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Post by stine on Jul 12, 2022 1:14:07 GMT
I am unhappy with my current guy as he has lost a large portion of our investments in the last couple of months. I realize that there's a lot going on in the world but I can't take much more of this and still retire in 10ish years. Plus, we met with him a month ago and he gave me a hard time about calling him 'when the numbers drop but not when they go up'. I countered with the fact he mentioned he called about his broken AC but he doesn't call them when it's working does he? It's why I pay you!! And buddy, the numbers have never gone up the way they are going down so how does he know I wouldn't send him a singing telegram?
So, I need a new firm but have no idea how to go about finding a trustworthy one. I need someone to do the investing for me. What else do I look for? Also, there is a company match involved so does he have to keep that portion at his firm or can that be moved? Thanks for any info!
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Post by librarylady on Jul 12, 2022 1:34:39 GMT
I found mine through my attorney (who also was my personal friend).
I would advise you to make sure it is a certified financial planner, not just an accountant who decided to use the title.
FWIW, my planner was independent when I began to use him, but now he is part of the Raymond James group.
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Post by buddysmom on Jul 12, 2022 2:19:17 GMT
It's actually not complicated. For a retirement fund, put 50-60% of your money (or the amount you feel comfortable with) in a passive index fund such as an S and P fund through Vanguard, Schwab, or Fidelity. Put the rest in bonds, some type of "cash" , CDs, or stable value fund if your employer offers that. I also have a tiny amount in "my stocks", "fun stocks" that won't make me rich but won't make me poor if they all go bust.
I'm looking at you, Carnival...
The expense ratio is tiny.
Check to see how much you are paying your financial advisor, it's probably 1% or more AUM (assets under management).
They make it look a lot more complicated than it is.
It's an easy DIY. You don't need a financial advisor.
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Post by cmpeter on Jul 12, 2022 2:30:09 GMT
We went with recommendations from close friends.
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Post by 950nancy on Jul 12, 2022 2:32:40 GMT
We went with a guy who worked with our school district. He had some great ideas, but then my husband got involved with the stock market and made about 3 times the amount this guy was getting. This year has been rough though.
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Post by ntsf on Jul 12, 2022 3:13:09 GMT
I would say don't judge based on this year.. everyone has lost value.
I would ask around friends, look for certifications, or go with a bigger firm.. edward jones or charles schwab, or fidelity.
we are retired living off investments. we invested in stocks that we know.. and have done very well. you don't want to sell on the bottom.. just ride out the waves.
we have some mutual funds and bonds. but we have really done extremely well with individual stocks. so the conventional wisdom may or may not work for you.
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Post by Texas Scrap on Jul 12, 2022 3:29:35 GMT
I would say don't judge based on this year.. everyone has lost value. I would ask around friends, look for certifications, or go with a bigger firm.. edward jones or charles schwab, or fidelity. we are retired living off investments. we invested in stocks that we know.. and have done very well. you don't want to sell on the bottom.. just ride out the waves. we have some mutual funds and bonds. but we have really done extremely well with individual stocks. so the conventional wisdom may or may not work for you. Agree. Everyone I know is down quite a bit given the entire market has lost maybe 20% since January? So talk to friends if you want to look around but also know the best advisors going into 2022 could not have anticipated what’s happening now. I do think a solid advisor should have you in a mix that matches where you are in your retirement timeline, but even so it’s a bear market so that should minimize your losses. It’s hard to not stress out right now about the market - hang in there. |
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Post by **GypsyGirl** on Jul 12, 2022 3:39:46 GMT
I agree with ntsf - don't make judgments based on this year. Easier said than done though! DH has the nerves of steel and I'm currently convinced we will be eating beans and rice forever.  . You mention that there is a company match in the account. Are you currently still employed with the company, and are they still matching your money? If so, you may not be able to move that 401K. Once you separate from the company, then it can all be moved (rolled over) to another account. We currently have one long time account that our broker (40 yrs) manages and it has the proceeds from 3 companies in it. There is another account from the company DH is currently working for (they are matching as well). That money has to stay there until he no longer works for them. At that point we can choose to roll it over or leave it there. Plus, we met with him a month ago and he gave me a hard time about calling him 'when the numbers drop but not when they go up'. He actually has a point. You want to build a partnership with your advisor, not view them as an adversary and only contact when the market is down. By checking in periodically (for us it's once every 4-6 weeks) and discussing your Goals, as well as tracking where you are in the journey, you will be more successful in the long run. Sometimes it's a 5-10 minute call to see if he has recommendations to buy/sell to make adjustments to the portfolio. It's rarely a long, drawn out meeting. |
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Post by jenjie on Jul 12, 2022 3:43:21 GMT
I would say don't judge based on this year.. everyone has lost value. I would ask around friends, look for certifications, or go with a bigger firm.. edward jones or charles schwab, or fidelity. we are retired living off investments. we invested in stocks that we know.. and have done very well. you don't want to sell on the bottom.. just ride out the waves. we have some mutual funds and bonds. but we have really done extremely well with individual stocks. so the conventional wisdom may or may not work for you. Agree. Everyone I know is down quite a bit given the entire market has lost maybe 20% since January? So talk to friends if you want to look around but also know the best advisors going into 2022 could not have anticipated what’s happening now. I do think a solid advisor should have you in a mix that matches where you are in your retirement timeline, but even so it’s a bear market so that should minimize your losses. It’s hard to not stress out right now about the market - hang in there. This. I’ve worked with my guy for 25+ years. We used to work together. He calls every so often and lets me know what’s going on with my accounts and the market in general. Unless you need those funds soon, I know he would advise to hold them where they are and let it ride the wave. He tells me about the fluctuations in the market. Of course nobody could have predicted where we are today! |
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Post by Mary_K on Jul 12, 2022 13:53:33 GMT
This year has been rough though. This! |
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Post by GamGam on Jul 12, 2022 14:03:39 GMT
I found mine through my attorney (who also was my personal friend). I would advise you to make sure it is a certified financial planner, not just an accountant who decided to use the title. FWIW, my planner was independent when I began to use him, but now he is part of the Raymond James group. Our experience exactly--even Raymond James affiliation. But I will add, the integrity of your Planner needs to be bedrock solid. We hear from ours periodically, and he sends letters at the National holidays expressing his respect for the service of others to our country. This gives us a glimpse into his character. We meet with him occasionally. He would see us more often, but we have weathered a LOT of ups and downs under his leadership and have learned to hang on and be a bit philosophical about the fluctuations. We trust him, and feel he treats us with the respect he would have for his parents. |
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Post by guzismom on Jul 12, 2022 14:10:12 GMT
Way back in the day, we started with a Merrill Lynch advisor on the recommendation of a friend. He quickly retired but his protege has managed our assets for 25+ years and has done a fabulous job. He now has a team of younger people working under him and one of them will take the helm when he retires. I have confidence that the new person, trained under our current advisor (and having the same approach and strategy), will do a good job too.
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Post by ntsf on Jul 12, 2022 15:44:15 GMT
also remember that it is super rare to "beat the market" and make more money when the market goes down. if you keep up or do a little better than the overall Dow or Nasdac.. you are doing fine. we get downturns every few years.. and then the market goes up.
consistently putting money in the market should serve you well over time.. my dad heard about mutual funds in the early 1950's.. he put a tiny amount in every month..for 35 yrs.. and was very comfortable in retirement until he died at 95.
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Post by lisacharlotte on Jul 12, 2022 15:58:38 GMT
We got ours in probably the worst way. His office was in the neighborhood and he walked and knocked on doors. He and DH had a a lot in common re:military. We didn’t trust blindly. We gave him some money and compared results with our other advisor. New guy blew it out of the water and we’ve been with him for almost ten years now. He just moved to a new firm and we are following him.
Communication is key. He calls us to check up. He calls when the market is great and when it sucks. He asks if we have concerns and offers options for us to consider when it’s ugly. We have a relationship and we can call at anytime if we have questions. He invites us to events with professionals in the industry to help us understand our investments.
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Post by hopechest on Jul 12, 2022 16:26:39 GMT
The equity and bond markets are down over 20% YTD. I wouldn't judge on returns alone. If you aren't happy with the communication, relationship, etc., I would use that as a larger tell you need a new advisor.
The risk of "jumping ship" now, is your new adviser is 100% going to change your investments into something they recommend. So, you'll be selling at the bottom with the hope that the new guy has a magic wand to make your portfolio go up when the rest of the market is down.
If you do decide to move forward with a new advisor, get recommendations from friends, your CPA, your attorney, etc. Look at FINRA broker check and or SEC Lookup to check out who you're meeting with for disciplinary actions. If at all possible, make sure your advisor is a CFP.
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milocat
Drama Llama
Posts: 5,437 
Location: 55 degrees north in Alberta, Canada
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Post by milocat on Jul 12, 2022 20:36:33 GMT
I would say don't judge based on this year.. everyone has lost value. Agree. Everyone I know is down quite a bit given the entire market has lost maybe 20% since January? I agree with ntsf - don't make judgments based on this year. Easier said than done though! DH has the nerves of steel and I'm currently convinced we will be eating beans and rice forever. I have nerves of steel and DH is ready to bail every time it changes one iota. He calls our guy quite often. I only call for practical reasons like statements. also remember that it is super rare to "beat the market" and make more money when the market goes down.. If you were making money this year I'd be worried what your advisor was telling you. The equity and bond markets are down over 20% YTD. I wouldn't judge on returns alone. If you aren't happy with the communication, relationship, etc., All this bears repeating. Exactly, and there have been big dips before followed by gains, so ride it out. Yes his comment was a bit snarky or just dry humor. You should feel free to be able to call him if you ever need anything and should be meeting with him annually. If you don't feel like you can do this with him then find someone else but transfer your money to the new place don't pull it out. I have two different packages (different risks) from our guy and from 1970 to now the average rate or return is 9.52%. Worst -12% best 33%. Each drop comes with a steady rise. You won't be pulling all your money out the day you retire in 10 years so you do have more than 10 years to keep earning. |
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Post by lisae on Jul 13, 2022 1:05:44 GMT
Honestly, everything is down right now - stocks, bonds and cd's are still paying next to nothing. Treasuries are paying a bit better. We are at that point where the Fed is raising rates but that hasn't reached very many fixed investments yet but has caused the market to go down. Eventually, opportunities will return.
I found my advisor when I was settling my father's estate. He gave me tax advise that proved to be very useful. I always follow my mother's advise though and never have everything with one person. Every advisor has their favorite types of investments and ones that they think are poor choices no matter what. So they have their biases. You may have to talk to several people before you find someone that is a good fit for you. Ask about their background to see how many years of actual experience they have.
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Post by ntsf on Jul 13, 2022 1:39:22 GMT
I met with our financial advisor today.. worst 6 months in the market in 50 yrs.. he said he has one client who always sells at bottom of market.. this guy is ready to sell..
my advisor thinks we are getting close to the bottom of market, and we are in a recession.. but it is time to hold on tight. we are about where we were a year ago.. so down one year.. after 5 yrs of bull market.
take a 10 yr view.
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Post by Darcy Collins on Jul 13, 2022 1:47:16 GMT
I agree with the previous posters regarding the state of the market this year, but really the first question as you mentioned company match is if this is a 401k account? You may be severely limited on moving it if you're still employed with the company. Even if you can move existing funds into an IRA, new money may go to the old account, so you'll have multiple accounts to deal with.
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Post by stine on Jul 13, 2022 2:49:38 GMT
Thanks everyone!
I do understand that this market is unique and wouldn't base a change on only that. I think it is more his attitude that bothers me. There are other things in addition to the mentioned comment that bug me about him.
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Post by **GypsyGirl** on Jul 13, 2022 13:52:08 GMT
I think it is more his attitude that bothers me. There are other things in addition to the mentioned comment that bug me about him. Then that's the most important reason to make a change. You have to be able to work with someone and feel comfortable. Do check with your HR though to make sure you are able to actually move your account with matching elsewhere. We've had some companies allow it, but most did not while they were still matching. |
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Post by jenjie on Jul 13, 2022 13:55:36 GMT
Yep you need to feel you can trust your financial advisor. And feel comfortable asking questions.
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Post by librarylady on Jul 13, 2022 13:59:19 GMT
Communication from your advisor should be often and it be OK to call with concerns.
We get a monthly report, an bit more information at the quarterly report and then an annual in person visit that lasts about an hour. With covid, the annual visit has been over zoom.
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Post by jenjie on Jul 14, 2022 0:56:47 GMT
Coincidentally, today was the day my financial advisor called his clients. So I had a chance to talk to him about all this. He definitely agrees, don’t move your $ if you don’t have to. You still own the shares (mine are in mutual funds) so when the market corrects it will work out.
I wasn’t happy with my latest statements, but bc of what he has told me over the years I just rolled my eyes. After my conversation with him, I looked over my statements. I haven’t actually lost anything. Well there is an approximate net zero instead of gains and losses. It’s went up quick and came down gradually and I’m pretty much where I was at this point in 2019.
So if you had your $ in the same length of time, you would see the same. BUT what this means for you is that you’re buying low so you should see a nice return on your investment when the market corrects.
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Post by mom on Jul 14, 2022 1:04:57 GMT
Yep you need to feel you can trust your financial advisor. And feel comfortable asking questions. This is my biggest advice. Find someone that will hold your hand and explain everything they are doing for you. And if you don't understand, ask questions. Still dont understand why he's doing something? Ask again. |
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Post by auntkelly on Jul 14, 2022 13:20:46 GMT
I think your broker’s remark about never calling him when the market is up is condescending and it would irritate me. More importantly, if you are ten years’ from retirement then I think you have a legitimate concern about this market and whether you should be reallocating some of your retirement funds. (If I remember correctly Warren Buffett announced a few months ago he was mostly getting out of this market and waiting on the sidelines until things stabilized).
My kids are in their late twenties and they have plenty of time to ride out the highs and lows of the markets. My husband and I are retired and therefore more conservative with our investments. For example, my husband and I put stop losses on most of our stocks so that if they drop more than a certain percentage, they will automatically be sold. We didn’t need that type of protection when we were in our twenties and thirties, but we need it now that we are retired. Our portfolio is more conservative overall than it was twenty years’ ago.
We have two different brokers since we retired. (As a retiree, I don’t want to put all my eggs in one basket). One of our brokers sits down w/ us every quarter to go over our portfolio. The other one lives in another city, but he calls us periodically to suggest changes to our portfolio. My husband and I sometimes call our brokers w/ questions and they are always respectful, even if they don’t always agree w/ us.
If I were you, I’d look for another broker with a solid track record who is more sensitive to the fact that you want to retire in ten years. You don’t want a broker who is overly conservative, but you also don’t want a broker who has a “one size fits all” mentality.
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