I have been browsing web sites of financial management companies with the idea of eventually handing everything off for professional management. It’s often difficult to find fees and other details of the businesses from their web sites. Many don’t explicitly state the types of clients they are seeking or how many clients they have. Eventually I came upon this web site (link below) run by the SEC that allows you to search an individual or firm and find out all sorts of useful information. You can find out how the advisors are compensated, the training and license status of individual advisors, the percentage of their clientele that are in each net worth category, the total of the funds they manage, disciplinary actions etc. Most firms also have a link to their brochure which lists their fees. It’s going to save a lot of time and help to narrow down the list to ones who are most appropriate for our needs.
Does anyone have experience with a management firm that makes all decisions for them and handles taxes etc? Do the fees seem worthwhile?
http://www.adviserinfo.sec.gov/
I’m primarily a do-it-yourselfer when it comes to finances, but I’ve met with financial advisors at 2 different points over the decades as a sanity check. If you have over $500,000 in investments (I think?) then Vanguard gives you access to CFPs (Certified Financial Planners). Vanguard also offers financial management services for a very low fee – probably lower than you’re going to find anywhere else. I’m a huge fan of index funds, so if I were to have someone manage my money, I’d probably go with them. The downside is that all your contact is via phone which may not be comfortable for some.
When I’ve sought a financial advisor for sanity checking, I look for someone who’s fee-only, and who offers funds from DFA (Dimensional Fund Advisors). This helps insure that I find an advisor who shares my index fund investing philosophy. I recently worked with someone local to make sure that I could retire right now. I thought I could, but quitting my job felt way too risky to do without checking with a professional. And I wasn’t comfortable just working with someone on the phone for this momentous a decision.
We had the same sort of visit with a fee only planner to be sure we were on the right track for retirement. It was reassuring to know that we hadn’t done anything stupid and everything is pretty much on autopilot with good diversification, mostly in index funds. My concern now is planning for the future when I am no longer around or no longer able to manage our finances. No one else in our family has any interest or experience with investing and their eyes glaze over when I try to engage them in the process. Both Schwab and Fidelity may offer these services but they have a pretty high turnover of advisers and I’m not sure they delve into the nitty gritty of paying bills and filing taxes.