Financial Advisor

[BabyBearsMom]

Do you use a Financial Advisor/Planner? If so do you use someone from a big company (and if you don't mind sharing, which one?) or an individual? How much do you pay this person?

[hollybloom24]

We use a CFP. She is not affiliated with a company and therefore I feel gives us independent advice. Her fees range from $1800 for a full financial plan, to about $4500 annually to manage and work with our retirement accounts (making sure they are rebalanced with our other investments) and help us manage our finances, taxes and estate planning issues over all - I can call her every day with questions for that fee. I can call her with questions like, "Can I afford a new kitchen?" and she will give me honest answers: yes, no or yes, but this is what it would impact... We live in Boston.

I know people who pay around $500 for an annual financial plan around here - as long as they have a software package that can create the plan, it is pretty much the same I'd think, for that part. You outline your goals (college, retirement goals, vacation homes, etc) and give the CFP a copy of all your most recent investments and assests, and they show you where you might have too little or too much saved, and develop a plan how to get to your goals.

I would be slightly wary of those who work for companies, like brokerage firms. They might offer you a cheaper plan, but then they will try to sell you their products.

Good luck! Going to a CFP was one of the best things we did!

[hillview]

We are just hiring a financial planner. They review our insurance coverage, retirement funds, kids school funds, estate planning, and do our tax returns. The initial fee is 3500. DH has some very complex stock and options plans so that is part of what is driving the fees. After that initial fee the annual fee drops. They are a small independent firm and so there is no conflict of interest.
/hillary

[JBaxter]

We use a family friend who has a Morgan Stanly office. They do a more wealth preservation plan which has done well for us.

[pb&j]

My employer provides access to a financial planning firm as part of my benefits. No charge to me as my employer picks up the tab, and they are independent. I'm just getting started, and so far I'm really pleased. He just helped me get started with a 529 for the kids, and we've got a meeting to do more comprehensive planning soon.

DH and I had previously met with a financial planner who was affiliated with a brokerage and I did not like that experience. Her initial advice was to move all our investments to funds within her brokerage. Nope, not going to happen, ever. I wanted someone who could work with what we've already got. The current planner through my work has a great worksheet to get started, and looks at the whole picture - insurance, etc.

[jse107]

So how do you find someone good? I get very overwhelmed with this and DH and I are not money people, despite taking several classes on investing.

I feel like we could be doing a better job of saving and investing, but I'm not sure where to go for help!

[belovedgandp]

We've had an advisor with Edward Jones for over four years now. I found her by taking a continuing education class through our local community college. I liked what she had to say. I have an MBA and decent financial market knowledge. Enough to know that I don't like it enough to pay proper attention and do it well myself. But through a simple four week class I felt like I got to know her and her points of view better than just a short meeting. I'm sure she taught it hoping for referrals and it worked for us.

We pay a percentage fee based on total assets. The rate slides down based on how much we have. It was certainly worth it for what she does for us. While we do have our rollover IRAs and some of our college funds with her, she'll also look at our current 401k offerings and give suggestions which is nice. Helps us have a full picture.

If you are in the Dave Ramsey camp at all you can go to his website for a listing of ELP (endorsed local provider) for investing.

[froggert]

we use someone similar to belovedgandp's advisor. there's no guarantee of quality, whether it's a big firm or small shop. start by asking people you trust for referrals.

[larig]

The best advice I got was to find someone who does not get a commission on what they sell to you.

[♥ms.pacman♥]

i started a similar thread last year, and got some great responses there. we ended up going with a more DIY approach. DH checked out books from the library and found some online forums (Bogleheads etc). we ended up saving thousands (tens of thousands) that way, just by refinancing our home and doing other things.

http://www.windsorpeak.com/vbulletin/showthread.php?t=355428

and if u do go get an advisor, i agree with larig, i think the best is to find someone who does not get commission

[minnie-zb]

Another thing to consider: Some financial advisors have minimums (at least in our neck of the woods), you must have $X in assets before they will even talk with you.

[hollybloom24]

Are you looking for someone to help manage your current investments, or someone to evaluate your current financial health and future plans?

A Certifited Financial Planner will evaluate what you have and help you plan for the future for a set fee, ususally the first plan they create for you will cost the most (as it takes more time to understand your assets and plans).

A Financial Advisor is someone who will manage your investments and help you pick the best investment vehicles and options for your situation - usually they are paid by a percentage of the total value of your account. It is pretty typical here to pay about 1% in management fees, usually with a sliding scale - like 1% for $1 million and under, .75% for the next $500,000, .50% for the second $500,000.

[AnnieW625]

No I don't. Our stocks/mutual funds are managed through our 401/457 plans through our employer, and we got the 529 plan through our bank and we only ever met with the guy once. It's been on auto pilot since May, 2006. I need to get another one set up for DD2 also and like the plan that DD1 has so I should probably investigate getting another one set up for her.

If for some reason I ever get an inheritance or have a large sum of money where I need a financial planner I will talk to DH's uncle who uses one or talk to the one my parents use.