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Question
i met with a financial advisor who is affiliated with the credit union at my previous employer for a "free" consult. he is recommending that i take the 403b from my previous job - and roll it over into an IRA at LPL financial which he would manage for a fee. another option besides leaving it in the 403b would be to roll it over into an IRA and either manage it myself with advice from fidelity- i have another 403b there with my new job and they have a contract which gives us free consultations- or i could pay fidelity a fee-the same as the financial advisor -about 1%-to manage the account. is there an advantage to either option?
Stan, thanks for asking your question. Hope that I can provide you a little peace of mind.
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When it comes to managing your money there are several options and several different methods of compensation for the person providing the service. Some options are good, however, many are not. At the end of the day the advisor/client relationship is about trust and how you feel about the person or telephone number (Fidelity) managing your money.
In reading the options you stated above, I would speak to both advisors and ask what are you going to get for their expertise of managing your account for 1%. If you are just going to get "management" well 1% is too much. However, if you will be receiving some level of planning or coaching, then 1% may be justifiable. In addition, there should be a sliding scale depending on assets under management. Meaning as the asset level goes up, the percentage should decline.
Stan, I would maybe look at a couple of other alternatives and meet with a "fee only" advisor and review your situation since it does not sound you are sold on either one of your current options. You may be able to enter "fee only" under an internet search and look for someone in your area or outside your area who you might establish a relationship with.
Good Luck!
Richard E. Reyes, CFP
Financial QB & Investor Coach
PH: 407-622-6669
E-Mail: Richard@thefinancialqb.com
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Answers by Expert:
Richard E. Reyes, CFP
Expertise
I can provide answers to questions relating to retirement especially relating to; income distribution, tax efficiency, long-term care insurance, life insurance, estate planning, asset protection, variable and fixed annuities, alternative investments and prudent portfolio design.
Experience
Through the years Richard has built a reputation as one of Central Florida's expert on retirement income distribution by providing sound, unbiased wealth coaching.
We believe that Financial Planning is the problem and Wealth Coaching is the solution. The Wealth Coaching process gives you Peace of Mind, so you can stop worrying about your future. It helps you find happiness as it guides you in the TRUTH of investing, by teaching you how to make wise choices as you journey through your life’s stages. It is all about your relationships and what you value, not your net worth.
Publications
Seminole Success Magazine “Retirement Planning”
Seminole Success Magazine “Small Business Snapshot”
The Orlando Sentinel – Ask the Expert Financial Section (Various)
Greater Orlando Broker Agent Magazine “The New It”
Senior Market Advisor “Random Reader, Random Questions”
Education/Credentials
B.S. University of Florida, Gainesville, FL
CFP Certificate, University of Central Florida, Orlando, FL
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