Anyone have/used a financial advisor?

[jgln]

I want to sit down with someone knowledgeable in personal finance and planning etc. Someone I can feel comfortable sitting down with some real numbers and discuss our situation. For one, I want to discuss refinancing our home loan down to a shorter term with a lower % rate and see if it is a right move to make. But there are other things as well like retirement estimates, wills and how to plan in case one of us passes away, how to make sure the other gets the best possible "deal". We are not married yet.

Anyway, I thought of going to my bank (or any bank) about the refinance part but I have a feeling they won't do best by me, only best by them. I want an educated unbiased evaluation with recommendations.

I was thinking of going to a local Raymond-James office. Any suggestions? Opinions? Recommendations on how to go about this? I would hate to spend money on a bunch of useless information that doesn't help me decide what is best for US.

I have tried to go online and get some ideas but most want your name or email address so I know if I do that I will expect to get contacted by someone, I don't want that yet and when I do I want someone I can speak to face to face.

Oh, and what about online wills? Anyone use them? (yeah I know shame on me)

Thanks!

 

[Hang Glider]

The bigger houses have advisors - Who is your 401/ IRA with? And yes, you'll probably have to suck it up and give your name and phone number and get a call back - but then you have someone you CAN meet face to face...

 

[passedpawn]

If you have an accountant do your taxes, talk with him. They often do it or are partnered with someone who does.

 

[broadbill]

What you are looking for is a Fee-only financial planner, someone who provides advice (for a fee), but isn't affliated with a specific company:

Fee-Only Financial Advisors Home - NAPFA - The National Association of Personal Financial Advisors

You can also ask your friends/family for recommendations, maybe your accountant, tax planner, etc. I'd be almost more comfortable picking from a list and let my internal BS meter do the picking, instead of going with someone one of my family/friends goes with, frankly.

In regards to your situation, are you planning on getting married? The thing is, all this inheritance, power of attorney, beneficiary stuff gets alot simpler if you are married. If you don't plan on getting married, then you probably need an agreement draw up in lieu of all of the privileges of marriage. I believe you would do a Will/Trust.

As far as "being taken care of/taking care of" in the event of either of you or your SO's demise: Are there children involved here, or are one/both of you unable to work? If not, there really isn't much you need here other to cover final expenses. The assumption is that if one of you dies, the other will still be able to work and support themselves.

Again, why are you listening to me...I'm could be some nut-job with an internet connection!

 

[Mashinations]

What you are looking for is a Fee-only financial planner, someone who provides advice (for a fee), but isn't affliated with a specific company:

Fee-Only Financial Advisors Home - NAPFA - The National Association of Personal Financial Advisors

You can also ask your friends/family for recommendations, maybe your accountant, tax planner, etc. I'd be almost more comfortable picking from a list and let my internal BS meter do the picking, instead of going with someone one of my family/friends goes with, frankly.

In regards to your situation, are you planning on getting married? The thing is, all this inheritance, power of attorney, beneficiary stuff gets alot simpler if you are married. If you don't plan on getting married, then you probably need an agreement draw up in lieu of all of the privileges of marriage. I believe you would do a Will/Trust.

As far as "being taken care of/taking care of" in the event of either of you or your SO's demise: Are there children involved here, or are one/both of you unable to work? If not, there really isn't much you need here other to cover final expenses. The assumption is that if one of you dies, the other will still be able to work and support themselves.

Again, why are you listening to me...I'm could be some nut-job with an internet connection!

You could be but you gave the same advice I would have (mostly). I will add that a financial adviser will be able to advise of different rates (mortgage) and thresholds (insurance) and legal documents (will's) you should have but an ethical one won't likely push you to a specific lending/insurer/legal institution.

You bring up the specific case of going to re-finance your home. A financial adviser will be able to tell you if it's worth your while to do so based on current mortgage terms, how long you're going to stay in your house, etc. He'll advise you based on that if your best bets are for an ARM, fixed or hybrid loan and what you should expect but then it's going to be on you to shop for the mortgage and execute on it.

Keep in mind that they are going to do this for a fee - depending on what you're looking for don't be surprised if it costs a couple thousand dollars. When it comes to getting your "house in order" it can be very worth, which sounds to be the case for you, but for those just looking to find out how much life insurance they should buy it would likely be wasted money.

 

[ReverseApacheMaster]

I agree with the advice above about getting a fee-based adviser. You need to speak with somebody who has a CFP or similar designation and doesn't have a financial interest in the financial decisions you make. The "advisers" at your bank, 401k provider, broker, insurance agent, etc. are all salesmen who might have some fiduciary duty to you but within that duty they are able to sell you whatever products their employer makes the most money on (without committing ethical violations -- usually). So if you go to your insurance agent they will tell you annuities and whole life are the best retirement saving vehicles, your bank will tell you bank-based IRAs and CDs are the best, etc. Money is a massive sales game so the only people you can really trust is somebody who has nothing to sell you because you're paying for their time. I used to work for a large financial services firm so I can speak to the above from the inside.

Although some financial advisers, even fee-based advisers, will recommend trusts, unless they are licensed attorneys they should not be giving you legal advice on how to draft wills, the effect of wills vs. trusts, etc. Those online wills, like LegalZoom, are garbage. You're paying for the stock will language in the statutes and extremely general form language. You're not getting advice on what language is right for you or right for your situation. You could end up with a will that won't stand up in probate and your family will have to spend a lot of money after you pass away fighting over your estate and trying to make sure everything goes to the right people. I know a lot of estate planning attorneys who make a nice chunk of their income fixing those online/DIY wills. If you have enough financial assets that you need to work with an adviser you probably have enough assets that it's going to be worth paying a few hundred dollars to talk to an estate planning attorney about drafting a will.

 

[Dwain]

I met with several investment firms before deciding on one. The way it worked for me is:
I paid a flat fee ($750 about 7 years ago), gave him all of my info. He came up with a "plan", and we met and discussed it until I understood it. Over the next couple of years, we met and planned for our retirement at least once a quarter (all covered by the original $750). We built an excellent relationship which continues today. His big items are disclosure and comparison. If his firm offers a product he thinks we should use, he explains why and gives a side by side comparison to the competitor's. We actually use very few of his company's offerings. As we transitioned to retirement, the fee went to 1% max. So far, it hasn't cost me that but even at that price I would consider the help a bargain. I know this is more info than you ask for, but if you're looking for an advisor, I say find one for the long haul. Good Luck - Dwain

 

[Jacob_Marley]

That's a lot to bite off all at once.
Take each of those tasks one at a time.

For mortgage refinancing do some research to familiarize yourself with the concepts and terms, write down your questions, and then meet with a few mortgage providers to pick their brains. This might include first consulting with a fee-based certified planner if you've gone that route.
Don’t allow yourself to be talked into the refinancing on the spot. Review the info and then re-contact your eventual choice to actually do the business.

You can include your bank as one that you talk to. And as well your current mortgage provider who may be motivated to keep the business. Though it does not mean either will get the new business.

As far as a Financial Advisor ... Starting out by spending money on a fee-based planner could be "putting the cart before the horse".
I'd suggest first doing enough research and reading to become familiar with the nuts-and-bolts of your financial issues before sitting down with someone.

As was suggested, asking a professional whom you are already doing business with for a financial referral is good. You could also ask other financially established individuals you know. You are looking for professionals they have actually done business with that are not related (family) to them.

Whether commission based, or fee based, or percentage based or a combination, good financial professionals and good firms are where you find them. Don't rule out advisors (or investments) solely on the basis of their charging compensation in a certain way. Evaluating advisors and investments on merits beyond the compensation issue goes back to the need to develop a passable knowledge of financial issues to begin with.

Don’t let a Planner’s need to know your personal information, especially something as basic your contact information, prevent you from engaging them.
Having said this ... I would suggest not interviewing with a Financial Planner or Broker who has been in the business less than about 5 to 7 years on a full-time basis in their current capacity. This is just working with the odds. You want someone who has the benefit of experience in their practice and who has a better chance of staying in the business.

Having mentioned Raymond James, I assume you mean for a brokerage account?
A full-service stock brokerage can provide many resources (Morgan Stanley Smith Barney, Merrill, RBC, Schwab etc). Not just for their research, but also for the breadth of what they can provide for investments, asset management resources, and referrals to other professionals. Their asset management options are much greater than what a fee-based Financial Planner can afford to provide their clients.
As far as Raymond James ... I’d go with a firm like Schwab instead of James.

Nope, would not use an online will.
You might check with a local Area council on Aging or AARP for less expensive financial and estate planning resources. If you are retired from a company or collecting a pension, you might check to see if they make available any consultations or planning resources as well.

 

[daveooph131]

Find an independent advisor. Been working with one for awhile and he doesn't make a dime unless we do a 401k Roth ect. You shouldn't have to pay until u make a Financial move

 

[JoesJunction]

I'd recommend an advisor, there are some things that are worth paying someone for, although if you are a bit uncomfortable with that try doing some finances on your own if you have time and money to play with. otherwise I would do some research and find which one would suit you best

 

[jgln]

Thanks for all the advise, a lot to reply to. Sounds like getting help is the way to go and although good to get someone who is not out to make a buck on me on how I set up my finances, I should listen to everyone to learn more even if someone is trying to sell me something for a commission. Even there you can learn something.

Owning 2 homes I know what it is like to deal with a bank or mortgage company. When you speak to them they try to convince you they are the only way to go. That is why I want some outside help before I sit down to talk refinance with anyone.

I have 2 pension plans (small), 2 401ks (different jobs) and my own IRA with a well known company. Same problem there though, any advise seems to be something through them. I understand why, just not sure their advise is in my best interest.

I was thinking Raymond James because the advertise financial planning "first" and I have no money invested with them so I would hope any advise unbiased. It makes me uncomfortable to use someone who for example, has an office in their home unless I can really get a good recommendation.

This is why I asked to see if anyone else has done this and was happy or disappointed.

My bank recently called me to discuss my accounts, to come in and speak with an investment specialist. I think his whole gig was to sell me or anyone else these CDs he was pushing. It was all about the CDs. No doubt he makes his living trying to get people to invest in this and that...but is it in his best interest or mine? I am suspicious that way, too many salesmen.

..oh and thanks for the thumbs down on those online wills. Better to hire a lawyer who can make sure it is written up best for me/us and ensure no loop holes.

Not getting married right now. My accountant explained on how that would affect us in our particular situation and we would have better write offs at this time not doing it and with a new job for less $$ we can't afford it. This is why if I drop dead I want my money to go where I want it to not the government or whoever. I do have beneficiaries where they apply, so I am ok there.

Sorry if I missed any comments or questions.

 

[jgln]

The bigger houses have advisors - Who is your 401/ IRA with? And yes, you'll probably have to suck it up and give your name and phone number and get a call back - but then you have someone you CAN meet face to face...

I have spoke to my "guy" and he seems to be more about managing my IRA than my whole situation. I was hoping on someone who was not just about my account. When I tell them (there have been others) about other accounts I have they seem to want to let me know they could manage that money for me as well. I like it not all in one place. Like having money hidden in several places in my home, not just one. When I bring up things like mortgages or investments like properties I get that "I can't help you there, I don't do that". I understand that, but that is my concern. I want a money savy professional who can look at my whole situation and advise me like it was his in my situation. Point out anything that is wrong and make corrections.

 

[jgln]

If you have an accountant do your taxes, talk with him. They often do it or are partnered with someone who does.

I mentioned it to him, kind of blew me off. I think he just wants to do tax returns at this point in his career. I like him, he is good with that, feel he has my best interest in mind. If he doesn't do it I am glad he doesn't try.

 

[jgln]

What you are looking for is a Fee-only financial planner, someone who provides advice (for a fee), but isn't affliated with a specific company:

Fee-Only Financial Advisors Home - NAPFA - The National Association of Personal Financial Advisors

You can also ask your friends/family for recommendations, maybe your accountant, tax planner, etc. I'd be almost more comfortable picking from a list and let my internal BS meter do the picking, instead of going with someone one of my family/friends goes with, frankly.

In regards to your situation, are you planning on getting married? The thing is, all this inheritance, power of attorney, beneficiary stuff gets alot simpler if you are married. If you don't plan on getting married, then you probably need an agreement draw up in lieu of all of the privileges of marriage. I believe you would do a Will/Trust.

As far as "being taken care of/taking care of" in the event of either of you or your SO's demise: Are there children involved here, or are one/both of you unable to work? If not, there really isn't much you need here other to cover final expenses. The assumption is that if one of you dies, the other will still be able to work and support themselves.

Again, why are you listening to me...I'm could be some nut-job with an internet connection!

No kids, her son is an adult. What I meant was I want to ensure she gets what I want her to get in the event I die which is everything (I will have no use for it and I don't want anyone else to have it. We both work and is why we can afford what we have. If I die the household income will be 1/2 and I want to do what I can to make it so she can live comfortably on her income.

 

[jgln]

You could be but you gave the same advice I would have (mostly). I will add that a financial adviser will be able to advise of different rates (mortgage) and thresholds (insurance) and legal documents (will's) you should have but an ethical one won't likely push you to a specific lending/insurer/legal institution.

You bring up the specific case of going to re-finance your home. A financial adviser will be able to tell you if it's worth your while to do so based on current mortgage terms, how long you're going to stay in your house, etc. He'll advise you based on that if your best bets are for an ARM, fixed or hybrid loan and what you should expect but then it's going to be on you to shop for the mortgage and execute on it.

Keep in mind that they are going to do this for a fee - depending on what you're looking for don't be surprised if it costs a couple thousand dollars. When it comes to getting your "house in order" it can be very worth, which sounds to be the case for you, but for those just looking to find out how much life insurance they should buy it would likely be wasted money.

Yeah, I want someone who will give me an honest estimate if refinance is the way to go. I have done some quick number crunching myself and I am not sure it is worth it or not. For example, my bank sent information an lower rates if I refinance. What they don't tell you is they don't just lower your rate, that would be great, but they put you back to the starting line (original term) paying high interest payments again. That is why I want to look at shorter term also.

A couple thousand sounds high, I could do it if it helps but if I get a guy who just tells me about plans he knows about but no real advise in my particular situation I will be upset to say the least.

 

[jgln]

I agree with the advice above about getting a fee-based adviser. You need to speak with somebody who has a CFP or similar designation and doesn't have a financial interest in the financial decisions you make. The "advisers" at your bank, 401k provider, broker, insurance agent, etc. are all salesmen who might have some fiduciary duty to you but within that duty they are able to sell you whatever products their employer makes the most money on (without committing ethical violations -- usually). So if you go to your insurance agent they will tell you annuities and whole life are the best retirement saving vehicles, your bank will tell you bank-based IRAs and CDs are the best, etc. Money is a massive sales game so the only people you can really trust is somebody who has nothing to sell you because you're paying for their time. I used to work for a large financial services firm so I can speak to the above from the inside.

Although some financial advisers, even fee-based advisers, will recommend trusts, unless they are licensed attorneys they should not be giving you legal advice on how to draft wills, the effect of wills vs. trusts, etc. Those online wills, like LegalZoom, are garbage. You're paying for the stock will language in the statutes and extremely general form language. You're not getting advice on what language is right for you or right for your situation. You could end up with a will that won't stand up in probate and your family will have to spend a lot of money after you pass away fighting over your estate and trying to make sure everything goes to the right people. I know a lot of estate planning attorneys who make a nice chunk of their income fixing those online/DIY wills. If you have enough financial assets that you need to work with an adviser you probably have enough assets that it's going to be worth paying a few hundred dollars to talk to an estate planning attorney about drafting a will.

I think I have already agreed with what you say in the other replies. That is why I don't want a "salesman" to try and sell me something. Yep, a few hundred for the right lawyer will bring piece of mind and assurance it will go as I want it to as best as possible.

 

[jgln]

I met with several investment firms before deciding on one. The way it worked for me is:
I paid a flat fee ($750 about 7 years ago), gave him all of my info. He came up with a "plan", and we met and discussed it until I understood it. Over the next couple of years, we met and planned for our retirement at least once a quarter (all covered by the original $750). We built an excellent relationship which continues today. His big items are disclosure and comparison. If his firm offers a product he thinks we should use, he explains why and gives a side by side comparison to the competitor's. We actually use very few of his company's offerings. As we transitioned to retirement, the fee went to 1% max. So far, it hasn't cost me that but even at that price I would consider the help a bargain. I know this is more info than you ask for, but if you're looking for an advisor, I say find one for the long haul. Good Luck - Dwain

$750 is reasonable I think and I agree, I want someone who is familair with my situation and can make recommendations if our situation changes.

 

[jgln]

That's a lot to bite off all at once.
Take each of those tasks one at a time.

For mortgage refinancing do some research to familiarize yourself with the concepts and terms, write down your questions, and then meet with a few mortgage providers to pick their brains. This might include first consulting with a fee-based certified planner if you've gone that route.
Don’t allow yourself to be talked into the refinancing on the spot. Review the info and then re-contact your eventual choice to actually do the business.

You can include your bank as one that you talk to. And as well your current mortgage provider who may be motivated to keep the business. Though it does not mean either will get the new business.

As far as a Financial Advisor ... Starting out by spending money on a fee-based planner could be "putting the cart before the horse".
I'd suggest first doing enough research and reading to become familiar with the nuts-and-bolts of your financial issues before sitting down with someone.

As was suggested, asking a professional whom you are already doing business with for a financial referral is good. You could also ask other financially established individuals you know. You are looking for professionals they have actually done business with that are not related (family) to them.

Whether commission based, or fee based, or percentage based or a combination, good financial professionals and good firms are where you find them. Don't rule out advisors (or investments) solely on the basis of their charging compensation in a certain way. Evaluating advisors and investments on merits beyond the compensation issue goes back to the need to develop a passable knowledge of financial issues to begin with.

Don’t let a Planner’s need to know your personal information, especially something as basic your contact information, prevent you from engaging them.
Having said this ... I would suggest not interviewing with a Financial Planner or Broker who has been in the business less than about 5 to 7 years on a full-time basis in their current capacity. This is just working with the odds. You want someone who has the benefit of experience in their practice and who has a better chance of staying in the business.

Having mentioned Raymond James, I assume you mean for a brokerage account?
A full-service stock brokerage can provide many resources (Morgan Stanley Smith Barney, Merrill, RBC, Schwab etc). Not just for their research, but also for the breadth of what they can provide for investments, asset management resources, and referrals to other professionals. Their asset management options are much greater than what a fee-based Financial Planner can afford to provide their clients.
As far as Raymond James ... I’d go with a firm like Schwab instead of James.

Nope, would not use an online will.
You might check with a local Area council on Aging or AARP for less expensive financial and estate planning resources. If you are retired from a company or collecting a pension, you might check to see if they make available any consultations or planning resources as well.

Well, I am not completely unfamiliar with terms or the process but no expert either. So far I have made every major decision by first sitting down with calculator and pencil and paper before I talk to anyone and I am usually pretty close. I just think time to get some professional advice. LOL, I never make quick decisions, just the opposite. I beat things to death first.

You are right, I have already asked some questions. I ask here to see if I get 90% users that are happy with the results or 90% unhappy. Easy to do a general poll of the public even if the the brewing/winemaking drinking public.

Only drawback with giving your information and talking with banks/mortgage companies/investment firms/etc. is they will hound you. I know nothing of Raymond James other than it is not just one guy in his basement office and that they list financial planning before investment planning. I already have an "investment" planner and they are no help beyond my account they manage.

 

[jgln]

Well as you may have guessed it was a slow night at work tonight..I had some time.