AllanS (OP)-
My situation was similar to yours, with the exception that I’m the hands on type.
I second the advice to limit or eliminate your involvement with Edward Jones. Their fees are way too high comparing around to better options. Personally I would move the EdJones stuff to Vanguard and re-invest in things that are more to your benefit than EdJones benefit.
Regarding Alight, I would move those assets also when you can (I’m assuming your ties to Alight were through your old company). I also had Alight at my old company before I retired. When I compared to other options (looking myself and comparing with friends), Alight was VERY difficult to work with and did not provide optional value like Vanguard (or other similar) could. For example, Vanguard can offer everything from “I’ll do it myself” to “I want full instructions and holding my hand”. Obviously the costs for these options differ.
I ended up transferring all my assets to Vanguard, and using a separate (not Vanguard) flat fee financial advisor (FFA). Edit: To me, flat fee is fixed cost in dollars regardless of assets, as opposed to fixed % of assets under management (AUM). So Vanguard is my “money warehouse” and my “management” was me and my FFA. My expense for that FFA was in dollars ($7,500), but the percent worked out to a very low % on my portfolio. Much much less than the EdJones 1.35%. Also worth mentioning is my flat fee was once, not yearly (I can go back if I want). I was comfortable with once for now, as I feel I can judge my going back in a few years or later. A lot of advisors are % of portfolio (or net worth), so be careful as that really adds up year after year.
To find my FFA I went to www.napfa.org and came up with a list of about 20 of them (in my area) and looked at their websites. Most said on their website that they were % and what that % was (often had to dig). Ones that looked promising for flat fee (only a handful) I called and got details. One note about advisors “in your area”, they don’t really have to be, since most of them do it by Zoom/etc, but I just happened to have a good one in town. I also looked for CFP = Certified Financial Planner, to your fiduciary point.
Good luck! There are many charlatans out their with the Financial Planner label (even at big firms), so proceed with caution and have an exit plan to not put all YOUR money in their basket.
My situation was similar to yours, with the exception that I’m the hands on type.
I second the advice to limit or eliminate your involvement with Edward Jones. Their fees are way too high comparing around to better options. Personally I would move the EdJones stuff to Vanguard and re-invest in things that are more to your benefit than EdJones benefit.
Regarding Alight, I would move those assets also when you can (I’m assuming your ties to Alight were through your old company). I also had Alight at my old company before I retired. When I compared to other options (looking myself and comparing with friends), Alight was VERY difficult to work with and did not provide optional value like Vanguard (or other similar) could. For example, Vanguard can offer everything from “I’ll do it myself” to “I want full instructions and holding my hand”. Obviously the costs for these options differ.
I ended up transferring all my assets to Vanguard, and using a separate (not Vanguard) flat fee financial advisor (FFA). Edit: To me, flat fee is fixed cost in dollars regardless of assets, as opposed to fixed % of assets under management (AUM). So Vanguard is my “money warehouse” and my “management” was me and my FFA. My expense for that FFA was in dollars ($7,500), but the percent worked out to a very low % on my portfolio. Much much less than the EdJones 1.35%. Also worth mentioning is my flat fee was once, not yearly (I can go back if I want). I was comfortable with once for now, as I feel I can judge my going back in a few years or later. A lot of advisors are % of portfolio (or net worth), so be careful as that really adds up year after year.
To find my FFA I went to www.napfa.org and came up with a list of about 20 of them (in my area) and looked at their websites. Most said on their website that they were % and what that % was (often had to dig). Ones that looked promising for flat fee (only a handful) I called and got details. One note about advisors “in your area”, they don’t really have to be, since most of them do it by Zoom/etc, but I just happened to have a good one in town. I also looked for CFP = Certified Financial Planner, to your fiduciary point.
Good luck! There are many charlatans out their with the Financial Planner label (even at big firms), so proceed with caution and have an exit plan to not put all YOUR money in their basket.
Statistics: Posted by MoneyIsTime — Wed Feb 28, 2024 3:08 pm — Replies 4 — Views 315