Financial Advisor Question

[SteveinMN]

DW and I know people who find the whole money thing befuddling. Well, they know how to spend it (maybe not wisely but they know how) but they don't have the interest (and, some, not the personality) to learn more about managing their money. If this advisor is on the up and up and is willing to put his/her foot down and say 'no' to friend's dumb ideas (like loaning friends large sums of money), then $100 a month might be a decent price for a little financial fitness training. Shouldn't need $100 worth of help every month for forever, though.

I'd be curious as to what kind of "managing" either rosa's friend or the advisor thinks is going to get done for $100/month. If it's just putting the advisor's name down on investments and financial forms as a contact so they can have a general idea of how much money is there, that's too much money for that. If it's actually looking at allocations and doing the work of buy/sell/transfers until appropriate diversification is achieved, it's expensive but retail handholding always is.

Personally I would say no; I have zero interest (ha!) in an arrangement like this. But I could see a complete financial neophyte finding value in it if the monthly fee was for true fiduciary help and not just a convenience fee and if it didn't go on for years on autopilot (occasional reallocations, etc. aside).

[catherine]

I can relate to the friend because I certainly have made my share of dumb decisions with money, but the closest thing I've found to a financial adviser that has helped me is Dave Ramsey (free) and the Truebill app ($5 a month for reminding you what you are paying for things you could be getting for less).

I know for a fact that all the information she wants is found online--there are retirement models to help you figure out the best time to take it, for instance. I'm pretty good at wasting money, but I wouldn't waste $100/month on that financial advisor.

[GeorgeParker]

I can relate to the friend because I certainly have made my share of dumb decisions with money, but the closest thing I've found to a financial adviser that has helped me is Dave Ramsey (free) and the Truebill app ($5 a month for reminding you what you are paying for things you could be getting for less).

I know for a fact that all the information she wants is found online--there are retirement models to help you figure out the best time to take it, for instance. I'm pretty good at wasting money, but I wouldn't waste $100/month on that financial advisor.

If she wants someone who will really control her finances, Britney Spears' father is available.... https://www.forbes.com/sites/maddieb...h=3cc20d5d7a6b

[RedSpruce]

Personally I would say no; I have zero interest (ha!) in an arrangement like this. But I could see a complete financial neophyte finding value in it if the monthly fee was for true fiduciary help and not just a convenience fee and if it didn't go on for years on autopilot (occasional reallocations, etc. aside).

Agreed. But with a caveat. Here in Canada we have something called a fee only financial planner. For a straight annual fee (in our case it was $1000) they come in to do a full financial assessment and create a plan for you. Every year there was a three hour annual review…for another $1000. Then her son, who operated in a fiduciary capacity according to them, did the investing for us…for another $1000 per year. When we moved and left “the firm”, we discovered all the investments we had were in investment vehicles that had hefty charges to leave. In the end it cost us to be with this mother/son duo, rather than making us money. Now we do any investing by ourselves or through the bank. Mostly straight GICs or market linked GICs.

Rosa, I agree that your friends need to clarify what exactly they expect from their financial planner, as well as ask about any other hidden fees. I doubt they will let you handle things though. I’m not sure it’s a good idea for you to do it. If anything goes wrong you could be opening yourself up to a lawsuit.

[NewGig]

Personally, I would love to be able to get someone to review our finances and help us make a plan, because we don't have anything set.

When do i apply for social security to our best advantage? Should we keep our retirement funds as they are, etc. Or a guide line/rule to help us know would have been a great boon.

Last time we tried to get such a thing, we went to our bank. The fellow was only interested in selling us securities/mutual funds and not any of the other planning. We passed.

I'd love to find someone to help us get it into perspective. Everyone I've ever found wants lots of money, for a long time, and no concrete "deliverables" so we have muddled on as best we can...

My plan is to pay down debt as quickly as possible. DH's is mostly to make investments in this place which either increase the value or make it easier for us to stay put. We do a little of both. Neither help with the social security question, the investments question, etc. Both do, however, put us in a better position in the long run.

If I suddenly bring in someone DH doesn't know to talk about this, he'll just say "No."

[bae]

This thread is giving me an idea for a new, useful, business. One time charge for initial consult and advice, then a per-hour fee for future consultation and updates. Keep things simple and inexpensive, help folks, rake in cheese money.

[rosarugosa]

Thanks for the input everyone. While the ultimate decision is up to my friend, at least I feel more comfortable saying that I would not recommend it. An advisor might not be a bad idea for this individual, but surely something more reasonably priced.
RedSpruce: That sounds like a terrible experience. I should clarify that my idea of helping would be to assist in checking interest rates at different institutions, for example, and providing moral support, steering friend towards online resources, etc. I'm not worried about being sued, but my friend is an intelligent adult, and I'm not interested in parenting them so I will tailor any assistance accordingly.
George: That is hilarious!

[catherine]

When do i apply for social security to our best advantage?

This free site is great. I used it to make my decision. https://opensocialsecurity.com

[Tybee]

I think if someone is as clueless with money as your friend seems to be, a hundred dollars a month would be well spent if they could learn and get on track with help. That's like four 25 dollars a month therapy sessions. Nobody would think that was a ripoff.

It probably isn't much different.

Things like Dave Ramsey are great, Bogleheads, other money sites--but you have to know where to look and spend a lot of time looking and learning and they be willing to implement what you learn. Will the hundred dollars a month get them on track? If they are big earners, that is not much.

[NewGig]

Thanks Catherine!