Author Topic: Should we keep our financial adviser?  (Read 1005 times)

Sanitary Engineer

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Should we keep our financial adviser?
« on: August 27, 2019, 11:03:50 AM »
We have a financial adviser through the Bank we started investing with a while ago.  She seems like she is good at her job from the 30 minute conversation we had.  She has many letter after her name.

We are wondering if we should pay the $70 yearly fee to keep our money with her Bank and maintain her as our contact.  There are additional costs we would pay to stay with the Bank in the form of higher ER funds and potential loads depending on what funds we decided to buy.  She says Vanguard index funds are available to us through her Bank.  So if we put our money into VTSAX, which is what we intend to do, she wont get any loads.  She stated this after initially recommending some American Fund Class A shares for which we would pay 5.75% in front load costs.

Should we sell these investments at the Bank and move it all into accounts directly through Vanguard. Is there anything we need this person for?

terran

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Re: Should we keep our financial adviser?
« Reply #1 on: August 27, 2019, 11:16:15 AM »
She stated this after initially recommending some American Fund Class A shares for which we would pay 5.75% in front load costs.

There's your answer. Anyone who would recommend a product that instantly shaves 5.75% off the top of your investment by definition doesn't have your best interest at heart.

GuitarStv

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Re: Should we keep our financial adviser?
« Reply #2 on: August 27, 2019, 11:41:06 AM »
No.


The answer to keeping a financial adviser should always be no.  There's no reason you can't invest your own money more profitably all by yourself.  You don't need a middleman skimming percentages off each year.

Brianmcg321

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Re: Should we keep our financial adviser?
« Reply #3 on: August 27, 2019, 11:49:48 AM »
Not just no, but HELL NO.


Just get the Total Stock Market Index from Vanguard. 


Let me guess. She's a AAMS.  They give that designation out like candy on a FAs first day. 

BlueHouse

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Re: Should we keep our financial adviser?
« Reply #4 on: August 27, 2019, 11:52:19 AM »
She stated this after initially recommending some American Fund Class A shares for which we would pay 5.75% in front load costs.

There's your answer. Anyone who would recommend a product that instantly shaves 5.75% off the top of your investment by definition doesn't have your best interest at heart.
+1

BeanCounter

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Re: Should we keep our financial adviser?
« Reply #5 on: August 27, 2019, 11:53:32 AM »
Don't sell your funds as you'll probably incur capital gains and maybe penalties if its in retirement accounts. You want to call Vanguard (or Fidelity- I use Fidelity as I believe the customer service is better and they have zero fee index funds) set up an account and then have them transfer your funds from the bank.

BicycleB

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Re: Should we keep our financial adviser?
« Reply #6 on: August 27, 2019, 01:13:05 PM »
No. You're better off not having them.

They cost money and and aren't helping you. Stand tall, cut the cord. You're with us now!

:)


erutio

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Re: Should we keep our financial adviser?
« Reply #7 on: August 27, 2019, 01:47:58 PM »
What possible upside is worth 5.75% front load costs?

Sanitary Engineer

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Re: Should we keep our financial adviser?
« Reply #8 on: August 27, 2019, 02:02:29 PM »
Thanks all!
I could see the answer when I wrote out my question but itís a lot easier to step into the current with some support. I appreciate you all being here.

diapasoun

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Re: Should we keep our financial adviser?
« Reply #9 on: August 27, 2019, 02:12:44 PM »
She says Vanguard index funds are available to us through her Bank.  So if we put our money into VTSAX, which is what we intend to do, she wont get any loads.  She stated this after initially recommending some American Fund Class A shares for which we would pay 5.75% in front load costs.

Should we sell these investments at the Bank and move it all into accounts directly through Vanguard. Is there anything we need this person for?

From what you just said, I highly doubt that this person is your legal fiduciary, and they certainly don't seem to be behaving as one, based on that first suggestion. Dump them. No one should be handling your money who isn't both legally and personally committed to acting as your fiduciary and doing what is best for YOU, given your stated intentions and needs.

If you're planning on VTSAX, just do it direct through Vanguard. There is no reason to pay someone else for the privilege of them buying your index funds for you.

kaposzta

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Re: Should we keep our financial adviser?
« Reply #10 on: August 28, 2019, 07:44:25 AM »
The answer is always a no to a financial advisor. No exception. They are interested in collecting fees, and not in making you wealthier.

caracarn

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Re: Should we keep our financial adviser?
« Reply #11 on: August 28, 2019, 07:56:24 AM »
What possible upside is worth 5.75% front load costs?
I'm sure this is the fund that guarantees 40% annual returns? Have you not heard about that one?  It's all the rage.