Community Chat

[KathyPet]

DH passed away in Feb.  All investments have been with Fidelity for years now.  They messed up the transfer of my husband's SEP accounts to my name so badly I wouldn't trust them to manage my grandson's piggy bank.  I am pulling every penny from them ASAP.  I will now need to,start regular withdrawals from our retirement accounts to,supplement SS income.  I have spoken with 3 different investment/financial advisors looking for solid investment advice and planning.  I eliminated my bank as a source because they want to charge me $1500.00 up front to provide this analysis and advice.  My local Edward R. Jones office is in the running as is a investment firm that is affiliated with the Wells Fargo network of investment advisors.  I have had introductory meetings with the managers from both these firms and we went over my financial,particulars and needs in great detail.  I liked both people and was comfortable with both of them.  I expected them to come up with specific recommendations as to,how to split the money into various types of investments to meet my needs.  I thought I would listen to both firms pitch their recommendations and the reasons for what they were suggesting I do and then I would consider their advice and choose the firm whose suggestions I felt were best for me. Instead it seems like they would really like me to sign paperwork to open a account with them first.  I really am not comfortable going ahead with either firm until I hear their,specific suggestions and strategy.  Am I wrong to expect them to "pitch me" with their recommendations before I sign anything to transfer the Fidelity funds to them?

[jackthebear]

No not wrong they probably can't want to get their hands on a widows (forgive me using that phrase) money 

i would be be wary too they want to sell u something other than I got nothing, trust your instincts 

[Danielle46]

It depends on what kind of account they want you to open.  If its just a savings or checking account then whats the harm in opening one and putting a little something in there.  What you need to understand is that they are investing time to review your assets and put a plan together for you and you don't have to pay them.  You also need to remember that they have specific tools that they represent and will want you to invest in so they can't really be objective.  Is that what your looking for or do you really need a Financial Advisor  who is looking out for you and not trying to get you to invest in something.  True Financial Advisors do charge about $1,500 but again, they are there to advise whats best for you and do not offer investments.  Edward R. Jones & Wells Fargo will get a specific % of any gains from your investments.  Over time that can amount to a lot of money.

[gardensla]

First, I'm very sorry for your loss. I was not aware of this.

I don't think any firm is going to go to the trouble and expense in terms of staff time and resources to come up with a plan for you--even a draft one--without you first becoming an actual client.

Is there any commitment (financial or legal) when opening an account? 

[chi5925]

You can't expect them to give you the full plan for you in detail if you're not signed up to be their client.

Example:  you want to hire an interior designer to decorate your home.  But before you sign paperwork to hire them, you want them to give you all the details of how they will decorate, show you all fabrics, furniture, paint colors, planning scheme, etc.  What would prevent you from saying "thanks" and then doing everything yourself or going to a possibly less expensive interior designer? 

Same with your investment firm selection.  They SHOULD give you an overall plan on where they believe you should be investing your money (e.g., 20% stocks, 40% mutual funds,etc.) but don't expect them to tell you which stocks or mutual funds or how long they should be there, or provide a year-by-year plan, etc. without actually being their client.

Good luck to you.  This is a big decision you have to make so don't rush -- take your time before you decide.

[Q4u]

I agree with  you and I would feel more comfortable knowing what their pitches might be prior to investing, however in my experience that kind of data and recommendation would occur gratis once you've moved your money into their Investment Firm.  The kind of detailed information you are seeking, tailored to your specific needs would require research and time, both of which usually require a fee.  But once invested, this advice is usually free.

Cart before the horse, I agree....  and heartfelt condolences for your loss.....  

[athenian]

I agree that perhaps you should look into getting an advisor who does not make a commission from investing your money.  There will be a flat fee.  We found ours by asking around and getting recommendations.  Also, check the fee per transaction at any investment firm; they sound small, but really add up.  And I recommend that you not give them carte blanche to make any changes in your accounts without your knowledge and approval, at least for the first few years.  I wouldn't rush this decision.  Good luck!

[KathyPet]

No, they want me to,sign to transfer all the fidelity money to them.  I understand that they are incurring a expenditure of their time to analyze my requirements and provide me with their recommendations but that is the cost of doing business.  Not much different then having a home improvement contractor give a estimate to do a project in your home.  Whichever firm I choose will make money from managing my money and I am sure will recoup their upfront expense.  I am not giving them my money without a full rundown of what their recommendations are.

[Nonametoday]

Do you expect your doctor to give you a diagnosis without a fee, or an architect to design a plan for you without payment? 

[Annabellethecat66]

@KathyPet I'm sorry you lost your best friend, lover, etc.  I understand how your heart is hurting.

I guess I was lucky when my husband died (because I knew zip about investing, etc).  My oldest daughter, her husband and my other son-in-law took over all of my husband's businesses and long story short, we turned the money over to my son-in-law's best friend and his fraternity brother who works at a well known investment firm in D.C.  My daughters all know him, so we totally trust him (I think that's a big deal, it was for me anyway).

We set it up so that he keeps me informed and I am the only one who can sign and make decisions but he also advises my daughter.  We meet at least once a year (he comes to my daughter's house) and we talk strategy (i.e. how we want the money invested, etc).  

There are a lot of things to know about as far as your house, etc to avoid taxes, etc.  One thing I remembered was we had someone we know (who does it for a living) say what my house was worth so when we sell it I won't have to pay the same taxes, just things like that.  I immediately made out a will, etc.

It is important you find someone who will know all of the ins and outs of this stuff.  It needs to be someone you can work well with and you feel comfortable talking about how you want things to go.

Take care and good luck.  Please let us know how you are doing.  Again, I understand how difficult and frustrating figuring all of this out can be.  Fondly, Annabelle.