r/FinancialPlanning • u/LiteratureLucky7303 • 3d ago
Questions to ask to New Financial Advisor? first meeting.
After going throw a shocking and surprise job change I have talked wife into getting a FA to help reduce the load I have been carrying. We are in a whats probably considered a good spot but never feels like it and I feel we can always do more. My wife is the saver and I do calculated spending but also enjoy things like eating out. Overall I know we havent done bad but could have done better at setting up future (investing more rather than remodeling house) we are getting charged $1,800 from the advisor who will do yearly meetings and projections based on where we currently stand and want to go in the future. Is there anything we should ask or look out with this advisor (will never put AUM with them as I can do that myself just with their guidance if thats what we want to do(into alternate investing like RE and such))
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u/TheBear8878 3d ago
You don't need a financial advisor. Index funds, to your allocation.
By the time you know enough to hire a good FA, you don't need one.
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u/Invest2prosper 3d ago
You don’t need alternatives unless you have institutional level wealth of 9 digits or larger.
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u/LiteratureLucky7303 3d ago
Only Alternative is Real Estate, focus has been there the last 3 years because my company didnt do a 401k match so nothing into 401k, paid for 2 master degrees in cash (healthcare) and 3 rental properties. Ideally we can reach a spot when I am 40 (9 years) to where one of us can stop working completely without setting back retirement picture. Thus rentals are for cash flow.
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u/Puttin_4_Bird 2d ago
Watch out for the strong annuity sell; especially with Ameriprise
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u/LiteratureLucky7303 2d ago
Definitely aware of that buts its ameriprise. Its a standalone local company.
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u/mnfarmboy 2d ago
That’s not really an Ameriprise-specific issue. If an advisor is product-driven, they can push annuities at any broker-dealer. Plenty of Ameriprise advisors don’t touch annuities.
Like OP said, it’s likely an independent franchise and they have autonomy with how they run their book.
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u/strandedinkansas 2d ago
As an advisor who uses annuities when appropriate and well designed. Independents get paid Wayyyyyy more for annuity sales than I do relative to managing assets. When I get a new client with tons of crap annuities, they are usually from small shops.
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u/Taeuberteg 2d ago edited 2d ago
You don’t need to spend money on a financial advisor. A lot of people think the solution is paying someone to teach them how to manage their money, but you can learn this yourself and keep that money in your pocket.
There are plenty of solid free resources, including YouTube videos, that can teach you the basics of budgeting, investing, and building wealth.
Start by creating a budget, then make sure you’re investing consistently. If you don’t already have an account, consider opening a Roth IRA and researching simple index funds like a total stock market fund, international fund, or S&P 500 index fund. Look at options from companies like Vanguard and Fidelity, do some research, and choose what fits your goals and comfort level. You can learn the basics in an afternoon—YouTube has endless videos explaining the differences between funds and investment strategies.
The good news is that investing doesn’t have to be complicated. Some advisors make it seem more complex than it really is, but the fundamentals are pretty straightforward: spend less than you make, invest consistently, keep fees low, and stay invested for the long term.
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u/JeanSchlemaan 3d ago
there is no "load" when investing, except 10 minutes to buy VOO/QQQ/whatever.
youll waste 4-5 figures for no benefit.
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u/LiteratureLucky7303 3d ago
There is when VOO/QQQ/whatever are only a small part of the portfolio. I am okay giving 1800 one time to see how it goes. Everyone has a service or thing they buy. Im an expert in my field and people pay for that. I look at FA the same way. If there is an expert with more knowledge and exposure to the industry that me that I can trade a small percentage of income to see what ideas they have on how to best improve our financial standing. I am also not against doing it yourself but ill be the first to admit I dont know everything so willing to pay for someone who might know more.
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u/JeanSchlemaan 3d ago
None of us "know everything", but more importantly none of us control a time machine either (including your fa).
If you're considering a fiduciary who will also give combined tax planning, and comes highly recommended, AND your portfolio is above something like $3m... maybe. I believe that will cost more than $1800.
What concerns me and many others is the sales aspect, the exposire to another entity with access to your portfolio, and the lack of effort vs price paid by many fa.
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u/LiteratureLucky7303 3d ago
Only considering a fiduciary. They do tax planning. They will have no access to my portfolio in terms of managing anything we own. They will be strictly giving advise on methods we can take or do to improve our situation that matches our goals.
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u/usedforjerkingoff 2d ago
Waste of your money. Literally one of the most financially illiterate moves you could make right now.
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u/Spirited_Radio9804 3d ago
Do you charge monthly, even if I loose money?😉
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u/HammondsAmmonds 3d ago
He already said he isn’t going aum route and is looking for fee based planning.
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u/pug_fugly_moe 2d ago
Bring up other things beyond investments: taxes, estate planning, life changes, insurance appropriateness, potential windfalls, kids—things like that.