[Cassie]

I want to make sure I’m making the most out of my money and I’m “middle class”. Is a financial advisor a good idea? I always thought of that as a rich people thing but I want to plan for retirement etc.

I’m starting to wonder if hiring one could help me with long-term planning, like retirement and investments.

Is working with a financial advisor worth it for someone in my situation, or are there better alternatives?

[LaNae]

I’ve been spending hours doing research. I got a call today and Fisher investments will help for a small minimal charge of $15k they will help.

I’m trying to figure out do I need to transfer money from a IRA to a Roth. Do I start now?

If I leave it what’s happens if I die.

So many choices…….

[Beverly]

My husband and I are middle class and we have a financial advisor who led us into retirement. Be sure to choose an advisor who is a fiduciary.

A fiduciary is legally obligated to act in your best interest.

[Brenda]

Does your employer offer a retirement account? Some employers even offer a match to your contribution.

That’s the easy way to go.

[Jillian]

Do you have a complex financial situation or are you just trying to save for a decent retirement? If the latter, then you probably don’t need an advisor.

Read “The Simple Path to Wealth” by JL Collins.
I wouldn’t recommend an advisor because of the fees (typically 1% or more).

1% may not sound like a lot, but over a 30 year working career you can shell out thousands of dollars.

Saving for the future isn’t as difficult as people may think.

[Dennise]

My husband said long term probably not, due to fees. However, in our mid twenties we did meet with an advisor who was able to help us with setting up a goal.

They make sure you are aware of all your options like IRA’s, right type of life insurance, long term care insurance, how much you need to save each month to meet your goal etc.

It can sound like lot of insurance (which you don’t have to buy, however health care and unexpected life curves are high on the list of things that set people off course, and also the things that scare most people).

They are able to put all that info into a computer software that runs variations of savings, retirement ages, how much income you want per month after retirement, etc.

That would also be a good time to ask questions about mortgages, loan repayments, pension, ss, to maximize your savings. They will be able to define any terms for you and explain how different things work.

They can also explain differents types of investments from bonds and CD’s up to stock market stuff.

I good one will be honest and tell you if you are currently in a position to invest like that. We asked around

friends/neighbors/coworkers to find a trust worthy advisor.

[Henke]

How old are you? I felt we were able to just save as much as we could until 50, then we needed someone to help figure out how much we need for our lifestyle.

He will be helpful in figuring out how to pull money as we age.

It has made me feel less anxious about not outliving our money.

[Darla]

I’m not a financial advisor but have worked in the industry for several decades.
In 2019, the SEC created Reg BI, Regulation Best Interest.

When you meet with a Registered Representative, they are required to ask you financial questions to determine what investments are in your “best interest.”

They will want to know your experience with certain types of investments, your risk tolerance, and will discuss your short term and long term financial goals.

There are 2 primary ways your representative gets paid (a rudimentary explanation):

1. Transactional based business.
For example: you open an IRA and you purchase mutual funds. Depending on the share class, you can pay front load fees on A shares or pay over time on C shares which will eventually convert to A shares.

There are reasons why you would choose one over the other. Your FA would guide you to what works best for you.

Example 2: You have a brokerage account and you buy and sell stocks. There is a transaction change for each purchase.

The rep can advise you on the transaction or you can make the decisions on your own.

2. Fee based accounts.
You pay a percentage of your account value on a quarterly basis.

While this “could” be the more expensive route, your Representative will provide additional services such as ongoing monitoring, financial planning, and accountability.

Dave Ramsey suggests “never invest in something you don’t understand.” I have loved this quote since I first read it.

Find a representative who will EDUCATE you, but also be willing to do your own research for continued learning.

I use the free version of Morningstar when considering my options between mutual funds in my accounts. It’s a tool, like others, that can be useful if you understand how to use it.

I follow a great content creator on YouTube and his name is Kevin Lum. He is a CFP (Certified Financial Planner) and does a good job explaining his content.

I think his content has value and is of good quality.

As far as a Financial Advisor for being for the rich only, that is absolutely untrue.

You can open a mutual fund very easily. Many require as little as $25-$50 per transaction. Every account opens at $0.

Ask friends for referrals and do your research online.
Every doctor, lawyer, accountant KNOWS who the local firms are because they utilize their services.

As I near retirement and moving out of state, I will need a new list of professionals in my new area. ASK everyone you meet who they recommend. A good professional will be recommended often.

Every financial advisor will have a CRD # and any complaints will be of public record. You don’t need the number to search for the FA though.

As a side note, while I don’t utilize the services of a FA because I understand finances and investing, I also don’t perform medical procedures.

I’m not a doctor so I utilize the services of medical professionals because I need their advice.

In addition, I have a will, Durable health and financial Power of Attorney, and I changed the deed on my home using an attorney.
I call a plumber or an electrician when I need one.

People fear what they don’t know or understand. The implementation of Reg BI takes the fear out of using a Financial Advisor, IMO.

When you consult with a FA, you do not have to do what makes you uncomfortable.

Ask questions! Even if it’s the same one over and over again. They will find a way to explain it to you so that you understand.

If you meet with someone and have follow up questions, call them back and ask. It’s their job to educate you. An informed and educated client makes for a solid relationship.

Cassie Tucker, I have worked with many high quality advisors and the best ones will be transparent and informative.
Don’t pretend to understand if you don’t. It’s ok that this isn’t your wheelhouse.

Your finances are unique to you and there is not a one size fits all approach to investing.

What is good for you, may not be good for your sinking, your aunt, your neighbor or colleague. Try not to compare investments with others.

A financial recommendation is meant for the individual who is receiving the recommendation due to their specific goals they have shared with their FA.

[Terry]

Ir’s not a rich people thing at all. I had a representative come to my school when I was five years into my teaching career, signed up, and retired because of his help and guidance!

My dad had always planted a seed to set aside part of my paycheck since I was a kid, and then I ran with it.

There’s no way I could have done it myself.

[Shelley]

Get an advisor! Saving is one thing you can do. Investing is something they are trained to do. They work on diversification and investments that pay dividends.

They get reports from their corporate offices helping them when and what to buy or sell.

By the time you hear you should invest in this, you already missed the bubble.

[Stephanie]

Look at the 50 30 20 budgeting plan. Looked that up and if you follow that you won’t regret it.

[Author]

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