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  • Looking for recommendations [In Person Advisor]

    I am in the midst of opening up the minds of my parents, who have long been using high-fee, underperforming advisors. I'm making progress. . . they are willing to look into other advisors in order to decrease annual fees (currently 0.95% AUM).

    I've forwarded them the WCI list of recommended advisors; however, my parents are in their 60s and somewhat old school (also not physicians, but high income earners). I think that they'd prefer to meet with an advisor in person before trusting them with their life savings, and none on the list are from their area. To this end, does anyone have a recommendation(s) for advisors around Cleveland OH, preferably flat-fee or hourly fee structure? Would also be interested in a qualified advisor with an AUM structure that is reasonable.

    Thank you!
    Last edited by Peds; 07-07-2020, 07:22 PM.

  • #2
    NAPFA is another good place to look.

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    • #3
      I'd check the Garrett Network.

      Comment


      • #4
        An advisor vetted by Dimensional Funds would probably work. They only allow fee only advisors to use their products. So anyone they list has been investigated by them. From the DFA US homepage there should be a link to "find an advisor", then look by city/zip.
        "Oh look another bajillion point declin-Ooooh!!! A coupon for pizza!!!!" <--- This is what everyone's IPS should be. ✓✓✓

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        • #5
          “my parents are in their 60s and somewhat old school (also not physicians, but high income earners). I think that they'd prefer to meet with an advisor in person before trusting them with their life savings, and none on the list are from their area.”

          Considering C-19, I would strongly suggest both parents conduct intro meetings via the internet.
          Sorry, I really don’t buy the “excuse” anymore. They need to know how to do this.
          https://www.whitecoatinvestor.com/ho...ncial-advisor/

          The question I have for you is rather important.
          Low fees are important. But more important is the value provided and results. Vanguard and Fidelity both have options for managed portfolio advice. The current AUM fee is not way out of line. How are YOU measuring under performance? What is the benchmark you are using? Without a description of their current situation or at least their current holdings it’s difficult to have an opinion.
          How did you conclude “under performing”?
          3,5, 10 year? AA? Holdings? Advice? Do they have a social security claiming plan? Is it a financial plan or portfolio management that they need?

          The biggest benefit is to is to eliminate all fees, followed by fixed fee for service, followed by recurring fixed fee, followed by AUM. Are they comfortable with a 4 fund portfolio with rebalancing and a social security claiming strategy? What services do they really need? I don’t buy just the AUM fee is “under performing”.
          The right FA, FP that fits their needs is important. In their 60’s greatly reduces the complexity. A little bit of knowledge could completely eliminate fees. Depending on the amounts and complexity, they may need CPA, attorney more than a low cost FA.
          Active management with high cost investments would be a valid reason to switch for me. Teleconference is perfectly fine.
          Fidelity/Vanguard will provide a lot of personal advice advice for free. Can’t tell what they need.
          The point is the value of the services one time and continuing. Focus on their needs, not yours.
          Good luck.
          PS, I would check Vanguard and Fidelity too.

          Comment


          • #6
            Harry Sit is a long time finance blogger (https://thefinancebuff.com/about) and offers a service to recommend FAs according to your goals and preferences. I used it and it was well worth the money. Highly recommend.

            Comment


            • #7
              Thanks to all for the resources/recommendations - I really appreciate it.

              Originally posted by Tim View Post
              “my parents are in their 60s and somewhat old school (also not physicians, but high income earners). I think that they'd prefer to meet with an advisor in person before trusting them with their life savings, and none on the list are from their area.”

              Considering C-19, I would strongly suggest both parents conduct intro meetings via the internet.
              Sorry, I really don’t buy the “excuse” anymore. They need to know how to do this.
              https://www.whitecoatinvestor.com/ho...ncial-advisor/

              The question I have for you is rather important.
              Low fees are important. But more important is the value provided and results. Vanguard and Fidelity both have options for managed portfolio advice. The current AUM fee is not way out of line. How are YOU measuring under performance? What is the benchmark you are using? Without a description of their current situation or at least their current holdings it’s difficult to have an opinion.
              How did you conclude “under performing”?
              3,5, 10 year? AA? Holdings? Advice? Do they have a social security claiming plan? Is it a financial plan or portfolio management that they need?

              The biggest benefit is to is to eliminate all fees, followed by fixed fee for service, followed by recurring fixed fee, followed by AUM. Are they comfortable with a 4 fund portfolio with rebalancing and a social security claiming strategy? What services do they really need? I don’t buy just the AUM fee is “under performing”.
              The right FA, FP that fits their needs is important. In their 60’s greatly reduces the complexity. A little bit of knowledge could completely eliminate fees. Depending on the amounts and complexity, they may need CPA, attorney more than a low cost FA.
              Active management with high cost investments would be a valid reason to switch for me. Teleconference is perfectly fine.
              Fidelity/Vanguard will provide a lot of personal advice advice for free. Can’t tell what they need.
              The point is the value of the services one time and continuing. Focus on their needs, not yours.
              Good luck.
              PS, I would check Vanguard and Fidelity too.
              Tim, thank you for your helpful comment.

              I agree with you entirely about the current fee not being outrageous. There is no adjustment for assets >$500,000, meaning they are paying the 0.95% on their whole $2mil portfolio. They have been receiving little advice re: retirement, which in their opinion is the biggest need (as well as a desire for market returns). I am using S&P500 and VBTLX as benchmarks to gauge returns. They currently hold a boatload of individual stocks and find the idea of simplifying into an index-fund-based portfolio attractive.

              From their viewpoint, the services they are currently receiving, sub-standard returns and little retirement advice, do not justify the fees they're paying. I am keenly aware of the fact that they have drastically different needs than me (29y/o resident). Given the longevity of their relationship with their advisor, I think it would be great if they could negotiate lower fees or to get more for their money. But as it stands, we all don't really think their needs justify a ~1% fee when they would be alright with a 4 fund portfolio and a solid retirement plan.

              Comment


              • #8
                It sounds like you are comfortable putting together a strawman portfolio. The FP planning service might be the strong point and develop a financial plan is the missing piece. A financial advisor is not the same as a financial planner. CFP could be a one time service.
                *Fidelity and Vanguard have retirement planners you can punch the numbers in and get some estimates.RMD's and keep the withdrawls 3.5%.
                *Social security use www.Opensocialsecurity.com. Likely you will have the lower income claiming early and the higher income delaying until 70.
                *The only complexity you seem to desire is the sale of the holdings in a taxable to get the cash freed up for index based.
                *Get wills and power of attorneys and load up Roth's, backdoor if necessary and all the retirement plans available.
                You can lay out the 6 or 7 steps and give them a roadmap. The big unknowns are going to be healthcare, medicare at 65 and any long term care gaps.

                Comment


                • #9
                  Originally posted by Tim View Post
                  It sounds like you are comfortable putting together a strawman portfolio. The FP planning service might be the strong point and develop a financial plan is the missing piece. A financial advisor is not the same as a financial planner. CFP could be a one time service.
                  *Fidelity and Vanguard have retirement planners you can punch the numbers in and get some estimates.RMD's and keep the withdrawls 3.5%.
                  *Social security use www.Opensocialsecurity.com. Likely you will have the lower income claiming early and the higher income delaying until 70.
                  *The only complexity you seem to desire is the sale of the holdings in a taxable to get the cash freed up for index based.
                  *Get wills and power of attorneys and load up Roth's, backdoor if necessary and all the retirement plans available.
                  You can lay out the 6 or 7 steps and give them a roadmap. The big unknowns are going to be healthcare, medicare at 65 and any long term care gaps.
                  Thanks again Tim, great advice. Will consider the feasibility of doing some (maybe most) of this myself.

                  Comment

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