re: Advice

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What do you guys mean when you say "once an advisor can go fee based"? Does that mean something in particular with regards to a CFP's career progression?

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Nothing to do with the CFP, but a lot to do with how long they've been in the business and the structure of their practice.

In the beginning of someone's career, when LSUDogcat walks in with his 58k and the advisor doesn't have any assets under management, typically the recommendation will be commissioned mutual funds, annuities, or some type of insurance plan. The reason is the advisor can make between 4.5-7% on those. $2600 is nothing to shake a stick at in your first couple of years.

However, if they charged you a 1% fee, that's only $580. It takes about 5 years to make the original commission. And this is not accounting for investment returns, payouts, expenses, etc. So when a new advisor gets started, they follow the same path everyone else does... buy house/car, get married, have kids, pay off debt, etc. Those are high expense years so their incentive is to sell more high commission based stuff (and it's how their companies train them bc they don't gaf if the advisor makes it, the company just wants new assets).

Eventually, rather than figuring out the next meal, the advisor can begin planning a business. Once they get here, they don't have to tie people's money up in high expense products - not that there's never a place for any of them - but it's the exception rather than the rule.

Since they are now surviving, they can start making bets that they can keep their clients happy for longer than the five years it took them to equal the commission. If they can keep their clients happy, the clients don't leave. The advisor makes WAY more money over the long term by doing what's right for the client upfront.

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What the heck are 'legacy assets'?

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Legacy assets is a term I just made up to describe old annuities, private offerings, and other things that the fictitious financial advisor in my example used to sell before he/she made the transition to fee based.

ETA: This also assumes a new advisor get 100% payout which is never true... It's usually between 30-45% to start which makes it way harder.

If only it didn't take so long to explain it to all of these Vanguard people...

Don't feel bad about the NWM mistake. A LOT of people make it. Super smart people with lots of money make it. NWM, Ameriprise, and Ed Jones have the best training in the business - and most of it is sales training.

Let me ask you, what is the value of your family's financial security? Totally legit question on the surface, but you're not buying a car...

Fee only advisor should be the target. Avoid Fee based advisors.

You also want to find someone with a fiduciary duty.

Learn what a Self- Directed IRA is-
If you need life insurance just grab term insurance , buy you can overfunded a cash value insurance policy and that can serve as your insurance and savings as well as opposed to a money market.
You did a great job w/disability insurance.