So we just met with a financial advisor and...

the person wants to do a "full financial individualized plan" for my mom who has much more complicated finances than me and my husband.She is an independant advisor, which I like because she is not trying to push a certain product but she wants $600 to do this plan which will include all sorts of fancy pie graphs and this and that after evaluating a cash flow plan and every detail of my mom's finances. It seems like a lot of work AND a lot of money and she doesn't feel any need to do one for DH and myself which makes me feel like shes not just trying to make money. She is also the mother of someone we know so I don't think she would take complete advantage of us but what do you think about this?

Re: So we just met with a financial advisor and...

Doesn't sound like something I'd pay $600 for. But I don't know what your mom's finances are like.

Re: So we just met with a financial advisor and...

It depends. Will she actually be selling your mom the products she recommends or will she be sending her to someone else. I prefer paying someone for their advice and then buying/implementing any recommendations separately. In my experience, a lot of financial advisors are just brokering their own products and steering you toward the most commission friendly products.

Re: So we just met with a financial advisor and...

my brother is a financial planner and does big portfolios and does charge a dime to show you a plan. doesnt sound good if he wants money off the bat. what happens if you dont like the plan your out of 600 dollars? i would get a second opinion. good luck to you.

Re: So we just met with a financial advisor and...

Re: So we just met with a financial advisor and...

I know my company does that for free for potential and current clients. $600 seems like a lot. A lot of these hypotheticals are easily created using different programs that different mutual fund companies offer, its not really that much work.

Re: So we just met with a financial advisor and...

Posted by mikeswife06

Posted by Corinne

my brother is a financial planner and does big portfolios and does charge a dime to show you a plan. doesnt sound good if he wants money off the bat. what happens if you dont like the plan your out of 600 dollars? i would get a second opinion. good luck to you.

Thank so much.

Anyone else?

C'mon people, butt wiping is getting more attention than my measly little question.

Message edited 8/31/2007 9:50:59 AM.

Re: So we just met with a financial advisor and...

Posted by nyteacher13

Posted by mikeswife06

Posted by Corinne

my brother is a financial planner and does big portfolios and does charge a dime to show you a plan. doesnt sound good if he wants money off the bat. what happens if you dont like the plan your out of 600 dollars? i would get a second opinion. good luck to you.

Thank so much.

Anyone else?

C'mon people, butt wiping is getting more attention than my measly little question.

Where is that butt-wiping post? I'd like to check that out...












Nah, seriously. I know NOTHING about financial advising, and I have no input whatsoever. I'm sure many people feel the same way. Sorry!

Re: So we just met with a financial advisor and...

I had a finacial plan set up about 3 months ago and I didn't have to pay for it. I did go with the services they're offering me to set me in the correct path according to where I want to be in the next 20 years! I wouldn't pay for that service. I have someone I can refer you too if interested.

Re: So we just met with a financial advisor and...

I think that the question is will she be just putting together a plan and then your mom will purchase independently, or will the planner be the broker for those options as well? Usually the planners make their money by the commissions on the investments.

You want to make sure that she is not "double dipping" charging $ for the plan and then recieving commission on top of it.

Re: So we just met with a financial advisor and...

There are two kinds of planners: both are paid in one way or the other.

You are either paying one up front for their advice or you "pay" them b/c they receive commissions from all the products they sell you (insurance, mutual funds, etc.)

Some people feel that the latter are not 100% trustworthy b/c it is in their interest to sell you something you don't need, b/c they get their commission that way.

Re: So we just met with a financial advisor and...

Re: So we just met with a financial advisor and...

Thanks everyone.

She will actually be the broker for the three of us (mom, DH, and myself) and selling all of us insurance, long term care plan for my mom, and funds and such. So I guess whoever called it double dipping is right. She is making out hugely. Before I allow my mom to give her the deposit I scheduled another meeting with another independant advisor who said he will develop a basic plan for my mom for no charge because he too would be making the commissions off of the stuff we buy.

Thank you so much. I am new to all of this and I didn't understand it.