did you interview more than one financial advisor?

[Anonymous]

I don't mean the free ones offered through banks or financial institutions. What did you ask them?

[Anonymous]

Yes. they made an entire plan and a notebook with projections and recs.

[Anonymous]

Np here but how do you go about finding one and what questions do you ask?

My net worth is about $1.5 million but a lot is inheritance - my income is about $70k / year (husband's is a closer to $120k).

[Anonymous]

Anonymous wrote:Np here but how do you go about finding one and what questions do you ask?

My net worth is about $1.5 million but a lot is inheritance - my income is about $70k / year (husband's is a closer to $120k).

Talk to fixed fee advisors if you feel you need one. With more young people having money, robo-advisors are getting more and more popular. People don't want to pay extra money for "customer service" = being assured, cuddled and complimented. With your money I would stay away from anyone who wants a % of your money to manage them, while peddling you funds with high management fees.

[Anonymous]

What about assets in the millions? At let's say $10 million, you couldn't find a flat fee one that would be capable (typically) right?

[Anonymous]

Anonymous wrote:Yes. they made an entire plan and a notebook with projections and recs.

How many did you interview?

[Anonymous]

Anonymous wrote:What about assets in the millions? At let's say $10 million, you couldn't find a flat fee one that would be capable (typically) right?

Capable? It's risk-reward. I doubt anyone who is not fixed fee will give you a good risk-reward-loss lesson. Boggleheads is a good source to start if you have questions.
Establish objectives (wealth preservation, growth, retirement, etc) and understand what will prevent you from sleeping at night (aka market crash, VC money lost, neighbor making bank on bitcoin while you sitting on cash).

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yes. they made an entire plan and a notebook with projections and recs.

How many did you interview?

3..Raymond Jones, Morgan Stanley, and A very local firm

[Anonymous]

ugh, don't go with a broker-based adviser

[Anonymous]

Yes, we interviewed 4. One was a traditional advisor through Raymond James (my parents use him), and 3 were fee only advisors that I picked from research. One lower end targeting millennials and people who wanted help getting started out, one mid range, and one super high end that targeted doctors. All very different, and we learned a lot from talking with them all. We were also very up front about who we are talking with, so we didn't waste their time if they didn't think it was a possible fit.

I hate the process of interviewing 3 (home improvement contractors, doctors, advisors, realtors, whatever), but let me tell you - it is the way I've made the best decisions and the process has paid off over and over again. It's not even so much about who I ended up going with - I usually had a gut feel from my research and talking to them on the phone that ended up being right. But what you learn doing the process of talking to that many is very valuable.

The research and coordinating appointments is the worst, when you just want to get it done. But it is probably some of the highest return on investment hours you'll ever spend.

[Anonymous]

We've been with Edward Jones for many years. Very happy with our particular advisor. He told us everything, had it in writing so no questions needed answering.

[Anonymous]

Anonymous wrote:

Anonymous wrote:What about assets in the millions? At let's say $10 million, you couldn't find a flat fee one that would be capable (typically) right?

Capable? It's risk-reward. I doubt anyone who is not fixed fee will give you a good risk-reward-loss lesson. Boggleheads is a good source to start if you have questions.
Establish objectives (wealth preservation, growth, retirement, etc) and understand what will prevent you from sleeping at night (aka market crash, VC money lost, neighbor making bank on bitcoin while you sitting on cash).

Investing doesn't change much because you have a lot of money. Inheritance and taxes can become more of an issue, but that's about it. If you educate yourself and stick to making prudent decisions, you will be fine. Don't get suckered into thinking that you should be investing into a buddies IPO or hedge fund. Every rich person seems to think they know someone that is so talented that everything they touch turns to gold. Stay away from these people and their dumb ideas.

And bogleheads is great!

[Anonymous]

We use an independent advisory company (so they charge 0.75-1% of managed assets). Been with them 10 years, and we're on our third advisor. Well actually we usually get assigned two, one primary one secondary, but people come and go. I was more concerned with the overall firm and we've been pleased.

[Anonymous]

Yes several times. Start with the book the right way to hire financial help then prepare a list of questions - make it the same questions for each professional. You need to understand the difference between their various licenses and whether they are fiduciaries or not. You can very likely get away with someone doing a one-time plan for you and then investing on your own unless you plan to have other major financial events. Also very dull but remember to protect your downside by having sufficient insurance.

[Anonymous]

Our financial advisor will happily do a one time plan for us and then just refresh as needed, we can just move the investments into what he suggests. However, after several meetings with him, we decided to have him manage our funds (he does passive investing, so it's not like he's moving stuff around much), and it has been the best decision. The reason I say that is because it keeps us much more disciplined in staying on track with adding to investments, not letting too much sit in cash (our bias), etc. While we're paying a few grand a year in fees, and we could theoretically be getting the same returns by managing it ourselves, long term we will be better off because of the psychological impact on us of paying attention and having a "coach" that keeps us striving to invest more.