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Stockbroker/financial planner/financial advisor question

I'm looking to get a stockbroker/financial planner. There are a few different firms I could go with (fees are all relatively the same):

1. He is a sole practitioner. He's 64 and has been around for a very long time. He clears through Charles Schwab. He offers good fees, but he brags a lot, doesn't always call me back, and has rescheduled two of our meetings.

2. This firm is headquartered in Dallas-Ft Worth, but they have a smaller branch in my city of 100,000. There are three brokers here- a very attractive middle aged woman, a smart 30-something male, and a really smart 20-something male who is learning. Plus their secretary. They pitched as a team and they are very classy.

3. A guy from Morgan Stanley. He used to work on Wall Street but moved to my city to be closer to family. He does well, but I'm not sure I want a big investment bank/broker. He is a typical salesman.

I'm going with Option 2, as they are more professional overall, but they have the highest fees.

Any advice? Thanks!

by Anonymousreply 61September 15, 2021 3:54 AM

I think I'm going with Option 2*****

by Anonymousreply 1July 29, 2021 2:57 PM

Call me. I failed at politics and am now opening an investment firm. Call me before I go to jail.

by Anonymousreply 2July 29, 2021 2:58 PM

Stay away from Option 1, that's a no brainer. You will never be important to him.

Option 3 doesn't seem that bad, really, if by typical salesperson you mean a bit slick but he takes his job seriously.

I dunno about Option 2. I have a friend who picks professional services based on the "connection" she feels to the person. This seems to constantly blow up in her face. Me, I don't care so much about feeling a connection to my RE agent or plumber, I want whoever gets the best result.

Will you get better service from them? Will you feel more at ease long term with them than Option 3? How are they justifying their high fees? If it makes sense to you, then of course Option 2.

by Anonymousreply 3July 29, 2021 3:20 PM

Before you make your decision OP, examine all these advisors AND all their companies / back office on Broker Check.

Offsite Link
by Anonymousreply 4July 29, 2021 3:24 PM

R3 The fees for Option 2 are not that much higher. Maybe 1.10% vs Option 1's 1.00%. They are well dressed, gracious, and have a lot of back office research. It's like a hybrid of Morgan/Merrill/Goldman and an independent broker. I hear lot about Morgan brokers putting a client in their high fee mutual funds.

R4 I checked. Option 1 has three disclosures in 35 years of being a broker. All three brokers at Option 2 are clean. Option 3 has no disclosures in 18 years of experience.

Is Option 1 really that bad?

by Anonymousreply 5July 29, 2021 3:27 PM

Option 1 sets off alarm bells for me because I inherited someone like him when a relative passed away and left me a bit of money. I kept the same money person just because of inertia and he was exactly as you describe Option 1...older, bragged, constantly changing appointments. He ended up dropping the ball and was a nightmare to deal with.

If he is hard to get in touch with at this point, when he is supposed to be wooing you, it will only get worse going forward.

by Anonymousreply 6July 29, 2021 3:48 PM

Whoever you choose, it has to be someone you trust and find reliable. Obviously, if someone doesn't call you back, I wouldn't go with that person.

by Anonymousreply 7July 29, 2021 3:50 PM

Get more option, those all suck. How in the world did you manage to limit yourself to those three options?

by Anonymousreply 8July 29, 2021 3:51 PM

Your Option #1 will likely retire in the next few years. Then where will you be?

by Anonymousreply 9July 29, 2021 3:55 PM

That’s very helpful r8, considering that you have $8.50 in your checking account.

by Anonymousreply 10July 29, 2021 3:56 PM

R8 how do they all suck?

by Anonymousreply 11July 29, 2021 3:57 PM

Option 4.

Send me your surplus cash and I promise to remember you in my will at a nice rate of return.

by Anonymousreply 12July 29, 2021 3:58 PM

From all the options, #2 would be the most reliable. #1, doesn't care and will very likely retire soon and #3 could move back to the big city (missing it or because of family related drama).

by Anonymousreply 13July 29, 2021 4:05 PM

How much are the fees? 1%? 1% of what? No additional fees? Ever? What exactly do you get from paying those fees? Please post the details. I was thinking about going with Schwab but I could never get a str8, detailed answer about fees. I see a lot of complaints online saying Schwab is not transparent about fees.

by Anonymousreply 14July 29, 2021 4:11 PM

What if you plomp them all into an index fund OP? Over long term, money guy and index fund share similar performance but less fee on index fund.

by Anonymousreply 15July 29, 2021 4:13 PM

Suze Orman definitely says to buy her books r14

by Anonymousreply 16July 29, 2021 4:13 PM

Suze Orman is a quack.

The fees are management fees. 1% a year; 0.25% charged a quarter out of your account for the service.

by Anonymousreply 17July 29, 2021 4:34 PM

Is having a stockbroker a sham?

by Anonymousreply 18July 29, 2021 5:00 PM


by Anonymousreply 19July 29, 2021 5:43 PM

Just buy an annuity.

by Anonymousreply 20July 29, 2021 5:44 PM

R20 Broker 1 tells me does annuities, too and he has the best rates out of anyone. He says he's more in the know than the others.

by Anonymousreply 21July 29, 2021 5:48 PM

There's a huge difference between a financial planner, a financial advisor, and a stockbroker, OP, and they're usually mutually exclusive. Do you know what you're trying to accomplish with them, and what reasonable expectations are?

by Anonymousreply 22July 29, 2021 5:52 PM

ask them to show you tienr rate of return on their picks, if they have any clients who can refer them.

by Anonymousreply 23July 29, 2021 5:55 PM

OP, do NOT do it!

by Anonymousreply 24July 29, 2021 5:55 PM

A few years ago I had to choose a financial manager for our family trust when I became the 4th and final trustee. I went with a man who has shown great personal interest in our family, who flew at his expense to meet each family member, who answers all my emails and phone calls, who is way smarter in every way than I am, and who has steered a difficult portfolio (heavy in oil/gas from the 1960s that was never diversified by the other lousy trustees). Not only that, he is never downbeat or upbeat. He is calm and gives every indication of understanding what he is doing to the best of his ability. He knows a great deal about trusts, estates, and taxes. But he's quick to tell me when he doesn't know something, which I appreciate. His wife is successful in her own right, and they have three adorable young children. The only bad thing are the cookies he sends at Christmas.. So I lucked out. The trust has never been healthier, given its limitations. I don't know what I'd do without him. My advice: if your broker/planner/advisor isn't interested in you, he or she will not serve you well.

by Anonymousreply 25July 29, 2021 6:02 PM

R22 they are all the same in some ways. I want my accounts to grow and to avoid capital gains. I need a tax, estate, and financial plan. To me, they are all stockbrokers lol

by Anonymousreply 26July 29, 2021 6:04 PM

R25 here. One more thing. He works for Morgan Stanley, NYC. At one point he explained why he worked for MS, but I've forgotten all the reasons. It had to do with the capability of MS to accommodate any curve ball he throws. There is a lot of oversight and regulation, which not all firms have.

by Anonymousreply 27July 29, 2021 6:06 PM

OP, don't be so obtuse. You have narrowed your options to three terrible, terrible choices. I work with other peoples' money (though not as a CFP or broker), and I will tell you what I tell my clients: you want a fee-based professional who will invest your dollars with either Schwab or Vanguard. Period. If you want to completely "set it and forget it," you may want to go with a 1% cut though I wouldn't go any higher than .5 or .75 if possible (the size of your portfolio, if large, can potentially help you select a lower rate). You would be shocked what a 1% cut amounts to over twenty to thirty years.

Under NO circumstances should you use a bank-affiliated advisor (Ameriprise, MS, etc.). These people will bleed you dry. Don't even consider them. You should the referral fees these guys offer me -- and that money comes from operational dollars funded directly by their cuts. In additional to management fees, they make money on every trade they execute on your behalf. I will leave you to imagine what happens to the value of your portfolio when they have to put their kids through school or buy a house or buy a car or...

In addition, you should be happy to pay capital gains as it is a heavily favored tax rate. If you get yourself an enrolled agent or accountant who focuses on tax strategy and retirement, you can easily ameliorate your future tax burden.

And for the love of God, DO NOT PURCHASE AN ANNUITY. They are the biggest scam going.

With that, I wish you luck in your hunt for financial help. Accept only the best professional you can vibe with.

by Anonymousreply 28July 29, 2021 6:56 PM

I still don't know what to do. The other brokers in my town are generic or not good.

by Anonymousreply 29July 29, 2021 6:56 PM

OP, don't do anything until you educate yourself. Go to the bogleheads.org website and read some posts then ask questions there. 1% plus the underlining expense for the mutual funds is too much. In retirement, the safe withdrawal rate for a 30 retirement is 4%, you will be giving up more than 25% of your earnings to someone to do something you can easily do yourself.

It is very very easy to manage your own account using index mutual funds.

Do not buy an annuity, the interest rates are too low and the commissions are very high which is why they will try and sell you one.

There are a lot of very smart people on the bogelhead forum who will help you.

Best of luck to you.

by Anonymousreply 30July 29, 2021 8:00 PM

Bury your money in coffee cans.

by Anonymousreply 31July 30, 2021 2:42 AM

Look into managed accounts or robo advisor options such as Fidelity Go, Schwab Intelligent Portfolios or Goldman Sachs Marcus Invest. Vanguard has it too forget their name.

Unless you have multi millions, these should create a well balanced portfolio for you that auto cub rebalances and is based on you risk tolerance at very low cost (0 to 0.35%)

For overall fo a vial planning, look for a fee based planner who charges by the hour to creat a plan for you. The Garrett Planning Network can help you find one in your city. I did that abkut 10 years ago and paid about $2500 for a one time overall comprehensive financial plan which also included analysis of potential Roth conversions.

Not sure why you think you need a stockbroker. Unless your portfolio is in the multiple millions you should not be investing in individual stocks since you’re taking on too much added risk without enough diversification. Thus you should be using Mutual Funds or ETFs. (Ideally low cost index finds with maybe an actively managed find or two if you want a specific sector)

by Anonymousreply 32July 30, 2021 4:32 AM

^Stocks in non retirement accounts can generate a lot of capital gains from buying and selling. It's a lot more tax efficient to buy and hold index funds over the long haul.

by Anonymousreply 33July 30, 2021 12:56 PM

Yeah that's why I said he shouldn't be doing that.

by Anonymousreply 34July 30, 2021 9:54 PM

Thanks for the advice. Then what is the point of hiring a financial advisor/planner?

by Anonymousreply 35August 2, 2021 1:33 PM

R35, there is no point. Don't get conned.

by Anonymousreply 36August 2, 2021 1:53 PM

R36 I'm almost an accredited investor with a few real estate properties. I need help getting some things organized. My current "broker" at JPM is not very helpful at all. He is obviously just a salesman and does not know the market. I study the market everyday but need a broker to help me understand some things.

by Anonymousreply 37August 2, 2021 1:57 PM

Enjoying this thread, thanks everyone.

Quick question: I have about $150,00.00 that I could invest. I’m 55. Any ideas on how I could grow that?

by Anonymousreply 38August 2, 2021 1:59 PM

R38 I would find an independent wealth management company. Find a younger broker there. He will have a team probably and can help you grow.

by Anonymousreply 39August 2, 2021 2:05 PM

r38, Have you read the replies to the OP?

by Anonymousreply 40August 2, 2021 3:51 PM

r38 - one more time. Low or no load mutual funds that follow the S&P 500. You are 55 so you can expect 10 years growth to be about 13% return. Just be sure to have the div reinvested into the fund.

by Anonymousreply 41August 2, 2021 11:36 PM

[quote]Quick question: I have about $150,00.00 that I could invest. I’m 55. Any ideas on how I could grow that?

No-load mutual index funds/etfs at Vanguard, Fidelity or Schwab. Pick like one total stock market and one total bond fund, adjust per your risk tlerance. Or go with a robo advisor as I suggested upthread to do it for you

[quoet]Thanks for the advice. Then what is the point of hiring a financial advisor/planner?

Depends what you want/need. If its' just for investments, they can do what the robo advisor will do but handhold you more through the process: assessing your risk tolerance and then creating an asset allocation for you. If you need actual financial PLANNING, e.g. setting up a budget, figuring out how to reach retirement goals, etc. they can help you create a PLAN. But go for a FEE based planner, either flat/hourly fee to set up your plan. Otherwise you;ll pay aabout 1% of total assets for someone to manage your investments which you could get for much less (0%-0.35% or so) with a robo advisor.

by Anonymousreply 42August 3, 2021 2:12 AM

r42 most people have them because they are scared of finance. They don't understand it so they put it in the hands of "experts." My MIL let my brother-in-law manage her money at Ameriprise. He got a job there with one interview, no test and he was an idiot. I asked him how he managed the portfolio and he told me they had specific funds they suggested to the clients based on thier age. That it was a no brainer.

by Anonymousreply 43August 3, 2021 2:16 AM

From what I gather from skimming through the thread, you don't say why you want a financial advisor. Are you trying to decide what to do with inherited assets? Are you looking for a place to put extra money? Are you trying to build up a retirement account? Are you working and contributing to your employer's 401k or 403b plan? It would be helpful to know what you are trying to do to give meaningful advice.

by Anonymousreply 44August 3, 2021 2:27 AM

Just dig a whole near the dry river bed. Stash treasure there.

My fee can be gruel.

by Anonymousreply 45August 3, 2021 2:33 AM

I was in a similar boat and went with Morgan Stanley guy and his team. They have been amazingly communicative and I've made so much more money than when I used to let it all sit in Fidelity or Vanguard accounts geared toward a retirement date. I've been very pleased. Morgan Stanley's user experience is top notch.

by Anonymousreply 46August 3, 2021 2:38 AM

[quote]I was in a similar boat and went with Morgan Stanley guy and his team. They have been amazingly communicative and I've made so much more money than when I used to let it all sit in Fidelity or Vanguard accounts geared toward a retirement date. I've been very pleased. Morgan Stanley's user experience is top notch.

What have a they done differently? Are you in different funds vs. when you were in Fidelity/vanguard? e.g. aggressive vs. conservative allocations?

what time periods? if you were in fidelity during 2000-2008 and then MS 2010 to now the entire market went up.

Unless MS is picking stocks for you, they are probably using algorithms/model portfolios no different than what a robo advisor would put you in.

by Anonymousreply 47August 3, 2021 2:41 AM

r46, you can't compare the returns in different time periods. How has your portfolio done against the stock and bond market indexes? You are comparing apples to oranges. You also have to make sure they report your returns net of expenses to make the comparison.

by Anonymousreply 48August 3, 2021 4:28 AM

R48 R46 here. You bring up really great points. I am a creative guy and I'm so not smart when it comes to finances. But I should take a closer look, as it's that time anyway. I read a couple of Suzie Orman's books years ago but I didn't absorb enough to feel comfortable without someone to advise me.

by Anonymousreply 49August 3, 2021 4:53 AM

r49, this is one of the best forums on the net for investment advice.

Offsite Link
by Anonymousreply 50August 3, 2021 10:34 AM

When the best you can say about your least awful option is ‘attractive’ and ‘classy’, you need new options.

by Anonymousreply 51August 3, 2021 11:10 AM

Suzi Orman and Dave Ramsey are for middle class people.

Edward Jones is the Burger King of investments. They are on every street corner and have the same recipe for every client (they do not even allow for options trading!).

Morgan Stanley, Goldman Sachs, and the independent wealth management are where you can really make and save money.

by Anonymousreply 52August 3, 2021 1:13 PM

*Suze*, not Suzie or Suzi. Get with it, gays!

by Anonymousreply 53August 3, 2021 2:34 PM

Fidelity, Charles Schwab and Vanguard is where your money will grow with low cost index funds. The others will rob you blind.

Pay close attention to expense ratios and AUM fees as the greatly erode returns.

by Anonymousreply 54August 3, 2021 3:21 PM

I don't understand why anyone goes with a complicated, expensive stockbroker-type situation. Just get a Fidelity account and invest your money in a no-load S&P index fund to start. The online app has a lot of helpful information and tools if you want to move beyond that. They also have customer service to help you if you have any issues with transferring money, etc.

I worked hard to save my money; I don't want to give any more of it than I have to to investing agents.

by Anonymousreply 55August 3, 2021 3:46 PM

Annuities are the safest best.

by Anonymousreply 56September 14, 2021 4:16 AM

You don't need an advisor for an annuity. Most work exactly as advertized.

by Anonymousreply 57September 14, 2021 4:17 AM

[quote]Annuities are the safest best.

For the person who sells it to you. They make big bucks in commissions off the shitty product.

by Anonymousreply 58September 14, 2021 4:19 AM

^ Still essentially 'safe', right?

by Anonymousreply 59September 15, 2021 1:15 AM

You can now buy annuities online directly from a company's website.

by Anonymousreply 60September 15, 2021 1:16 AM

r59, safe until inflation takes off.

by Anonymousreply 61September 15, 2021 3:54 AM
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