Paying for financial advice.

[maat55]

I agree. As I said, they are both good books. I also think The Wealthy Barber and The Millionaire Next Door are good in getting folks in the right mindset about dealing with money.

My advice? Well, other than my accountant who does our taxes, I don't pay for any financial advice (unless you count my internet costs for hanging out here ). I've also had a financial plan run a few times over the years by our insurance agent, though I didn't pay anything for that service beyond whatever the agent already earns from our policies. So I haven't seen the need to pay for financial advice so far. And I certainly wouldn't have considered it when I was in my 20's. I could see seeking some professional guidance when I'm closer to retirement age, but I've got quite a while to go before then.

Like you, reading books and hanging out here gives me plenty of knowledge. I've heard alot about that book the Millionaire Next Door on DR's show, it's next on my list to read.

[kork13]

I've got Millionaire Next Door, it was a great read, and very useful thoughts and perspective. One of a few that I recommend to people if they're interested in finances...

[jIM_Ohio]

Thanks for posting. What is meant by withdraw strategies?

Yes, tax advice is definitely one of the things I need. I know simple stuff, like contribute as much as possible to Roth IRA, get tax deductions on as much as you can, and contribute to my 401k as much as I can. But maybe the financial adviser knows more...?

Withdrawing money from accounts can lead you down many paths. If you touch one account or another too soon and draw down principle, it could cost you hundreds of thousands of dollars in future returns- based on taxes paid or lost returns in account.

My advice to anyone accumulating is to learn more about taxes- just how a tax return is filed, what percentages of taxes you are paying, and what tax bracket you are in, Knowing about deductions, phase outs and capital gains taxes will also help.

You don't need to learn "everything" about taxes- it's one of my weaker areas of knowledge. But learning a little every year from age 25-55 is better than trying to learn enough to make sense when I retire at age 56.

[MaksimFA]

Here is what it boils down to... if you can answer these questions honestly then by all means do it yourself, otherwise if you can afford to pay for advice do it.

1. Do you have the self disiciple to run and plan your finances like your job?
2. Do you have the time to keep up to date with all the changes in the economy and tax law changes? And NO, financial pornography like CNBC and Bloomberg doesnt count.
3. Do you have the disiciple to give yourself OBJECTIVE advice regarding your financial habits and investments?

That is the beginning point. Aside the fact that if you can do it, and learn about it, is your time worth it?

I am a financial planner and I still have one of my coworkers handle my finances as I know for a fact, I do not give myself objective advice... I still sometimes want to think there is easy money.

Am I saying you cant do it yourself? Absolutely not, but it wouldnt hurt to have another professional opinion.

And btw... those books are good... but i wouldnt touch Suze Orman with a ten foot pole.... once a failed planner with ML, now pushing her fico kit. Dave Ramsey does have a good understanding of things, and I incorporate this principles into my meetings with clients.

[QueenOphelia]

If you want face-time without paying for it, I sugggest opening a brokerage/retirement account with someone like Fidelity that has walk-in centers.

Additionally, if you bank with a large bank ( I use Citibank) they have investment advisers as well (at no cost).

I don't know if I don't get charged because of my balances but it's worth a shot.