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After years of DIY investing, we thought we might be missing something we just started working with
a financial advisor. We paid an annual fee of $2000 and received our financial plan.
The advisor billed herself as an independent advisor but was associated with Ameriprise for logistics.
We thought the flat fee we paid would mean we would get unbiased financial advice.
Clearly, we did not understand the nuances of financial advisor fees and compensation. After
spending days reading on the Internet about variable annuities and variable universal life insurance
we are now seeing the "emperor has no clothes"! The $2000 was merely the tip of the iceberg. Every
recommendation in the financial plan included Ameriprise products - moving assets from Vanguard
low-cost funds to Ameriprise managed funds for ongoing ~1% fees and even worse were the complicated
Ameriprise annuities and life insurance products which will generate commissions for the advisor and
generate minimal returns for us while tying up our money for the rest of our lives.
Thank you to this site and to all who contribute! We are not newbies and yet we still were almost convinced
these complex products would be reasonable solutions to our needs. The advisor said "she felt *very*
good" about what she was proposing. Wow! And yes, we know now that $2000 is not close to what a fixed-fee
advisor would cost, but at this point we plan to do it ourselves (term insurance + index investing).
a financial advisor. We paid an annual fee of $2000 and received our financial plan.
The advisor billed herself as an independent advisor but was associated with Ameriprise for logistics.
We thought the flat fee we paid would mean we would get unbiased financial advice.
Clearly, we did not understand the nuances of financial advisor fees and compensation. After
spending days reading on the Internet about variable annuities and variable universal life insurance
we are now seeing the "emperor has no clothes"! The $2000 was merely the tip of the iceberg. Every
recommendation in the financial plan included Ameriprise products - moving assets from Vanguard
low-cost funds to Ameriprise managed funds for ongoing ~1% fees and even worse were the complicated
Ameriprise annuities and life insurance products which will generate commissions for the advisor and
generate minimal returns for us while tying up our money for the rest of our lives.
Thank you to this site and to all who contribute! We are not newbies and yet we still were almost convinced
these complex products would be reasonable solutions to our needs. The advisor said "she felt *very*
good" about what she was proposing. Wow! And yes, we know now that $2000 is not close to what a fixed-fee
advisor would cost, but at this point we plan to do it ourselves (term insurance + index investing).
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