Need a financial advisor?

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Topic Author
jamesrs
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Joined: Mon Oct 07, 2013 12:42 pm

Need a financial advisor?

Post by jamesrs »

What is the potential value of a financial advisor? I have a million dollars of a nest egg in various mutual funds. I have managed this myself. I am 70 and my wife is 60. We have not touched the retirement money yet. Our life is fairly simple and we are pretty frugal. There is no goal for us to leave money to anyone at the end. Still I think there might be a need to have our money managed in retirement. This will be especially the case if I go before my wife. I have limited this to 3 options. First, use the financial advisor service with Vanguard. That costs 3%. So, at the moment $3000/year. Second, turn over our money to a financial advisor at a fee of perhaps 1%, or $10,000. Lastly, put in the money in a mix of Target date funds and generally let things ride.

I know that I do have a "sub" option of sorts. That being hiring an advisor on a hourly basis. That might be preferable as I think the work for us would be small. What is a fair hourly rate for an advisor in a small mid-western town?

I realize they would ask a lot of questions about tolerance to risk, cost of our current lifestyle, other sources of income, etc. My thought is that we simply target a percentage such as 4% for withdrawal and live within those means.

I am not interested in a financial advisor who is going to make a lot of trades. I would like a strategy that is fairly passive. My main question is there a huge advantage using a financial advisor over using the Vanguard service at this point? Would they make up the possible $7000/year difference in fees?
The last question would be is there a huge advantage using any advisory service at all and simply keep the money in Target funds? I am fine with the idea of an advisor as long as I can see value for money.
livesoft
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Re: Need a financial advisor?

Post by livesoft »

I cannot answer your questions because the answers are based on your personality and anxieties.

I know someone who pays an AUM advisor that AUM fee to invest in index funds and other passively-managed funds. They are always asking me if they should ditch the advisor who is actually quite good for them, but really unnecessary given the investments that their portfolio is invested in. There are almost no transactions each year in the portfolio since everything seems to be set to automatic reinvestment. The portfolio could be more tax-efficient, but it is not that bad. Somehow they cannot bring themselves to accept the responsibility for their own portfolios. The very thought of self-management gives them the heebie jeebies even though they ask about switching to self-management a few times a year for the past several years.
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retired@50
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Re: Need a financial advisor?

Post by retired@50 »

My initial reaction would be to stick with target date funds or Vanguard LifeStrategy funds.

An all-in-one solution can be comforting to a surviving spouse. Simplicity can be a real benefit.

I'm extremely skeptical that a 1% AUM adviser is better than using Vanguard at 0.30%.
If you go this route, just use Vanguard and stay out of places like Edward Jones or Raymond James. There isn't a financial adviser alive that has control over the financial markets to such a degree that they can reliably make up an annual $7,000 deficit (in spite of what they may claim) :shock: .

At your age(s), just make sure you're covered with a will, power of attorney, medical proxy, etc.

Finally, regarding withdrawal rates (4% etc.) see this link: https://www.bogleheads.org/wiki/Safe_withdrawal_rates

Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
dbr
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Re: Need a financial advisor?

Post by dbr »

A value of an advisor is that you could do a horrible job of managing your assets and be saved from that by an advisor. The cost of an advisor is punitive and certain and could even involve you in mistakes you would not have made. Avoiding that cost while avoiding mistakes is up to you regarding straightforward principles that are simple and that you can learn. This forum is dedicated to doing exactly that.
Topic Author
jamesrs
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Re: Need a financial advisor?

Post by jamesrs »

I am confident in what I am doing. But, I am getting tired of doing it, and would not mind having someone looking over my shoulder. Also, I do not find it that interesting.

It has occurred to me that if I use the Vanguard service my portfolio might not look that different than if I just chose a number of target funds for my wife and I.

I got some advice from a financial advisor and I will copy it below.

"Vanguard is a great resource. But you’re not gonna get personal attention, you’re not gonna get financial planning, you’re not gonna get other advice that a financial advisor is able to provide. You will be talking to a new guy every time you call in.

It depends on how you feel about the relative value of professional advice and a tax managed tailored portfolio.

If you don’t want any other help, just use a target risk or a target date fund. It’s not a terrible solution. My choice would be to use a target risk portfolio rather than target date. At least that way you get some minimum control over the asset allocation."
tibbitts
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Re: Need a financial advisor?

Post by tibbitts »

jamesrs wrote: Wed Sep 15, 2021 11:49 am I am confident in what I am doing. But, I am getting tired of doing it, and would not mind having someone looking over my shoulder. Also, I do not find it that interesting.

It has occurred to me that if I use the Vanguard service my portfolio might not look that different than if I just chose a number of target funds for my wife and I.

I got some advice from a financial advisor and I will copy it below.

"Vanguard is a great resource. But you’re not gonna get personal attention, you’re not gonna get financial planning, you’re not gonna get other advice that a financial advisor is able to provide. You will be talking to a new guy every time you call in.

It depends on how you feel about the relative value of professional advice and a tax managed tailored portfolio.

If you don’t want any other help, just use a target risk or a target date fund. It’s not a terrible solution. My choice would be to use a target risk portfolio rather than target date. At least that way you get some minimum control over the asset allocation."
Question: what is it that you're actually doing now, and getting tired of, to manage your investments?

That seems like reasonable advice you received from whatever adviser that was.
Topic Author
jamesrs
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Re: Need a financial advisor?

Post by jamesrs »

I guess mainly I am getting tired of making decisions and carrying this on my shoulders. Also, I am not so confident in the spectrum of things that I am investing in. Perhaps the balance is wrong. Lastly, I am not so clear of what he means by target risk portfolio. Could you give me an example?
dbr
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Re: Need a financial advisor?

Post by dbr »

jamesrs wrote: Wed Sep 15, 2021 11:49 am I am confident in what I am doing. But, I am getting tired of doing it, and would not mind having someone looking over my shoulder. Also, I do not find it that interesting.

It has occurred to me that if I use the Vanguard service my portfolio might not look that different than if I just chose a number of target funds for my wife and I.

I got some advice from a financial advisor and I will copy it below.

"Vanguard is a great resource. But you’re not gonna get personal attention, you’re not gonna get financial planning, you’re not gonna get other advice that a financial advisor is able to provide. You will be talking to a new guy every time you call in.

It depends on how you feel about the relative value of professional advice and a tax managed tailored portfolio.

If you don’t want any other help, just use a target risk or a target date fund. It’s not a terrible solution. My choice would be to use a target risk portfolio rather than target date. At least that way you get some minimum control over the asset allocation."
It could be you don't want an advisor but rather an investment manager. Probably something like VPAS works for that at a reasonable cost. The limitation is that they don't manage any assets that are not invested under the plan at Vanguard. Finding someone who manages all of one's assets in general at a reasonable cost might be difficult.

It would be interesting to know what the chores are that you have that are tiresome. To be fair, here is my list of stuff I have to do, roughly from most to least necessary:

1. Make sure to distribute the RMD from my 401k. This involves keeping the notice regarding how much it is and the bother of selling assets in the brokerage link and moving them to the plan itself from which the withdrawal will be taken. I also have to decide how much state and federal withholding to elect.

2. Make sure I get all the tax data I need from the various financial institutions. As far as investments are concerned that means keeping the 1099 from the 401k and downloading the combined statement from the broker into TurboTax.

3. Track the deposit into the checking account of dividends direct deposited by the broker.

4. Keep a spreadsheet that tracks asset allocation so I can decide if I want to do something to rebalance. In actual practice I have sold and bought once in the last ten years to keep things in line. To some extent other transactions can be used to help.

5. From time to time we sell something in a taxable account for cash. After RMD we don't take distributions from tax deferred accounts. It is possible to arrange for a broker to make a monthly cash disbursement.

6. We don't have any holdings without so much unrealized gain that tax loss harvesting ever happens.

So, what would I use an investment manager to do. Keep in mind an investment manager is not a personal financial manager who pays bills, tracks expenses, does tax filing, disburses money from investment accounts, and so on.
tibbitts
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Re: Need a financial advisor?

Post by tibbitts »

jamesrs wrote: Wed Sep 15, 2021 12:38 pm I guess mainly I am getting tired of making decisions and carrying this on my shoulders. Also, I am not so confident in the spectrum of things that I am investing in. Perhaps the balance is wrong. Lastly, I am not so clear of what he means by target risk portfolio. Could you give me an example?
There isn't a "wrong" balance, just one that's reasonable or not. I'm assuming he means that dates in fund names can be misleading because:

1. they change their allocations and glide paths from time to time;
2. they assume a client has a certain risk tolerance based purely on age or retirement date.

So he feels he could better tailor a portfolio to how you feel about different risks your portfolio would face.
Topic Author
jamesrs
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Re: Need a financial advisor?

Post by jamesrs »

I plan to visit/interview a financial planner that is certified by NAPFA. I have talked to him on the phone. He is flexible. He will take over all the duties for a fee. He also said he would do work on an hourly basis. He would do as little or as much work as I want. This sounds good to me. I have no idea what he charges at this point.
Soon2BXProgrammer
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Re: Need a financial advisor?

Post by Soon2BXProgrammer »

jamesrs wrote: Wed Sep 15, 2021 1:23 pm I plan to visit/interview a financial planner that is certified by NAPFA. I have talked to him on the phone. He is flexible. He will take over all the duties for a fee. He also said he would do work on an hourly basis. He would do as little or as much work as I want. This sounds good to me. I have no idea what he charges at this point.
you should be able to find his rates in his ADV Part2 if you find him/his company on: https://adviserinfo.sec.gov/
Earned 43 (and counting) credit hours of financial planning related education from a regionally accredited university, but I am not your advisor.
Soon2BXProgrammer
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Re: Need a financial advisor?

Post by Soon2BXProgrammer »

jamesrs wrote: Tue Sep 14, 2021 5:21 pm What is a fair hourly rate for an advisor in a small mid-western town?
For Context:

I met Sterling Raskie, PhD as he was my grading instructor for my CFP capstone class, he one of the two advisors that work for:

https://blankenshipfinancial.com/
https://blankenshipfinancial.com/forms/ADVPart2AB.pdf

They charge $225 an hour in New Berlin, Illinois.
Earned 43 (and counting) credit hours of financial planning related education from a regionally accredited university, but I am not your advisor.
BitTooAggressive
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Re: Need a financial advisor?

Post by BitTooAggressive »

I have never used a financial advisor and certainly not at vanguard. However vanguard puts great effort into their target date funds and life strategy funds. So my guess would be they would have to have compelling reasons from deviating too much from them. If there is no compelling tax reason, something unusual in your situation my guess is you could pick a life strategy and be just fine.
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Re: Need a financial advisor?

Post by Misenplace »

jamesrs wrote: Wed Sep 15, 2021 12:38 pm Lastly, I am not so clear of what he means by target risk portfolio. Could you give me an example?
A target risk portfolio would be something that has a set percentage of equities and bonds, and the mutual fund manager keeps it there by rebalancing when needed. For example, it's always 60% stock/40% bonds. Here are the Vanguard flavors of these all in funds:
Life Strategy funds page

A target date fund would be something like Vanguard Target Retirement 2030. It's for people planning to retire in about 10 years, and it is currently about 65% stock, but the mutual fund manager is rebalancing the stock portion downwards every quarter, and will be much less stock in 10 years.
Topic Author
jamesrs
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Re: Need a financial advisor?

Post by jamesrs »

I had been thinking a number around $220-250/hr. In my world they ought to charge less than a lawyer.

So, I did a little quick math. If I were to go with a % based fee structure and the fee was 1% of my million that would be $10,000/year. Divide 10,000 by 250 and you get 40. That means ostensibly I am pay for 40 hours (1 full week) of his undivided attention to my finances. I find it hard to imagine that really happening. If you carry that to the Vanguard scenario the fee would be $3000 or about 12 hours of work. I know the numbers are a bit arbitrary.
dbr
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Re: Need a financial advisor?

Post by dbr »

jamesrs wrote: Wed Sep 15, 2021 3:15 pm I had been thinking a number around $220-250/hr. In my world they ought to charge less than a lawyer.

So, I did a little quick math. If I were to go with a % based fee structure and the fee was 1% of my million that would be $10,000/year. Divide 10,000 by 250 and you get 40. That means ostensibly I am pay for 40 hours (1 full week) of his undivided attention to my finances. I find it hard to imagine that really happening. If you carry that to the Vanguard scenario the fee would be $3000 or about 12 hours of work. I know the numbers are a bit arbitrary.
I'm curious how many hours you think they would spend on your investments and what they would be doing. Note I am not sure most financial advisers really actually work on all your finances distinct from your investments. They would not, for example, help you buy a car or negotiate a contract to paint your house or help plan a vacation or manage your daily spending. They might or might not help with insurance, but unfortunately it is probably best if they are not involved trying to sell you insurance. I do agree that if you hire a professional at that level a $250/hr fee, less than a good lawyer, is probably a good estimate of a fair rate. I think they could be in the same category as a personal tax accountant doing ordinary tax work or something like that. If they are also a tax accountant that might be reasonable but I don't think the skills overlap except maybe at a firm that has different people for each area.
loghound
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Re: Need a financial advisor?

Post by loghound »

I think what OP wants is a process that is more-or-less on autopilot, especially as you get older (or if you fear your spouse will have a tougher time managing money)

In that case I think it's worth looking at some kind of managed service (and by "Manged" I mean something that takes care of sending you money and preventing you from doing something stupid). This isn't so much trying to optimize returns as it is trying to do a 'good enough' job and not run out of money.
  • My father (89 YO) went to the vanguard managed services about 6 years ago. Although he is still doing great and could probably manage it himself it has greatly simplified his life (in his words "I don't think about money" -- He talks to his advisor a few times a year, mostly to let them know if he needs more money for a vacation or big purchase and/or to give him updates on his life. I think he pays 1% (as OP mentions) and in my mind it's money well spent (I don't have to worry about him doing something crazy, or sending a Nigerian prince money).
  • He also has Schwab and I suggested he look at their 'intelligent portfolio' with 'intelligent income' feature. Much the same where it automatically keeps you balanced sends you checks and can more or less be forgotten (they also have a version of that where you get a dedicated advisor for a fee)
  • Probably lots of similar other options.
I guess I would suggest that if you really want to not worry about your wife post your demise, and/or don't want to think about it any more, and/or you worry that *someday* you may start loosing your mental facilities (which, sadly, is somewhat inevitable) you should consider a financial planner/system that sort of works in automatic mode. It's something I plan on doing when I get 70+
I would have written a shorter letter, but I did not have the time. | - Blaise Pascal
dbr
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Re: Need a financial advisor?

Post by dbr »

loghound wrote: Wed Sep 15, 2021 3:39 pm I think what OP wants is a process that is more-or-less on autopilot, especially as you get older (or if you fear your spouse will have a tougher time managing money)

In that case I think it's worth looking at some kind of managed service (and by "Manged" I mean something that takes care of sending you money and preventing you from doing something stupid). This isn't so much trying to optimize returns as it is trying to do a 'good enough' job and not run out of money.
  • My father (89 YO) went to the vanguard managed services about 6 years ago. Although he is still doing great and could probably manage it himself it has greatly simplified his life (in his words "I don't think about money" -- He talks to his advisor a few times a year, mostly to let them know if he needs more money for a vacation or big purchase and/or to give him updates on his life. I think he pays 1% (as OP mentions) and in my mind it's money well spent (I don't have to worry about him doing something crazy, or sending a Nigerian prince money).
  • He also has Schwab and I suggested he look at their 'intelligent portfolio' with 'intelligent income' feature. Much the same where it automatically keeps you balanced sends you checks and can more or less be forgotten (they also have a version of that where you get a dedicated advisor for a fee)
  • Probably lots of similar other options.
I guess I would suggest that if you really want to not worry about your wife post your demise, and/or don't want to think about it any more, and/or you worry that *someday* you may start loosing your mental facilities (which, sadly, is somewhat inevitable) you should consider a financial planner/system that sort of works in automatic mode. It's something I plan on doing when I get 70+
We have heard of such agents as fiduciaries that handle a person's finances for them. Money placed in a trust would be managed out of the hand of the grantor with controls by the trustees. People can end up being court ordered into someone's custody. Preferentially much before that someone with durable and healthcare POA is available to help.

I would not be so sure a financial advisor would prevent a person doing what they wanted except perhaps to advise against it. Vanguard does not let VPAS clients just call up and switch investments to things Vanguard doesn't manage, but they can't stop a person from withdrawing assets.

I am not sure any advisor can stop a person from withdrawing and spending money even if it is half the assets to buy a Yacht when the investor lives in Oklahoma or something.

In any case from having been there and done that more than once, the financial issues affecting elderly, surviving, and/or incapacitated people involve things more serious and important than just managing investments. Also, I don't think there is any such thing as completely automatic management of investments. But one thing a person seeking such a service should do is set up whatever system that is well before they are gone in order to be sure what they want is actually happening. It is also possible that when the person who knows what is going on is gone the person remaining will be taken advantage of by the people one thought were the advisors. That might not happen at VPAS, but it sure can anywhere else.

None of this means a person can't put their wealth under the management of someone else if they want to.
deltaneutral83
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Re: Need a financial advisor?

Post by deltaneutral83 »

For accumulation, anyone who has a few hundred hours reading these forums probably doesn't need an adviser. I don't know that I would ever need an "adviser" but more of a financial planner. "Adviser" as it stands now is usually a guy at a big box shop who takes custody and buys front loaded actively managed mutual funds with an additional AUM fee and hopes to God you stick with he and his firm for 20 years. But as you age and life gets more complicated, issues present themselves, SS, Roth conversions, Medicare, Long Term Care, which state to retire in if applicable, etc. etc. If you can handle it then save your money, but father time erodes all of our cognitive abilities at some point. If you make even one little mistake that winds up costing you 5 figures (or 6 or 7 for some BH's), then a fee only guy would have "paid for himself" several times over most likely. If you are anywhere near half the exemption limit, I would "plan ahead" for the future and I wouldn't think twice about getting an estate attorney, CPA, and fee only guy in your corner. It would amount to peanuts on a $10M net worth per year (2 spouses).

$1M net worth, frugal, no heirs, might be a good idea to check in with a fee only guy just to see if you're on the right track. Or just post here as outlined. Probably can't go wrong either way. Preferably a fee only guy who was once a CPA and stays on top of those things. I think it goes without saying that a 1% AUM guy isn't happening in any scenario. I would also not need anyone to take custody of my assets, the plan would be for a child I've trained up over life to "check over me" the suggestions that a fee only guy recommends that we all three (me/child/fee only guy) agree to.

ETA - If you frequent this board, the Vanguard PAS is probably overkill, isn't it just determine AA and then 3 fund with 60% of equities in TSM and 40% in Intl, and the bond portion to BND?
Last edited by deltaneutral83 on Wed Sep 15, 2021 4:27 pm, edited 3 times in total.
Topic Author
jamesrs
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Re: Need a financial advisor?

Post by jamesrs »

A lot of things run through my mind as I read the comments.

I think developing a hourly type of relationship might have the advantage of being able to increase or potentially decrease the amount of help that I want over time. I have managed well enough to this point. My biggest fear is that I will get the risk balance out of whack and lose a lot of money. I think I may be too aggressive in the funds I have now. But, they are doing really well and I hate to give up that return for something like 2%/year. That is hard, but I know that would be a sensible thing to do. So, an advisor would do the appropriate thing for us at a given age. Some of it is control as well. It is hard to turn over complete control over this money to a stranger. I know I am not the only person with that concern.

I am particularly concerned about my wife after my passing. She is clueless about where the money is and how to access it. So, a trusted advisor at that point (or when I loss it) would be valuable.

I know at this point the easiest option would be to park the money in target date funds or a target risk portfolio and draw a percentage each year like 4% and live with that amount of money each year. So, it goes back to the initial question of what value will an advisor bring to our fairly simple life?

Frankly, I am not too concerned about running out of money in my lifetime. It is my wife that I am concerned about.
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Lee_WSP
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Re: Need a financial advisor?

Post by Lee_WSP »

Unless you desire some sort of further glidepath, there are several mutual funds and ETF's which will keep your AA constant.

As far as financial management for your wife, a trustee is the type of service you are looking for.

If you are concerned about losing your mental acuity, you are describing a trustee or financial fiduciary who will pay your bills, balance your checking, and otherwise handle your finances. This person is not a financial advisor and balancing your checking account and paying bills is beyond the typical services typically advertised as trusteeship. Ie, you'd have to craft a specific plan for your specific situation with a fiduciary.
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jamesrs
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Re: Need a financial advisor?

Post by jamesrs »

I think the advice I would be interested in now relates to allocation strategy, withdrawal strategy and tax strategy.

I know I can get a lot of advice here especially if I can articulate a good question, but I find it hard to sustain interest.
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Re: Need a financial advisor?

Post by pkcrafter »

jamesrs wrote: Wed Sep 15, 2021 5:33 pm I think the advice I would be interested in now relates to allocation strategy, withdrawal strategy and tax strategy.

I know I can get a lot of advice here especially if I can articulate a good question, but I find it hard to sustain interest.
OK, but remember this is your money and you have an obligation to know what is going on, so you should not simply hire an advisor because you are not interested and he has a friendly smile. To get this right it might be best to provide your personal situation (portfolio). That will determine whether you need full service or or just need a low maintenance self-adjusting portfolio. If your current portfolio is too complex, we can help you simplify it. This would be a once and done. :happy


Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
EvelynTroy
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Re: Need a financial advisor?

Post by EvelynTroy »

Soon2BXProgrammer wrote: Wed Sep 15, 2021 1:53 pm
jamesrs wrote: Tue Sep 14, 2021 5:21 pm What is a fair hourly rate for an advisor in a small mid-western town?
For Context:

I met Sterling Raskie, PhD as he was my grading instructor for my CFP capstone class, he one of the two advisors that work for:

https://blankenshipfinancial.com/
https://blankenshipfinancial.com/forms/ADVPart2AB.pdf

They charge $225 an hour in New Berlin, Illinois.
Over the past maybe 7-8 years I met in person twice with Sterling Raskie - I live about a 2 hour drive from them in Missouri.
I was thinking of getting an advisor, after having worked with Larry Swedroe's firm Buckingham Asset Mgmt. for a time. BAM was just too costly for me. Second time I was quite nervous over a big market increase, again thinking maybe an advisor would be a good idea. I don't want to make any big mistakes as I entered retirement.
I am single and have no one financially literate to review and discuss portfolio management with, etc.

Both occasions Sterling with professional guidance and patience - directed me to just continue what I was doing, stay the course, and I didn't require an advisor. No charge for the time spent with me. Would accept no payment. I may well have them manage my portfolio should I become incapacitated, or perhaps have some cognitive decline, or totally lose interest as I continue to age. I have the utmost confidence in both Sterling and Jim Blankenship. If they weren't two hours away from my home the question would be solved. Philosophy of low cost, index ETF's based on risk tolerance.

IMO, if the OP is questioning whether he needs an advisor at all, or for specific advice, on an ongoing relationship - these guys will provide a professional, and I mean honest, considered opinion which to begin with will be free of charge.

OP and readers may be interested in their blog - I think it is very good, and covers a wide range of topics. The blog itself never pushes or really ever mentions their services. Jim Blankenship is a tax and social security expert. I hope you find it helpful.
https://financialducksinarow.com/


Evelyn
dbr
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Re: Need a financial advisor?

Post by dbr »

EvelynTroy wrote: Thu Sep 16, 2021 1:20 pm
Soon2BXProgrammer wrote: Wed Sep 15, 2021 1:53 pm
jamesrs wrote: Tue Sep 14, 2021 5:21 pm What is a fair hourly rate for an advisor in a small mid-western town?
For Context:

I met Sterling Raskie, PhD as he was my grading instructor for my CFP capstone class, he one of the two advisors that work for:

https://blankenshipfinancial.com/
https://blankenshipfinancial.com/forms/ADVPart2AB.pdf

They charge $225 an hour in New Berlin, Illinois.
Over the past maybe 7-8 years I met in person twice with Sterling Raskie - I live about a 2 hour drive from them in Missouri.
I was thinking of getting an advisor, after having worked with Larry Swedroe's firm Buckingham Asset Mgmt. for a time. BAM was just too costly for me. Second time I was quite nervous over a big market increase, again thinking maybe an advisor would be a good idea. I don't want to make any big mistakes as I entered retirement.
I am single and have no one financially literate to review and discuss portfolio management with, etc.

Both occasions Sterling with professional guidance and patience - directed me to just continue what I was doing, stay the course, and I didn't require an advisor. No charge for the time spent with me. Would accept no payment. I may well have them manage my portfolio should I become incapacitated, or perhaps have some cognitive decline, or totally lose interest as I continue to age. I have the utmost confidence in both Sterling and Jim Blankenship. If they weren't two hours away from my home the question would be solved. Philosophy of low cost, index ETF's based on risk tolerance.

IMO, if the OP is questioning whether he needs an advisor at all, or for specific advice, on an ongoing relationship - these guys will provide a professional, and I mean honest, considered opinion which to begin with will be free of charge.

OP and readers may be interested in their blog - I think it is very good, and covers a wide range of topics. The blog itself never pushes or really ever mentions their services. Jim Blankenship is a tax and social security expert. I hope you find it helpful.
https://financialducksinarow.com/


Evelyn
It's very useful that someone would tell an investor to just keep on doing what they have been doing.
Topic Author
jamesrs
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Re: Need a financial advisor?

Post by jamesrs »

I went and interviewed a NAPFA registered planner today. He was sober and clean shaven. That was a good start.

His overall theme was gloom and doom. Inflation is going to come back and stay around for a good while and that taxes are bound to go up having a big impact on the market. As a result he was not crazy about target date funds. He did mention some other Vanguard bond fund.

Anyway, he offered a variety of service options. Custom portfolios for .8%, "model" portfolios (like vanguard) for .4%, or on an hourly basis for $180/hr. He highlighted the later two.

He also said the process would start by working through the Right Capital software. He estimated the cost to review investment account holdings and the Retirement Sustainability Analysis with in-person meeting to be 3-5 hours. I can bail out at any time. After that I can get as much help as I want.

This all seems reasonable.

I am trying to think of ways I could check him out, present and prior clients. But, can't think of a way as I found him on my own. He does not seem all that busy considering he has been in business for 14 years.

My initial thoughts are that I could pay Vanguard .3% or $3000 or go with this business and pay $180 for someone that has been doing this for 35 years versus what I might get at Vanguard. $3000 would buy me about 16 hours of his time.
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retired@50
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Re: Need a financial advisor?

Post by retired@50 »

jamesrs wrote: Fri Sep 24, 2021 4:54 pm I am trying to think of ways I could check him out...
Start here: https://www.investor.gov/introduction-i ... y/form-adv

Do some searching and reading.

Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
mr_brightside
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Re: Need a financial advisor?

Post by mr_brightside »

retired@50 wrote: Tue Sep 14, 2021 5:31 pm My initial reaction would be to stick with target date funds or Vanguard LifeStrategy funds.

An all-in-one solution can be comforting to a surviving spouse. Simplicity can be a real benefit.

agree

they were pretty much invented for this. hard to imagine a scenario where she'd ever run out of money using an appropriate TDF and a 4% withdrawal rate.

------------------------------------------------
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jamesrs
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Re: Need a financial advisor?

Post by jamesrs »

retired@50 wrote: Fri Sep 24, 2021 5:00 pm
jamesrs wrote: Fri Sep 24, 2021 4:54 pm I am trying to think of ways I could check him out...
Start here: https://www.investor.gov/introduction-i ... y/form-adv

Do some searching and reading.

Regards,
He did email me his Individual Disclosure Brochure which looks good.
ROIGuy
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Re: Need a financial advisor?

Post by ROIGuy »

What if you get a fee only planner. Someone that will review and structure your portfolio 1x a year/ set up the upcoming year (taxes/RMD, etc). It would cost you a lot less than getting an advisor who will charge you 1% or more a year. www.garrettplanningnetwork.com

The advisor will make very little money with target date funds so they will never endorse them. I have talked with a few planners over the years. Most either will try to sell you something you don't need or create a scary future, because if everything is coming up roses you don't need them as much.
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Re: Need a financial advisor?

Post by Katietsu »

Just some things to think about:

1) Are your investment assets in tax advantaged accounts? If you have many assets in a taxable brokerage account with embedded capital gains, taxes associated with selling should be a consideration.

2) What type of funds and expenses are associated with the funds he uses? Are they low cost and compatible with your philosophy?

3) Will you be likely to stick with his strategy for the long run? I believe that one reason that people underperform a target date/life strategy fund is because they change strategies in a way that leads to selling low and buying high. For instance, I wonder how many clients underperform because of their association with Buckingham. I say this not because I feel that Buckingham’s approach is bad but because I suspect, some clients bail after a period when a BAM portfolio underperforms a indexed total stock fund.

4) No one knows what will happen with inflation. You can sometimes make a better guess about taxes but, even then, the devil can be in the details. Hopefully, he does not adjust his advice too strongly for these unknowable. I have had family get bad CPA advice because of the underlying political beliefs of the CPA.


Good luck. It is too bad that we must be so on guard when looking at hiring help.
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jamesrs
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Re: Need a financial advisor?

Post by jamesrs »

Good luck. It is too bad that we must be so on guard when looking at hiring help.
[/quote]



Well, it is just like the old joke about asking a bank robber why they rob banks and he responds "cuz that's where the money is"
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AnnetteLouisan
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Re: Need a financial advisor?

Post by AnnetteLouisan »

jamesrs wrote: Fri Sep 24, 2021 4:54 pm I went and interviewed a NAPFA registered planner today. He was sober and clean shaven. That was a good start.

His overall theme was gloom and doom. Inflation is going to come back and stay around for a good while and that taxes are bound to go up having a big impact on the market. As a result he was not crazy about target date funds. He did mention some other Vanguard bond fund.

Anyway, he offered a variety of service options. Custom portfolios for .8%, "model" portfolios (like vanguard) for .4%, or on an hourly basis for $180/hr. He highlighted the later two.

He also said the process would start by working through the Right Capital software. He estimated the cost to review investment account holdings and the Retirement Sustainability Analysis with in-person meeting to be 3-5 hours. I can bail out at any time. After that I can get as much help as I want.

This all seems reasonable.

I am trying to think of ways I could check him out, present and prior clients. But, can't think of a way as I found him on my own. He does not seem all that busy considering he has been in business for 14 years.

My initial thoughts are that I could pay Vanguard .3% or $3000 or go with this business and pay $180 for someone that has been doing this for 35 years versus what I might get at Vanguard. $3000 would buy me about 16 hours of his time.
Definitely check his disciplinary record on Finra’s BrokerCheck website for free.
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jamesrs
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Re: Need a financial advisor?

Post by jamesrs »

Definitely check his disciplinary record on Finra’s BrokerCheck website for free.
[/quote]

Their firm does not sell anything. Still I will do a search
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nedsaid
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Re: Need a financial advisor?

Post by nedsaid »

I think that people need to have realistic expectations of what a good Advisor can do for you. You also have to have a clear idea of what you want.

Retirement planning and in fact good comprehensive financial planning is a good reason to employ someone to help you. A good Advisor can explain to you what your options are in a given situation and in many ways act as a coach and and educator. You also can get the benefit of experience, a more experienced Advisor has seen the mistakes of others and can tell you what not to do. I think in particular, it is a good idea to seek advice regarding the decisions made upon retirement, many of which are irrevocable or at least very hard to reverse.

A good Advisor can make sure that you have a well diversified portfolio and help you invest better than you might be able to do on your own. What they cannot do is guarantee that you will beat the market indexes because whatever Advisory fees you pay will be a drag on performance. Chances are that you will get decent performance and not be subject to such things as performance chasing in good markets and panic selling in bad markets. They are not magicians.

I have seen the value of paying for advice over the years, the question is how much is that good advice worth to you? I will say that good advice can be invaluable, one good piece of advice over something you haven't though of yourself can save you huge amounts of money in a lifetime. So you have to decide if paying an Assets Under Management fee is worth it, 1% is a lot by Boglehead standards and even the 0.30% that Vanguard charges adds up over time. So no clear answer.

If all you want is portfolio management, then a Vanguard LifeStrategy Fund might fit your needs. If you have a need for Financial Planning, you can pay for that by the hour.
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nedsaid
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Re: Need a financial advisor?

Post by nedsaid »

jamesrs wrote: Fri Sep 24, 2021 4:54 pm I went and interviewed a NAPFA registered planner today. He was sober and clean shaven. That was a good start.

His overall theme was gloom and doom. Inflation is going to come back and stay around for a good while and that taxes are bound to go up having a big impact on the market. As a result he was not crazy about target date funds. He did mention some other Vanguard bond fund.

Anyway, he offered a variety of service options. Custom portfolios for .8%, "model" portfolios (like vanguard) for .4%, or on an hourly basis for $180/hr. He highlighted the later two.

He also said the process would start by working through the Right Capital software. He estimated the cost to review investment account holdings and the Retirement Sustainability Analysis with in-person meeting to be 3-5 hours. I can bail out at any time. After that I can get as much help as I want.

This all seems reasonable.

I am trying to think of ways I could check him out, present and prior clients. But, can't think of a way as I found him on my own. He does not seem all that busy considering he has been in business for 14 years.

My initial thoughts are that I could pay Vanguard .3% or $3000 or go with this business and pay $180 for someone that has been doing this for 35 years versus what I might get at Vanguard. $3000 would buy me about 16 hours of his time.
We all have our convictions about the economy, the markets, and what we see as trends. I think of myself as a well informed person but I just don't have the reach to get the true story of what is really happening.

For example, lots of people are concerned about potential changes that Congress could make. If I knew the right people, I could place a call and they could tell me whether or not Congress was really serious about following through with certain proposals or if it were just posturing. Having Warren Buffett, Ray Dalio, and other connected people in my list of contacts would really help. The problem is that no matter how informed and smart your Advisor is, his opinion on certain things could be wrong because he just doesn't know certain things.

I know that my own record of economic and market forecasts isn't all that good. Not because I am not smart and not because I don't try hard to inform myself, it is that there are a lot of things I just do not know. Also keep in mind that the economy and the markets are incredibly complex, hard to fathom that anyone would fully understand how it all works. Even connected, smart, and knowledgeable people like Buffett and Dalio don't always get it right.

So an Advisor needs humility here. Lots of missed predictions and egg on the face of experts who should have known but didn't. What you want is a good portfolio that over long periods of time should do well despite unforeseen events. The crystal ball is always cloudy.

An Advisor will be able to help with a good Financial and Investment plan but they can't predict the future anymore than esteemed economists can.
A fool and his money are good for business.
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jamesrs
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Re: Need a financial advisor?

Post by jamesrs »

Let me ask this. What about employing software Right Capital? I only heard of it yesterday.
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Re: Need a financial advisor?

Post by nedsaid »

jamesrs wrote: Wed Sep 15, 2021 11:49 am I am confident in what I am doing. But, I am getting tired of doing it, and would not mind having someone looking over my shoulder. Also, I do not find it that interesting.

It has occurred to me that if I use the Vanguard service my portfolio might not look that different than if I just chose a number of target funds for my wife and I.

I got some advice from a financial advisor and I will copy it below.

"Vanguard is a great resource. But you’re not gonna get personal attention, you’re not gonna get financial planning, you’re not gonna get other advice that a financial advisor is able to provide. You will be talking to a new guy every time you call in.

It depends on how you feel about the relative value of professional advice and a tax managed tailored portfolio.

If you don’t want any other help, just use a target risk or a target date fund. It’s not a terrible solution. My choice would be to use a target risk portfolio rather than target date. At least that way you get some minimum control over the asset allocation."
The Advisor's comments were mixed. He wasn't quite right about Vanguard. You will get personal attention and financial planning at Vanguard but the Advisor you work with will likely change over time. I have worked with an Advisory service at a mutual fund company for just over two years and already I am on my third Financial Consultant. Not sure what people's experience at Vanguard has been. With a local advisor, you could have a long term Advisory relationship with the same person but it will be more expensive than at Vanguard. I have read many positive comments here about the Vanguard Personal Advisory Service.

The Advisor's comments about a Target Risk or Target Date fund were correct. For retirement accounts, these work great but they are not managed for tax efficiency so I would probably not put them in a taxable account. I don't know what the historical Capital Gain and Dividend distributions have been from Vanguard's Target Risk Funds which are known as LifeStrategy Funds. As I recall, Vanguard does have a Robo-Advisory service even cheaper than their Personal Advisory Service. The robots will manage for tax efficiency. You could have the robot run the taxable account and a LifeStrategy fund run your tax deferred retirement accounts.

Sounds like you have done well, congratulate yourself. Don't blame you for not wanting to manage things yourself anymore. You are on the right track checking out your options.
Last edited by nedsaid on Sat Sep 25, 2021 3:00 pm, edited 1 time in total.
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Re: Need a financial advisor?

Post by nedsaid »

jamesrs wrote: Sat Sep 25, 2021 2:36 pm Let me ask this. What about employing software Right Capital? I only heard of it yesterday.
Boy, there are all kinds of software out there that people use. I don't know anything about it either. Did a little googling, it is Financial Planning software. I pulled this from their website:
RightCapital provides financial professionals with interactive, easy-to-use technology and flexible planning tools to grow their business. Our powerful platform and user-friendly interface helps advisors simplify the financial planning experience for their clients.

Differentiate your practice with RightCapital:

Interactive Retirement Planning
Innovative Tax-Efficient Distribution Strategies
Social Security Optimization
Budgeting and Debt Management Tools
Simplified Digital Client Onboarding, User-Friendly Portal, and Mobile App
RightPay Integrated Fee-Collection Service
https://success.rightcapital.com/QuickG ... gLQJvD_BwE
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Eagle33
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Re: Need a financial advisor?

Post by Eagle33 »

Don't know if Plan Vision would be a good choice for you or not. Here is video presentation of their services gave at a Boglehead meeting.

Plan Vision is $189 for first year and $96 each year thereafter. They use eMoney software.
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Re: Need a financial advisor?

Post by Wenonah »

Just go with Vanguard! Even if you get a different advisor, they all have the same philosophy and truly, they do stop you from doing stupid things. I called once about a change I wanted to make and the advisor literally asked me if I wanted him to talk me off a cliff. I said Yes, and he did. They are patient and helpful and can explain things to your wife. We are not only asking them about funds we have in Vanguard, but also in our state retirement system, social security scenarios for us, and we have discussed taxes, and LTC insurance...and I know they are not trying to rip me off.
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jamesrs
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Re: Need a financial advisor?

Post by jamesrs »

nedsaid wrote: Sat Sep 25, 2021 2:54 pm
jamesrs wrote: Wed Sep 15, 2021 11:49 am I am confident in what I am doing. But, I am getting tired of doing it, and would not mind having someone looking over my shoulder. Also, I do not find it that interesting.

It has occurred to me that if I use the Vanguard service my portfolio might not look that different than if I just chose a number of target funds for my wife and I.

I got some advice from a financial advisor and I will copy it below.

"Vanguard is a great resource. But you’re not gonna get personal attention, you’re not gonna get financial planning, you’re not gonna get other advice that a financial advisor is able to provide. You will be talking to a new guy every time you call in.

It depends on how you feel about the relative value of professional advice and a tax managed tailored portfolio.

If you don’t want any other help, just use a target risk or a target date fund. It’s not a terrible solution. My choice would be to use a target risk portfolio rather than target date. At least that way you get some minimum control over the asset allocation."
The Advisor's comments were mixed. He wasn't quite right about Vanguard. You will get personal attention and financial planning at Vanguard but the Advisor you work with will likely change over time. I have worked with an Advisory service at a mutual fund company for just over two years and already I am on my third Financial Consultant. Not sure what people's experience at Vanguard has been. With a local advisor, you could have a long term Advisory relationship with the same person but it will be more expensive than at Vanguard. I have read many positive comments here about the Vanguard Personal Advisory Service.

The Advisor's comments about a Target Risk or Target Date fund were correct. For retirement accounts, these work great but they are not managed for tax efficiency so I would probably not put them in a taxable account. I don't know what the historical Capital Gain and Dividend distributions have been from Vanguard's Target Risk Funds which are known as LifeStrategy Funds. As I recall, Vanguard does have a Robo-Advisory service even cheaper than their Personal Advisory Service. The robots will manage for tax efficiency. You could have the robot run the taxable account and a LifeStrategy fund run your tax deferred retirement accounts. :idea:

Sounds like you have done well, congratulate yourself. Don't blame you for not wanting to manage things yourself anymore. You are on the right track checking out your options.
This idea seems appealing to me. Of our total $569000 are in taxable accounts. Some of that is an old IRA. Although I am exploring how much of that I could move to Roth this year. Our taxable income is quite low. Then I could do LifeStrategy for the rest. So, I have a question. (excuse my ignorance if it shows) In terms of withdrawals I would take taxable money first. In that scenario the tax deferred accounts would tapped down the road some years. In that case would it be a reasonable strategy to pick target funds like 2025 or even 2030 as that money will be sitting there for a while?

With respect to RightCaptial. I looked at several videos on Youtube. This might be more than we need. Enter a lot of data and ask a lot of "what if's" I am 70 years old. The train has left the station in a most of their scenarios. Additionally our lives are pretty simple. So, I am not seeing a great advantage of this tool. Plus, I do not see how that software will directly address my objects. Help with allocation, help with withdrawals and help with tax strategies. I hate to say this but it kind of looks like a tool to generate billable hours.
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Re: Need a financial advisor?

Post by Soon2BXProgrammer »

jamesrs wrote: Sat Sep 25, 2021 2:36 pm Let me ask this. What about employing software Right Capital? I only heard of it yesterday.
I used RightCapital in my practice, it is a great tool for Financial Planning. like all software it is Garbage in garbage out.. but it works well for building plans. It has some limitations that almost all financial planning tools have, but it works well.

And financial plannign tools are not really for YOU the client... they are really for the advisor to keep a document picture that evolves of your financial situation, so they have a written model to update their mental model for making recommendations.
jamesrs wrote: Mon Sep 27, 2021 12:48 pm Plus, I do not see how that software will directly address my objects. Help with allocation, help with withdrawals and help with tax strategies. I hate to say this but it kind of looks like a tool to generate billable hours.
Asset allocation isn't addressed by the tool other then helping to decide if you have any "need to take risk".. (traditional questionnaires is used to find "willingness and capacity to take risk")

RightCapital is great for tax planning, it creates a 1040 for every future year, and bakes into the tax cost.. You can model roth conversions, or other strategies (taxable first, or pretax withdrawals first, etc), it can make predictions if your assets might grow faster then escape velocity and if you will have an RMD problem, etc.. Basically planning is so complex, even the advisor needs tooling to help them make recommendations, because its so hard to keep all the pieces in their mind...

Generate billable hours? while it takes time at the beginning to get things setup, over time, i would say it could reduce the advisors effort because they have good documentation about your situation and the plan, then they can make course corrections easier.
Earned 43 (and counting) credit hours of financial planning related education from a regionally accredited university, but I am not your advisor.
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Re: Need a financial advisor?

Post by nedsaid »

Deleted. Duplicate post.
Last edited by nedsaid on Mon Sep 27, 2021 2:29 pm, edited 3 times in total.
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nedsaid
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Re: Need a financial advisor?

Post by nedsaid »

jamesrs wrote: Mon Sep 27, 2021 12:48 pm
nedsaid wrote: Sat Sep 25, 2021 2:54 pm
As I recall, Vanguard does have a Robo-Advisory service even cheaper than their Personal Advisory Service. The robots will manage for tax efficiency. You could have the robot run the taxable account and a LifeStrategy fund run your tax deferred retirement accounts. :idea:

Sounds like you have done well, congratulate yourself. Don't blame you for not wanting to manage things yourself anymore. You are on the right track checking out your options.
This idea seems appealing to me. Of our total $569000 are in taxable accounts. Some of that is an old IRA. Although I am exploring how much of that I could move to Roth this year. Our taxable income is quite low. Then I could do LifeStrategy for the rest. So, I have a question. (excuse my ignorance if it shows) In terms of withdrawals I would take taxable money first. In that scenario the tax deferred accounts would tapped down the road some years. In that case would it be a reasonable strategy to pick target funds like 2025 or even 2030 as that money will be sitting there for a while?

With respect to RightCaptial. I looked at several videos on Youtube. This might be more than we need. Enter a lot of data and ask a lot of "what if's" I am 70 years old. The train has left the station in a most of their scenarios. Additionally our lives are pretty simple. So, I am not seeing a great advantage of this tool. Plus, I do not see how that software will directly address my objects. Help with allocation, help with withdrawals and help with tax strategies. I hate to say this but it kind of looks like a tool to generate billable hours.
Awesome. You have done your homework.

Vanguard has a Digital Advisor Service for managing your taxable account, it costs 0.15% a year plus the internal expenses of your mutual funds. Problem is the tax management of your account would likely start once the portfolio is set up, not sure how they work with existing investments. You want to make certain you don't trigger unwanted capital gains. The Personal Advisory service could work with what you already have keeping in mind your embedded capital gains. Be sure you have this question answered before you start.

https://investor.vanguard.com/advice/digital-advisor/

My suspicions are confirmed. As I looked through the Digital Advisor website, they want you to start fresh and they invest you in Vanguard ETFs. It appears that you would have to sell your taxable investments (or Vanguard can convert certain Index Funds into ETFs tax free). It seems that this Digital Advisory platform just isn't set up for someone in your situation. I think what I would do is pay the extra (0.30% vs. 0.15%) and take your taxable accounts to Vanguard Personal Advisory Service.

Keep in mind that at a 12% tax bracket, your capital gains rate is zero. If you get into the 22% bracket, your capital gains tax rate goes to 15%. You also have to take into consideration your State Income Tax. What you want to do is have someone run scenarios for you to see how you can minimize your taxes if you decide to take gains. A Vanguard Advisor could do this for you.

You could use one of the LifeStrategy funds for your tax deferred IRA accounts, whichever fund you choose would keep a static asset allocation. It would be ideal, a Vanguard Advisor would put you in a similar asset allocation anyways.
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nedsaid
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Re: Need a financial advisor?

Post by nedsaid »

I found this on the Vanguard website. The quotes come from the Frequently Asked Questions regarding Digital Advisor:
For each taxable account you wish to enroll, the entire balance must be in the brokerage account's settlement fund.
We recommend you consult a qualified tax advisor to discuss your individual situation and any potential tax consequences.

Important: Digital Advisor doesn't assess the suitability of the sale of existing holdings given a particular client's financial circumstances, recommend selling a client's existing holdings, or provide tax advice. The sale of existing holdings could cause you to incur capital gains—costs associated with incurring capital gains vary based on the time you hold a position and your individual tax situation. The cost of incurring capital gains can be substantial.
If you want your taxable account managed at Vanguard, take it to Vanguard Personal Advisory Service.
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Re: Need a financial advisor?

Post by jacksprat »

OP,

I'd suggest you make a list of possible financial 'actions' you and/or your wife would want - keeping in mind the future WILL alter you and your wife's needs .. Your 3 options are fine, if they meet your short and long needs.
PAS seems like an option as long as you can manage your financial life.. But for how long ?

Do you want now or in the future ::

--tax optimization/avoidment
--tax payments of your behalf
--SS optimization
--wills
--Long term care suggestions
--portfolio 'management' ( buying/selling on your behalf)
or a self managed portfolio or maybe a hybrid approach
--short/long goal setting
--granting them access (logins and passwords) to all your banking and financial accounts for bill/money movements
or would you prefer to keep these private
--bill aggregation and/or payment on your behalf
--spending goals and overview ( monthly or yearly review )

& many more.......

Then present your list of needs and have them review what they can and will do and EXACTLY what the ongoing fees will be...

Have them be SPECIFIC with these because the devil is in the details, IMO...
Also, perhaps a 'gliding' path of increasing needs could be set and written into a plan to have them intervene if either you or your wife needed more help. You may be able to self manage your financial life now, so a flexible plan will give you both some assurance.

Visit more than one advisor/planner , but personally I found the garret planning network person I met with to more than meet our needs...
Vanguard PAS services are too limited - for us ...

Best wishes..
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jamesrs
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Re: Need a financial advisor?

Post by jamesrs »

PAS seems like an option as long as you can manage your financial life.. But for how long ?
Perhaps at that point I would be more in need of a fudiciary that a financial planner.
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jamesrs
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Re: Need a financial advisor?

Post by jamesrs »

What if I approached the advisor with a proposal format? I've got $1500 or $2000 (whatever). What can you do for me, what will you do for me for that amount of money? Just thinking.
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nedsaid
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Re: Need a financial advisor?

Post by nedsaid »

I did work briefly for someone who was an Advisor through the Garrett Planning. Network, he is a CPA and does Advisory work as a part of his practice. He would charge by the hour helping people with Financial Planning and for those who wanted financial management would charge 0.75% Assets Under Management fee.

This from the Garrett Planning Network website:
Offer financial planning and investment advice on an hourly, as-needed basis (and they may also offer investment management services, in addition to hourly-based services).
It looks like some Garrett planners perform portfolio management.

Two credentials you want to look for, either the Certified Financial Planner (CFP) or the Personal Financial Specialist (PFS) which CPA's can earn through the AICPA (American Institute of Certified Public Accountants).

Some advisors have only Securities and Insurance Licenses, nothing wrong with the licenses but you want the CFP or the PFS credential (if the advisor is a CPA). These folks have extensive training and can advise you on most all personal finance topics.

If you want a comprehensive financial plan, they probably start at $2,500 and can run thousands of dollars. Once the plan is in place, you meet with the advisor once or twice a year if needed. As you interview advisors, ask them about their fee structure. If you pay an Assets Under Management fee, the advisor might roll the Financial Planning fees into the AUM. My best guess is that you will get charged separately for the planning and for asset management.

It sounds to me like you want some questions answered and portfolio management. It doesn't sound like you want comprehensive financial planning. But you have to ask yourself the question, what do I really want? What do I want the Advisor to do for me? Then it boils down to how much you want to pay for it.
A fool and his money are good for business.
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