Judgment Free - Ask Anything Financial Thread

[Jluke]

My advisor charges 1%. We have an annual meeting and I authorize any transactions he recommends. This year there was only the selling of part of 1 stock and buying something else with it.

I am aware that every transaction costs me money (by paying him) generally. I accept that.

On top of those fees (1%, buy/sell) each fund that you are invested in most likely charges a yearly fee as well.

Typically anything that charges above 0.5% should raise a red flag. A lot of passive index funds or ETFs will charge 0.05-0.1%.

I am replying strictly for informational purposes for all readers. .

[Dahlia]

But I have to pay the yearly fee regardless who is managing the account (myself or an investor). I have to pay those individual fees if I was managing the account myself.

[disneysteve]

But I have to pay the yearly fee regardless who is managing the account

Nope. Not at all. Transfer that account to Vanguard and you'll pay ZERO in annual fees. Plus the expense ratios on any mutual funds will be a tiny fraction of the funds the adviser sells. The only time you'll pay a fee is a commission if you buy or sell individual shares of stock.

[Dahlia]

"On top of those fees (1%, buy/sell) each fund that you are invested in most likely charges a yearly fee as well." - this is what I was referring to when I meant annual fees.

But regardless- I'm not changing things. I just asked how a dividend is created in a thread that was supposed to be no judgment.

I now have a modicum of understanding, but that does not give me the confidence to think I understand all the other details of investing.

I don't want to feel pressured or dumb for using an advisor. I stated that its my psychological safety net. Why do I feel judged?

[james.hendrickson]

"On top of those fees (1%, buy/sell) each fund that you are invested in most likely charges a yearly fee as well." - this is what I was referring to when I meant annual fees.

But regardless- I'm not changing things. I just asked how a dividend is created in a thread that was supposed to be no judgment.

I now have a modicum of understanding, but that does not give me the confidence to think I understand all the other details of investing.

I don't want to feel pressured or dumb for using an advisor. I stated that its my psychological safety net. Why do I feel judged?

Dahlia, my apologies for that. Sometimes people come off as a bit harsh here when they are typing, when in fact that's just how they type. I assure you nobody is judging you here.

[Jluke]

See the effect of high costs chart as well as other sections.

https://www.bogleheads.org/wiki/Mutual_funds_and_fees

Read this

https://www.etf.com/docs/IfYouCan.pdf

Look up each ticker symbol that is in your portfolio and if the expense ratio is listed please provide that.

You seem to have a good relationship with this advisor. We just want to be sure you are not paying for his yacht (that's a line from A Walk Down Wall Street; I might not have quoted or referenced that exactly)

Edit: Oops. Just saw the previous posts that were added. Sorry if I offended in any way. Just trying to be helpful

[disneysteve]

My apologies, Dahlia. I just wanted to make sure you understand what you are paying for and what you are getting in return.

[Dahlia]

I'm probably just in a bad mood too. I've been running reports at work for the last 3 hours and just figured out I was clicking 2016 as a parameter instead of 2017. Ugh. Starting over.

[disneysteve]

I'm probably just in a bad mood too. I've been running reports at work for the last 3 hours and just figured out I was clicking 2016 as a parameter instead of 2017. Ugh. Starting over.

Ugh. That's awful.

[LivingAlmostLarge]

How do you investigate if your partner has accounts opened that you haven't known about? Without letting them know you are looking?

[kork13]

How do you investigate if your partner has accounts opened that you haven't known about? Without letting them know you are looking?

Credit report could tell you, if the accounts may have been opened recently. Your could see them in the credit inquiry section, if any banks have pulled your partner's credit.

Police have ways of pulling financial records based on a person's SSN, but that typically involves difficult paperwork like having a warrant...

Alternately, just watch the mail, and see what banks send stuff.

Not judging, so I won't ask any questions. But I will say that I've always preferred a direct approach...

[disneysteve]

How do you investigate if your partner has accounts opened that you haven't known about? Without letting them know you are looking?

Pull the credit report.

Of course, if they later go to look at their report they may see that one was pulled previously. It all depends on the person. I know I can pull my wife's report and she would never know because she would never go in and do it herself.

[Thrif-t]

But if you're talking bank accounts those won't show up on the credit report. You'll have to watch the mail or hack into your partners email account.

[LivingAlmostLarge]

I think pulling credit might not work since my friend's husband will find out.

[disneysteve]

I think pulling credit might not work since my friend's husband will find out.

Pulling the credit report isn't good if the other person would know. And, as noted, that won't find bank accounts. Checking the mail only helps if the person is having the statements come to the house. If the statements are coming electronically or being mailed to another address (like work), that won't help.

It sounds like there are some much deeper issues here, though, if she feels the need to investigate him like this. That's certainly beyond the scope of the advice we can give here.