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UpstairsComputer
LSU Fan
Prairieville
Member since Jan 2017
762 posts

re: Financial Advisor Meeting
quote:

Here are some questions from the great Jason Zweig:


You won't believe #13! No, seriously, I think technical analysis definitely has a place. Fundamental analysis can clearly run of the rails. See: 2007, 2008, 2011, 2015, 2016, 2018, and 2019. :)

I agree with the other 18 though.


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tigersfan1989
LSU Fan
Louisiana
Member since Oct 2018
113 posts

re: Financial Advisor Meeting
How much money is enough money to go to a financial advisor or planner?


tirebiter
LSU Fan
ATL
Member since Oct 2006
6432 posts

re: Financial Advisor Meeting
After you meet with the "advisor", then take a look at Schwab's investment management with a one time $300 advisor fee (Automated Investing with Professional Guidance)to set your investments. $25k asset level and above to open. Investing doesn't have to be difficult.

Schwab
This post was edited on 11/25 at 4:15 pm


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11
baldona
Auburn Fan
Florida
Member since Feb 2016
10907 posts

re: Financial Advisor Meeting
OP, is this the same financial adviser that has had the money for awhile? Or did you receive a windfall, and are meeting someone on how to invest?

If we are talking over $500k, I'd HIGHLY recommend finding 2 advisers. Especially while you are young. There's not really anything to lose but your time with the 2nd adviser.

Finally, you said SO? Not spouse? So its her money? If its your money, you SHOULD NOT bring them to the first meeting IMO. Same for them honestly.


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11
RoyalWe
LSU Fan
Prairieville, LA
Member since Mar 2018
668 posts

re: Financial Advisor Meeting
Depends on your confidence in what you personally understand about the market and investing. What you do early in your investing can have drastic impact to where you end up. Having said that, if you're young most people exposing themselves to the market through a low cost total market index buys you time before adopting other strategies. If you've got a nice nest egg and don't know what to do, then by all means go see one (fee only). There are independent advisors out there who do a good job. My advice is to buy some books or get a formal education regarding the market and investing. Bottom line it's like insurance -- there is no 'right' answer; just what you believe is necessary.


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GentleJackJones
Tennessee Fan
VOLS
Member since Mar 2019
442 posts

re: Financial Advisor Meeting
quote:

My SO and I will be meeting with a financial advisor soon about a significant windfall that we'll be receiving. This will be our first time ever meeting with one.

Any questions that we should ask as first timers? I know to ask or listen about fees, etc., but anything else? We would like to get a small monthly draw from the investment, but I don't know how to ask about that. Any pointers will help.



Hear them about, but I'd skip the financial advisor if you are young. Throw your money into a couple of funds via Schwab, Vanguard, etc. Keep funneling the money in and don't stop. You have to be systematic with it. Once you and your spouse reach a certain age (say 55 or 60), then go speak with a financial advisor.

For now, I'd say it isn't needed.


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05
yatesdog38
Mississippi St. Fan
in your head rent free
Member since Sep 2013
9374 posts

re: Financial Advisor Meeting
your situation is gonna matter on the amount of dollars, your time horizon and risk tolerance etc etc, the specific advisor.

Inheriting $120,000
Scenario 1
let's say you have a 25 year time horizon and the advisor has a good reputation. If they are "managing your account" you are getting charged an asset management fee it is gonna be most likely 1 percent every year usually charged quarterly. $120k that is gonna be 1200 bucks a year for the first year etc so on and so forth based on the total amount of the account

Scenario 2
The advisors sells you some A-shares of a couple of funds from same fund family. 3.5% front end commission with 0.25% 12b-1 fees. These funds can be exchanged at anytime free of charge after 1 year the event your risk tolerance changes which it will

Scenario 3
you pay a planner $2,000 one time and you manage everything yourself through no load funds.

Scenario 4
you believe everything your read on the MB and don't listen to anyone and pay zero fees.

Many advisors "manage" accounts that charge a fee. That same advisor will also sell a product like scenario 2 if it makes sense for the client. Scenario 1 will lead to more revenue for him over the long run, and cost you more. Scenario 2 will cost more on the front end and less over the long haul.

Fee based is actually more money over the long haul for companies. That is why many are moving towards that model contrary popular belief that they will magically be a better advisor.

Due to my role I see all accounts and all advisors and we have some crappy ones and some that are amazing. The style of account doesn't determine the quality of the advisor so get multiple opinions and make sure they have access to a Certified Financial Planner if they are not one.

Good luck.
Always remember this past performance doesn't guarantee future results.

anytime you hear someone make a guarantee, that is when you should run.

Ideally scenario 2 is best assuming all returns are the samee and you get treated the same as if the advisor were actively managing the account... to get that type of customer service I would look for someone younger that has been mentored by a seasoned advisor. The financial planner should be in at least one of the initial meetings.

This is a hypothetical situation to illustrate different accounts. If you are receiving something > 500k that changes the dynamic
This post was edited on 12/3 at 2:28 pm


yatesdog38
Mississippi St. Fan
in your head rent free
Member since Sep 2013
9374 posts

re: Financial Advisor Meeting
Also the "fiduciary" is kind of BS term. All advisors either work for a company that acts as a fiduciary or are themselves a fiduciary and sometimes both. Bernie Madoff was a fiduciary so were most of the ponzi schemers. You are handing over all your assets paying the to manage them according to a model that was either created in house or by a large money manager.

if you have any questions about terms/language etc you can always google them and put investopedia after whatever it may be. it is basically wikipedia for investment stuff below is one example and there is an enormous amount of info.

This post was edited on 12/3 at 2:37 pm


UpstairsComputer
LSU Fan
Prairieville
Member since Jan 2017
762 posts

re: Financial Advisor Meeting
quote:

Scenario 1 will lead to more revenue for him over the long run, and cost you more. Scenario 2 will cost more on the front end and less over the long haul.

Fee based is actually more money over the long haul for companies. That is why many are moving towards that model contrary popular belief that they will magically be a better advisor


Man, you dug deep to get back to this topic I like it.

It is true scenario 1 costs more over the long run, but what you fail to mention is that it also aligns the clients goals to the goals of the advisor (ie. we want the account going up as much as possible and when it goes down, have it go down as little as possible). Another benefit of a fee based/only model is you can generally fire the advisor at any point with no substantial consequences.

In scenario 2, if you just paid $4,200 to the guy last year and he won't return your call are you going to fire him/her? It would take 3 1/2 years of presumably good service to make that much money in scenario 1. 4+ if you include 12b-1's. Or worse, what if you get stuck in an annuity (bc you can't lose!!)?

The other positive to the fee only investment model is you generally have someone with a little bit more experience handling your account (assuming they are not outsourcing the investment process). It's well documented how difficult it is to get started in this business. Generally, you do what you have to do to eat for the first few years.

Final point, I promise... (they really should add a bullet point feature) The move to fee based/only really got accelerated with the fiduciary rule. None of those advisors in scenario 2 have to do what is in the "best interest" of the client. The firms love the idea of more revenue long term surely, but in zero transaction fee, robo-advisor, index world it's a race to the bottom. Margins are already being compressed. They have to hit earnings next quarter. Or else they'll have to have another bailout... yikes.


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UpstairsComputer
LSU Fan
Prairieville
Member since Jan 2017
762 posts

re: Financial Advisor Meeting
Well certainly any sociopath who refuses to acknowledge hurting other people for their own personal gain would treat it as BS. But any normal guy with a couple kids and a wife doesn't want to get sued over treating their clients like ATM machines. Which is really the point.


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10
yatesdog38
Mississippi St. Fan
in your head rent free
Member since Sep 2013
9374 posts

re: Financial Advisor Meeting
I agree with everything you said. Ideally scenario 2 works best and then once their investment situation gets more complicated you move towards fee only after 10 years.

My role tho, basically i work with accounts that have been moved off advisors with a commission grid's books to maintain that relationship. Not enough time in the day for an advisor on commission to have meaningful meetings and get paid for it with someone that has 25k.

This is also why i'm beginning my CFP. I went from operational role to both an FA and still doing the same operational BS, and more stuff. I have to deal with idiots all day from the banking too. Then i have a manager that has ran off multiple people.

If you've ever seen Office Space... since i've taken on this new role this is the quote that defines my life right now

"So I was sitting in my cubicle today, and I realized, ever since I started working, every single day of my life has been worse than the day before it. So that means that every single day that you see me, that's on the worst day of my life."

now back to work


UpstairsComputer
LSU Fan
Prairieville
Member since Jan 2017
762 posts

re: Financial Advisor Meeting
Greatest work movie ever. That's a fantastic quote too.

I know it's a different thread, but how are you coming along? Been studying for a few months now, right?



yatesdog38
Mississippi St. Fan
in your head rent free
Member since Sep 2013
9374 posts

re: Financial Advisor Meeting
Literally just started the process. I ordered everything yesterday. I decided to wait cause i was considering leaving my current company and I had a couple offers but they weren't right for my situation.


UpstairsComputer
LSU Fan
Prairieville
Member since Jan 2017
762 posts

re: Financial Advisor Meeting
Since I don't think the OP is ever coming back, you targeting a window yet?


ridlejs
Auburn Fan
Member since Aug 2011
189 posts

re: Financial Advisor Meeting
quote:

Literally just started the process. I ordered everything yesterday. I decided to wait cause i was considering leaving my current company and I had a couple offers but they weren't right for my situation.


Good luck on this. I completed everything back in 2015 and am very happy with the decision.


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10
btnetigers
LSU Fan
South Louisiana
Member since Aug 2015
1824 posts

re: Financial Advisor Meeting
Sorry guys, we meet with the advisor tomorrow. And, yes, he would be acting like a fiduciary. He is a partner in a well known firm out of the New Orleans area. Came very highly recommended from a banker friend of ours. The amount of money we're talking about is significant for my wife and I.

I appreciate all of the responses.



baldona
Auburn Fan
Florida
Member since Feb 2016
10907 posts

re: Financial Advisor Meeting
quote:

The amount of money we're talking about is significant for my wife and I.


I’m not a lawyer. But again, who ever inherited the money should really be doing some work on their own and put the money into a trust or something of that nature away from the other spouse. Take some distributions that you share, etc. But if it’s a couple hundred thousand or more, you really shouldn’t just absorb the money into your shared net worth.

Eta: you could sign a post nup or otherwise some sort of legal way of preventing the other spouse from splitting the money in a divorce. I love my wife and we’ve been together over 10 years, she has significant money in holdings outside of my name. I have no issue with this.
This post was edited on 12/5 at 8:14 am


Janky
LSU Fan
Team Primo
Member since Jun 2011
29590 posts

re: Financial Advisor Meeting
An individual account with the separate property notation would be fine.


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