Financial Advisor?

[Chocaholic]

Turning 60 soon and hoping to have last kid out of college and mostly off my payroll in 3 years. Have built a nest egg, home is paid off and still have a good income and benefits...but no pension, wife doesn’t work.

Have never used a financial advisor only because the few I’ve spoken with over the years wanted me to buy lots of life insurance and transfer my lifetime of savings to their able hands. Honestly, I’m not a trusting soul when it comes to such matters.

Savings is divided among several different mutual funds within Janus and current 401k is with T Rowe Price. Overall, about 1/3 is in cash (money mkt). No debt.

Living expenses post retirement should be somewhat reasonable. I’m not terribly savvy as an investor, and pretty conservative, especially at this stage of the game. Would you continue to go it alone? Thoughts?

[biosurfer1]

I would, but I'm a bit younger than you so not focused on retirement yet, and I enjoy financial stuff. Not saying I know more than a professional but I also don't think I'm far off considering my limited financial statement (i.e. not a multi millionaire).

In my opinion, you haven't met with a financial advisor yet, just a money manager. The few advisors I have met do just that, advise. They charge a flat fee to help direct you on what you should do, they don't sell anything, just give you the info and you choose. I would look for one of those.

[Nickshu]

Originally Posted by biosurfer1

I would, but I'm a bit younger than you so not focused on retirement yet, and I enjoy financial stuff. Not saying I know more than a professional but I also don't think I'm far off considering my limited financial statement (i.e. not a multi millionaire).



In my opinion, you haven't met with a financial advisor yet, just a money manager. The few advisors I have met do just that, advise. They charge a flat fee to help direct you on what you should do, they don't sell anything, just give you the info and you choose. I would look for one of those.

This. I have a financial advisor. He does not personally handle any of my investments, just advises me personally and directly on what to do or change pretty much constantly. We talk probably once per month and we meet once per year for what I call an annual "financial enema".

Sent from my Galaxy S9 using Tapatalk

[pwd72s]

Originally Posted by Chocaholic

Turning 60 soon and hoping to have last kid out of college and mostly off my payroll in 3 years. Have built a nest egg, home is paid off and still have a good income and benefits...but no pension, wife doesn’t work.

Have never used a financial advisor only because the few I’ve spoken with over the years wanted me to buy lots of life insurance and transfer my lifetime of savings to their able hands. Honestly, I’m not a trusting soul when it comes to such matters.

Savings is divided among several different mutual funds within Janus and current 401k is with T Rowe Price. Overall, about 1/3 is in cash (money mkt). No debt.

Living expenses post retirement should be somewhat reasonable. I’m not terribly savvy as an investor, and pretty conservative, especially at this stage of the game. Would you continue to go it alone? Thoughts?

Buy these books:

The Bogleheads guide to Investing
by Taylor Larimore, Mel Lindauer, Michael Leboeuf

and..

The Bogleheads guide to retirement planning
by Taylor Larimore, Mel Lindauer, Richard A. Ferri, Laura F. Dogu

I congratulate you on "no debt"...that alone is huge. Please do your research before contacting any "financial advisor"...I'm not saying they're all bad, but I am saying sharks swim in that ocean.

[aschen]

I think its a good idea though i havent really done it myself

I would only do a fee-ONLY advisor for the same reasons you mention.

[ckelly78z]

I haven't researched getting an FA, but have heard that the fees are steep for what they do, (1%). I don't know that I would listen to their advice, and I would be wasting both of our time, and some of my money.

[KFC911]

I'm a dumbazz....fired my FA at 40...no regrets.

[Bill Douglas]

Calling Tabs...

[wildthing]

https://www.napfa.org/ - lets you find fee-only advisors. Also you can search the SEC website https://www.investor.gov for their name to check them out.

[Seahawk]

Estate planner type or FA?

The guidance on how you should invest, when you should invest at various stages in life are not overly complicated. You know all this...I follow your posts.

There are recommended investment portfolios that do not require an FA at your/our point of life, Mike. I don't use an FA: I am 62 and have a pension (as will my wife) 1/2 of which will transfer to her. The numbers are good since we are not big spenders and own the farm and all associated stuff with good to excellent investments.

I will also continue to work because I like to.

As always, it depends on you and your goals. I have frankly transitioned into streamlining my wife (she is nine years younger than I am) and kids access to the estate we have all built.

The are interesting tax implications that a good Estate Planner can work through.

[Sooner or later]

A financial advisor does much more than just investments.

They will put together a plan that includes investments and various types of insurance that work together over short and long term.

Watch out for fees and make sure they are looking out for your well being and not their own.

[Seahawk]

Originally Posted by Sooner or later

A financial advisor does much more than just investments.

They will put together a plan that includes investments and various types of insurance that work together over short and long term.

Watch out for fees and make sure they are looking out for your well being and not their own.

My Nephew is a Financial Advisor in Atlanta - does very, very well. He helps my kids gratis. I have absolutely hammered into my kids the same message my parents instilled in me: Save 10% of everything you make. They do and he helps them figure it out.

We chat all the time. Difficult to find the right folks...lucky kids.

[Sooner or later]

Originally Posted by Seahawk

My Nephew is a Financial Advisor in Atlanta - does very, very well. He helps my kids gratis. I have absolutely hammered into my kids the same message my parents instilled in me: Save 10% of everything you make. They do and he helps them figure it out.

We chat all the time. Difficult to find the right folks...lucky kids.

I took the Certified Financial Planner course back in the 90's. It was actually pretty damn good. I hooked up with a study group that met (conference call) one day a week. Final testing was done in person with lot of oversight.

Never worked in the sector so I never got my certification. Took it so I would know what was going on. I think the entire cost was two grand at the time.

[Sooner or later]

A CFP certificate doesn't guarantee a competent planner. You do know a CFP took upwards of 2 years going through all the various studies.

[Seahawk]

Originally Posted by Sooner or later

A CFP certificate doesn't guarantee a competent planner. You do know a CFP took upwards of 2 years going through all the various studies.

He has all the CFP qual's...I frankly have lost insight into the various regulations and certs governing the industry. The tests are apparently a ***** at each level.

The best thing about him is that he listens...a trait he didn't learn from his mother

[jcommin]

I'm 68 and just finally reached out to a financial planner. From the age from 50 -60, my life became a train wreck. Not getting into details but I don't have anything near what I thought I would have. It was eye opening for me. I mow have a plan in place with an endgame.
If I have a regret, I should have done this sooner.

[wdfifteen]

Over the years I’ve worked with investment advisors (the kind that take 2% of your portfolio every year, whether you do well or not), certified financial planners (who work for “free” and sell you what they have to sell, whether it’s the best for you or not), and a fee only advisor (who gave me advice on planning my financial future - for a small fee).
The only one who didn’t hose me as the fee-only lady. $500 every two or three years - whenever I thought I needed advice - kept me on the straight and narrow. She suggested books to read and websites to follow so I could make my own decisions. YMMV, but a FEE ONLY financial advisor is the only way I would go.

[RWebb]

This is not rocket surgery and you can learn what you need and DIY.

1/3 in cash is a lot but that depends on the factors I list below

Just to echo seahawk, sooner & pwds...
low expenses mutual funds - 80% stocks/20% bonds is typical but more in bonds for the risk averse, elderly, those who need it sooner, & those with less total $$

The richer you are, the more risk you can take and not worry...

Keep 1/2 year expenses to 1 year in cash as an emergency fund. You get that from your budget - you DO have one, written out, right???

Live frugally.

Don't chase returns or worry about the business cycle.

Be happy with what you have.

Don't follow leaders; watch the parking meters.



The best knowledge is to be found in Finance Depts. in a B-school and is already known.

If you use a FA - they should be on a fixed fee; have a written & signed stmt. that puts your interests first ("fiduciary") and know what they are doing.

[wdfifteen]

I have a friend a few years ago who got hooked up with a CFP. She was about 50 and her son was in his early 20s. She had $50k or so and her son had about $25k to manage. In all the time I knew them the CFP had them in the same mutual funds year after year and charged them each a flat $150 each every year. I could not talk her out of dumping the guy.

[wdfifteen]

Originally Posted by RWebb

1/3 in cash is a lot but that depends on the factors I list below
.

You didn’t list any of the factors that help design a good financial plan.