Comments on: Review: Who Can You Trust With Your Money?

By: L.C

L.C — Wed, 08 Sep 2010 18:02:46 +0000

he next time you consult with your “fee only” advisor and you ask for recommendations of who should set up life insurance for the family or any kind of long term savings/investment program, ask if they will receive a referral commission.

It’s the new mantra out there, but this “fee only” stuff is quite misleading to many people. I know the most honest financial advisor and he is not a fee only he works under commission but not a client of his has lost a penny once, his philosophy is not about managing risk, but eliminating it.

By: Jim

Jim — Wed, 30 Jun 2010 18:34:23 +0000

Always go with a FEE ONLY advisor.
ALWAYS.

By: Mark

Mark — Thu, 24 Jun 2010 08:43:46 +0000

The book look like an interesting read. I will have to check it out. I do think that the commission structure should be removed from the finance industry. Advisers should not be paid to sell product but on an advisory basis. This way investors could be sure that they are getting good advice and not just being used for churning purposes.

By: Matthew

Matthew — Tue, 22 Jun 2010 10:04:05 +0000

I have had a Financial Advisor for nearly 25 years. The best decision I made was to start reading frugal blogs like Trents and jacob’s Extreme retirement. They woke me up to take the reins of my financial life. Though on two differant occassions I had fancy bound graph filled retirement plans prepared for me. Glanced at them and tossed them aside. It wasnt until I ran the nbrs myself , took stock of my exact networth, my exact spending that I understood what planning for retirement was all about. Frugal living advice that you get here will never come from a broker in their armani suits. I still have my broker, but I am very much in charge. Thanks Trent!

By: Jerry A., Frederick MD

Jerry A., Frederick MD — Mon, 21 Jun 2010 12:40:50 +0000

There is a big difference between caution and paranoia. Trent’s article and comment 2 by David show due caution. Comment 1 by Aaron goes too far, allowing loss of money in the long run. Savings accounts and CDs do not make enough money, after taxes, to keep up with inflation. You need a mix of assets and investments that make you money -not make money for brokers or financial advisers, but for you. If you do not run your own business, then owning a part of a business, through stocks and bonds, is the next best thing. Read “The Millionaire Next Door” to see that making money slowly over time is not the same as a get-rich-quickly scam. (TMND is another book recommended by Trent, as I recall.)

I would note to Aaron that you do not have “absolute control” over a bank account, CD, or even money stuffed into your mattress. Even currency loses value due to inflation, moving exchange rates (this is why goods from overseas can cost more or less), and even government debt. The best thing you can do is educate yourself, not stuff your head under your pillow alongside your money.

@Trent,
If your financial adviser is not recommending low cost index funds, then he or she is probably not advising you well, even if this person means well. There are a lot of articles recently on CBS Money Watch by Allan Roth, Kathy Kristof, and Larry Swedroe on the huge difference a high vs. low cost index fund can make to your final retirement fund total value. A 1% difference per year adds up to 25-30% more or less over your investing time frame.
regards,
Jerry

By: Joseph Librero

Joseph Librero — Mon, 21 Jun 2010 10:39:47 +0000

Trent I agree with you. I think if you don’t have any plan for your money somebody else will have a plan for them. I think such is the case when you get a financial adviser who does not give a damn about you and about their trade. I know a friend who invested her whole life savings to a stock market investor and lost it in 2 weeks. I strongly believe that if we need to have certain understanding in making financial decisions; getting a financial adviser IS a financial decision.

Taking a sip,
Joseph Librero

By: David/MoneyCrashers

David/MoneyCrashers — Mon, 21 Jun 2010 10:37:54 +0000

The short answer to that question is—

No one.

Of course, we allnneed advice innour lives. I would learn as much as I could about money, and then hopefuly have someone who I genuinely trust in my life that I could go to for further assistance.

Financial advisors I would check out thoroughly before moving forward.

Not that I don’t trust them, but to find someone with YOUR best interests in mind.

By: Aaron

Aaron — Mon, 21 Jun 2010 03:42:09 +0000

The entire stock market is a scam. The big investors and investment banks game it and control it in their favor. The last several years should have pounded that point home.

I’m convinced that if I don’t have absolute control over an investment, then the money’s better off in a savings account, CD, or stuffed in my mattress.

By: DreamChaser57

DreamChaser57 — Sun, 20 Jun 2010 21:38:50 +0000

Trent – I really enjoy and appreciate your Sunday segment. Reading personal finance books have really helped me to change my mentality when it comes to money. While I think my household is a ways away from needing a planner, I want to have the basics covered first, 6-8 months of expenses saved, no consumer debt, sizeable chunk of student loans paid off, more term life insurance, etc. – this work will definitely help us chart a course for finding a reputable fee-based planner, I will not even consider working with one that earns commissions.