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Basic question about how FA work

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    ENT Doc

  • ENT Doc
    Do NOT do what he suggested.

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  • Peds
    He is wrong. You will be screwed. Cut off all ties.

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  • Adrian
    started a topic Basic question about how FA work

    Basic question about how FA work

    Only started reading this forum 2 weeks ago and learning so much at a very steep rate! Thank you so much guys!

    I saw a FA, he is affiliated with Merrill Lynch. We have about 200k in an old 403b in a Vanguard Target Retirement 2045 Fund. Had a 22% return rate last year. My current 403b is with Fidelity - Fidelity Freedom 2045 and had 22.3% return rate last year.

    I thought he is going to "tweak" the allocations but leave them where they are and actively manage them moving forward.

    Instead he said that

    1. He cannot "touch" my current plan, but will give me advice on allocations "free of charge"

    2. Wants to roll over the old 403b from Vanguard into a traditional IRA with Merrill Lynch. I told him I won't be able to do backdoor roth anymore but he is not a fan. Said is a loophole which is going to close soon. Said the TIRA gives him "more control and more options" than a 403b.

    I am concerned about his affiliation with Merrill Lynch but he said

    "As far as recommending only Merrill Lynch products, I do not recommend a single product in which Merrill Lynch has any ownership.   I am compensated by client fees only, and receive no extra incentive to use any particular product.  In your packet last night, I provided a sample portfolio, including the six funds we currently use in active management, which shows the exact funds I recommend currently.  These are not only the funds I recommend to clients for their retirement, they are also the very same funds, the four equity funds anyway as I am 100% equity, that I have in my retirement account. "

    Is he right to rollover the 403b into a TIRA? Why he cannot manage the funds where they are? Why he cannot manage my active 403b plan?

    Thank you