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A Financial Advisor

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welshieinCA
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A Financial Advisor  Reply with quote  

My wife and I are trying to find the most suitable "type" of financial advisor.We just moved cities and this has prompted us to look closer at our financial advisor needs. In our old city we were with Ameriprise and they were charging us a 1 time fee of $800 per year for financial planning and 1% of the value of our portfolio for portfolio management. Our portfolio is approx $350K.

I have read a couple of things on line and heard some things on radio that this might be overkill for our situation and that there are financial advisors who charge only for services when you use them and not a monthly/annual continual fee. Can anyone shed any light on the type of financial advisor we should be looking to engage with?
Post Tue Oct 07, 2014 3:06 pm
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ithalvey
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Find a fiduciary, an independent registered investment adviser. They put their clients needs above their own. Do a little research on them.
Post Sun May 31, 2015 12:32 pm
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Wino
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Post here and ask, instead. We can't give financial advice, but our suggestions will more than likely cost less (free), and you'll end up with more money for yourself.

Note that all CFA's and CFP's will disagree with my above advice, as it cuts into their incomes.
Post Sun May 31, 2015 5:38 pm
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danjoemart
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Hello,

I am in a similar boat. I have a lot going on with work and family and I feel like I need help trying to plan my financial future. I do not have as large a nesting egg as welsheinCA (150K) but what are the best ways of finding a suitable financial advisor? I am speaking to one now and he was referred to me by a friend and he said he does not cost any fees. I have a previous 401k and he saids he would like roll it over to American Funds and manage it from there. American funds apparently do take a slight percentage off the top.
Post Tue Jun 30, 2015 8:05 pm
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oldguy
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quote:
and he said he does not cost any fees.


Makes you wonder how he lives doesn't it? lol. He's not really a adviser, he is a fund salesman. And his only advice is "buy American Funds", ie, he is a commissioned salesperson. Nothing wrong with that except that he should be honest about it.

The generic US stock market has an longterm average return of 11%/yr. Your $150,000, left for 30 years would grow to $3,430,000 in the SP500 Index. If you paid a yearly commission of say, 2%, it would be $1,990,000. So that small percentage adds up, could cost you about $1.5M over your working lifetime.

http://politicalcalculations.blogspot.com/2006/12/sp-500-at-your-fingertips.html#.VZME90bmeUl

Take a look at some 30-yr blocks, the most recent 30 years, ending in April, returned 11.03%/yr. IMO, the easiest, and best method, is to bypass the various individual stocks and mutual funds - and buy the SP500 Index Fund from a no-load fund company. That's what I did, it worked well for me (I'm retired).
Post Tue Jun 30, 2015 9:11 pm
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christcorp
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Looking for a financial adviser is a mult-edge sword. It depends on what you're looking for one for? If it's for investment purposes, then I'm not a fan at all of hiring a financial adviser. Most investments, whether Mutual Fund based or stocks or bonds, have some sort of fee structure built into them. So whether you buy these funds/stocks/etc. on your own through TD, Swab, etc. and pay a fee; or you go through a local form of brokerage, they all get paid either from the funds, part of the load, etc. And if it's a local type brokerage, most of them will even give you basic advice on market trends and such for free.

Now, if you're looking for financial advice for overall concerns, such as making/living within a budget; determining how much money you need to retire on; figuring out ways to pay for your kid's college/wedding/etc. and other financial advice, then I have a different bit of advice. I'd find an "Adviser" that you can pay for 1-time type services. Sort of like hiring a lawyer for a specific case or purpose. You may not even need this being you've gotten quite a bit of advice already from your past adviser. Anyway; once your adviser has helped you plan out a course for your future financial needs, I recommend that you take some of that $3500 a year money you're wasting, and use it at the local community college or similar to educate yourself on financial matters. You can become just as knowledgeable on financial matters like budgeting, saving, investing, financial planning, etc. as many of these individuals who will give you a couple hours once or twice a year.

Like I said, most financial investments, are already paid for to buy/sell them. I recommend taking more control over your own financial future and educate yourself. You don't need a degree in business or accounting to know how to manage your finances. You don't need someone else telling you when to buy, sell, or rebalance your portfolio. Not if you educate yourself. And you can definitely get a lot of knowledge with that $3500 you're paying an adviser. Especially considering you're paying almost this every year.
Post Wed Jul 01, 2015 1:33 pm
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JuneBangs
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I would advise you hiring a certified financial planner. The best variant would be - National Association of Personal Financial Advisors (NAPFA).

Good luck!
June, law specialist at www.research-paper-writer.org
Post Tue Sep 29, 2015 8:04 am
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katiebevan
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Well I would definitely recommend you to get a financial advisor not because I am a fan of them or am a CFA myself, but because I feel that financial advisors bring in more stability and discipline in your finance handling techniques. Finding a financial advisor is a tough job as you need to focus on a variety of factors. I would just suggest a few factors which you must carefully analyse before you select one:
1. Ask around your locality. The best way to get information about the best financial advisors in your locality is by asking for recommendations. In this way you'll be able to know the top players.
2. Go for certified one's. A financial advisor who is a CFP may or may not be the best out there but they definitely have more knowledge.
3. Take a good look at the payment structure of the advisor. This would help you avoid commission-based advisors.
4. Opt for a fiduciary.

These are some points I can suggest which may help you get a good financial planner.
Post Fri Jan 08, 2016 5:50 am
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goldsnhearts
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You might find this helpful. www.moneyunder30.com/best-financial-advisors Never used one of them though. In fact, I've never used a financial advisor ever, but it's wise to have one. Individual preference so they say. Best of luck!
Post Tue Jan 19, 2016 10:04 pm
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TerryB
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If you contact napfa.org or Garrett Planning Network, you can find advisors that will work hourly. So if you feel that you need say 10 hours advice annually, you will pay just for those 10 hours.
You can also take a look at this page http://bit.ly/20xBlVf if you want to understand the difference as to how advisors are compensated.
Post Mon Feb 08, 2016 10:07 pm
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Financial Service Directo
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It would be wise to talk to several financial advisors and work with the one that gets to know you and your goals, not someone who is just going to sell products to you. This is someone you should develop a long standing relationship with. Best of luck!
Post Tue Oct 04, 2016 2:40 am
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louiefrias
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Depends on what your goals are.  Reply with quote  

Much of the advice here is solid. Interview. Ask hypothetical questions. Research the firm.
Post Wed Oct 05, 2016 8:37 pm
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richardbowen
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Capestone Finanacial Group  Reply with quote  

Capstone Financial Group provides Individual and Family Financial Services, Employer Sponsored Benefits & Retirement Plans, estate planning, Business Owner & Executive Strategies.

Visit : http://www.thecapstoneway.com/
Post Mon Mar 06, 2017 5:42 pm
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oldguy
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quote:
Our portfolio is approx $350K.


If you did the SP500 Index Fund from Oct 2014 until now, your $350k is about $490k (the Trump Bump helped). And if you invested another $10k/yr since you posted, you're over $500,000.
Hope things are going well for you in SD.

Here is book that you might like - The Little Book of Common Sense Investing by John Bogel (the founder of Vanguard). I think it was about $15 on Amazon.
Post Mon Mar 06, 2017 7:57 pm
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CredoWealthManagement
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Many advisors with large firms have a sales quota and may pressure you into buying products you do not need.

In fact, with your account size, you are a prime target for annuity sales people. While it may be appropriate for a rare circumstance, the fees and liquidation of principal during payouts may be a surprise later.

As an independent Registered Investment Advisor (RIA), I think through what I would do if I were my clients and always let them choose from a recommendation I provide.

Good luck and I hope you find the right fit!
Post Mon Mar 20, 2017 10:37 pm
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