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No one is disputing that are plenty of expensive advisors out there. The question is whether they actually provide any additional value over a 2 hour meeting wi

No one is disputing that are plenty of expensive advisors out there. The question is whether they actually provide any additional value over a 2 hour meeting with a financial planner and a computer-managed index fund. I get the sense that there are many in this thread who are either in the industry or have been convinced to drink the koolaid themselves. I'm seeing lots of handwavey talking points but no substantial data-supported explanations for why the high priced advisors are anything more than gifted salespeople.

lucisferre 11y ago
What I'm saying is that even "inexpensive" fee-only advisors, as Patrick is suggesting to, are closer to $1-2k/year not $150. I said nothing about the relative value of a 2 hour meeting with a financial planner, I am only stating the fact that you are unlikely to find any "fee-only" planner who will work with you for $150. I'd be happy to be proven wrong by someone who is actually doing it. As my own counter example I know someone who did exactly as you suggested. A one time meeting with an advisor to review his portfolio and asset allocation but invests for himself online. It took about 2 hours and cost $500 and didn't include any detailed financial planning (e.g., taxes, retirement projections, etc.) it was simply a portfolio review. So even using the lowest and simplest example I could find the cost is much higher than suggested. Additionally, I was also told this advisor was fairly reluctant to even offer this. This, generally speaking, just isn't their model. Even in the fee-only market they are typically looking to work with people on an ongoing basis, not one off. As a more general example, in Canada some people work with "money coaches" who focus more on financial planning, saving habits, debt consolidation, retirement income planning, etc. They charge around $1-2k for a four meeting package. My understanding is that these prices are similar in the US but I could be wrong. The bottom line here is that I'm just not aware of a market of financial advisors charging one time fees anywhere near $150. That's just how it is. >> I get the sense that there are many in this thread who are either in the industry... I suppose finance must be the one industry where people outside of it know much more than those in it.

lucisferre 11y ago

What I'm saying is that even "inexpensive" fee-only advisors, as Patrick is suggesting to, are closer to $1-2k/year not $150. I said nothing about the relative value of a 2 hour meeting with a financial planner, I am only stating the fact that you are unlikely to find any "fee-only" planner who will work with you for $150. I'd be happy to be proven wrong by someone who is actually doing it. As my own counter example I know someone who did exactly as you suggested. A one time meeting with an advisor to review his portfolio and asset allocation but invests for himself online. It took about 2 hours and cost $500 and didn't include any detailed financial planning (e.g., taxes, retirement projections, etc.) it was simply a portfolio review. So even using the lowest and simplest example I could find the cost is much higher than suggested. Additionally, I was also told this advisor was fairly reluctant to even offer this. This, generally speaking, just isn't their model. Even in the fee-only market they are typically looking to work with people on an ongoing basis, not one off. As a more general example, in Canada some people work with "money coaches" who focus more on financial planning, saving habits, debt consolidation, retirement income planning, etc. They charge around $1-2k for a four meeting package. My understanding is that these prices are similar in the US but I could be wrong. The bottom line here is that I'm just not aware of a market of financial advisors charging one time fees anywhere near $150. That's just how it is. >> I get the sense that there are many in this thread who are either in the industry... I suppose finance must be the one industry where people outside of it know much more than those in it.