Fee-only financial advisors

[LivingAlmostLarge]

Nope don't use an advisor. But we tend to stick to index funds now more than ever. We have some mad money DH plays with stocks but bulk of our money is in mutual funds in 401k, then IRAs in index funds. Very boring.

Why should I pay someone to do more?

[Captain Save]

. In addition, in our free market economy, wouldn't bad service eventually cause financial advisers to become extinct like the VHS tape. Just curious. I have never heard anything positive.

.

Exactly... So much of the focus is "conflict of interest" which regardless how you get paid there is a conflict of interest, the one who tells you they don't have one is the one you should watch out for and those are typically the "fee only" ones who market that nonsense.

Bad recommendations , churning, overly aggressive sales behavior is a career killer.. Especially nowadays. Whereas they could get away with it years ago, we live in the internet age, People can google anything but more importantly, they can google your name and your firm. It's always in your best interest to put the client's interest first. With that comes a lot of referral business and a peace of mind.

[Petunia 100]

A fee-only CFP acting as my fiduciary is the only sort of advisor I would even consider.

[scfr]

Have you had the free phone consultation? How did it go?

[Sallyr70]

Have you had the free phone consultation? How did it go?

I did, it was about a 20 min call. She explained the different types of programs she has and recommended an investment review. I provide copies of my investment statements and tax return, fill out a questionnaire and she analyzes and puts the data into a morningstar software program, and shares the results. I would pay for an hour of her time with the data and then another hour when we meet to go over results and answer questions. She didn't pressure me at all. She also doesn't sell any products and, for this type of review, does not recommend individual stocks. I'm thinking about doing it but it would still be $600. I'm going to do more research on my own for now (internet/books).

[snafu]

Morningstar listings are available for review online. We all read books, some easier to follow than others. Personally, I prefer those available electronically from Library written by David Bach, Automatic Millionaire, Smart Women Finish Rich. Millionaire Next Door [Hardy] A starting spot for money 'awareness' is You Tube's Dave Ramsey, to asks you to follow Seven Steps beginning with a mini Emergency Fund.

You might like past conversations on SA

[disneysteve]

I did, it was about a 20 min call. She explained the different types of programs she has and recommended an investment review. I provide copies of my investment statements and tax return, fill out a questionnaire and she analyzes and puts the data into a morningstar software program, and shares the results. I would pay for an hour of her time with the data and then another hour when we meet to go over results and answer questions. She didn't pressure me at all. She also doesn't sell any products and, for this type of review, does not recommend individual stocks. I'm thinking about doing it but it would still be $600. I'm going to do more research on my own for now (internet/books).

I'm glad to hear it was pleasant and low pressure. That makes sense if she doesn't sell anything but her own advice.

I would maintain my skepticism about what she can do for you that is worth paying $600 for. There are plenty of free sites where you can answer a questionnaire and enter your holdings and have it spit out some recommendations. If you feel you want that personal touch, and the cost is affordable to you, it might be worth doing just to point you in the right direction. Personally, I wouldn't see value in that but you might.

[Sallyr70]

I'm glad to hear it was pleasant and low pressure. That makes sense if she doesn't sell anything but her own advice.

I would maintain my skepticism about what she can do for you that is worth paying $600 for. There are plenty of free sites where you can answer a questionnaire and enter your holdings and have it spit out some recommendations. If you feel you want that personal touch, and the cost is affordable to you, it might be worth doing just to point you in the right direction. Personally, I wouldn't see value in that but you might.

This describes how I have been thinking about this the last few days. At first, I wanted confirmation that I am on the 'right track'... but do I need to spend $600 for that validation? Nope! I have been investing for my retirement for over 25 years. I have been saving 20% of my income and will be increasing to 25%. According to several online calculators, I will have enough money by the time I retire, therefore my concerns for going into retirement:

1. Strategy for drawing income from my investments: minimizing income tax and following the minimum distribution rules and best time to start collecting SS.

2. Budgeting for health care/when to purchase long term care insurance.

[disneysteve]

1. Strategy for drawing income from my investments: minimizing income tax and following the minimum distribution rules and best time to start collecting SS.

2. Budgeting for health care/when to purchase long term care insurance.

These are both really good questions. The focus has always been on saving for retirement. Now that the baby boomers are hitting retirement age, we're starting to see more press coverage of how to spend in retirement, a topic that has really been ignored for a long time.

I know there are online calculators to help you figure out when to claim SS. As long as you are in good health, the rule of thumb is the later the better. The closer to 70 you can wait, the better off you are.

And as we've talked about in numerous threads, health care costs are the big unknown in retirement, especially if you retire before Medicare eligibility. Even if you wait until 65 though, Medicare only covers about 70% of costs so you need to have a plan for the out of pocket costs you'll incur.

[scfr]

According to several online calculators, I will have enough money by the time I retire, therefore my concerns for going into retirement:

1. Strategy for drawing income from my investments: minimizing income tax and following the minimum distribution rules and best time to start collecting SS.

2. Budgeting for health care/when to purchase long term care insurance.

Do you like to read?
If so, you may want to check out the book "How to Make Your Money Last: The Indispensable Retirement Guide" by Jane Bryant Quinn (dispenser of practical personal finance advice). Your local library may have a copy that you can borrow. If not, I'd say it's worth the cost of the book (currently $9.48 on Amazon for the paperback version). You probably won't find answers to all of your questions, but I'm sure you'll find some. I have read the book, and thought it was very good. It definitely addresses the concerns you mention.

[Sallyr70]

Do you like to read?
If so, you may want to check out the book "How to Make Your Money Last: The Indispensable Retirement Guide" by Jane Bryant Quinn (dispenser of practical personal finance advice). Your local library may have a copy that you can borrow. If not, I'd say it's worth the cost of the book (currently $9.48 on Amazon for the paperback version). You probably won't find answers to all of your questions, but I'm sure you'll find some. I have read the book, and thought it was very good. It definitely addresses the concerns you mention.

Yes, love to read, and I borrowed that exact book from the library yesterday!