Retirement Advice

[Chocaholic]

Early 50's, 3 kids, wife (homemaker), 401k, various mutual funds, 529 plans, savings...nothing fancy. Every investment advisor I've spoken with over the years wanted to sell me life insurance and transfer all my investments into their commission-paying vehicles. No thanks.

Having just sold a house in addition to aforementioned savings, and with only about 12 years to retirement, I feel I should get some advice from someone I can trust. Preferrably someone not incentivised to sell me their product.

How do you go about finding such a person? Happy to pay a fee, but prefer not to get ripped off by someone who took a weekend class. Any ideas?

[Aggie93]

The CFA (Charted Financial Analyst) designation is considered the toughest to get (three exams and at least three years of experience). They will usually be independent advisors and charge based on asset level, roughly 1% of assets. Unfortunately, a lot of these advisors have 7-figure minimum asset level.

Barron's has a listing of the best advisor's, http://online.Barron's.com/report/top-financial-advisor's/1000/Georgia

There is one guy on there that has significantly lower asset level, Our Firm : Roger Green, rogersgreen.com

I know nothing about him, but might at least be a place to start. He has a lot on his website.

I'll ask around and see if I can find someone good in Georgia.

If interested, I can provide some reading recommendations whether to do some yourself or know if you are getting sunshine blown up your ass.

[LWJ]

Good question. I have similar reservations. My "advisor" is an idiot. He called me last week to take credit for me picking aapl. Caused a few guffaws from my spouse. I would love to have someone not greed oriented to consult with. I am in Oregon. I don't need to see them face to face. I am 46.

Larry

[lukeh]

Pretty much everyone goes to work to make money yet only some professions are labeled greedy. I never understood this. Is the plummer greedy for him wanting me to pay him? Is the roofer greedy for wanting to charge me for replacing my roof? Is the baby sitter greedy for expecting me to pay her?

I'd ask friends and family who they use and if they are happy with the person. If they have someone and can explain why they are satisfied then talk with the person. At some point he'll make money off you (via fees or commissions)and it's not because he's greedy it's because its his job and that is what he gets paid to do.

Where did you get the idea you become a financial advisor by taking a weekend class?

[BigInJapan]

I've lurked for many years now on this website...never have I felt more compelled to join so as to contribute/add my opinion as I have by your input. (believe me, I've almost joined many times to applaud or argue the points being made...fyi I've learned much from the wealth of knowledge here).

I have a formal education in corporate finance. I own a successful company; I've started several companies.

I'm compelled to respond to this because, even though finance/business is my profession, I deplore the financial industry. The problem is fundamental: the financial industry exists for one reason - to sell financial products. period. Many/most of those 'products' are castles in the sand and are based on no tangible good. The hubris the financial industry exhibits is deplorable. My company builds products, it has value - real value - because it builds products that contribute in some way to society. I have a professional critique every time I experience someone in the financial industry justifying to me how I 'need' to consider their administered financial plan. The numbers don't work for the unknowing, but the problem is furthered by those who are amenable.

How did the financial crisis of late start? What were the underlying factors? Miseducation? Ignorance? A sophisticated system (sub-prime) looking at short term gains? Poppycock.

Weekend class...there's truth in that comment (FYI: lukeh...I'm directing nothing at you personally...the 'financial industry' is where my rant is directed).

Ian

Originally Posted by lukeh

Pretty much everyone goes to work to make money yet only some professions are labeled greedy. I never understood this. Is the plummer greedy for him wanting me to pay him? Is the roofer greedy for wanting to charge me for replacing my roof? Is the baby sitter greedy for expecting me to pay her?

I'd ask friends and family who they use and if they are happy with the person. If they have someone and can explain why they are satisfied then talk with the person. At some point he'll make money off you (via fees or commissions)and it's not because he's greedy it's because its his job and that is what he gets paid to do.

Where did you get the idea you become a financial advisor by taking a weekend class?

[dan88911]

Hey check out RicEdelman.com. Barron's ranking Top 100 Independent Financial Advisors.

[DonDavis]

DaveRamsey.com

Flamesuit on.

I think he's pretty good at what he does. Like any Financial Adviser, he wants to sell stuff.

But, the biggest thing about this guy is he stresses simplicity. Lots of Financial honks have their sexy, new, get-in-now-before-too-late methods. Not Dave.

I think it's worth a look.

[aigel]

Financial adviser - Wikipedia, the free encyclopedia

You probably will want some advice due to a big chunk of change needing to be invested. Otherwise, I really believe most people don't need an adviser - just save a good chunk every year and diversify your investments. I have friends who shared with me the advice they got and it was pretty benign (admittedly they are all young and poor, so there isn't much of a portfolio to manage). Whatever you do with your portfolio, definitely have one or two air cooled Porsches in there!

G

[KFC911]

I've known my parents' financial advisor for years (we used to hang out at the pool drinking beer decades ago), and imo, they don't get squat in return for the "fees"...underperforms actually (like a WHOLE bunch of them do). That's OK with me though...they're comfortable with him, and I've got their back covered . I seriously took charge of mine in my late 30s (always financially savy and investing since college). I walked away from a lucrative corporate gig at 48 (outsourced, but tired of the bs). I don't trust my 911 with a dealer, and I care more about my $$$ than anyone else. I'm no dummy and it just takes a little bit of effort...no regrets and not looking back. It's not for everyone however...YMMV

[on2wheels52]

For fee based management, is about 1/2% of the portfolio about right?
Jim

[Shadetree930]

Originally Posted by on2wheels52

For fee based management, is about 1/2% of the portfolio about right?
Jim

Depends on the total portfolio value and the advisor company.

Often, when you get over 500k (or a million), depending on the advisor company, the fees are waived completely.

[Shadetree930]

Originally Posted by Chocaholic

Early 50's, 3 kids, wife (homemaker), 401k, various mutual funds, 529 plans, savings...nothing fancy. Every investment advisor I've spoken with over the years wanted to sell me life insurance and transfer all my investments into their commission-paying vehicles. No thanks.

Having just sold a house in addition to aforementioned savings, and with only about 12 years to retirement, I feel I should get some advice from someone I can trust. Preferrably someone not incentivised to sell me their product.

How do you go about finding such a person? Happy to pay a fee, but prefer not to get ripped off by someone who took a weekend class. Any ideas?

Actually the insurance sales pitch is not necessarily a red flag. Standard portfolio analysis includes insurance coverage. Life insurance and disability insurance may be an important component of the overall portfolio plan depending on how/who earns the bread in your family. Sure, we all have these at work right? Generally speaking work provided policies are inadequate for higher earners and thus supplementary poilicies make perfect sense as a part of the overall portfolio makeup. Additionally, while it seems counter-intuitive, the policies sold by the advisor are less expensive on a cost per coverage basis than the work provided policies.

Additionally, many sales commission loads are waived completely on front end funds if the total invesment portfolio exceeds 1 million. Less than a million and there is a declining scale. Once, you get down to retail level investing they hit the full 5% which is not a good deal.

So ......... what is bad for one investor is good for another .... it just depends.

Disclaimer ..... Not in the financial planning or financial sales business .... I am on the investor side of the equation.

[recycled sixtie]

It was mentioned above - diversification is important. Don't put too much in any one area. There are fee only advisors and commission only advisors. Again diversify. Consider using more than one advisor or family of mutual funds. Remember IOS and Bernie Cornfeld back in the 60's?
Completely fraudulent. I am not in the business as I am a retired investor. My wife and I have our funds with 3 different institutions.
Be very careful of going with one lone individual. Not recommended!Whoever u go with get references.

[Chocaholic]

Appreciate the feedback and honestly, it seems I'm doing much of what's recommended above. Diversified between several different types of funds (and money market) with Janus and T. Rowe Price. Probably too heavy in stocks (about 70%) which has me nervous. My feeling is that the bubble is going to pop the day Israel pops a cap into Iran (a matter of time). I'm a bit insurance-phobic, probably irresponsibly. Have a large term policy that will last until our younges is out of the house.

Will do some more research based on recommendations above.

[RWebb]

call Vanguard's 800 # and ask them to send you info

[lukeh]

Originally Posted by BigInJapan

I've lurked for many years now on this website...never have I felt more compelled to join so as to contribute/add my opinion as I have by your input. (believe me, I've almost joined many times to applaud or argue the points being made...fyi I've learned much from the wealth of knowledge here).

I have a formal education in corporate finance. I own a successful company; I've started several companies.

I'm compelled to respond to this because, even though finance/business is my profession, I deplore the financial industry. The problem is fundamental: the financial industry exists for one reason - to sell financial products. period. Many/most of those 'products' are castles in the sand and are based on no tangible good. The hubris the financial industry exhibits is deplorable. My company builds products, it has value - real value - because it builds products that contribute in some way to society. I have a professional critique every time I experience someone in the financial industry justifying to me how I 'need' to consider their administered financial plan. The numbers don't work for the unknowing, but the problem is furthered by those who are amenable.

How did the financial crisis of late start? What were the underlying factors? Miseducation? Ignorance? A sophisticated system (sub-prime) looking at short term gains? Poppycock.

Weekend class...there's truth in that comment (FYI: lukeh...I'm directing nothing at you personally...the 'financial industry' is where my rant is directed).

Ian

No, there is not any truth in that comment. If so please tell explain how in one weekend you can take the classes and pass the necessary tests to become a licensed financial advisor.

Of course you sell financial products in the financial industry. Unless you want to keep your money in a can buried in the back yard you need to invest it into a product ranging from a savings account to corn futures. I don't understand how that is a bad thing? Blaming the financial industry for offering financial products is like blaming the farmer for being in the business of selling food? He isn't growing to be a nice guy. He is growing it sell sell it for as much as he can and make money. And if you don't like farmers that milk cows then don't drink milk just as if you don't like guys that sell mutual funds then invest in something else.

No, most of the products are not just castles in the sand. Those castles helped people retire and pay for kids college. Are some bad ideas that lose money, sure. Every industry has crooks as well as mistakes and bad ideas.

My guess is you make a product and sell it and you do it to make money. My guess is we could all get along just fine without your product. Try getting along without any financial products. You are the one with Hubris if you think your products have value and contribute to society while the financial industry doesn't. My guess is you use the financial industry every day and your company couldn’t operate without it. You feel we need your products more than we need a savings account, checking account, loans, 401ks.... Now that is hubris.

The financial industry isn't just some big wall street bank that had some crooks making bad decisions. That is just what you see on the news because it gets ratings. Most of the financial industry is guys working at the local bank. And we aren't all crooks trying to take advantage of people. To say such a thing is to call all doctors crooked because a minority preform unnecessary surgery or over prescribe medications. You are unfairly stereotyping an entire industry over the actions of the minority. You must feel taken advantage of or feel wronged to come to such a conclusion.

If you attack my profession you are attacking me. I don't take it personal because you don't know me but you are saying I'm guilty by association and I do find that insulting. It would be like you being a business owner and me saying all business owners are greedy, don't pay enough in taxes and are living off the backs of the middle class.