Author Topic: Financial Planners -- Anyone Else Experience This?  (Read 4119 times)

DoubleDown

  • Handlebar Stache
  • *****
  • Posts: 2076
Financial Planners -- Anyone Else Experience This?
« on: October 17, 2012, 05:19:33 PM »
About 2 months ago, and before I had discovered MMM's blog and ideas, I met with a financial planner -- not for advice, but to simply redirect some of my investments. I had tried to do it through email/phone, but she INSISTED that I come in to go over my risk, goals, compliance, etc.

I had already thought of early retirement, but hadn't really considered some of the REALLY early retirement ideas espoused here.

When I went into the office, as part of the financial planner's questioning, she asked me what my goals were. I told her I was hoping to retire in maybe 5 years (I was 45 when we met). Again, this is before discovering MMM.  She looked at me pretty condescendingly, and said, "You better make it 10." That is, she found my plan to retire with about $1.5 million, and later an added pension and social security, pretty laughable. She felt I better plan on getting closer to $2-3 million. I thought she was full of sh**, and now after discovering this blog I see that even I was overestimating what it would take.

Anyone else encounter this?


MooreBonds

  • Stubble
  • **
  • Posts: 193
  • Age: 44
  • Location: St. Louis, MO
Re: Financial Planners -- Anyone Else Experience This?
« Reply #2 on: October 17, 2012, 08:11:50 PM »
When I went into the office, as part of the financial planner's questioning, she asked me what my goals were. I told her I was hoping to retire in maybe 5 years (I was 45 when we met). Again, this is before discovering MMM.  She looked at me pretty condescendingly, and said, "You better make it 10." That is, she found my plan to retire with about $1.5 million, and later an added pension and social security, pretty laughable. She felt I better plan on getting closer to $2-3 million. I thought she was full of sh**, and now after discovering this blog I see that even I was overestimating what it would take.

While I don't disagree that some planners can be unreasonably too conservative.....to truly assess her advice, you must tell us what you told her about your annual expenses you wanted to have when you retire @ 50.

If she didn't even bother asking what your annual expenses were going to be, yet still gave you a recommendation (whether too high or too low), then she's doubly full of shit. :)

If, however, you gave her an expense level that could justify a reasonable portfolio of $2-$3 million plus your pension/SS, then maybe she wasn't too out-of-line.

DoubleDown

  • Handlebar Stache
  • *****
  • Posts: 2076
Re: Financial Planners -- Anyone Else Experience This?
« Reply #3 on: October 18, 2012, 07:51:52 AM »

While I don't disagree that some planners can be unreasonably too conservative.....to truly assess her advice, you must tell us what you told her about your annual expenses you wanted to have when you retire @ 50.

If she didn't even bother asking what your annual expenses were going to be, yet still gave you a recommendation (whether too high or too low), then she's doubly full of shit. :)


You nailed it -- the matter of expenses never even came up, she never asked. In fact, she did not know either side of the equation, expenses OR total assets/liabilities. Nor did she ask how I intended to reach my goal, even though I had brought a handy summary listing the various accounts and projected growth and expected cost of living. She knew only what I had at that brokerage. She seemed to make a flippant assumption that because we're "regular/middle class working people", the idea of retiring at age 50 was ludicrous no matter what.

Oh, I also declined her offer to sign us up for the "premium plan" for financial planning, at only $3,000 per year (I pay nothing to have accounts with the brokerage, so at least I wasn't paying this person for her helpful "advice").

Now that I've discovered this blog, I'm hoping to retire instead around age 47 instead of 50.

arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 28280
  • Age: -998
  • Location: Seattle, WA
Re: Financial Planners -- Anyone Else Experience This?
« Reply #4 on: October 18, 2012, 08:10:32 AM »
Good for you for seeing through her * and going out to educate yourself.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

Nords

  • Magnum Stache
  • ******
  • Posts: 3300
  • Age: 60
  • Location: Oahu
    • Military Retirement & Financial Independence blog
Re: Financial Planners -- Anyone Else Experience This?
« Reply #5 on: October 18, 2012, 12:32:59 PM »
You nailed it -- the matter of expenses never even came up, she never asked. In fact, she did not know either side of the equation, expenses OR total assets/liabilities. Nor did she ask how I intended to reach my goal, even though I had brought a handy summary listing the various accounts and projected growth and expected cost of living. She knew only what I had at that brokerage. She seemed to make a flippant assumption that because we're "regular/middle class working people", the idea of retiring at age 50 was ludicrous no matter what.
Oh, I also declined her offer to sign us up for the "premium plan" for financial planning, at only $3,000 per year (I pay nothing to have accounts with the brokerage, so at least I wasn't paying this person for her helpful "advice").
It sounds like you managed to get on the Suze Orman show!

Oh, and congratulations for walking off the set to carry out your own plans.