(Closed) Has Anyone Ever Met With A Financial Advisor?

posted 6 years ago in Money
  • poll: Would You/Have You Gone To A Financial Advisor?
    Yes- I ( we) have and find it necessary : (15 votes)
    43 %
    No- I (we) have not, but plan on it in the future : (9 votes)
    26 %
    I will not because there are enough resources to manage on my own : (4 votes)
    11 %
    Yes- we went and found it to be unnecessary : (5 votes)
    14 %
    Other : (2 votes)
    6 %
  • Post # 3
    Member
    9687 posts
    Buzzing Beekeeper
    • Wedding: September 2012

    @Mrs_Amanda:   We were talking about the same thing last night.  Our plan is once we’re married to combine all our accounts jointly.  But we both have sons in college (one each) and we’re also linked to their bank accounts.  So we could end up with a lot more accounts than we want, so we’re going to need some advice.

    I’ll be following this thread to see how other Bee’s with more financial knowledge respond. 

    Post # 4
    Member
    3886 posts
    Honey bee
    • Wedding: September 2011

    It never hurts to have a professional opinion on how you are managing your finances. But a good financial advisor can be hard to find, because many of them work on commission or a similar payment system, where they get more or less income based on how many of that company’s financial products they sell you.  Some also get paid based on the combined assets from all their clients they are managing, so they don’t put as much attention or effort into a smaller account.  You need to find an advisor you trust, and sometimes that means an advisor that you pay by the hour instead of one paid by the financial house.

    My financial advisor does an annual checkup of my 401(k)s and other investments, even if they’re not from his employer, and tells me which funds are better performers, or offer a better balance of risk to return. He also helps me review life-changing situations and my own financial goals to make sure my investments are in line with those goals.  What sold me on him was his statement that, even though I don’t have a lot invested with his company (about $60k currently), he’s more interested in having a client for the long term rather than going after a short-term big payday.

    Post # 5
    Member
    10572 posts
    Sugar Beekeeper
    • Wedding: January 2011

    I have and found it necessary as I don’t have enough assests to make trading on my own worthwhile.  I do have some mutuals funds with very low MERs that I can buy myself, but the options for those are limited and I did want some other mutual funds which requires meeting with an advisor.

    When we have more assests to invest (which will take some time, as we will be buying a house before then), I plan to switch to trading ETFs.  When Darling Husband and I feel it’s worthwhile, we may look into getting a fee-only advisor.  All advisors are paid somehow, which is why the MER is often so high on the products non-fee advisors suggest!

    Post # 6
    Member
    14489 posts
    Honey Beekeeper
    • Wedding: June 2011

    My financial advisor doesnt really help out at all with managing our finances, but more for portfolio optinos to invest my spare cash.  I took the lazy investment approach, so I basically handed my money over and picked an investment style. It’s worked out, the portfolio has followed their advertised goal and has been growing.  My husband is more hands on and likes to reserach and manage his investments himself, so he has never met with an advisor.

    Post # 7
    Member
    10367 posts
    Sugar Beekeeper
    • Wedding: September 2010

    Interest rates are so low, and the stock market SO flat, that I don’t really see the point at the moment. If our finances get more complex, and the market improves, then yes, we’ll definitely seek advice! I think it would cost us more to see one than we would make in interest in multiple years on our accounts at the moment, though, haha!

    Post # 8
    Member
    10572 posts
    Sugar Beekeeper
    • Wedding: January 2011

    @crayfish:  High interest rates aren’t always great either though, because then inflation also tends to be high.

    The goal for many people when it comes to investing is to break even once inflation is factored in.

    Post # 9
    Member
    3886 posts
    Honey bee
    • Wedding: September 2011

    A good advisor knows what to invest in when the stock market is flat and interest rates are low.  Muni bonds, REITs and foreign currency funds/foreign stock funds are just some options. 

    Post # 10
    Member
    245 posts
    Helper bee
    • Wedding: July 2008

    I met with a commission-based financial advisor years ago and am so glad I didn’t go with him in the end.  I met with him for retirement planning as well as how to invest some excess money I had but didn’t want to just save away at a bank.  He offered to sell me some investment products that had high fees and didn’t serve my needs well, so I walked away.  I have never met with a fee-based advisor and don’t plan to in the near future. 

    IMO, unless you are extremely wealthy and plan on investing exotically, in hedge funds, private equity, etc, I just don’t see the point of having a financial advisor.  The fees are simply too high to justify the benefit of having one. There are plenty of money management and investing tools available today to do it yourself, you just need to set aside a little time to get started and read up on investing articles now and then to keep exploring options.  I like using Morningstar’s Instant X-ray to analyze and manage my investments. 

    If you want to learn more about investing, a good short read is “The Little Book of Common Sense Investing” by John Bogle, who was the founder of Vanguard.

    Post # 11
    Member
    1217 posts
    Bumble bee
    • Wedding: November 2012

    My Fiance owns his own house, so he knows some things about money and loans, but he doesn’t know as much about investing. I got a degree in econ, and even though I’m not an economist now, I still remember a lot of the basic principles of macroeconomics that I learned in college. I have trouble explaining these to my Fiance, though, so we went to a financial advisor last week to talk about investing for retirement, and the financial advisor really helped explain a lot of concepts to my Fiance – how markets work, compounding interest, long-term inflation trends, etc. We were not pressured to invest in any of the company’s products, and we found it really informative. We may return to the company to invest some of our spare cash, but we will shop around first. I think a financial advisor can definitely make you feel more informed about what your options are!

    Post # 12
    Member
    1252 posts
    Bumble bee
    • Wedding: November 2011

    @crayfish:  The stock market is at a 5 year high right now, so I wouldn’t call it flat at all.  Are you waiting for prices to come down because you think they are too high? 

    Post # 13
    Member
    865 posts
    Busy bee

    Yes and I can’t recommend it enough. A good financial advisor will guide you not only on the highest returns from your portfolio but also as important how to minimize your tax liability. I’m in the highest tax bracket so that’s what I’m really interested in.  Our financial advisor group has a minimum that you must meet before they will take you on as a client but I also don’t have all of my money with them. Can you have lived through the Bernie Madoff era and put all your eggs on one basket? Anyway It is a personal challenge of mine to beat their returns so I dabble in the stock market with slush fund cash that I’m willing to lose.  Any adVisor will tell you to eliminate credit card debt and any other high interest debt as well as have 4-6 months living expenses cash before investing in anything.  Learning about finances is interesting, have fun and Best wishes!

    Post # 14
    Member
    684 posts
    Busy bee
    • Wedding: February 2010

    We meet with a financial advisor about once a year. They help with everything from credit cards to mortgages, to RRSPs to whatever you have or are thinking of getting. We had one even before we got a house. She gave us a wealth of information and tips on how to position ourselves better before major purchase. I also like to know what is going on with our finances from the bank’s perspective.

    Post # 15
    Member
    9687 posts
    Buzzing Beekeeper
    • Wedding: September 2012

    @HelpfulMarriedGirl:   My son, the economics major, told me this exact thing last night! 

    The topic ‘Has Anyone Ever Met With A Financial Advisor?’ is closed to new replies.

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