Financial Advisor

[rayray]

I know (GASP) lol

but seriously did anyone ever see an FA

i've been thinking about seeing a fiduciary or at least meet with several just to see what they bring to the table

[fenders53]

(08-07-2021, 07:04 PM)rayray Wrote: I know (GASP) lol

but seriously did anyone ever see an FA

i've been thinking about seeing a fiduciary or at least meet with several just to see what they bring to the table

No I haven't.  I am sure there are excellent FAs but I've had a few friends that were not qualified enough to do much anything but sell you funds that yielded commissions.  If I did it, it would be fee based only and I would tire of the fees.  All that said a different set of eyes and viewpoint is a good thing.  I wish some of us lived closer to each other.

[rayray]

(08-07-2021, 07:13 PM)fenders53 Wrote:

(08-07-2021, 07:04 PM)rayray Wrote: I know (GASP) lol

but seriously did anyone ever see an FA

i've been thinking about seeing a fiduciary or at least meet with several just to see what they bring to the table

No I haven't.  I am sure there are excellent FAs but I've had a few friends that were not qualified enough to do much anything but sell you funds that yielded commissions.  If I did it, it would be fee based only and I would tire of the fees.  All that said a different set of eyes and viewpoint is a good thing.  I wish some of us lived closer to each other.

i'm going to meet with a few fiduciaries, and believe it or not these fee based fiduciaries are not as common as you'd think

i have a couple that i'll meet soon

[Kerim]

It has been a long time since I've looked into this, but doesn't "fee based" still include the "a percentage of (your) assets under (their) management" model? Am I correct that the universe of planners that will charge you a flat fee or hourly rate for *only* guidance / advice / planning is smaller still?

[fenders53]

(08-07-2021, 09:00 PM)Kerim Wrote: It has been a long time since I've looked into this, but doesn't "fee based" still include the "a percentage of (your) assets under (their) management" model? Am I correct that the universe of planners that will charge you a flat fee or hourly rate for *only* guidance / advice / planning is smaller still?

Many are like that but it doesn't have to be. There are a few reputable ones that offer services for a few hundred dollars annually and you can disenroll of course.  I'm sure they would be most suitable for clients that are not financially illiterate.  If you need your hand held continuously you might be wise to pay the money.  Screw this up and it will cost you a lot more than 1% if you paid that fee every year.  I'd like to think I don't need my hand held.

[crimsonghost747]

Well yeah, my bank provides a free FA for customers. I did go to see her a couple of times when I was younger and didn't know much about these things. It was good for what it was: a free service to help you get started in investing etc. Surprisingly enough, it was mostly focused on using their own mutual funds. Overall a great thing for a beginner to have access to but of very little use to people like us.

In the future I never plan on seeing a FA when it comes to choosing investments etc. But I can definitely see myself using one to plan out the legal side of things: tax stuff, inheritance, etc. (not sure if all this legal mumbo jumbo falls under the scope of a FA on your side of the pond, but here it often does)

[NilesMike]

Mrs. and I went see one 30+ years ago. Fee based, only pay for his time.

He told us to keep doing what we were doing-LOL

Since then, I don't think they would have much better advice than can be gleaned from this (and probably some other) forum.

Live below your means, have a long term objective and execute.

[Kerim]

(08-08-2021, 08:55 AM)NilesMike Wrote: Live below your means, have a long term objective and execute.

Amen!

[fenders53]

(08-08-2021, 08:55 AM)NilesMike Wrote: Mrs. and I went see one 30+ years ago. Fee based, only pay for his time.

He told us to keep doing what we were doing-LOL

Since then, I don't think they would have much better advice than can be gleaned from this (and probably some other) forum.

Live below your means, have a long term objective and execute.

A lot of financial advisors would take a look at either of our brokerage statements and ask us "exactly what the hell we are we doing here?"  

A fee based advisor would be the best idea ever for most 20 year olds.  I found an investment club early.  You can definitely find all the basic info you need online, unfortunately your first search might be on youtube and their peers have 100 channels of foolishness that mostly works lately and ends really bad.

While I don't like the thought of a young investor paying a couple percent of their port to advisors and ETF fees, if you really think about it that is FAR less harmful to your financial future than figuring out you need to save for retirement at age 45.  You can take the initiative or not to free yourself from fees if you care to expend the effort to educate yourself.

While I am rambling, it would be nice if employer HR departments had a clue.  I have worked for the GOV and a Fortune 20 company now, and the lack of knowledge from the 401K program administrators is mind numbing.  I was wiser one year into investing.

[NilesMike]

"While I am rambling, it would be nice if employer HR departments had a clue. I have worked for the GOV and a Fortune 20 company now, and the lack of knowledge from the 401K program administrators is mind numbing. I was wiser one year into investing."

I am also in my retirement job 401K program ( why not? free $$ is free $$)

We can buy company stock at a discount from the "fair price". Try finding out how the fair price is established. welllll that's not so easy. The company referred me to the administrator, T. Rowe and they referred me back to the company. ARGH.
I still went into the program anyway because free $$... and discount are how this 100% German for 4 generations rolls. LOL

[fenders53]

(08-08-2021, 10:14 AM)NilesMike Wrote: "While I am rambling, it would be nice if employer HR departments had a clue.  I have worked for the GOV and a Fortune 20 company now, and the lack of knowledge from the 401K program administrators is mind numbing.  I was wiser one year into investing."

I am also in my retirement job 401K program ( why not? free $$ is free $$)

We can buy company stock at a discount from the "fair price". Try finding out how the fair price is established. welllll that's not so easy. The company referred me to the administrator, T. Rowe and they referred me back to the company. ARGH.
I still went into the program anyway because free $$... and discount are how this 100% German for 4 generations rolls. LOL

Here is the short version of how the program most likely works.  I will make up dates.  They deduct from your check from JAN1 to JUN 30.  You get a 15% discount to the closing price on JUN 30th and it posts within the month.  If you decide to sell or transfer your shares at a later time TROW can handle it.  HD uses a brokerage service that has 100 companies on their program.  Rinse and repeat every six months.  It's a good program if your company is solid at all because in all but a severe bear market you are breaking about even at worst with upside when the market swings.  

Unfortunately the lower lever employees are struggling to pay the rent and a car payment so a 15% discount isn't enough to cause them to invest much.  If you spent 5 years at HD it was worth doing.  Your mileage varies at a lesser company.