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Old 1 June 2021, 09:53 PM   #31
beshannon
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Originally Posted by stratguy View Post
I am very unhappy with my financial advisor situation. I have had three advisors over the past 12 years, one with Ameriprise, and the other two with JPMC as part of their private client program. None of them were/are proactive - if I don't reach out to my advisor, I never hear from her. I just stopped by the branch to transfer money into my SEP, and she says to me "where have you been?". I'm tired of paying fees for what I'm getting, and I dread the thought of shopping for another one. Are there other options? I'm not trading stocks, it's all invested in mutual funds. Is self-management an option?

Thoughts?
What kind of advice are you looking for? What kind of advice do you need?
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Old 1 June 2021, 10:51 PM   #32
JasoninDenver
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Originally Posted by 7sins View Post
I've been a financial consultant for over 15 years selling a wide array of different financial solutions to financial advisors. I've met thousands of financial advisors across many states in my career, I can comfortably say I would trust very few of them with my own money. With that being said, the role of being a FA is NOT to pick mutual funds and investments (if you believe that, you are living under a rock) or can they beat a relative benchmark? The value in that is deminimis, in fact research suggest the value of picking investments is 10-15bp. It isn't difficult picking mutual funds or building a financial plan.

Most of my clients, whom are uniquely successful, all believe they live simple financial lives. Which is 110% not true, they just lack the financial self-awareness. The role of a financial advisor is to raise awareness to impairments and challenges you are not aware of. Those challenges can cause a major setback in your financial future. As you progress through life, your needs and challenges change. How do I allocate to a charitable remainder trust? How do I access private credit with liquidity? How do I teach my children about wealth while ensuring they aren't ruined by inheritance? If I sell my business how can I use investments as a tax shelter? How can I use a line of credit against my assets to let my money work for me instead of using a mortgage? What is a SMA and why are they more tax efficient than mutual fund? etc etc there are 100s of items on a financial checklist that you NEED to be aware of and this includes life changing events such as going through a divorce, selling a business, newly windowed etc.

My point being is that you will have MANY questions as your life progresses, it is a FAs job to anticipate these challenges but their bigger role is to raise awareness of these issues before they happen to help you avoid a very costly mistake while successfully navigating your financial future. That, and I promise you, is worth every penny, not who can pick a better mutual fund or who has a hot stock idea (we have a thread for that).
I agree with this 100%. However, it is the VERY rare advisor that is willing to take the time to delve into the weeds as much as this. I have been fortunate to have had a couple of good accountants help with this aspect of my life.
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Old 8 June 2021, 07:51 AM   #33
HendersonClaire
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It's sad to hear that a financial advisor didn't help someone. It was a lifesaver for me when I went to one
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Old 8 June 2021, 09:23 AM   #34
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This old thread has been brought back to life. We found a great FA locally. Approx a third of our portfolio is with him, and a third is in Vanguard being managed by me. The other 3rd is in real estate and some employer 401K. All is good now, thanks.
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Old 8 June 2021, 10:37 AM   #35
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This old thread has been brought back to life. We found a great FA locally. Approx a third of our portfolio is with him, and a third is in Vanguard being managed by me. The other 3rd is in real estate and some employer 401K. All is good now, thanks.
Excellent diversification!
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Old 10 June 2021, 07:13 PM   #36
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Better to pay an hourly rate for advice than a percentage of your wealth. The only exception is if the FA can put you into IPOs or alternative investments, LPs, etc. that you otherwise wouldn’t have access to. Typically this is only available to ultra HNW individuals.

If you have less than $10M to invest better to stick to index and target retirement funds IMO.
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Old 21 June 2022, 11:37 PM   #37
MarleyLane
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JPMC's private client program is run based on government training. What did you expect from an analyst who didn't know how to work with clients like you (wealthy more than)
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Old 22 June 2022, 12:49 PM   #38
macrowatch
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Originally Posted by 7sins View Post
I've been a financial consultant for over 15 years selling a wide array of different financial solutions to financial advisors. I've met thousands of financial advisors across many states in my career, I can comfortably say I would trust very few of them with my own money. With that being said, the role of being a FA is NOT to pick mutual funds and investments (if you believe that, you are living under a rock) or can they beat a relative benchmark? The value in that is deminimis, in fact research suggest the value of picking investments is 10-15bp. It isn't difficult picking mutual funds or building a financial plan.

Most of my clients, whom are uniquely successful, all believe they live simple financial lives. Which is 110% not true, they just lack the financial self-awareness. The role of a financial advisor is to raise awareness to impairments and challenges you are not aware of. Those challenges can cause a major setback in your financial future. As you progress through life, your needs and challenges change. How do I allocate to a charitable remainder trust? How do I access private credit with liquidity? How do I teach my children about wealth while ensuring they aren't ruined by inheritance? If I sell my business how can I use investments as a tax shelter? How can I use a line of credit against my assets to let my money work for me instead of using a mortgage? What is a SMA and why are they more tax efficient than mutual fund? etc etc there are 100s of items on a financial checklist that you NEED to be aware of and this includes life changing events such as going through a divorce, selling a business, newly windowed etc.

My point being is that you will have MANY questions as your life progresses, it is a FAs job to anticipate these challenges but their bigger role is to raise awareness of these issues before they happen to help you avoid a very costly mistake while successfully navigating your financial future. That, and I promise you, is worth every penny, not who can pick a better mutual fund or who has a hot stock idea (we have a thread for that).
Tongue in check (but still serious), isn’t it cheaper to pay by the hour for the estate / tax / lawyers etc rather than use a FA? To your point, I’ve met many a FA, rare do I find them competent. But the high priced professionals by the hour, I’ve found many that are exceptional.

Less serious, but genuine, how many minutes of wisdom does 5 bottles of tequila equate to at 2022 billing rates?
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Old 27 June 2022, 02:44 AM   #39
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Seek FAs services for a specific advice (e.g., inheritance or tax minimization) or if you feel like you're not cut out for money management (e.g., you don't have any interest in managing $).

In general, to create an optimal portfolio you need two mutual index funds. One covers broad equity market; the other covers bonds and gov't securities. The mix between the funds corresponds to your risk profile. The more risk you want to take, the more your put in the equity fund. Setup automated investment and don't trade, especially when you really want to. The advice stems from financial theory (portfolio optimization) and history.
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