Financial management/planning at 1% per year.
06-04-2015, 05:09 PM
#11
Gets Weekends Off
Joined APC: Feb 2013
Posts: 132
Originally Posted by mike734
I'm considering using a CFP with a great deal of experience to manage my "wealth" to prepare for retirement. He will act as a fiduciary and provide financial education in addition to investment management and peace of mind for me and my family. Like a lot of money managers he will charge 1% of money under management for his services.
Do any of you do this and what do you think so far?
Do any of you do this and what do you think so far?
If anything hire a fee only financial advisor for guidance.
After that check out Vanguard index funds at 0.05% a year in fees. 1% a year multiplied by a lifetime is huge (especially on top of fees that funds charge).
..Number one rule of Wall Street. Nobody, I don’t care if you’re Warren Buffet or if you’re Jimmy Buffet, nobody knows if a stock is gonna go up, down, sideways or in f----ing circles, least of all stock brokers, right? -Matthew McConaughey (Wolf of Wall Street).
06-05-2015, 08:51 AM
#12
New boss = Old boss
Thread Starter
Joined APC: Mar 2005
Position: Ca B737
Posts: 2,762
Originally Posted by CFI Guy
Don't do it.
If anything hire a fee only financial advisor for guidance.
After that check out Vanguard index funds at 0.05% a year in fees. 1% a year multiplied by a lifetime is huge (especially on top of fees that funds charge).
..Number one rule of Wall Street. Nobody, I don’t care if you’re Warren Buffet or if you’re Jimmy Buffet, nobody knows if a stock is gonna go up, down, sideways or in f----ing circles, least of all stock brokers, right? -Matthew McConaughey (Wolf of Wall Street).
If anything hire a fee only financial advisor for guidance.
After that check out Vanguard index funds at 0.05% a year in fees. 1% a year multiplied by a lifetime is huge (especially on top of fees that funds charge).
..Number one rule of Wall Street. Nobody, I don’t care if you’re Warren Buffet or if you’re Jimmy Buffet, nobody knows if a stock is gonna go up, down, sideways or in f----ing circles, least of all stock brokers, right? -Matthew McConaughey (Wolf of Wall Street).
As for minimizing conflicts of interest. It's true that a CFP might advocate taking a lump sum as oppose to a pension payment because it means more money under his management but can't it also be said that there is a strong incentive to see those monies grow? Larger portfolios mean more fees and happy clients. It would be interesting to structure the question of lump sum Vs. Pension to include the proviso that any lump sum would be invested outside their accounts.
06-05-2015, 07:37 PM
#13
Gets Weekends Off
Joined APC: Feb 2013
Posts: 132
Originally Posted by mike734
I hear you. But this is much more than just where to invest. This is Financial, Estate, Retirement, Tax and Insurance planing and Portfolio management. It's a whole package that will hopefully be a one stop shop.
As for minimizing conflicts of interest. It's true that a CFP might advocate taking a lump sum as oppose to a pension payment because it means more money under his management but can't it also be said that there is a strong incentive to see those monies grow? Larger portfolios mean more fees and happy clients. It would be interesting to structure the question of lump sum Vs. Pension to include the proviso that any lump sum would be invested outside their accounts.
As for minimizing conflicts of interest. It's true that a CFP might advocate taking a lump sum as oppose to a pension payment because it means more money under his management but can't it also be said that there is a strong incentive to see those monies grow? Larger portfolios mean more fees and happy clients. It would be interesting to structure the question of lump sum Vs. Pension to include the proviso that any lump sum would be invested outside their accounts.
If you ever talk to a real estate agent there is never a better time to buy. Prices going up? Buy now before you can't afford it! Housing prices go down? Buy now because everyone is snapping up these great deals! What doesn't change is their real estate commission. Sure they make a little more or a less depending on the value of the sale but it's money in the bank for them. You have all the risk.
Prior to getting into aviation I spent my previous life in the world of banking and finance. The name of the game is maximizing their profit not yours. If you make money, great. If you lose money, guess what? They still make money just like that real estate agent.
That 1% fee is just the bait. They will make the real money selling you load funds, annuities, etc. When they start talking about indexed universal life policies I suggest you run in the other direction. You'll hear about this great product that never loses money in the market but you get a piece of the gains. Sign me up you'll say!
If you need legal advice consult an attorney. If you need tax advice find a good CPA. If you need financial advice I suggest a fee only financial advisor (not just a CFP).
Minimizing conflicts of interests is huge. There is no other way to get unbiased information.
There's a Thai restaurant by the airport with a sign inside I find amusing. "We have deal with bank. We don't cash check and they don't sell egg roll".
06-05-2015, 09:10 PM
#14
New boss = Old boss
Thread Starter
Joined APC: Mar 2005
Position: Ca B737
Posts: 2,762
CFI Guy do you understand the difference between a Finacial advisor and one that signs a fiduciary agreement? I'm not worried about being sold annuities unless they are the best option. And sometimes they are.
06-18-2015, 05:04 AM
#15
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Joined APC: Oct 2008
Position: Sideways, eating Cheetos.
Posts: 28
Why not just try it for a year or so with part of your investments. It's not worth the stress or hassle. If you have found an advisor/manager you trust, 1% is less than the norm. 1.75-1.25% seems to be the average for managed accounts. And you can call them at any time to ask them, "what's going on?"
Will the managers make money off of you? Of course! Are they motivated to make money for you? They should be.
If it doesn't work out for you, find another manager or dump your funds into a Vanguard index fund and hire an attorney when you need estate/tax/etc advice.
Just my .02 cents!
Will the managers make money off of you? Of course! Are they motivated to make money for you? They should be.
If it doesn't work out for you, find another manager or dump your funds into a Vanguard index fund and hire an attorney when you need estate/tax/etc advice.
Just my .02 cents!
06-18-2015, 07:45 PM
#16
Working weekends
Joined APC: Jul 2005
Position: Left Seat
Posts: 2,384
Fee only is way to go. 1% a year is within industry standard. The bigger your balance grows, the bigger his 1% grows, so he has incentive to help you win.
you want professional help with something, you gotta pay for it. Dental work, legal advice, etc
good luck
you want professional help with something, you gotta pay for it. Dental work, legal advice, etc
good luck
06-28-2015, 06:17 AM
#17
Gets Weekends Off
Joined APC: Sep 2013
Position: Left
Posts: 636
No one size(method/advice) fits all. Some will find such a service helpful, others no.
It's the same as with anything. You'll have the one guy who hardly needs to look at a vehicle to fix it, the next can barely check the oil.
It's the same as with anything. You'll have the one guy who hardly needs to look at a vehicle to fix it, the next can barely check the oil.
09-03-2015, 09:06 PM
#19
Gets Weekends Off
Joined APC: Jul 2015
Posts: 106
Originally Posted by mike734
I'm considering using a CFP with a great deal of experience to manage my "wealth" to prepare for retirement. He will act as a fiduciary and provide financial education in addition to investment management and peace of mind for me and my family. Like a lot of money managers he will charge 1% of money under management for his services.
Do any of you do this and what do you think so far?
Do any of you do this and what do you think so far?
09-03-2015, 09:07 PM
#20
Gets Weekends Off
Joined APC: Jul 2015
Posts: 106
Originally Posted by gringo
Figuring out an investment asset allocation is easy. Any monkey can do it.
It's all the OTHER stuff that's hard. Insurance. Taxes. Wills. Trusts. Etc etc etc...
That's worth 1%.
It's all the OTHER stuff that's hard. Insurance. Taxes. Wills. Trusts. Etc etc etc...
That's worth 1%.
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