Here's my current situation...

Two years ago I left a company and had a small balance in a 401K that I didn't know what to do with. I'm a big Dave fan so I hopped on his website and found an Endorsed Local Provider for investing. Long story short... this money is now in an IRA with LPL but is managed by the local investor. I have no issues with the investor... we talk once a quarter and even though my account is smaller, they seem to be pretty interested in making it grow (as they should be).

2017 resolution is to start contributing monthly to an IRA. I figured I'd manage this myself so I opened a Vanguard account this week. Truth is... I am very interested in having money invested for the future, but am less interested in actually studying the market, etc. I'm considering closing my Vanguard account and doing the Roth through the local investor.

I'm a pretty avid reader of this board and I know 90% of the posters here self-manage, but is having an advisor at my age (28) a horrible idea?

Thanks in advance for any help.

4 ...

Report Post

Posted by b-rab2

N. Louisiana

Member since Dec 2005

12577 posts

Posted on 1/26/17 at 12:53 pm to Jblac15

i self manage and have an advisor. He takes care of my wifes roth. Its nice to have someone bounce ideas off of also.

BTW: I'm 30 so age doesn't matter in my opinion

This post was edited on 1/26/17 at 12:55 pm

0 ...

Report Post

Posted by stonerolledaway

the villages

Member since Jul 2011

982 posts

Posted on 1/26/17 at 3:16 pm to Jblac15

Check the cost of the advisor and the funds chosen by him.

Having a vanguard account requires absolutely zero market studying. I have found I am comfortable with about 65% stocks and 35% bonds. All you need is the total stock market index fund and the total bond market index fund which owns the entire market at a low cost. Just go in an rebalance from time to time. Read guide to investing

1 ...

Report Post

Posted by Jblac15

Member since Mar 2011

687 posts

Posted on 1/27/17 at 8:18 am to stonerolledaway

Thanks guys.

I'll most likely carry on with Vanguard and just dump into a 2055 fund for the time being.

0 ...

Report Post

Posted by 1609tiger

Member since Feb 2011

3234 posts

Posted on 1/27/17 at 3:53 pm to Jblac15

First of all you have to know the difference between an Advisor and a Broker. If your guy is at LPL ( a Broker Dealer) he is probably a broker, meaning he is compensated based on the fees and products he sells you. An Advisor is either state or SEC registered and gets paid normally on percent of assets.

Not saying I would never use a broker but you need to understand how your guy gets paid.

This post was edited on 1/27/17 at 3:58 pm

1 ...

Report Post

Posted by Dellort

Member since Jun 2014

550 posts

Posted on 1/27/17 at 6:52 pm to Jblac15

Just curious...

what kind of securities does he have you in? Mutual funds (what class?), ETFs, securities or a mixture of all three?

My wife's 401k through her employer is with an LPL "advisor." He's nothing more than a broker-dealer and it drives me insane than he's taking a roughly 3% cut a year after transaction costs and 12b-1 fees.

0 ...

Report Post

Posted by Shepherd88

Member since Dec 2013

4590 posts

Posted on 1/27/17 at 7:34 pm to 1609tiger

FYI most wirehouses have the capacticy to work as a broker dealer or as an RIA. LPL certainly has the ability to offer fee base only.

Page 1