Retirement Funds

[Euclid]

i have met with professionals in the past and every single one tried to sell me an expensive whole life policy.

This is why I prefer to do my own research, "financial advisors" have a bad name and I have a hard time trusting them to be objective. I'm sure there are objective advisors, but I'm very wary and have no way of verifying.

[AsherO]

i have met with professionals in the past and every single one tried to sell me an expensive whole life policy

For argument's sake, maybe that's because WL is an appropriate solution.

[ExGingi]

Say what? Isn't there an entire industry around helping people plan for their application so their assets don't get in the way?

That's for Medicaid.

[ushdadude]

For argument's sake, maybe that's because WL is an appropriate solution.

potentially. but when the only paperwork they bring to a first meeting is WL policy quotes, i become skeptical.

[ExGingi]

potentially. but when the only paperwork they bring to a first meeting is WL policy quotes, i become skeptical.

The only paperwork a professional should bring to a first meeting is a blank notepad to gather facts. (Or a form for gathering facts).

The most important item is a set of open ears.

[ExGingi]

Maybe it's because these type of questions

I have no need for more tax deferment this year but would still like to contribute to my retirement. Should I still just put the money in my sep ira or is there a better option?

I'm basically asking if there are other types of accounts that have tax advantages besides tax deferment. Maybe a roth 401k.
i have met with professionals in the past and every single one tried to sell me an expensive whole life policy

would mostly bring you these types of professional

potentially. but when the only paperwork they bring to a first meeting is WL policy quotes, i become skeptical.

I could go at length as to the features, advantages and disadvantages of many different types of accounts and plans, and bore you and everyone else to death, with nothing being accomplished for you in the direction you want to go.

But the right thing to do is meet with a professional, disclose facts and feelings (yes, feelings, as many things are highly subjective) and then have the professional guide you based on what's important for you in your situation.

Here is one reason why professionals might be bringing WL quotes to you:

The regulatory environment has made investing client money a money-losing proposition unless you're talking big bucks. Yes, there's a relationship to be built, and hopefully, the assets under management will grow (along with the regulatory liability attached to them) to a point where one can actually make a living off investment accounts. On the other hand Life Insurance still pays a decent compensation, and while still subject to regulation and oversight, is generally a safer and more predictable product, and has unique features that no other product/plan has.

All of that being said, I don't think a professional should come prepared with "solutions" to a first meeting, before probing for facts and feelings.

Also, are said meetings being held at your place or at the professional's place?

[ushdadude]

Maybe it's because this type of questions

would mostly bring you these types of professional

I could go at length as to the features, advantages and disadvantages of many different types of accounts and plans, and bore you and everyone else to death, with nothing being accomplished for you in the direction you want to go.

But the right thing to do is meet with a professional, disclose facts and feelings (yes, feelings, as many things are highly subjective) and then have the professional guide you based on what's important for you in your situation.

Here is one reason why professionals might be bringing WL quotes to you:

The regulatory environment has made investing client money a money-losing proposition unless you're talking big bucks. Yes, there's a relationship to be built, and hopefully, the assets under management will grow (along with the regulatory liability attached to them) to a point where one can actually make a living off investment accounts. On the other hand Life Insurance still pays a decent compensation, and while still subject to regulation and oversight, is generally a safer and more predictable product, and has unique features that no other product/plan has.

All of that being said, I don't think a professional shouldn't come prepared with "solutions" to a first meeting, before probing for facts and feelings.

Also, are said meetings being held at your place or at the professional's place?

thanks for taking the time to respond.

[Yehuda57]

All of that being said, I don't think a professional shouldn't come prepared with "solutions" to a first meeting, before probing for facts and feelings.

I don't think a professional shouldn't avoid double negatives that confuse clients

[ExGingi]

I don't think a professional shouldn't avoid double negatives that confuse clients

Agreed!!!

Especially when it was initially written correctly, and then upon rereading, missed the first negative and put the second one in there.

This is a pure example of why solutions shouldn't be offered at a first meeting, notes should be taken, and time to review and ponder the various approaches needs to be dedicated. If mistakes and confusing facts are found in the notes, one just goes back to the client for clarification.

P.S. It would be nice if I could have @Yehuda57 proofread and review everything I write before posting/sending, but I'm not sure I could afford it.

[avromie7]

Maybe it's because these type of questions

would mostly bring you these types of professional

I could go at length as to the features, advantages and disadvantages of many different types of accounts and plans, and bore you and everyone else to death, with nothing being accomplished for you in the direction you want to go.

But the right thing to do is meet with a professional, disclose facts and feelings (yes, feelings, as many things are highly subjective) and then have the professional guide you based on what's important for you in your situation.

Here is one reason why professionals might be bringing WL quotes to you:

The regulatory environment has made investing client money a money-losing proposition unless you're talking big bucks. Yes, there's a relationship to be built, and hopefully, the assets under management will grow (along with the regulatory liability attached to them) to a point where one can actually make a living off investment accounts. On the other hand Life Insurance still pays a decent compensation, and while still subject to regulation and oversight, is generally a safer and more predictable product, and has unique features that no other product/plan has.

All of that being said, I don't think a professional should come prepared with "solutions" to a first meeting, before probing for facts and feelings.

Also, are said meetings being held at your place or at the professional's place?

Why should someone feel comfortable trusting a salesman masquerading as a financial advisor?

[aygart]

Why should someone feel comfortable trusting a salesman masquerading as a financial advisor?

Everything is sales

[ExGingi]

Why should someone feel comfortable trusting a salesman masquerading as a financial advisor?

What are your choices?

A professional needs to be adequately compensated. There are many regulations regarding acting in the client's best interest. There are always bad apples there, but even the good apples have to run a tight rope as to what is in the client's best interest. There's a strong argument to be made that having adequate compensation for the professional is indeed in the client's best interest, or else the professional will be out of business. The professional invests time and effort, and has significant overhead. And taking clinet's money for investment will always create a potential liability. The risk/reward of the professional needs to be considered.

Oh, and by the way, I didn't even mention that the professional is barred from giving you advice to take your investment business elsewhere for lower fees.

As @aygart correctly stated

Everything is sales

It is up to you to determine if you believe that said advisor/salesman is acting in your best interest or not.

HOWEVER, I think it's important to avoid paralysis of analysis. Sometimes trying to find the absolute best solution and questioning everything, results in no action, which can be a lot worse than sub-optimal action. It's probably better to get it 70%-80% right, than not get 100%.

[Yehuda57]

Why should someone feel comfortable trusting a salesman masquerading as a financial advisor?

They're not masquerading, that's literally their job. If you're looking for someone to do offer the service without them gaining compensation, the advice is going to suck far more.

[ushdadude]

https://www.whitecoatinvestor.com/the-perfect-financial-advisor/

[ushdadude]

They're not masquerading, that's literally their job. If you're looking for someone to do offer the service without them gaining compensation, the advice is going to suck far more.

or you can speak with someone at an hourly rate

[Euclid]

Everything is sales

Paying someone a fee to give you objective advice shouldn't be sales. They should be charging for the service they're providing (advice), not trying to upsell you for residual income.

[Euclid]

or you can speak with someone at an hourly rate

Have you found someone who does this?

[ushdadude]

Have you found someone who does this?

https://www.whitecoatinvestor.com/the-perfect-financial-advisor/

He has a list. Haven't tried any of them yet.

[Abey]

HOWEVER, I think it's important to avoid paralysis of analysis. Sometimes trying to find the absolute best solution and questioning everything, results in no action, which can be a lot worse than sub-optimal action. It's probably better to get it 70%-80% right, than not get 100%.

👏👏👏👏

What I always tell people, you don’t necessarily need the absolute best to make safe and smart investments.

[ExGingi]

He has a list. Haven't tried any of them yet.

Why not? Do you really think posting your questions the way you did on this forum would yield you better results?

https://www.whitecoatinvestor.com/the-perfect-financial-advisor/

This is a little TLDR for the moment, but I did skim through it, and there's some good stuff there, and some that I might take an issue with (No offense to the various CPAs on DDF, but from what I've seen, most CPAs should not be used as your financial advisors). The bottom line is that I think you do want/need one trusted advisor to be your quarterback. He or she might not have answers or solutions to everything, but will be able to refer you or find out.