One Time Financial Plan from Advisor?

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jstage
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Joined: Wed Apr 28, 2021 12:07 pm

One Time Financial Plan from Advisor?

Post by jstage »

Hello,

I like to think of myself as savvy/smart with our money and follow bogleheads. However, my husband and I are toying with the idea of having a financial planner look at all our stuff and create a one time financial plan. I've only found one person who does this near us and its quoted as 4k to 8k depending on complexity which seems very steep. Basically, we want someone to say how on track we are to hitting our retirement goals, saving for kids college, and how much we should spend on a house (we need to upgrade. Have two bedrooms and just had second child they can't share bc I don't want boy/girl siblings sharing long term).

Does that price seem appropriate?
Are there any services anyone knows of that does this sort of thing?
Do we just not need this and could dig into free resources to figure it out? There just seem to be so many different theories on how much to save, theories of what to save, etc. it is hard for us to decide what our "path" is.
Golf maniac
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Re: One Time Financial Plan from Advisor?

Post by Golf maniac »

The cost really depends on your location and the complexity of your situation. When I looked into this about 10 years ago I was quoted $2,500 to $4,000 depending on the complexity by a highly regarded firm. I decided to do it myself except the wills. There are a lot of resources here and you could break it down into 3 or 4 posts asking your questions on the various topics. There are also many self help resources on here and elsewhere on your questions. My preference is to research, study, ask good questions here, and make an informed decision myself. Take a look under wiki at the top of the page.
Rex66
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Re: One Time Financial Plan from Advisor?

Post by Rex66 »

I wouldn’t spend the money for a pat on the back
EvelynTroy
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Re: One Time Financial Plan from Advisor?

Post by EvelynTroy »

About 5 months ago I did something similar, being retired my objectives a bit different. I had a one time financial review completed to make sure I was on the right track that my portfolio would outlast me, possible ways to make my portfolio more tax efficient, and to tie in a sort of interview with this particular fee-only advisor to determine if this firm might be a good match for when I require an advisor, i.e. some cognitive decline, or just lose interest in DIY.
That said, it worked out fine and I was happy I did it. The cost $1700. I do live in a LCOLA, the mid-west.

Rick Ferri, well respected boglehead type advisor does a one time financial review. His schedule is booked so you are referred to https://jonluskin.com/ cost $1125
The service didn't suit me, but it may work for you. A free 15 minute call to determine if the service would work for the both of you is part of the process. Of course this is not an in person service.

I would recommend highly is to do a review of your financial situation right here at Bogleheads - going through the process in itself is helpful in organizing your financial well-being. At the Personal Investing section - start here:

viewtopic.php?f=1&t=6212
Whether you engage a firm for a financial plan or not the process or organizing your information noted above is about the same thing you will have to do if you engage a firm.

Evelyn
tvubpwcisla
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Re: One Time Financial Plan from Advisor?

Post by tvubpwcisla »

Definitely not a bad idea. Depending on your experience level, it could turn out to be money well spent.
punkinhead
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Re: One Time Financial Plan from Advisor?

Post by punkinhead »

I looked around for a financial planner when I decided to retire a year ago and was getting quotes in the $5k range which I though was ludicrous for the amount of work involved. I did enough research to convince myself that the math worked and I had a good plan. I recently signed up for Planvision for under $200 but haven't had the review meeting yet, but this might be a good solution for someone who has a pretty good understanding of their situation but wants another set of eyes to look at any holes in their plan.
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retiredjg
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Re: One Time Financial Plan from Advisor?

Post by retiredjg »

Here is an earlier thread which discusses/lists advisors known to offer this kind of service.

viewtopic.php?t=360823
mtwhmemn
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Re: One Time Financial Plan from Advisor?

Post by mtwhmemn »

EvelynTroy wrote: Tue Jan 18, 2022 9:27 am About 5 months ago I did something similar, being retired my objectives a bit different. I had a one time financial review completed to make sure I was on the right track that my portfolio would outlast me, possible ways to make my portfolio more tax efficient, and to tie in a sort of interview with this particular fee-only advisor to determine if this firm might be a good match for when I require an advisor, i.e. some cognitive decline, or just lose interest in DIY.
That said, it worked out fine and I was happy I did it. The cost $1700. I do live in a LCOLA, the mid-west.

Rick Ferri, well respected boglehead type advisor does a one time financial review. His schedule is booked so you are referred to https://jonluskin.com/ cost $1125
The service didn't suit me, but it may work for you. A free 15 minute call to determine if the service would work for the both of you is part of the process. Of course this is not an in person service.

I would recommend highly is to do a review of your financial situation right here at Bogleheads - going through the process in itself is helpful in organizing your financial well-being. At the Personal Investing section - start here:

viewtopic.php?f=1&t=6212
Whether you engage a firm for a financial plan or not the process or organizing your information noted above is about the same thing you will have to do if you engage a firm.

Evelyn
My wife and I are on the cusp of retirement and I want a second set of eyes to look over our fairly simple situation and confirm our drawdown plan is correct. Is that the situation you were in and wanted advice? Why was Ferri / jonluskin.com not a good fit? What type of pro did you end up going with that did fit your situation? Thanks.
EvelynTroy
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Re: One Time Financial Plan from Advisor?

Post by EvelynTroy »

My wife and I are on the cusp of retirement and I want a second set of eyes to look over our fairly simple situation and confirm our drawdown plan is correct. Is that the situation you were in and wanted advice? Why was Ferri / jonluskin.com not a good fit? What type of pro did you end up going with that did fit your situation? Thanks.
I would say my situation is simple - been retired 7 years, single, age 75. I know at some point I will require a fee-only advisor because of aging and I want to have a good idea who I will chose. I can't just pull a trusted advisor out of the air when I need one. That was a big part of seeking a one time plan/review. The process would give me a good feel for the advisor.
I just wanted a 2nd opinion of how I am managing my portfolio as well as any other financial items that should be attended to. They also gave me a general review of my trust documents - not a legal opinion, just a general review.
Someone noted, no need to pay someone for a pat on the back. For me I wasn't quite sure I would get a pat on the back a head of time.

I had the review done by a local fee-only, fairly low cost firm that builds portfolios using low cost index ETF's - https://www.fiduciaryadv.com/

I prefer not to discuss Ferri/Luskin publicly - nothing bad to say about the service in particular.

Evelyn
JackBoglereader21
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Re: One Time Financial Plan from Advisor?

Post by JackBoglereader21 »

I used a Fee Only Non AUM finance advisor for a one time financial review/plan. In VHCOL Bay Area it was $4,900 in 2021. The planner used the eMoney platform. I utilize both Vanguard Personal Advisor and Schwab Intelligent Portfolio, both have CFP - Schwab has Money Guido Pro feature. The service was valuable to me, albeit redundant in some ways. I have been DIY all my life, I have received a lot of great information on BH, I stay the course and don't make finance decisions I don't understand. By most measure I am financially conservative, following most of BH guidelines to work, save, invest.

The real value for me was getting my portfolio reviewed and getting me super organized. The service forced me to physically and mentally put things into folders and buckets - this has been hard on me as I tend to get scattered and distracted easily. We have some major life events (milestones) in the coming years. Even though I did my best to back-of-the-napkin our finances for those events, the finance advisor gave me more confidence that I was/am on the right track.

Also, my spouse is disinterested in managing our finances but the advisor wanted to meet both of us so we sat through several Zoom meetings together. This helped us talk through/clear up some issues that we didn't even think about. If I were to be hit by a bus tomorrow, my spouse has a finance advisor that she has actually met and someone I know who won't sell her a high commission annuity :annoyed . Even though we are Vanguard PAS and Schwab IP clients, I think this added pair of eyes was what we needed.

$4,900 was on the upper end for me. I almost bulked. Initially I justified it with the savings we've built up during the pandemic (mainly from no travel). In the end I felt I got real value and didn't need to justify the cost. That said, I do feel I paid too much but that's okay, I consider it tuition.

If I could do it over again, I would still pay for a one time non AUM advisor but I would search harder for someone who could give me tax advice in addition to one time plan. I would try to get eMoney, Money Guido Pro or a similar service for free and DIY my plan and then I would get a CPA, tax attorney to help me plan taxable withdraws, IRA conversions, etc.. I would hire Rick Ferri to review my portfolio. But that's all hindsight because I now have a clearer picture of my finances and organizational skills I learned from our advisor. I hope sharing my experience helps others with theirs.
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JoeRetire
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Re: One Time Financial Plan from Advisor?

Post by JoeRetire »

jstage wrote: Tue Jan 18, 2022 9:04 am Hello,

I like to think of myself as savvy/smart with our money and follow bogleheads. However, my husband and I are toying with the idea of having a financial planner look at all our stuff and create a one time financial plan. I've only found one person who does this near us and its quoted as 4k to 8k depending on complexity which seems very steep. Basically, we want someone to say how on track we are to hitting our retirement goals, saving for kids college, and how much we should spend on a house (we need to upgrade. Have two bedrooms and just had second child they can't share bc I don't want boy/girl siblings sharing long term).

Does that price seem appropriate?
Are there any services anyone knows of that does this sort of thing?
Do we just not need this and could dig into free resources to figure it out? There just seem to be so many different theories on how much to save, theories of what to save, etc. it is hard for us to decide what our "path" is.
If you aren't confident in your ability to handle this complex situation on your own, it makes complete sense to pay for a professional's time.

$4-8k does seem expensive, but of course it depends on what you are asking for.

Shop around. Some fiduciary advisors offer a low introductory analysis and plan in hopes of having you optionally sign up for a longer term arrangement. If I remember correctly, Edelman Financial used to charge $800 for this sort of analysis and advice. I'm not sure what it costs now.
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DarkHelmetII
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Re: One Time Financial Plan from Advisor?

Post by DarkHelmetII »

I had a guy review our plan for around ~$2k. Was hard to find him as most wanted to at least create a full, comprehensive plan if not AUM. This was several years ago so throw in some "regular" inflation + COVID maybe $3 or $4k at most??? Point is maybe a "review" is worthwhile and possible at the lower end of your current range.

Others have indicated that there is no reason to pay for a "pat on the back." Fair point, but - and I don't know how big OP's portfolio is - but in my opinion, even a well-disciplined DIY'er / BH can benefit from a few thousand dollar independent feedback every couple of years.

Feel free to PM me if you want contact information of the guy we used.
Jack FFR1846
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Re: One Time Financial Plan from Advisor?

Post by Jack FFR1846 »

None of what you want to know is rocket science.

On track for retirement savings? This is simply...how much are you saving. You can separately put this into a year by year excel sheet. Figure it'll get a percentage return each year. When the year hits, replace predicted with actual. I've done this using 5% and each year is changeable.

Good for college? What college? What's it cost now? At 7% a year increase, what'll it cost when they're ready to go. I think it's safe, since you're on Bogleheads that you will get zero grants beyond possible Merit grants. Stafford loans can be counted on.

Asset allocation? This really is the easiest thing to figure out. I mean, first, your 401k type investments should follow the rule of "what's the absolute lowest ER?". It's what I do with my 401k which has a great, low S&P 500 at 0.015% and then 10's of garbage investments. Use your other accounts as needed to build in your bonds and international. The fewer funds, the better. And it's absolutely fine to call an S&P, VTI, SCHB, FZROX all US equity. I even call BRK/b US equity. Close enough, in my view.

I've mentioned a number of times that I built a Life spread sheet with yearly columns. Each year, I show investments (lump em all into one number) with that mentioned 5% growth per year. Of course add in your savings each year, your spending each year, taxes, etc. You can roll it all up to see your gain each year. I did it to predict what I'd leave to my wife when I die. Every year that passes, I update the sheet.

And of course, you can use the form to ask Bogleheads how you're doing. People often are long time members and do something very anti-boglehead and don't even realize it. That will be pointed out.
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Soon2BXProgrammer
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Re: One Time Financial Plan from Advisor?

Post by Soon2BXProgrammer »

jstage wrote: Tue Jan 18, 2022 9:04 am I've only found one person who does this near us and its quoted as 4k to 8k
A plumber or electrician in my area charges $200+ an hour. Divide the total cost by what you think is a fair hourly rate (based on what other labor costs in your market) to get an expectation about how many hours you should expect they work.. Do you think your project is that many hours?
Earned 43 (and counting) credit hours of financial planning related education from a regionally accredited university, but I am not your advisor.
dbr
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Re: One Time Financial Plan from Advisor?

Post by dbr »

1. I think that cost is a little high, but do you think your situation is complicated?

2. A one-time analysis is always money well spent if they do their job. There is a huge risk that the whole thing is a come-on to get your assets into high fee and high cost investments. You could interview to see if they bias toward low cost index fund investing.

3. You could consult an estate planning attorney to see how much of your situation is about estate planning rather than investing.

4. Are you clear on needing to look at tax issues. You might be better off talking to a CPA in tax about some things.

5. I don't have a recommendation, and if I did as a matter of policy I would never offer an endorsement on a board like this.

6. An option is to post your situation here and see what people say about it. If nothing else you find out if things are really just plain simple or it there are actual questions to resolve. The format is here: viewtopic.php?f=1&t=6212
JackBoglereader21
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Re: One Time Financial Plan from Advisor?

Post by JackBoglereader21 »

DarkHelmetII wrote: Tue Jan 18, 2022 10:25 am I had a guy review our plan for around ~$2k. Was hard to find him as most wanted to at least create a full, comprehensive plan if not AUM. This was several years ago so throw in some "regular" inflation + COVID maybe $3 or $4k at most??? Point is maybe a "review" is worthwhile and possible at the lower end of your current range.

Others have indicated that there is no reason to pay for a "pat on the back." Fair point, but - and I don't know how big OP's portfolio is - but in my opinion, even a well-disciplined DIY'er / BH can benefit from a few thousand dollar independent feedback every couple of years.

Feel free to PM me if you want contact information of the guy we used.
Agree. I think of myself as "well-disciplined DIY'er" but going through hours long, intensive questioning, planning had mental health value. Between kids, WFH, daily family life, it was always hard to intentionally discuss/review finances with my spouse. This was akin to financial therapy for us. My spouse was "very glad" to receive the one time plan and felt our Zoom meetings with the planner was time / money well spent.
Soon2BXProgrammer
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Re: One Time Financial Plan from Advisor?

Post by Soon2BXProgrammer »

dbr wrote: Tue Jan 18, 2022 10:32 am 3. You could consult an estate planning attorney to see how much of your situation is about estate planning rather than investing.
The other side of this equation is if one has a really good financial plan and accounting of assets including their titling and beneficiaries in a packet to be able to walk into an attorney's office, it can really simplify the estate planning process.
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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jstage
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Re: One Time Financial Plan from Advisor?

Post by jstage »

Jack FFR1846 wrote: Tue Jan 18, 2022 10:26 am None of what you want to know is rocket science.

On track for retirement savings? This is simply...how much are you saving. You can separately put this into a year by year excel sheet. Figure it'll get a percentage return each year. When the year hits, replace predicted with actual. I've done this using 5% and each year is changeable.

Good for college? What college? What's it cost now? At 7% a year increase, what'll it cost when they're ready to go. I think it's safe, since you're on Bogleheads that you will get zero grants beyond possible Merit grants. Stafford loans can be counted on.

Asset allocation? This really is the easiest thing to figure out. I mean, first, your 401k type investments should follow the rule of "what's the absolute lowest ER?". It's what I do with my 401k which has a great, low S&P 500 at 0.015% and then 10's of garbage investments. Use your other accounts as needed to build in your bonds and international. The fewer funds, the better. And it's absolutely fine to call an S&P, VTI, SCHB, FZROX all US equity. I even call BRK/b US equity. Close enough, in my view.

I've mentioned a number of times that I built a Life spread sheet with yearly columns. Each year, I show investments (lump em all into one number) with that mentioned 5% growth per year. Of course add in your savings each year, your spending each year, taxes, etc. You can roll it all up to see your gain each year. I did it to predict what I'd leave to my wife when I die. Every year that passes, I update the sheet.

And of course, you can use the form to ask Bogleheads how you're doing. People often are long time members and do something very anti-boglehead and don't even realize it. That will be pointed out.
The bold in your answer is where I'm confused. Because how much do you save for retirement? Is it just 15%? Is it...max out 401k and Roth? Is it take 80% of what you make now and aim for that number at 60? I feel like there are so many different "theories" on what to save I don't know how to calculate are we saving enough?
Topic Author
jstage
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Re: One Time Financial Plan from Advisor?

Post by jstage »

dbr wrote: Tue Jan 18, 2022 10:32 am 1. I think that cost is a little high, but do you think your situation is complicated?

2. A one-time analysis is always money well spent if they do their job. There is a huge risk that the whole thing is a come-on to get your assets into high fee and high cost investments. You could interview to see if they bias toward low cost index fund investing.

3. You could consult an estate planning attorney to see how much of your situation is about estate planning rather than investing.

4. Are you clear on needing to look at tax issues. You might be better off talking to a CPA in tax about some things.

5. I don't have a recommendation, and if I did as a matter of policy I would never offer an endorsement on a board like this.

6. An option is to post your situation here and see what people say about it. If nothing else you find out if things are really just plain simple or it there are actual questions to resolve. The format is here: viewtopic.php?f=1&t=6212
Thank you...I'll probably start with a portfolio review here as I think there is probably some low hanging fruit that Bogleheads could provide input for improvements for us.
Soon2BXProgrammer
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Re: One Time Financial Plan from Advisor?

Post by Soon2BXProgrammer »

jstage wrote: Tue Jan 18, 2022 10:44 am
Jack FFR1846 wrote: Tue Jan 18, 2022 10:26 am On track for retirement savings? This is simply...how much are you saving.
The bold in your answer is where I'm confused. Because how much do you save for retirement? Is it just 15%? Is it...max out 401k and Roth? Is it take 80% of what you make now and aim for that number at 60? I feel like there are so many different "theories" on what to save I don't know how to calculate are we saving enough?
The way a financial advisor would determine this is to stick your data in a tool that makes projections into the future based on what you tell them you are going to earn, spend and save. In most analysis a monte carlo is done which gives an indication about the likelihood you will not run out of money.

if your willing to do all the leg work in the tool, then https://planvisionmn.com/ is a good option (he uses https://emoneyadvisor.com/), and it includes someone to talk to.

Or one can "DIY" it in https://www.newretirement.com/ (or there are a bunch of free piecemeal tools out there).

but if you want an advisor to walk you thought the process and coach you through it, then their labor hours add up.

A full financial planner will do more then just review your retirement plan, they will want to see if your insurance adequately addresses your risks (not that they even sell that type of insurance, but every once in a while, advisors find millionaires with state minimums for auto insurance), they might look at your estate plan/beneficiaries/poa/documentation and see if they think you should go to an attorney for an update.

The question is what service are you looking for..
Earned 43 (and counting) credit hours of financial planning related education from a regionally accredited university, but I am not your advisor.
ebeb
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Re: One Time Financial Plan from Advisor?

Post by ebeb »

retiredjg wrote: Tue Jan 18, 2022 9:38 am Here is an earlier thread which discusses/lists advisors known to offer this kind of service.

viewtopic.php?t=360823
I think creating a financial plan is not like buying a house and then forget about it but rather building the house brick by brick over many years as you analyze your changing situation. I did use Mark Zoril services for $189 and he gave some good advice. Also he gave me access to free emoney account to consolidate all my account info in one place to look at instead of using a spreadsheet, which is very useful to see your long term goal and whether you will hit your retirement goals and do some detailed simulations.
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mhc
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Re: One Time Financial Plan from Advisor?

Post by mhc »

jstage wrote: Tue Jan 18, 2022 10:44 am
Jack FFR1846 wrote: Tue Jan 18, 2022 10:26 am None of what you want to know is rocket science.

On track for retirement savings? This is simply...how much are you saving. You can separately put this into a year by year excel sheet. Figure it'll get a percentage return each year. When the year hits, replace predicted with actual. I've done this using 5% and each year is changeable.

The bold in your answer is where I'm confused. Because how much do you save for retirement? Is it just 15%? Is it...max out 401k and Roth? Is it take 80% of what you make now and aim for that number at 60? I feel like there are so many different "theories" on what to save I don't know how to calculate are we saving enough?
Op,

I recommend that you start a new thread with this question. Lay out where you are at by following the asking portfolio question format. Also, mention when you would like to retire, how much you want to spend, pensions, social security, ...

You got to know what your expenses will be in retirement, when you will retire, and when you will die. These 3 things can be very difficult to predict accurately. You have to make your best guesses. You can play with a simple tool like firecalc to see if you are basically on track. It is really good for that. Then every year or so play with firecalc again to see how you are doing. As you get closer to retirement, you will have better information, and you can formulate a more exact plan, but the plan will never be exact because we do not know the future.

You have several topics you need addressed. I recommend studying the wiki, read a few of the recommended books, and ask more questions. There are a lot of smart, helpful people on this forum.

I would not hire a financial advisor because I would need to learn enough to be able to evaluate if they were giving me good advice or not. Once I learned that, I would know enough to do it myself. But of course, maybe some people really need the one on one help to be successful. That is okay too.
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AnnetteLouisan
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Re: One Time Financial Plan from Advisor?

Post by AnnetteLouisan »

When I was in my 20s I got an adviser to give me a sample financial plan for free. Most of them just plug your facts into a computer generated form. So I took the form, plugged in my own facts and used it for six years or so.

Also you can get three free consults with a CPA.
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Sandi_k
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Re: One Time Financial Plan from Advisor?

Post by Sandi_k »

AnnetteLouisan wrote: Tue Jan 18, 2022 8:31 pm When I was in my 20s I got an adviser to give me a sample financial plan for free. Most of them just plug your facts into a computer generated form. So I took the form, plugged in my own facts and used it for six years or so.

Also you can get three free consults with a CPA.
So 30 years ago you got someone to give you a template? OK, how does that have any relevance to 2022?

And "three free consults with a CPA?" Uh, that isn't a rule, or like....anything the OP can count on. CPAs are not required to give away their very valuable time to anyone.

OP: FWIW, I also used www.PlanVisionmn.com with Mark Zoril, and was very pleased with the results - $189 for a year of access, and input/reports using the same eMoney tool that Fidelity uses.
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AnnetteLouisan
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Re: One Time Financial Plan from Advisor?

Post by AnnetteLouisan »

Sandi_k wrote: Wed Jan 19, 2022 7:51 pm
AnnetteLouisan wrote: Tue Jan 18, 2022 8:31 pm When I was in my 20s I got an adviser to give me a sample financial plan for free. Most of them just plug your facts into a computer generated form. So I took the form, plugged in my own facts and used it for six years or so.

Also you can get three free consults with a CPA.
So 30 years ago you got someone to give you a template? OK, how does that have any relevance to 2022?

And "three free consults with a CPA?" Uh, that isn't a rule, or like....anything the OP can count on. CPAs are not required to give away their very valuable time to anyone.

OP: FWIW, I also used www.PlanVisionmn.com with Mark Zoril, and was very pleased with the results - $189 for a year of access, and input/reports using the same eMoney tool that Fidelity uses.
These templates are more widely available now and in common use. They’ve evolved but the principle is the same, 4k worth of work to generate a plan seems like overreach.

Yes, 30 years ago I had 3 free CPA consults. A CPA society of some kind was offering them for CPAs in my area. It was helpful because I noticed the CPAs were discussing very different kinds of subjects than financial advisors were.

There is a lot of good info available. You can spend 4-6k on a plan if you want to but it’s not necessary.
chw
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Re: One Time Financial Plan from Advisor?

Post by chw »

Where are your investments held? Some of the brokerages may offer a free review which may mostly meet what you are seeking (or not).

We had a great relationship with a Charles Schwab consultant which got us a free review from an in-house CFP in their advisory area, which involved several calls and a final comprehensive report about 25 pages long. This document and the meetings affirmed our decision to retire the following year. We likely would have retired anyways, but having an outside set of eyes looking at our financial life to confirm we weren't overlooking something was helpful.
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Re: One Time Financial Plan from Advisor?

Post by Katietsu »

jstage wrote: Tue Jan 18, 2022 10:44 am
The bold in your answer is where I'm confused. Because how much do you save for retirement? Is it just 15%? Is it...max out 401k and Roth? Is it take 80% of what you make now and aim for that number at 60? I feel like there are so many different "theories" on what to save I don't know how to calculate are we saving enough?
When do you want to retire? If it is not for 30 more years then there will be so many guesses and assumptions that the financial planner’s analysis will not necessarily be any more accurate than those “theories”. I am not opposed to paying for a financial review. I do think there should be a reasonable chance of some type of actionable advice resulting. Some planners, those with more than enough work, will have you submit your information and only agree to the plan if they feel they will add value. Maybe consider that option?
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jstage
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Joined: Wed Apr 28, 2021 12:07 pm

Re: One Time Financial Plan from Advisor?

Post by jstage »

mhc wrote: Tue Jan 18, 2022 11:22 am
jstage wrote: Tue Jan 18, 2022 10:44 am
Jack FFR1846 wrote: Tue Jan 18, 2022 10:26 am None of what you want to know is rocket science.

On track for retirement savings? This is simply...how much are you saving. You can separately put this into a year by year excel sheet. Figure it'll get a percentage return each year. When the year hits, replace predicted with actual. I've done this using 5% and each year is changeable.

The bold in your answer is where I'm confused. Because how much do you save for retirement? Is it just 15%? Is it...max out 401k and Roth? Is it take 80% of what you make now and aim for that number at 60? I feel like there are so many different "theories" on what to save I don't know how to calculate are we saving enough?
Op,

I recommend that you start a new thread with this question. Lay out where you are at by following the asking portfolio question format. Also, mention when you would like to retire, how much you want to spend, pensions, social security, ...

You got to know what your expenses will be in retirement, when you will retire, and when you will die. These 3 things can be very difficult to predict accurately. You have to make your best guesses. You can play with a simple tool like firecalc to see if you are basically on track. It is really good for that. Then every year or so play with firecalc again to see how you are doing. As you get closer to retirement, you will have better information, and you can formulate a more exact plan, but the plan will never be exact because we do not know the future.

You have several topics you need addressed. I recommend studying the wiki, read a few of the recommended books, and ask more questions. There are a lot of smart, helpful people on this forum.

I would not hire a financial advisor because I would need to learn enough to be able to evaluate if they were giving me good advice or not. Once I learned that, I would know enough to do it myself. But of course, maybe some people really need the one on one help to be successful. That is okay too.
Thank you...after reading through all these replies I think the portfolio is a great starting point. It'll help us know more detailed where everything is now just putting it together. It's also helpful to hear that we'll be refocusing as years go by bc we are so far from retirement. I was feeling the pressure to have the "perfect" plan now.
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Eagle33
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Re: One Time Financial Plan from Advisor?

Post by Eagle33 »

jstage wrote: Thu Jan 20, 2022 10:21 am Thank you...after reading through all these replies I think the portfolio is a great starting point. It'll help us know more detailed where everything is now just putting it together. It's also helpful to hear that we'll be refocusing as years go by bc we are so far from retirement. I was feeling the pressure to have the "perfect" plan now.
“The enemy of a good plan is the dream of a perfect plan.”
― Prussian General Karl von Clausewitz, Vom Kriege, 1832

Jack Bogle's The Dream of A Perfect Plan
dekecarver
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Re: One Time Financial Plan from Advisor?

Post by dekecarver »

I just had a consultation today with an advisor and the light really turned on with his statement that went something like: so you followed the Boglehead philosophy, kept expenses at a minimum, got your asset buckets lined up and did a great job of investing/saving/no debt.. but now you've hit the point of thinking about and needing to learn how to get the money out of those accounts in the most tax efficient advantageous way/s. He is absolutely spot on for my situation with my situation and needs and ran off several situations that I had not considered, taking into account multiple income streams including pensions, taxable, tax advantage, SS, retiring early, health care insurance ....So it may be that generating wealth etc.. really isn't what needs to be the focus or validated but more importantly, how do you generate income from all those buckets in the most tax efficient way if you are retiring early e.g. 40-50s...
Jablean
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Re: One Time Financial Plan from Advisor?

Post by Jablean »

Jack FFR1846 wrote: Tue Jan 18, 2022 10:26 am I've mentioned a number of times that I built a Life spread sheet with yearly columns. Each year, I show investments (lump em all into one number) with that mentioned 5% growth per year. Of course add in your savings each year, your spending each year, taxes, etc. You can roll it all up to see your gain each year. I did it to predict what I'd leave to my wife when I die. Every year that passes, I update the sheet.
I do something like this but I can't dump everything into just one column. I've got inherited accounts that have current RMDs (even the Roth) and then my RMDs will kick in 4 years after my DHs and I add columns for SS which also start at different times. If I can cover our retirement years with our current spending amount up until I"m 85 only using the RMD accounts then I figure everything in our Roths are gravy.
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