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Is a fee only planner worth the initial cost?
Posted on 4/9/19 at 3:49 pm
Posted on 4/9/19 at 3:49 pm
Looking to set up retirement for my wife and college for my kid. I've never dealt with a financial planner before so I don't know all the fees attached there.
Talked to a fee only planner. He told me he'd be able to set up a retirement, college fund, and one other service for around $900.
That seems like a big chunk of money. Am I just dumb or what?
Talked to a fee only planner. He told me he'd be able to set up a retirement, college fund, and one other service for around $900.
That seems like a big chunk of money. Am I just dumb or what?
6
Posted on 4/9/19 at 3:51 pm to hendersonshands
You can't do these things yourself? What kind of retirement?
For your kiddo: I did not look to see where you live. If in Louisiana, use the Louisiana Start program and contribute at least $4,800/year to get the max deduction.
For your kiddo: I did not look to see where you live. If in Louisiana, use the Louisiana Start program and contribute at least $4,800/year to get the max deduction.
Posted on 4/9/19 at 3:55 pm to TheWiz
I just don't know if I trust myself to make the best decisions, which is why I was searching around for planners. She's employed but not offered any retirement plan through her employer.
I do live in Louisiana.
I do live in Louisiana.
This post was edited on 4/9/19 at 3:55 pm
Posted on 4/9/19 at 4:00 pm to hendersonshands
quote:
I just don't know if I trust myself to make the best decisions, which is why I was searching around for planners.
Fair enough and that's totally respectable. I don't use one, so I can not answer as to whether or not the price is fair. There is so much good information out there that you could definitely educate yourself. I saw your post count was super high. Maybe detour off of here and go over to the Boglehead forum or check out White Coat Investor. These folks are all highly independent when it comes to taking care of their finances and the white coat people are usually dealing with a shite-ton of money.
The LA Start setup is incredibly easy. Check out their website, read up on the handbook, and review the application. They have age based portfolios for kids which should make that fairly simple. Set up automatic monthly deposits and let it ride.
This post was edited on 4/9/19 at 4:01 pm
Posted on 4/9/19 at 4:07 pm to TheWiz
I appreciate the info. I looked into that program in the past. Just want to make sure if my kid doesn't need as much money for college that we can still use it for other areas.
This post was edited on 4/9/19 at 4:09 pm
Posted on 4/9/19 at 6:08 pm to hendersonshands
$900 at face-value is reasonable fee but you need to understand exactly what you are getting for that service.
What you are trying to do likely isn't very complex and you are likely best off educating yourself (will be valuable to you in the short-term and especially the long-term).
When you start getting into more complex topics (e.g., tax efficiency, estate planning) then that's where I think professionals can easily be worth the fee.
"Setting up retirement" is a pretty generic topic.
What you are trying to do likely isn't very complex and you are likely best off educating yourself (will be valuable to you in the short-term and especially the long-term).
When you start getting into more complex topics (e.g., tax efficiency, estate planning) then that's where I think professionals can easily be worth the fee.
"Setting up retirement" is a pretty generic topic.
Posted on 4/9/19 at 6:39 pm to hendersonshands
You can probably get very similar advice on this board and save yourself 900 bucks.
Posted on 4/9/19 at 6:44 pm to hendersonshands
As far as Retirement goes, log on to fidelity or vanguard, read a little and then pick a couple of broad index funds or a target date
I’d suggest reading the Bogleheads Wikipedia page. Very good info and more than you’ll need
I’d suggest reading the Bogleheads Wikipedia page. Very good info and more than you’ll need
Posted on 4/9/19 at 6:46 pm to hendersonshands
open and fund an account at vanguard
it’s investor owned and the fees are low
sign up for their analyst advisor service and be ready to answer his/her questions as to your goals/needs/etc.
for most people the 529 plans are best for tuition savings.
for most people the targeted retirement date funds are best for long term retirement savings as they are balanced and automatically adjust risk as your retirement age approaches. have a budget and stick to it. keep dumb debt to a minimum. Live within your means and understand that only a dollar saved or invested can produce another dollar
you will be light years ahead of the average dumbass if you just do that
it’s investor owned and the fees are low
sign up for their analyst advisor service and be ready to answer his/her questions as to your goals/needs/etc.
for most people the 529 plans are best for tuition savings.
for most people the targeted retirement date funds are best for long term retirement savings as they are balanced and automatically adjust risk as your retirement age approaches. have a budget and stick to it. keep dumb debt to a minimum. Live within your means and understand that only a dollar saved or invested can produce another dollar
you will be light years ahead of the average dumbass if you just do that
Posted on 4/9/19 at 9:43 pm to lynxcat
quote:
When you start getting into more complex topics (e.g., tax efficiency, estate planning) then that's where I think professionals can easily be worth the fee.
Amen, a good planner can save you more in tax stratagies than his fees.
Posted on 4/9/19 at 9:50 pm to hendersonshands
It is very simple to set up and administer your own accounts online. I believe that the biggest obstacle to DIY'ers is the temptation to not stick to the "plan", to try and time the market or guess the next big opportunity.
You can set up your own accounts and begin making automatic drafts into those accounts. Begin investing in index funds. They are simple, diversified and cost effective. Following this approach, you would very likely get results very similar to a pro. The one thing that you want to do is to learn the different types of qualified (tax-advantaged) accounts so that your investment dollars are working as efficiently as they can while minimizing the tax burden.
Good luck!
You can set up your own accounts and begin making automatic drafts into those accounts. Begin investing in index funds. They are simple, diversified and cost effective. Following this approach, you would very likely get results very similar to a pro. The one thing that you want to do is to learn the different types of qualified (tax-advantaged) accounts so that your investment dollars are working as efficiently as they can while minimizing the tax burden.
Good luck!
Posted on 4/9/19 at 9:53 pm to ed3303
Thanks for all the advice everybody. Gonna try to make myself less stupid over the next few days.
Posted on 4/10/19 at 7:34 am to saderade
quote:
You can probably get very similar advice on this board and save yourself 900 bucks.
this was my suggestion
Posted on 4/10/19 at 8:14 am to SlowFlowPro
quote:
save yourself 900 bucks
Please do this. That's 15% of what you could contribute to her Roth IRA.
Get some skin in the game this way. Go to Vanguard. Open a Roth IRA for her. Assuming you guys are 30 (no clue), start funding a Vanguard Target 2054. Set up monthly contributions of $500 or whatever you are comfortable with contributing.
Educate yourself over the next one to two years and after there is some money in there you can look at creating a three fund portfolio with low fees and rebalance everything accordingly.
In your education journey write yourself a five or ten year investing, saving, and budgeting plan. You and your wife should do this together. Talk about your saving goals, school for your kid, buying a car, buying a house, investing/retirement goals, etc... This is something you both should be very committed to following. Write it down and stick to it!
Second step. Go to LA Start and open an account for your child. Set up monthly contributions of $400 or whatever you are comfortable with. Pick an age based fund for them. Let it ride
Posted on 4/10/19 at 11:51 am to TheWiz
I do not understand this financial advisor/planner racket.Last time I counted it up there are around 70 financial advisors in Alexandria area,crazy!! Anyone who has brains enough to get an education or learn a skill and earns decent living to be able to invest,can certainly learn how to invest using discount broker.I keep it simple-index funds,balanced funds,and this stage of my life-CD,s.I have never done margin investing or options trading,that’s too much like gambling to me.
Posted on 4/10/19 at 12:21 pm to LSUA 75
Honestly I have learned almost everything I know about personal finance from this board. The pinned topics at the top is a great way to start.
Posted on 4/10/19 at 12:49 pm to hendersonshands
If you're looking to just keep it simple, set up an IRA with Vanguard/Fidelity/Schwab and put it in a Target Date fund.
LA Start is the way to go for a 529 college savings account. Very simple to start. If you're worried about putting too much, then just don't over fund it. Research possible colleges to see how much tuition is (adjust for inflation) and shoot for those amounts. One great thing about 529's is you can withdraw the amount of the scholarship(s) your kids receive penalty free. You would still owe on taxes on the growth of the account, however. Lots of good info on 529s out there.
You can do this Hendo
LA Start is the way to go for a 529 college savings account. Very simple to start. If you're worried about putting too much, then just don't over fund it. Research possible colleges to see how much tuition is (adjust for inflation) and shoot for those amounts. One great thing about 529's is you can withdraw the amount of the scholarship(s) your kids receive penalty free. You would still owe on taxes on the growth of the account, however. Lots of good info on 529s out there.
You can do this Hendo
This post was edited on 4/10/19 at 12:53 pm
Posted on 4/10/19 at 3:53 pm to bwallcubfan
This board is way nicer than I'm used to. I've been doing much more reading and it's starting to make mroe sense.
Posted on 4/10/19 at 7:22 pm to hendersonshands
Yeah you give a few more specific info and you'll have all the answers here
Posted on 4/11/19 at 12:19 am to LSUA 75
quote:
Anyone who has brains enough to get an education or learn a skill and earns decent living to be able to invest,can certainly learn how to invest using discount broker.
While all of that is true some folks time is better spent making money than managing it, your mileage may vary.
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