Using an adviser/planner?

[spotty_dog]

So, a new investment services office moved in to town recently, and they have a CFP certified planner on staff, and it's got me kind of wondering if I should call them for a one-time "checkup" of our financial situation. Our portfolio is getting pretty big, and DH and I are always going back and forth about whether we are saving enough or too much for the kids' educations, and I kind of feel like it would be nice to have a third party look at my chosen asset allocation and how I implement it -- kind of give me a thumbs up or thumbs down. However, DH is pretty unconvinced that there's any professional out there who could provide value beyond what we get by doing our own research, especially since we're the ones who know our own goals and things the most intimately.

I know that several of y'all do use planners or investment managers. What services do they provide that help you manage your money better? Bonus points if you're an obsessive researcher (Questioner?!) and/or control freak that doesn't necessarily get peace of mind from just handing it all over to someone else.

[SoonerTexan]

I don't have one (yet) but the one obvious pro I can think of is he or she could let you know how you are doing based on other clients experiences.


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[Ladybug]

I think you're extremely knowledgable, Allison. You're not going to learn anything new, but we benifited from the local business connections of the advisor when we were financing our house. He saved us thousands and thousands by personally vouching for us and getting a loan on the local bank books. The rest has been pretty straight forward. He increased our disability and insurance (needed to) with local providers who were incredibly patient with our busy lives. It's those kind of benefits more than number advise. We pay 2K per year and meet with them several times per year. They pay out our loans, mortgage, etc. so I don't have to think about it. It's more of a lifestyle choice than learning something you don't already know. Especially you!!!

[spotty_dog]

Heh, thanks for the vote of confidence. I'm feeling a little rattled, myself. Winging it worked when we were dealing with smaller numbers, but now I look at these balances and go, "That's all riding on ME?" Ack.

That's a really good point about referrals to local services. I don't think we'll be moving away from our insurance providers, and we have a good relationship with our mortgage broker, but I do wonder at the back of my mind whether we should also get a check-up with a tax professional to make sure we're handling that stuff optimally, and with an estate planning attorney to make sure that we're covered on that front, and so on. Connections with folks like that are part of what this investment office advertises (which I find kind of interesting since they're brand new to the community, but who knows.)

[poky]

If they just set up shop, it doesn't mean they haven't lived there for years and have a good network. Of course, they may not, too, but you won't know unless you ask!

[MrsK]

We have one. I like having *someone* to talk to because it forces DrK and I to sit down and address these things. I'm the sort who will wring my hands about money and never feel secure. DrK is the opposite; overly confident and defers any serious money discussion. I don't like that I often feel like our advisors are talking over our heads and putting so much control over our future into the hands of a third party makes me anxious. I worry that some of their motivations benefit their bottom line more than ours. I don't know that I'd feel differently with any other advisor.

[spotty_dog]

One thing is calming my nerves...my portfolio broke even last year, and at first glance, it felt like I seriously underperformed relative to my risk exposure. So that made me all frantic about being fumble-fingered with our savings. But I just looked up the Vanguard Target Retirement fund that best matches my asset allocation, and it *lost* .85% in 2015! So, I'm not THAT bad after all, LOL. Phew.

MrsK, are they just advising or are they also managing? Having someone else to sit down with is a bit of what I'm interested in -- DH and I don't always get concerned about the same things and a neutral party could be a useful sounding board for some stuff.

[MrsK]

One thing is calming my nerves...my portfolio broke even last year, and at first glance, it felt like I seriously underperformed relative to my risk exposure. So that made me all frantic about being fumble-fingered with our savings. But I just looked up the Vanguard Target Retirement fund that best matches my asset allocation, and it *lost* .85% in 2015! So, I'm not THAT bad after all, LOL. Phew.

MrsK, are they just advising or are they also managing? Having someone else to sit down with is a bit of what I'm interested in -- DH and I don't always get concerned about the same things and a neutral party could be a useful sounding board for some stuff.

They are managing too. I'm not sophisticated or disciplined enough to do it myself.

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[spotty_dog]

Ah, okay. Yeah, finding a good fit and someone you can trust implicitly seems like it would be even tougher in that case. There are a lot of business models that are, as you say, more about what's good for the managers -- the old, "Where are the customers' yachts?" schtick. But it's certainly a trade-off, higher costs to you could be worth it for the peace of mind to just let someone else handle things! Especially when there's so much else going on for you -- I definitely didn't have the brain cells to tackle this stuff until my youngest was four. >.<

[MrsK]

Ah, okay. Yeah, finding a good fit and someone you can trust implicitly seems like it would be even tougher in that case. There are a lot of business models that are, as you say, more about what's good for the managers -- the old, "Where are the customers' yachts?" schtick. But it's certainly a trade-off, higher costs to you could be worth it for the peace of mind to just let someone else handle things! Especially when there's so much else going on for you -- I definitely didn't have the brain cells to tackle this stuff until my youngest was four. >.<

I was much smarter before having kids. I've become more absent minded with each one. My cousin has 9 kids and she's still sharp. I keep telling her that she must have been some kind of super genius before kids. I just can't focus on anything any more.

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[spotty_dog]

I swear the brain cells start regrowing around the time the youngest hits two years old or weans or sleeps through the night, whichever is later. And the regrowth is slow at first...Hang in there!

[MrsK]

I swear the brain cells start regrowing around the time the youngest hits two years old or weans or sleeps through the night, whichever is later. And the regrowth is slow at first...Hang in there!

She turns 2 on the 22nd. No sign of weaning. Actually, she's started to ask to nurse even more frequently and at the most inconvenient times.

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[spotty_dog]

That'll happen! Toddler nursing is a thing unto itself. But you're probably closer to the end of your nursing season than you are to the beginning, so the age of returning brain function is closer than you know.

[OrionGrad]

Late to the party ... I've found someone in our new location who I'm hoping to sit down with during the first few months of attendinghood. I feel confident managing our finances on my own (I'm a bit of an obsessed researcher like you &#128521 but I'd like someone to look at our goals and our current setup and tell us if there's anything we should change. I feel like getting us to retirement/college/all our other savings goals is a big job, and I want to make sure we're not off base with our targets. The guy I found charges a flat fee. Even if we don't take all of his advice, I'll feel good knowing someone who does this for a living has taken a look at our plans and thinks they make sense. Basically, just another security net, if that makes sense. I don't want to turn 65 and realize we wildly underestimated how much we'd need for retirement.

[spotty_dog]

High-fives for obsessive research! Yeah, I think that's where I'm at too. Either I need someone to double-check our work, or I need to go through the full financial-planner education myself and make sure I'm not missing anything. "Save money. Invest it according to a plan." I can do that. But making projections as to how investment growth will carry our savings into the future, and considering tax implications both now and in retirement, and estimating the cost of tuition and the tax benefits of a 529 vs. paying out of pocket for tuition...it makes my head spin. But maybe I just need to research more? I dunno.