FINANCIAL ADVISOR 101 please?

[mafibisha]

Hey all,

We don't have a financial advisor, or one specific person that *advises us on everything. Are y'all thinking ? Are we the only ones?

Please give me your thoughts on getting a finacial advisor, or financial advisor 101

We have some assests here and there, and talk to whomever answers the phone, depending on what particular account we're thinking of, such as Fidelity. But even with Fidelity, they have you talk to whomever answers the phone, even if you ask if you can ask for them specifically the next time you call.

But we also have some debt we're paying off. Thankfully, our assets outweigh our debt, but because of the debt we havent gotten a real advisor. Again, are y'all thinking

So what would you suggest? How do we find one? There are way too many commercials and options for them!! Not to mention how many are in the news for the bad things they do!

How do you find one specific person? Or isn't that necessary? How do you find someone you can really trust? And how do you determine how much they'll charge ect?

Would appreciate your thoughts! TIA!

 

[DebMcDonald]

We have one, just started with him about 5 years ago and he definitely has come in very very handy. So I would highly recommend it. I'd personally recommend a fee for service provider (I think that what it's called). The long and short of it, is that we pay him an hourly rate and he doesn't make money off all our accounts, so it's not trying to sell us something we don't really need because it's putting additional money in his pocket. Our's is also an attorney so he will also handle all our wills and he does our taxes at the end of the year, etc. When my husband got laid off several years ago he was just the best!!!! If you are in the Boston area I can recommend a good one.

 

[mrodgers]

Us poor people don't pay someone to tell us we are poor

 

[bettymae1121]

DH and I aren't at the point we need one yet, but I see that day coming. Right now all of our investments are in our 401ks so no financial advisor needed. But both DH and I stand to get an inheritance in the next 20-25 years that will get us to the point that we will need someone to help us manage our money.

 

[ceecee]

Your bank or credit union will usually have an advisor and just because they do a fee for service doesn't make them bad. Find one that will talk to you and do what you want without a sales pitch. Many fee for service reps are still very strong salespeople and even if you think since you pay them a seperate fee and they won't lead you into something you don't need or that's right for you, it's no guarantee. Read up and be knowledgable about what you need. Depending on your debt they may just advice you to pay that off first! You could concentrate on paying off the debt and getting a nice liquid emergency fund saved up while you educate yourself on your future investment needs.

 

[DebMcDonald]

DH and I aren't at the point we need one yet, but I see that day coming. Right now all of our investments are in our 401ks so no financial advisor needed. But both DH and I stand to get an inheritance in the next 20-25 years that will get us to the point that we will need someone to help us manage our money.

For us it wasn't about what we have now, but where we wanted to end up. We've discussed our life insurance needs (we have three kids), our retirment needs, how much we should put away yearly to be where we will be comfortable years down the road. We've also discussed our banking needs and how you can make little changes on current investments from banking to credit cards. He's sat down and really looked at all our work benefits. Ours is more than just our financial planner, but a personal planner if that makes sense.

 

[Kies99]

Here is a great article on how to choose one. It's a little old, but still very good.

http://www.fool.com/retirement/retireeport/2001/retireeport010416.htm

 

[mafibisha]

Here is a great article on how to choose one. It's a little old, but still very good.

http://www.fool.com/retirement/retireeport/2001/retireeport010416.htm

Thank you EVERYONE for your ideas!

The above article made me realize how confused I really am!

I (we) want someone who will decide if we have the right amount of insurance, or what to do it we do or dont, where we should focus or put our investments, and / or if we should cash some in to pay off our debt, (usually not a good idea, right? However...)

So regarding that article that says to define *what you need* I think we need it all! HELP, I'm more confused than ever!!

 

[powelweb]

We have one, just started with him about 5 years ago and he definitely has come in very very handy. So I would highly recommend it. I'd personally recommend a fee for service provider (I think that what it's called). The long and short of it, is that we pay him an hourly rate and he doesn't make money off all our accounts, so it's not trying to sell us something we don't really need because it's putting additional money in his pocket. Our's is also an attorney so he will also handle all our wills and he does our taxes at the end of the year, etc. When my husband got laid off several years ago he was just the best!!!! If you are in the Boston area I can recommend a good one.

Debbie,

I'm in the boston area and would love a recommendation. I'm in finance but don't necessarily feel like I'm an expert in all financial areas. I also don't know if we "have enough or make enough" to hire someone.

thanks
Wendy

 

[JaymeC]

Like others have said, get a planner that offers their opinions by straight hourly rate only, not by your assets or by commission. In fact, if it's by commission run away fast! They will more than likely give you advice based on what they need, not you.

And you'll notice I used opinions above. I know it's confusing as all gets out, but the final decision always rests with you. It is YOUR money. Do not do anything you are uncomfortable with doing! If something seems off to you, it's fine to say no and take a break and research on your own... there are so many resources only a google away and honestly I would never fully trust one person with all my financial decisions.

Having said all that, I'm a bit of a control freak and an accountant to boot that's married to someone who's in finance... I know we probably have more of a grasp on things than most people do, but a lot of our education for our own personal finances was prior to college and was self education. There are a ton of resources out there.

 

[mousefan1972]

My husband is a financial advisor. He works for a very small (less than 10 employees) firm and they are independent. This means they will never try to sell you on a particular fund as they aren't paid that way. They always do what is best for their clients. He gets so upset when he hears stories from clients who went to a "big name" brokerage company, only to have their money mismanaged. Steer clear of the ones you see on commercials.

 

[mafibisha]

My husband is a financial advisor. He works for a very small (less than 10 employees) firm and they are independent. This means they will never try to sell you on a particular fund as they aren't paid that way. They always do what is best for their clients. He gets so upset when he hears stories from clients who went to a "big name" brokerage company, only to have their money mismanaged. Steer clear of the ones you see on commercials.

But most of them seem to have commercials, don't they?

And we do alot of research, and have assets invested, but have done it on our own. But now we're starting to think we should be doing something more, by seeing a professional. Like everything is in different places, although I think thats better than all in one place? Like should insurance be with someone other than where IRAs or 401Ks are, different from who handles stock etc?

If this all seems obvious to you, its not to me LOL, and I really would really appreciate any more, specific ideas, and even names, especially how to find a place that isn't advertised / in commercials. Yikes, I'm feeling really unequipped to do this, even though we do both have degrees! But not in finance LOL

Really appreciate the thoughts!!!

 

[disneymomto5]

Here is my financial advise. When we first met with a man, the first visit was free, he told us what he could do for us and how much it would cost (we pay a yearly fee). He promised us that he would more than make up the cost of the fee in the future. Even so, I was really controlling with my money and didn't really want to relinquish that to someone else. We got a recommendation from someone we trusted who spoke very highly of the firm. After a few years, my husband changed jobs and we needed advice on what to do with 401 k's and life insurance. Although there have been a few instances when things were'nt 100% smooth, in the long run, he has made us alot of money and it has been a very good thing for our family. Like someone else said, they will ask you where you want to be and what you want to live like and they help you set those goals so you can accomplish all that you want. Good luck in your search.

 

[clh2]

My husband and I have been working with a financial advisor for about 20 years. When we started using one, we went in for some help with what to do with transferring a 401K to a rollover IRA.

We picked a "fee for service" person,

We are still using the same advisor. We meet with him about 1 time per year, maybe more if our employers switch 401K or 403B plans.

This BY FAR the best money we spend, EVERY SINGLE year.

There is no way, and I mean NO WAY we would be where we are today (in terms of retirement planning and college planning) if we wouldn't have been working with this person. The advice our advisor has given us on our retirement plans has been "spot on", and we have a nicely balanced portfolio between what DH and I have in our respective plans,

 

[DisneyBill]

I respectfully suggest you spend several quality hours reading at www.bogleheads.org. You will learn tons there and be able to answer your original post yourself. HTH

 

[Eastern]

I respectfully suggest you spend several quality hours reading at www.bogleheads.org. You will learn tons there and be able to answer your original post yourself. HTH

I also highly recommend this site. There are many very helpful and knowledgeable posters who can answer your questions and help get you started if you feel lost.

Spend the time getting educated. No one will watch your money as carefully as you will.

 

[mickeytattoo95]

I recommend reading Dave Ramsey's Financial Peace. He explains how to determine the amount of insurance you need, 401K's up to the company match only, then Roth IRAs. You can check the book out of the library and then you at least feel like you have a better "grasp" on the topic.

 

[PatsMom]

I am a Certified Financial Planner. I would recommend that you look for someone with the CFP designation. It means we have a lot of education, pass a two day comprehensive board exam, meet our continuing education and ethics requirements. It is not an easy designation to achieve.

But when it comes to compensation CFP's also come in two varieties. Paid via commission or paid via fees. Neither is inherently wrong, but the important thing is that they are disclosed. Some planners won't do planning work if you don't have a minimum amount of assets and aren't willing to commit to an ongoing asset management arrangement which involves yearly or quarterly fees. Others work on an hourly basis. The first meeting is free, at least with most of the advisors I know. You meet with the advisor, get a general idea of what he or she does and he finds out a little bit about you. Known as a "Hi how are you" meeting. If you feel like a good fit, then a second meeting with much greater financial disclosure is scheduled. You fill out an extensive questionnaire and bring all your statements, insurance policies, estate documents, etc.

During this meeting a lot of questions and a lot of discussion to get a better sense of your goals. At the end of the meeting the scope of the work should be defined. You should have a clear understanding of what the planner will do for you, what the fees are and how you will be charged. Then a meeting is scheduled to review your financial plan. Recommendations are made regarding insurances (all of them, not just life), your estate planning, education funding, retirement funding, income tax planning, etc depending on the areas agreed on. The planner may help you implement the plan (moving accounts, etc).

NAPFA is a group of fee only financial planners and they often work with individuals starting out on an hourly fee basis. www.napfa.org has a search feature to find someone in your area.

 

[jaqlene]

I have been considering the option to invest my money in Forex trading but I don’t have any idea how much to invest first time in it? Can you suggest some tips on that.

 

[powelweb]

If you are in the Boston area I can recommend a good one.

Sounds good. thanks!