planner?

Discussion in 'Bad Dog Cafe' started by David Meiland, May 18, 2021.

  1. David Meiland

    David Meiland Tele-Meister Silver Supporter

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    Wife and I have discussed hiring a financial planner. We're late 50s / early 60s and I guess we have a somewhat complicated financial picture. Any recommendations? Hire one, don't hire one? What kind of work product do you get / should you get from one? What kind of agreement do you make for their services and fees? There doesn't seen to be one locally that we want to use, so we'd need to find one.
     
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  2. Harry Styron

    Harry Styron Friend of Leo's Gold Supporter

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    Some charge by the hour, and some earn a commission on the products that they sell. And some take a percentage of value of your investments.

    My recommendation is to obtain a recommendation from a lawyer who does estate planning or an accountant who knows your situation.
     
    Last edited: May 19, 2021
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  3. Refugee

    Refugee Tele-Meister

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    Agreed Estate Planning attorney. They can refer you to someone else if need be. Usually a $1500.00 retainer and charge around $400 - $500 hourly.

    Strong piece of advice: Set up a Living Trust for your family. You could get hit by a truck tomorrow. You don't know. If it's not a Living Trust a great portion of your lifetime acquired wealth will go into the pockets of Probate Litigators.
     
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  4. Peegoo

    Peegoo Poster Extraordinaire

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    Contact your bank/S&L/credit union. Most all have a CFP or two on staff and they can take all your numbers and assemble a plan for you based on your wants/needs. All this as a free service because you are an account holder. Banks vet their CFPs so you know they're qualified and they have a track record of good service.
     
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  5. TeleTucson

    TeleTucson Tele-Afflicted

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    Yes, and they're so well paid you you can have confidence that you're getting really outstanding, savvy advice from well-connected financial gurus. :eek:
     
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  6. Peegoo

    Peegoo Poster Extraordinaire

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    I wouldn't consullt with a CFP for investment advice, but for financial planning? Give it a shot.
     
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  7. ghostchord

    ghostchord Tele-Meister

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    What are you looking for specifically? Investment advice? I would not pay someone for investment advice or to sell me some financial product and pocket their cut. You want to minimize your fees when investing. The few times that I got advice (some paid, some free from my bank) it was not good advice.
     
  8. dogmeat

    dogmeat Friend of Leo's

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    "FIDUCIARY".... MOST IMPORTANT THING. that is a word that has "legal standing". what it means...

    someone that is fiduciary to you MUST, BY LAW always work for YOUR benefit first and foremost. any broker, advisor, or agent that is not fiduciary to you is free to play with your money in whatever way they want to. they can buy, sell, and trade, using your money to leverage buys that benefit them. and... charge you fees, etc while doing it, and it is legal. they will make more off your money than you do, at no risk to them. if they make a bad move... sorry, you lose... they lost YOUR money, not their own

    many of these agents are fiduciary to the company they work for.... that means they must, BY LAW, maximize profit for the company.... not you

    do not sign on with any outfit unless they put in writing that they will act as your fiduciary
     
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  9. MrCairo46

    MrCairo46 Friend of Leo's Gold Supporter

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    If you have an trusted accountant, lawyer, tax advisor, investment advisor or friends that have one of these , inquire suggestions from them. Interview candidates , talk to them and get inter personal stuff, life,families sports goals, and select. I got very lucky will Bill. In 1986 I interviewed a few tax folks and Bill was a lawyer who did real estate law, estate planning and taxes. Today he is also my Investment guy. I trust Bill to make sure my family is provided for after my demise. Look for “that” guy. Search well and don’t rush.
     
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  10. drf64

    drf64 Poster Extraordinaire

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    always go with an accountant's advice. If you don't have one, you need one of those too.
     
  11. burtonfan

    burtonfan Tele-Afflicted

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    Wow! Lots of great misinformation! :lol:
     
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  12. dhodgeh

    dhodgeh Tele-Meister

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    Wifey and I both have work based retirement accounts managed by their own institutions. These companies have advisors that assisted us with our planning, which was mainly verifying that we were on the right track with our goals and spending and recommendations for what mix of funds to place our money.

    Neither charged anything for their services.

    But, some of the independent planners we talked to wanted an annual percentage of our portfolio balance to manage our money, without providing any guidance on if you goals made sense and such.

    D
     
  13. stormsedge

    stormsedge Friend of Leo's

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    I'd look for someone endorsed by Dave Ramsey. I also recommend attending a Financial Peace University course...you may find you are the best captain of your financial future.

    Whoever/whatever you choose---use caution and think things over for yourself. Take complete notes. Research behind your financial person's recommendations to see if the recommendation really fits you and your situation (BEFORE investing). Double check the math yourself. Nothing in this realm is a "do it today or you lose" sort of thing...if something is presented that way, it is a money maker for your person---and maybe not so much for you. Happy hunting.
     
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  14. Engine Swap

    Engine Swap Tele-Afflicted

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    As mentioned, get a recommendation from someone you trust - and then cross-check reviews

    Have your budget, goals, and numbers in order before meeting

    Keep a close eye on tax liabilities

    Realize that you have to do your homework and understand how all this stuff works, even with a planner.
     
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  15. pypa

    pypa Tele-Holic Ad Free Member

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    i've had many over the years.
    First, you have to know yourself. Depending on which bucket you fall into will determine what's best for you:

    1) You don't have a head for investing, and you don't mind paying a little extra for some peace of mind. In this case, you should get an advisor. At the end of the day, you have to find someone you trust. Treat this person like an employee who will get a percent of your wealth every year - up and down times - and you'll be giving them a raise as your investments increase in value. If your peace of mind is worth this price, then go this route. A good one will help you think about wills, estates, insurance, taxes, education, retirement and will recommend but not push you. I'd pick an advisor that matches you in demographic / age / kids, etc. The reason is that they will have wisdom about long term planning. I would NEVER trust a young investor with my wealth. They just haven't earned the experiential wisdom. A good advisor will have access to good tax accountants, and estate attorneys. So, make sure you ask about their support network. You in fact don't want a person who tries to do all of these things alone or has to search it up when the issues happen. You want him to have a good network that he has a history with.

    2) If you are hands-on, enjoy managing your portfolio, confident, then you can save a percentage point or two per year by robo-investing. There are plenty of books on asset allocation and time tested strategies. Like working out, though, you have to be disciplined and consistent. I am by nature dubious of the market and fund managers and prefer to play the statistical long game and believe in the wisdom of minimizing fees as a strategy to wealth maximization. I used to do my own management. However, even I was not disciplined in rebalancing, and got emotional at times, and felt out of my depth during certain events like the dot-com bubble, 9/11, the 2008 fin crisis. I ended up going with an advisor. Even now when robo-advising is available, I prefer a person. Kids, long term health care, etc. It's nice to have a long term trusted person to turn to for this stuff.
     
  16. Cpb2020

    Cpb2020 Tele-Meister Silver Supporter

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    I’m in my late 40s and have never had a financial planner as all around here seem to (a) make their money per transaction, (b) make their money based on assets under management (e.g., 1%) or (c) will speak to you for a minimum of $10k. I’d like to pay an hourly fee for a 5-10 hours per year of chatting, but that doesn’t seem possible in my geography.

    Don’t get me wrong, I know that they need to make money, but I’ve heard horror stories from folks and rarely hear someone telling me that they’re thrilled with their FP. I’m sure there are plenty of good folks out there, but half of them give the other half a bad name.

    I trust my accountant, who has been doing my complicated taxes for the past 20 years. I asked him if he could recommend someone and he suggested that he and I sit down for an hour or two first to see what I’m looking for to see if it is even necessary. We’re planning to do that in June.

    As it turns out, I think that most of what I need is tax advice (e.g., Roth IRA ladder conversions, etc.) as I head towards semi-retirement in about 7 years. The only real financial advice I’d like is an alternative to bonds (e.g., REITs) as I adjust my portfolio, given that I’m not sure bonds are what they used to be.

    Whatever you do, spend time educating yourself with books or podcasts. I bounce around from ChooseFI, the Ramsey Show, and The Money Guys podcasts. They each have their pros/cons (some too rigid or focused on those that are not disciplined, others too focused on frugality/early retirement, etc.), but you can learn enough to understand what your options are and whether a FP is giving you sound advice.
     
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  17. drf64

    drf64 Poster Extraordinaire

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    somewhat of a financial expert, are ya? You can show us all a thing or 2 on the spreadsheet? :D
     
  18. Torren61

    Torren61 Poster Extraordinaire Gold Supporter

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    Don’t hire one that lives in a van… down by the river.
     
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  19. Pualee

    Pualee Tele-Holic

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    I would just advise one thing: If you and your wife cannot budget together, a financial planner won't help. So make sure that is your #1 priority.

    Make sure you are in it together and not looking for someone to side with one or the other (e.g. I want to save more, she wants me to work later in life).

    I only say this because I've known people that "want financial advice" only because they need a 3rd party to settle an argument.
     
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  20. beninma

    beninma Friend of Leo's

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    An accountant, an estate planning lawyer, a real estate lawyer, and a financial/retirement planner are 4 different things and you shouldn't rely on one to do the jobs of the others.

    The financial planners you want to watch out for a lot of the time are the ones assigned to you buy the bank that controls your 401k.. IME they are the ones with the largest conflicts of interest. You want one of the planners that is paid fees based on money under management and/or a % of the asset gains on the portfolio each year. Unfortunately Financial Planners/Retirement planners that work that way may have minimum asset levels they require before they work with you.
     
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