Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Firm has a 12b-1 conflict and may be incentivized to push mutual funds that generate lucrative trailing commissions for themselves when cheaper alternatives exist.
Firm is a broker-dealer, or is affiliated with one, and may be subject to compensation-related conflicts of interest.
Firm is affiliated with an insurance company or agent who could be motivated to insure clients with products that generate high sales commissions when lower cost alternatives may exist.
Firm or an advisory affiliate privately manages or owns some of the products they recommend and may be incentivized to sell those products over others to their investors.
Firm may recommend proprietary investments and products that could generate larger commissions than other similar non-proprietary products.
Firm offers products that have performance-based fees whose managers may be incentivized to take inappropriate risks to beat their performance benchmark.
Firm performs side-by-side management with accounts that have differing fee structures. Investment Advisors may be incentivized to favor clients that pay higher fees over others.
Firm may receive soft-dollar benefits that could incentivize them to push trades through broker-dealers that provide advantages to the firm instead of through broker-dealers that could provide the best execution for their clients.
The 1% commission is fairly standard for wealth management. You don't have to include all of your assets in the account being managed. If you wanted to see how it would work for you, you could have only a portion of your assets in the managed account and continue to manage the rest yourself. The commission would be charged only on the assets you choose to deposit in the managed account, not on your total assets.
I have a portion of my assets in a wealth-management account (the commission is 0.9%), but most I am still managing myself. As I get older, I plan gradually to move assets into the managed account as the manager has been doing a good job and I am happy with the returns he is getting. I am hoping to time it so that all of my assets are in the managed account before I am completely gaga and susceptible to sending money to Nigerian princes.
Not including ALL is a good idea to determine how well they or others do.
There is an old story for the 50s or 60s, where a woman had saved saved most of her life and for retirement wanted a lb exceptional financial manager.
She had something like $200k ( a LOT of money back then).
So she went to a couple of managers and gave them each a small amount of money to be managed, like just $1k or $10k.
None of them were told exactly how much she actually had as a total.
The one who got the best returns and growth finally got her entire account to manage.
We don't have a lot, (certainly not $1m+, and I will never leave it all in one place.
That may just be me. But I think others are of the same opinion.
Sure it's nice to see a BIG number. All in one place, but the little numbers add up too.
Even the CDs for cash quickly available that we have are not at the same institution.
I have my own opinion about these fee only advisers...most suck at the retirement side of things ...these guys are usually fee only because they lack the training, certification and licensing for many different products which can be very good in retirement or they wouldn’t be free only .....
They would certainly put their training and licensing to work ..so I found the ones I checked out behind the times and old school running on yesterday’s products and planning.
Like I said above ,the average person would not know a great planner from a not so great planner so they really can’t evaluate them properly..most of these fee only guys spent their careers tracking the boomers
So they are good at the first half of the game but many just don’t have the training and product knowledge for really playing the 2nd half of the game
I have my own opinion about these fee only advisers...most suck at the retirement side of things ...these guys are usually fee only because they lack the training, certification and licensing for many different products which can be very good in retirement or they wouldn’t be free only .....
They would certainly put their training and licensing to work ..so I found the ones I checked out behind the times and old school running on yesterday’s products and planning.
Like I said above ,the average person would not know a great planner from a not so great planner so they really can’t evaluate them properly..most of these fee only guys spent their careers tracking the boomers
So they are good at the first half of the game but many just don’t have the training and product knowledge for really playing the 2nd half of the game
Well he does have CFP, AIF in his title. JK of course. Great discussion appreciate all the advice.
Last edited by milesfive; 10-11-2019 at 03:15 PM..
Not including ALL is a good idea to determine how well they or others do.
There is an old story for the 50s or 60s, where a woman had saved saved most of her life and for retirement wanted a lb exceptional financial manager.
She had something like $200k ( a LOT of money back then).
So she went to a couple of managers and gave them each a small amount of money to be managed, like just $1k or $10k.
None of them were told exactly how much she actually had as a total.
The one who got the best returns and growth finally got her entire account to manage.
We don't have a lot, (certainly not $1m+, and I will never leave it all in one place.
That may just be me. But I think others are of the same opinion.
Sure it's nice to see a BIG number. All in one place, but the little numbers add up too.
Even the CDs for cash quickly available that we have are not at the same institution.
If you need tax advice, got to a tax attorney.
Best regards to you....
When I wanted guidance my choice after checking out some fee only advisers was a commissioned guy who I ended up buying our long term care insurance from ...what you have is a brain trust ...he handles the financial end but his partners are an estate /elder law attorney and an accountant.
It was through them we learned we had a huge potential state tax problem at the time .
Ny was only at a million back then as far as estate taxes and if you went over by 10% you didn’t pay on the overage ..you lost the entire exclusion....so they hooked us up with special disclaimer trusts to cover us until ny went to the federal level years later
The 1% commission is fairly standard for wealth management. You don't have to include all of your assets in the account being managed. If you wanted to see how it would work for you, you could have only a portion of your assets in the managed account and continue to manage the rest yourself. The commission would be charged only on the assets you choose to deposit in the managed account, not on your total assets.
That's what I did when I received an inheritance. I invested one-third of it in the market through a certified financial planner (fee only) and the rest went into bank certificates of deposit. The invested portion has quintupled in 23 years while the bank deposits have grown only modestly. But I am content with this conservative, low-risk strategy. When the market takes a dive, my husband and I don't panic because we know that only a portion of our assets are at risk. He is 79 and I am nearly 71, so the peace of mind is more important more to us than big gains.
I wouldn't say I am financially ignorant. I do have over 1M and I am 59 1/2. I just don't know how to get the tax breaks they said they could manage since close to 50% of my 401k is company stock.
50%? Not a lot of diversification there...and if you never plan to do something different with it, how are they earning their 1% on that portion - just their tax advice?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
