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Not loving my financial advisor

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  • Antares
    replied
    Originally posted by Kamban View Post
    My friend was caught in a similar situation. In his case it was even worse and it was his BIL who managed all the funds.
    My friend asked me what he should do, after finding the poor returns. I said a clean break is the best. He said what explanation is needed for the break since it will be coming out of the blue. Even though it is easy to say no explanations are needed, it is always good to have one handy. I told him to say that he now has more time and feels that he can manage it himself. That is it.
    But be prepared for this usual comeback - You would not want me to operate on you as a financial advisor, so why would you want to manage money that is not your field of expertise. You can emphasize that you have the time and knowledge. If he does not stop and becomes pushy / nasty then state simply " my money, my wish to do as I please with it". And end the topic.
    I used this approach. He kept saying “You are dissatisfied”. I said “No, I’m at a point where I want to manage it myself”. After repeating that several times, we agreed to speak in the future about how it went.
    We never had that follow up conversation. I think he didn’t bring it up, because he didn’t want to hear that I felt better with the new arrangement. For me, no reason to bring it up. it wouldn’t have been an authentic conversation.

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  • Tim
    replied
    One excuse is failsafe:
    My spouse doesn’t want anyone else in our business. Sorry dude, nothing to debate.

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  • Kamban
    replied
    My friend was caught in a similar situation. In his case it was even worse and it was his BIL who managed all the funds.
    My friend asked me what he should do, after finding the poor returns. I said a clean break is the best. He said what explanation is needed for the break since it will be coming out of the blue. Even though it is easy to say no explanations are needed, it is always good to have one handy. I told him to say that he now has more time and feels that he can manage it himself. That is it.
    But be prepared for this usual comeback - You would not want me to operate on you as a financial advisor, so why would you want to manage money that is not your field of expertise. You can emphasize that you have the time and knowledge. If he does not stop and becomes pushy / nasty then state simply " my money, my wish to do as I please with it". And end the topic.

    Leave a comment:


  • Tim
    replied
    Anytime “Friends & Family” become a factor in business decisions, someone gets shafted. Withdrawing your financial support should not damage your friendship. If it does, it was a childhood acquaintance. The business relationship is toxic and will damage your relationship. No choice.

    Leave a comment:


  • Lordosis
    replied
    Originally posted by goldenchimpy View Post
    Not that I would ever recommend this, but I'm always curious how it would go if someone sat down with an "advisor" and tore apart their little money making operation. Everyone always says that the majority of these advisors truly think they're doing a good job, but how is that possible when evidence to the contrary is so readily available.
    Good point. I wonder how many really believe vs toe the line. I wonder if an advisor who knows that it is wrong but does it anyway is better or worse at their job.

    I have ha similar wonderings about alternative medicine doctors.

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  • Antares
    replied
    Originally posted by goldenchimpy View Post
    Not that I would ever recommend this, but I'm always curious how it would go if someone sat down with an "advisor" and tore apart their little money making operation. Everyone always says that the majority of these advisors truly think they're doing a good job, but how is that possible when evidence to the contrary is so readily available.
    I tried for quite a while to discuss our differences with my former advisor/friend. I believe he thinks he is doing honorable work, and he cannot afford psychologically to believe otherwise. I realized that in the end there was no discussing the matter. The only way to get off the phone was to hang up.

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  • CordMcNally
    replied
    I also do not love your financial advisor.

    Leave a comment:


  • goldenchimpy
    replied
    Not that I would ever recommend this, but I'm always curious how it would go if someone sat down with an "advisor" and tore apart their little money making operation. Everyone always says that the majority of these advisors truly think they're doing a good job, but how is that possible when evidence to the contrary is so readily available.

    Leave a comment:


  • fatlittlepig
    replied
    Clean break, never complain, never explain.

    Leave a comment:


  • Silverdoc
    replied
    Agree with everything that's said here. I'm plugging Jim's course here, the Fire your Financial Adviser course, which I took. After you write your financial plan, you get this sense of security (and humility). You know that you're in a better position not to get bamboozled, but you're also aware of how much needs to occur (or how little) before you reach your financial goals.

    Leave a comment:


  • Hank
    replied
    Originally posted by Hatton View Post
    Expenses matter. In the future as an orthopedic surgeon the increased percentages he is costing you will be real money and over your lifetime you could be looking at several million less in retirement funding. How good of friend is he?
    Yep, with this kind of AUM fee, you could pick up the tab every single time you guys go out for drinks, go bowling or fishing, go out for a meal, and possibly add ski trips and cruises and still come out far, far ahead of $1M+ in excess fees.

    Leave a comment:


  • JBME
    replied
    Originally posted by Jstephens View Post
    Thank you for the advice and encouragement. I appreciate it. It has affirmed what I have been thinking for awhile. Next question- the current account is invested at schwab which is my account and I have access to it. Should I just block their involvement there and continue at schwab? I suspect for simplicity sake I will convert the investments to a 3 fund portfolio or something similar with their schwab index funds. I believe I would even have the option of acquiring vanguard ETFs through schwab. From the forum, it seems there are at least 150 portfolios better than mine currently. OR should I open a vanguard account and transfer the money there. Vanguard seems to get quite a bit of buzz on the forum. Rightfully so from what I can tell. I just wasn't sure if it would be worth the switch at this point? I read a previous post similar to this concerning staying at schwab versus opening a vanguard account.
    The best big three with low expense index funds are Vanguard, Fidelity, and Schwab. In fact if you are doing the three fund portfolio the expense ratios at Schwab I think are lower than Vanguard. So if you are already with Schwab I would stay at Schwab and purchase their mutual funds. I would imagine if you buy VG funds at Schwab there will be a fee. no need to switch or even buy VG funds in your schwab account

    Leave a comment:


  • Antares
    replied
    Just so you know, you are not alone, I too had to dismiss my college roommate who was handlIng my investments and charging AUM. It was very difficult but it had to be done. I would recommend sooner rather than later, because the longer you allow it to continue, you risk resenting your friend, and the relationship may be compromised. That was my experience. I never should have entered into the arrangement in the first place, but I wasn’t yet confident or educated enough to do otherwise. Good luck, you can do this!

    Leave a comment:


  • dennis
    replied
    Originally posted by Anne View Post

    I’m thinking of becoming an advice columnist as my encore career, inspired by your glowing review. Know of anyone hiring?
    "Annie Knows Best" has a nice ring. You can use it free of charge. : )

    Leave a comment:


  • Jstephens
    replied
    Thank you for the advice and encouragement. I appreciate it. It has affirmed what I have been thinking for awhile. Next question- the current account is invested at schwab which is my account and I have access to it. Should I just block their involvement there and continue at schwab? I suspect for simplicity sake I will convert the investments to a 3 fund portfolio or something similar with their schwab index funds. I believe I would even have the option of acquiring vanguard ETFs through schwab. From the forum, it seems there are at least 150 portfolios better than mine currently. OR should I open a vanguard account and transfer the money there. Vanguard seems to get quite a bit of buzz on the forum. Rightfully so from what I can tell. I just wasn't sure if it would be worth the switch at this point? I read a previous post similar to this concerning staying at schwab versus opening a vanguard account.

    Leave a comment:

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