Fee-based financial advisor for retirement years

[Anonymous]

After many years, our financial advisor is moving her practice to a custodial & fees based on % of assets. We've accumulated a lot of money in the past 20 years by keeping it very simple (low fee index funds in lucky stock, mostly). We are now in a position to stop working.
Looking for an advisor to help with retirement advice. (We're in McLean, but not sure if location matters at all.)

[Anonymous]

Inexpensive, effective: https://investor.vanguard.com/advice/financial-advisor

No cost for an initial consultation/exploratory conversation to see if the fit is right for you.

[Anonymous]

I think fee-only is the proper term. Basically, our money is set up well for probably the next 5-10 years. But will need retirement, estate planning advice as we shift to spending, rather than accumulating, mode. We have no interest at someone else managing any money. But looking to pay for advice, continuing and as needed.

[Anonymous]

Fee-only fiduciaries

[Anonymous]

You know, I have never been able to find a fee-only advisor, despite everyone saying that’s the only smart way to go. They are like unicorns.

[Anonymous]

Anonymous wrote:You know, I have never been able to find a fee-only advisor, despite everyone saying that’s the only smart way to go. They are like unicorns.

Totally agree. I looked in earnest for several months for one and came up empty.

[Anonymous]

Providing advice for an hourly fee, or by the project, usually is an insufficiently remunerative business model. Most clients will look for 1/2 hour or an hour of time every once in a while, which provides an insufficient income stream to support an advisory business by itself.

Don't be so quick to dismiss low-cost asset management and advisory services. The key is "low-cost". Once you start to pay more than perhaps 0.5% of assets under management as a fee, it'll be difficult for returns to overcome the drag those fees impose on your portfolio. But, when fees are low enough, and are coupled with advice and management, there may well be value there which justifies the advisory fees. This is especially true if you're not always disciplined about maintaining your asset allocation through regular rebalancing, if you use active investments which are not tax sensitive, or may sometimes make other improvident investment decisions on your own. An advisor can help with tax-loss harvesting, which some people struggle to execute optimally. Further, an external advisor/manager may be helpful should you encounter periods of disability when you become unable to focus on or otherwise manage your investments diligently or effectively.

This discussion paper may be interesting, although it is admittedly also a marketing tool for an advisory service: https://advisors.vanguard.com/insights/article/IWE_ResPuttingAValueOnValue

And this: https://www.ifa.com/articles/advisor_alpha_view_from_vanguard/

[Anonymous]

Anonymous wrote:Providing advice for an hourly fee, or by the project, usually is an insufficiently remunerative business model. Most clients will look for 1/2 hour or an hour of time every once in a while, which provides an insufficient income stream to support an advisory business by itself.

Don't be so quick to dismiss low-cost asset management and advisory services. The key is "low-cost". Once you start to pay more than perhaps 0.5% of assets under management as a fee, it'll be difficult for returns to overcome the drag those fees impose on your portfolio. But, when fees are low enough, and are coupled with advice and management, there may well be value there which justifies the advisory fees. This is especially true if you're not always disciplined about maintaining your asset allocation through regular rebalancing, if you use active investments which are not tax sensitive, or may sometimes make other improvident investment decisions on your own. An advisor can help with tax-loss harvesting, which some people struggle to execute optimally. Further, an external advisor/manager may be helpful should you encounter periods of disability when you become unable to focus on or otherwise manage your investments diligently or effectively.

This discussion paper may be interesting, although it is admittedly also a marketing tool for an advisory service: https://advisors.vanguard.com/insights/article/IWE_ResPuttingAValueOnValue

And this: https://www.ifa.com/articles/advisor_alpha_view_from_vanguard/

Thanks for this response.
We've had an ongoing 10 yr relationship with a fee-only advisor who charged an annual fee (paid monthly in arrears) and that was just our speed. We're very plain simple investors and low spenders-- and those years were doubly-lucky with big compensation and big stock market gains. We were pretty much set up for life, accounts all positioned as we want, with quarterly and a big annual review with our advisor. But advisor is moving to fee-based. So sad, I know, but I want to replace the fee-only advisor we had, with a fee-only advisor.
I didn't expect this to be a difficult search.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Providing advice for an hourly fee, or by the project, usually is an insufficiently remunerative business model. Most clients will look for 1/2 hour or an hour of time every once in a while, which provides an insufficient income stream to support an advisory business by itself.

Don't be so quick to dismiss low-cost asset management and advisory services. The key is "low-cost". Once you start to pay more than perhaps 0.5% of assets under management as a fee, it'll be difficult for returns to overcome the drag those fees impose on your portfolio. But, when fees are low enough, and are coupled with advice and management, there may well be value there which justifies the advisory fees. This is especially true if you're not always disciplined about maintaining your asset allocation through regular rebalancing, if you use active investments which are not tax sensitive, or may sometimes make other improvident investment decisions on your own. An advisor can help with tax-loss harvesting, which some people struggle to execute optimally. Further, an external advisor/manager may be helpful should you encounter periods of disability when you become unable to focus on or otherwise manage your investments diligently or effectively.

This discussion paper may be interesting, although it is admittedly also a marketing tool for an advisory service: https://advisors.vanguard.com/insights/article/IWE_ResPuttingAValueOnValue

And this: https://www.ifa.com/articles/advisor_alpha_view_from_vanguard/

Thanks for this response.
We've had an ongoing 10 yr relationship with a fee-only advisor who charged an annual fee (paid monthly in arrears) and that was just our speed. We're very plain simple investors and low spenders-- and those years were doubly-lucky with big compensation and big stock market gains. We were pretty much set up for life, accounts all positioned as we want, with quarterly and a big annual review with our advisor. But advisor is moving to fee-based. So sad, I know, but I want to replace the fee-only advisor we had, with a fee-only advisor.
I didn't expect this to be a difficult search.

If you’ve been with this person for ten years he/she will hate to lose clients so see if you can cut a deal on the fee. It can’t hurt to ask.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Providing advice for an hourly fee, or by the project, usually is an insufficiently remunerative business model. Most clients will look for 1/2 hour or an hour of time every once in a while, which provides an insufficient income stream to support an advisory business by itself.

Don't be so quick to dismiss low-cost asset management and advisory services. The key is "low-cost". Once you start to pay more than perhaps 0.5% of assets under management as a fee, it'll be difficult for returns to overcome the drag those fees impose on your portfolio. But, when fees are low enough, and are coupled with advice and management, there may well be value there which justifies the advisory fees. This is especially true if you're not always disciplined about maintaining your asset allocation through regular rebalancing, if you use active investments which are not tax sensitive, or may sometimes make other improvident investment decisions on your own. An advisor can help with tax-loss harvesting, which some people struggle to execute optimally. Further, an external advisor/manager may be helpful should you encounter periods of disability when you become unable to focus on or otherwise manage your investments diligently or effectively.

This discussion paper may be interesting, although it is admittedly also a marketing tool for an advisory service: https://advisors.vanguard.com/insights/article/IWE_ResPuttingAValueOnValue

And this: https://www.ifa.com/articles/advisor_alpha_view_from_vanguard/

Thanks for this response.
We've had an ongoing 10 yr relationship with a fee-only advisor who charged an annual fee (paid monthly in arrears) and that was just our speed. We're very plain simple investors and low spenders-- and those years were doubly-lucky with big compensation and big stock market gains. We were pretty much set up for life, accounts all positioned as we want, with quarterly and a big annual review with our advisor. But advisor is moving to fee-based. So sad, I know, but I want to replace the fee-only advisor we had, with a fee-only advisor.
I didn't expect this to be a difficult search.

If you’ve been with this person for ten years he/she will hate to lose clients so see if you can cut a deal on the fee. It can’t hurt to ask.

We're working on approaching her for this but it's pretty clear she's moving to managed assets (that we've never been interested in doing and don't want to start) and that she has enough clients so she can say goodbye to ones like us "and wish us well"

[Anonymous]

Anonymous wrote:You know, I have never been able to find a fee-only advisor, despite everyone saying that’s the only smart way to go. They are like unicorns.

Agree because how can they make any money if they charge you $2000 for some advice vs .75% of assets which at $5m is $37,500 a year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You know, I have never been able to find a fee-only advisor, despite everyone saying that’s the only smart way to go. They are like unicorns.

Agree because how can they make any money if they charge you $2000 for some advice vs .75% of assets which at $5m is $37,500 a year.

None charge sort of a retainer fee for ongoing services without charging based on invested or managed assets?

[Anonymous]

I’ve found fee-only advisors through the Garrett Planning Network. One was excellent while another was acceptable.

https://www.garrettplanningnetwork.com/

[Anonymous]

Anonymous wrote:I’ve found fee-only advisors through the Garrett Planning Network. One was excellent while another was acceptable.

https://www.garrettplanningnetwork.com/

Can you say what made one merely acceptable?

[Anonymous]

TIAA has advisors that are on salary. They will rebalance your portfolio once per year for free (we have an annual meeting for that purpose). We are approaching retirement, 3-5 years, depending on if you ask me or my spouse!