3 Types of People Who Should NOT Hire a Flat Fee Financial Advisor

[@glennet9613]

If you are a retiree taking a typical and often recommended 4% of your assets every year a 1% fee equals a quarter, 25%, of what you are living on.

[@xlerb2286]

I just want some occasional advice. But advisors always for some reason want to push the more comprehensive packages ;) I don't have a huge portfolio but I do have some assets. And I don't like the percentage model. 1% is more money than I made my first full year working as an engineer. That's a pile of money for what I want in help managing my very boring and mundane portfolio.

[@dmoon9037]

Why do you need help to manage your boring and mundane portfolio?

[@xlerb2286]

@@dmoon9037 To find the things I don't know I'm doing wrong. There may be no such things. Certainly I'm not aware of any, but I wouldn't be, would I? ;) So another set of eyes looking at it would be welcome.

[@nicstevens6499]

I've never understood the AUM model.. Why in the heck should a guy with 1 million dollars pay say 1% = or $10,000 to an advisor and then another guy with 2 million dollars pay the same 1%, but pay $20,000 (and yes I'm aware of the bend points or reductions in the expense ratio that some firms do at different levels. But lets be clear. Most of these firms have the asset allocations / model portfolios they use... So I don't believe they are making new special portfolios just for you because you have 1 or 2 million more than the next guy. Why is the guy with 2 million having to pay way more than the guy with 1 million? And then say the guy with 5 million? Are you really doing services that are so much more different and complex simply because somebody has a few more million? I don't think so. And whatever you are doing is "different" isn't worth that clients tens of thousands of more dollars! AI and new tech are going to destroy the financial advisor services industry. Most of us would be better off with a robo advisor or just figure it out yourself with a couple of super low cost index funds and etf's.

[@johnnyretires]

I think what you are trying to say is - the GREAT MAJORITY OF PEOPLE do not need to pay a financial adviser.

[@howardfriedman7077]

So Devin, where is that video on the math for your $5.9 million in SS benefits? You said you had already recorded it weeks ago.

[@DevinCarroll]

Editor is working on it now. Going to be slightly technical, but eye opening for people who don't think this is possible.

[@howardfriedman7077]

@@DevinCarroll I think the only way that is true is if you are a lot younger than you look or you use some questionable assumptions. Can't wait to see it.

[@DevinCarroll]

@@howardfriedman7077 None of that, I'm 48, used the average inflation since 1978, used the current law calculation, and assumed I/we file at 67.

[@wilber4494]

If I am 73 years old & still working making over 50000 per year plus collecting SS am I OK by doing this?

[@catherinewhitman8333]

I dont have any money to invest or have a portfolio...i pretty much live check to check after covid!!! Im 63.....i used to be able to put $300.00 a check in a savings account...i have no debt other than Monthly living expenses and a small amount of medical expenses that insurance doesnt cover... My rent went up $500.after covid.... landlords really took advantage of that! I was never out of work i wor at a small community college and evn when we didnt have students we cover what we could on line! So ID have ANY HOPE OF RETIREMENT EVEN THOUGH IVE BEEN WORKING EVERY YEAR SINCE IVE BEEN 16 YRS OLD I COULDNT even FATHOM what $ 500,000. Looks like .

[@darwinjina]

and sadly with current inflation rate, we expect another rent increase.