Just trying to get a general idea as to what people who have had the experience of meeting with a CFP have thought about their services.
Financial Planners
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Whoozyerdaddy
Lifer
- Jun 27, 2005
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A surgeon I recently dealt with had a 536 score. He's gonna operate on my kidneys next week.
Some financial planners are sexy. They provide services, while planning to put their kids thru school. Heh, a hundred, a thousand...it's all going to the kid's college fund. Damn baby, you make me feel good!
Whoozyerdaddy
Lifer
- Jun 27, 2005
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But he's not telling you what to do with your money.Originally posted by: compuwiz1
A surgeon I recently dealt with had a 536 score. He's gonna operate on my kidneys next week.
Financial panther,eh? <<<<<< "Mr.Simpson, I'm afraid you are 1.00 overdrawn." "Sic him Sheba!!!" >>>>>>>>>>>>>>
I'm on board!
Peace
Lounatik
I'm on board!
Peace
Lounatik
I plan on picking up my CFP once im out with my finance degree. From there its either law school or into the work force.
- Oct 28, 1999
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I'm not a fan of the Edwards Jones/American Express/Ameriprise/Citigroup/ect collection of "financial planners". They are largely forced to push their own mutual funds and may not always make the best choices for you if they can receive a little more on the back end by going with a fund that drops them perks/higher commissions.
The independents that charge based on a consultation tend to be more objective and helpful since they are paid based on the time you spend with them and not from the options they have to "offer" you. That said, there are still bad ones, and there are good ones. Check around locally (customer reviews, BBB reports, ect) and see who comes recommended.
The independents that charge based on a consultation tend to be more objective and helpful since they are paid based on the time you spend with them and not from the options they have to "offer" you. That said, there are still bad ones, and there are good ones. Check around locally (customer reviews, BBB reports, ect) and see who comes recommended.
A CFP can be very useful is you have a need for services beyond those a family of mutual funds can offer.
my father is a financial planner (my mom works with him) and after being around the business for much of my life i can say it really depends on the person. an example is that every single employee of my fathers clients sit down with my dad and/or mom in a one on one situation for advice on their 401k. every 401k provider i have had through my employer has a single meeting a year with 60 to 100 people at a time and the personal service is just not there.
Some of them are good and they can certainly help.
My friends grandma used one and he basically stole all her money... So be careful!
My friends grandma used one and he basically stole all her money... So be careful!
I have met several CFPs. Mostly they seem like dim-witted idiots who try to get anybody to buy something. Since it can be largely commission based they'll sell their grandma a crap mutual fund to get a paycheck. Most couldn't figure out an efficient frontier if given a book, a calculator, and the answer. I'd liken them to pyramid scheme shills. At least on the low-end.
Financial planning for most people should consist of several index funds. It's stupid to charge a crap-ton of money for know-nothing CFPs when your returns will be just as good (or better) by getting index funds.
If you want respect in finance/investments you're better served by getting a CFA.
Financial planning for most people should consist of several index funds. It's stupid to charge a crap-ton of money for know-nothing CFPs when your returns will be just as good (or better) by getting index funds.
If you want respect in finance/investments you're better served by getting a CFA.
OP, here's the best reply. Since you're just getting out of school, it's unlikely you'll need more than LegendKiller's advice for now. Couple books on asset allocation, index investing and more online researching, and you'll likely know enough to just skip the CFP altogether.
Investing forums
The Four Pillars of Investing by W. Bernstein
All About Asset Allocation by R. Ferri
Why Smart People Make Big Money Mistakes & How to Correct Them by G. Belsky & T. Gilovich
Exactly. For almost everyone under 50, just getting a diverse set of low expense ratio stock index mutual funds from Vanguard or Fidelity is enough.
Many CFPs will try to sell you second- or third-rate investments like high-load / high-expense mutual funds and annuities. Many will also charge a percentage of your assets every year to mismanage them.
The most you should do is pay someone a flat fee (like $300) to give you advice for what to buy, of funds that he doesn't sell you.
I never understood why people don't just do this stuff themselves if they have uncomplicated lives. Now granted, if you have tax implications or other non-standard issues, then you need an adviser. However, for probably 90% of the population a few books and some thinking about your goals and risk appetite will be more than enough. The remainder, as I said, have tax issues, or they are high net worth individuals with a lot of money to manage.
My MIL has a financial planner and it used to drive me nuts. She pays a significant fee and it's just money thrown away. I have offered my knowledge and expertise, but she thinks somebody directly in that area will do better (lol). I just take it with a grain of salt, since I know she's pissing money away, it's her money.
People make good money ripping others off. As said above, they are akin to hucksters, slicksters, snake-oil, used car, and timeshare salesmen.
My MIL has a financial planner and it used to drive me nuts. She pays a significant fee and it's just money thrown away. I have offered my knowledge and expertise, but she thinks somebody directly in that area will do better (lol). I just take it with a grain of salt, since I know she's pissing money away, it's her money.
People make good money ripping others off. As said above, they are akin to hucksters, slicksters, snake-oil, used car, and timeshare salesmen.
DrPizza
Administrator Elite Member Goat Whisperer
Excellent advice from LegendKiller.
There are two types of financial planners - those who are helping you plan so that you're in the best financial situation you can be, and those who are helping you plan so that THEY're in the best financial situation they can be; provided that you're in at least the minimum situation that you find acceptable.
There are two types of financial planners - those who are helping you plan so that you're in the best financial situation you can be, and those who are helping you plan so that THEY're in the best financial situation they can be; provided that you're in at least the minimum situation that you find acceptable.
yep, read those books and that forum and you'll have all the info you need. start saving early, invest regularly, diversify, and buy no-load low-cost index mutual funds.
Thanks for the replies. I've been offered a job at a firm and I'm trying to decide whether or not to take it.
Financial planners are sales people. I do not trust sales people at all, their opinion is biased (commissions, kick-backs, etc). With the internet and how easy information is to access there really is no need for a financial planner for most people. Just do a little research yourself and decide whats your best options and go from there.
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