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So I'm new to this game (and sadly, about 10-15yrs too late) and am in the the midst of a lot of changes to my financial plans for various reasons (mostly that I have stability and extra income for the first time since having my kids, also getting more savvy about mistakes made in the past). I had another thread here where I asked several questions and got several answers re: what my new FA was suggesting to me. In the meantime I've done more research and reading (mostly WCI!) and come to get a broader picture of what I might want to be looking for.
My understanding is that this FA is NOT fiduciary (do not see in our agreement and not part of the NAPFA) and is fee-based, charging 1% advisor fees and 0.2% program fees for housing and managing my rollover IRA fund of <$150K (the rest of my funds are elsewhere and managed by me, but that's my largest pot). His services are full spectrum, has advised on my other accounts, been very available for time sensitive decisions, done a lot of research on his own re: my situation, and we haven't even had time to meet for the full on analysis of everything. My understanding of the plan is to enter all my stuff into some program he has and project what each might do for me in the future, thereby figuring out where I might need to reallocate, etc. (in the meantime we're still dealing with other time sensitive investing/insurance decisions). I really needed to do this years ago, but just always overrun with another crisis or another so inertia kept with with a FA who really didn't do much for years besides take his fees after giving me bad investing advice, so this really feels like a step up to me.
However I also understand how active management may not be what I need as the advice and planning. I'm approaching mid-40s and feeling very behind, so really looking to figure out all my game plans as my kids approach being "half done"(!), while trying to catch up from several years where I really couldn't save and other less-than-ideal planning/saving strategies.
In comparing what his fees would be compared to a fee-only advisor, however, it's seeming relatively reasonable, given that we've already spent hours on the phone (and even longer with texts and emails) trying to lay the groundwork to sort all this out. I do feel I need this right now, and I like that he has access to "specialists" at his firm to clarify questions and what-not without me having to set up appts with 5 different people when I have many moving parts happening at the same time.
I'm considering just staying with him while I get all this sorted out, paying the AUM fees for a year or so (I think would come to ~$1500?), and then when I feel comfortable with my plan considering making a change? I don't mean to be deceptive, but I don't want to pay $1500+ every year if I'm not in need of a lot of help (and then there's the "active management" strategy that is still a question mark).
I understand this forum is full of DIYers, but I'm not there yet, and am using this time to learn a lot and figure out my options and a reasonable plan with someone who can look at my big picture -- it's almost like managing my IRA is "on the side". :P
Thanks in advance!
My understanding is that this FA is NOT fiduciary (do not see in our agreement and not part of the NAPFA) and is fee-based, charging 1% advisor fees and 0.2% program fees for housing and managing my rollover IRA fund of <$150K (the rest of my funds are elsewhere and managed by me, but that's my largest pot). His services are full spectrum, has advised on my other accounts, been very available for time sensitive decisions, done a lot of research on his own re: my situation, and we haven't even had time to meet for the full on analysis of everything. My understanding of the plan is to enter all my stuff into some program he has and project what each might do for me in the future, thereby figuring out where I might need to reallocate, etc. (in the meantime we're still dealing with other time sensitive investing/insurance decisions). I really needed to do this years ago, but just always overrun with another crisis or another so inertia kept with with a FA who really didn't do much for years besides take his fees after giving me bad investing advice, so this really feels like a step up to me.
However I also understand how active management may not be what I need as the advice and planning. I'm approaching mid-40s and feeling very behind, so really looking to figure out all my game plans as my kids approach being "half done"(!), while trying to catch up from several years where I really couldn't save and other less-than-ideal planning/saving strategies.
In comparing what his fees would be compared to a fee-only advisor, however, it's seeming relatively reasonable, given that we've already spent hours on the phone (and even longer with texts and emails) trying to lay the groundwork to sort all this out. I do feel I need this right now, and I like that he has access to "specialists" at his firm to clarify questions and what-not without me having to set up appts with 5 different people when I have many moving parts happening at the same time.
I'm considering just staying with him while I get all this sorted out, paying the AUM fees for a year or so (I think would come to ~$1500?), and then when I feel comfortable with my plan considering making a change? I don't mean to be deceptive, but I don't want to pay $1500+ every year if I'm not in need of a lot of help (and then there's the "active management" strategy that is still a question mark).
I understand this forum is full of DIYers, but I'm not there yet, and am using this time to learn a lot and figure out my options and a reasonable plan with someone who can look at my big picture -- it's almost like managing my IRA is "on the side". :P
Thanks in advance!
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