How have so-called professionals failed you?

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HipCoyote
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Joined: Mon Jan 27, 2020 5:30 pm

How have so-called professionals failed you?

Post by HipCoyote »

Periodically, my DW and I have retained and/or consulted so called professionals to ensure we are complaint with various rules and regulations; and, to help with our financial lives. But, we have had a more than one experience where a pro gave improper advice, causing a bit of consternation.

Examples
  • My parents have low incomes. I have now taken over their finances due to age and dementia. I learned their advisor had them in some tax free (Fed and State) municipal bonds from a state where they do not live. The do not need municipal bonds and if the did, it would have been nice to have them for the state they lived in.
  • My mom has a non-qualified annuity that we want to cash in / take a lump sum payment. I contacted the holding company and inquired if the amount over the cost basis would be reported as a cap gain or simply income. I was told a cap gain. Fortunately, I found the IRS publication which corrected that. Its income.
  • We fired our AUM advisor and went the Boglehead way of doing things. However, as I turn 65, I see that I will suffer some unnecessary IRMAA thanks to the advisor having a substantial amount of our taxable account in bonds and mutual funds which generated significant cap gains two years ago. Bonds in our IRAs and etfs in taxable would have avoided this problem. That has all been fixed, but it still impacts us since this happened two years ago when IRMAA is calculated. Our financial guy is the gift that keeps on taking
I could add to this bad legal advice, more bad financial management advice, bad tax advice or neglect.

As they say in the ring, "protect yourself at all times."

So I thought it might be an interesting conversation to see if we have bad judgement in selecting professionals or we are the norm.
ClaycordJCA
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Re: How have so-called professionals failed you?

Post by ClaycordJCA »

This thread is locked (not actionable). General comment threads are off topic in the forums with "Personal" in the title. See: A reminder that non-investing general comment threads are OT
- It must be personal. In other words, you must be asking about your own situation. You can also ask on behalf of someone specific, such as a family member.

- It must be actionable. You must be able to do something specific with the replies that will make a difference in your situation.
If you have a specific, actionable question, please ask directly and provide sufficient information for members to supply appropriate advice.
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