We are moving our investments this month. We want an independent advisor who would be hands on. Our CFP has been somewhat lackluster, but I have been waiting for him to retire, that time is the end of this month. We are both 77yo and want to stay somewhat conservative. We have been using CD’s quite a bit, but with yields where they are now that is not a good option. Which one of these two companies is better?
I like Vanguard, they have very low fees and are fiduciary
Flushing Michigan! My aunt and uncle had a farm on Coldwater Road. We lived in Flint and I spent a lot of time there in the summer. That was back in the fifties.
Does Vanguard have a dedicated CFP assigned to you?
Schwab if you also want to have your checking and brokerage accounts at the same place.
I spread most of 401K and IRA’s over about 8 mutual/index funds. This is best for me, as I do not have time/skill to pick individual stocks.
When I pick a fund, I am not trying to select the fund that made the most last year. I want funds that will good during the ups and downs. My criteria has been:
1. Look first to funds with many years of existence. One of my larger funds is a small-cap that started in 1954.
2. I make a spreadsheet of each fund’s returns by year back to 2008. This provides info for several years of growth and several years of declines. I am trying to select funds that will help balance portfolio over these ups and downs.
3. I look for funds that are closed to new investors and add them to the spreadsheet. Half of my funds are closed to new investors (just worked out that way). Some I have been in for over 25 years, and some I was able to select when opening new IRA account. If you have a decent amount of money you will roll-over, the brokerage will usually set you up with someone to complete the transaction. At this time, you want to ask about investing in closed funds. This may only be available on your initial opening of account. Once you are in a closed fund, you can add more to the fund over time.
4. A big part of me choosing one brokerage over another would be availabilty to select the desired funds. Vanguard may have more of the funds you want or vice-versa.
Whether they have fiduciary or not is not critical to me, but it may be to you. I rolled over some funds a few years ago from Edward Jones. To complete fidicuary requirements they needed to 1-2 reviews per year. I did not want a review like this each year. Most of investments are in 401K funds with another company and I didn’t want provide all the info required for a fidicuary’s reviews.
Morningstars X Ray is a really good tool also. You can put all of your funds in there and run a stock intersection review. It will show you how many individual stocks each fund owns and how much overlap you have between all of your funds. The results can be surprising.Originally Posted by Charles Prestridge
Thanks NitroZ7. I always look at the Morningstar reviews of each fund, but have not used the X Ray tool. I will look up that tool. Good to learn from you and others on this forum.
I am with Vanguard and pay a advisor to "manage" my money. (wife insists) They put me in four funds, Total US stock, International Stock, US bond and international bond. Basically paying for him to rebalance my portfolio. (see above-wife insists) We have a substantial amount of money with them. They are good with talking with me every quarter. I have also subscribed to a Independent Vanguard Advisor newsletter which has suggested portfolio's and how those do. I would prefer to save the 1500 dollars a year that I pay and do it myself (again-wife insists) and have more flexibility in what I invest in. That said, I am doing well with them so no complaints.
I do have a very small brokerage account with Vanguard that I use for stocks. I consider it my gambling money, but made good money on my Exon Mobile stock in the last 4 months.
Both Vanguard and Schwab are both good, depends on what you want to do. Vanguard is primarily mutual funds and ETF. Schwab may have more options, stocks and Reits if that is what you are after.
dvl2700
Financial Credentials
CERTIFIED FINANCIAL PLANNER™ Certificant
Master in Business Administration
Series 7, 63, 65 Securities Licenses
Life & Variable Annuity Insurance License
Experience
VP - Financial Consultant, Charles Schwab, 2019-present
Financial Consultant Partner, Charles Schwab, 2016-2019
Associate Regional Director, Wells Fargo Asset Management, 2015-2016
Client Service Consultant, Wells Fargo Asset Management, 2014-2015
Education
MBA, University of Wisconsin-Whitewater
BBA, Finance, University of Wisconsin-Whitewater
Community & Professional Affiliations
Financial Planning Association
This is the person I am setting up an appointment with to possibly move a large part of our investments with. We are currently with Stifel where our CFP is retiring from. They don’t have any CFP on staff at this office.
Would you be comfortable turning a seven figure portfolio over to a discount broker with these credentials? I have been burned before, thus the caution in any moves. I am looking for a portfolio being very conservative with a ROI that will beat inflation.
Please don’t take any of this as bragging, I’m just looking for input from other investors.
I have two financial advisors for two different companies. I pretty much use them to bounce ideas off of or to have them give me suggestions. In both cases I retain the right to buy or sell and I don't let them invest without me providing authorization. As long as you do that then you should be fine.
That is what I have now. I will never give full authorization to a broker/advisor. I was just questioning education, experience and other opinions on my possible pick.This is the last time I want to do this in my lifetime. I know that it cost money to make these moves.
I don't think you can put much stock in a resume. Do you know anyone else that uses him? Have you talked to him to see what his vision would be for managing the account? Does his plan align with your needs? I think his investment philosophy is probably more important than his resume. Just my opinion.
When I rolled over a “frozen” pension to an IRA, I chose to not use a financial planner.
With available mutual/index funds, I do not think the financial planner was worth the 2% yearly fee.
I know Financial Planners have knowledge, skills, and access to information. I have no issue with a 1.5-2.5% fee. I just think for straight-forward accounts, a balanced portfolio with fees less than 0.5% is hard to beat.
I have fee quotes from 1.00% to .30%. I had an independent quote me .75%.
NitroZ7, how do I get recommendations for an advisor? I don’t think you can find too many people that want to discuss finances, except behind a keyboard on a site like this.
Do you have friends or business associates that's use an advisor? Both of the ones I use came from family members and another from a business associate. If you have people similarly situated in net worth they usually have recommendations or cautionary tales.
I doubt anything would come up but you could check him out on FINRA
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