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Old 02-16-2022, 08:58 AM   #1
Nufy
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Is it common to have your portfolio reviewed by a third party for clarity / effectiveness etc...

How common is it to change advisors ?

I am not financially illiterate but I do need help in understanding some of the finer details.

I am wondering if my advisors and I are in the same mindset.

I want to reduce debt while they are steadfast in retirement planning.

I know I'm being vague here but am wondering how other people have dealt with this.
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Old 02-16-2022, 12:21 PM   #2
Slava
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Originally Posted by Nufy View Post
Is it common to have your portfolio reviewed by a third party for clarity / effectiveness etc...

How common is it to change advisors ?

I am not financially illiterate but I do need help in understanding some of the finer details.

I am wondering if my advisors and I are in the same mindset.

I want to reduce debt while they are steadfast in retirement planning.

I know I'm being vague here but am wondering how other people have dealt with this.
It's hard to say how often people change advisors, because I do think that there is a lot of inertia involved. But really, there's nothing wrong with a second opinion on things, and that's common. If the person that you get a second opinion from is good, they should give you an honest opinion and tell you what they'd change and what they'd keep the same, and more importantly why those changes would be made.

And as far as the "focus" of your plan, that's where you should be on the same page as your advisor. In my opinion, clients drive the bus on that aspect.
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Old 02-18-2022, 09:33 AM   #3
bizaro86
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Originally Posted by Nufy View Post
Is it common to have your portfolio reviewed by a third party for clarity / effectiveness etc...

How common is it to change advisors ?

I am not financially illiterate but I do need help in understanding some of the finer details.

I am wondering if my advisors and I are in the same mindset.

I want to reduce debt while they are steadfast in retirement planning.

I know I'm being vague here but am wondering how other people have dealt with this.
If your advisor isn't listening to your goals I would switch.

Especially if (as is likely) they get paid as a % of your portfolio assets.

Because in that case the advice to save for retirement vs pay down debt, aside from being not YOUR goal, is probably colored by the fact that they get paid more on invested assets but not on debt paydown.

Edited to add: not an advisor or anything, that's just how I would feel about it.
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Old 02-18-2022, 10:48 AM   #4
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If your advisor isn't listening to your goals I would switch.

Especially if (as is likely) they get paid as a % of your portfolio assets.

Because in that case the advice to save for retirement vs pay down debt, aside from being not YOUR goal, is probably colored by the fact that they get paid more on invested assets but not on debt paydown.

Edited to add: not an advisor or anything, that's just how I would feel about it.
That bolded portion is a pretty big red flag...
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Old 02-18-2022, 04:03 PM   #5
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That bolded portion is a pretty big red flag...
Yeah, I mean I don't know if his advisor gets paid as a % of the portfolio, but that would be pretty common I think.

And if so that advise might not be impartial, so if it's being given forcefully over the clients goals that seems pretty bad to me.
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Old 02-20-2022, 01:53 AM   #6
CASe333
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Originally Posted by Nufy View Post
Is it common to have your portfolio reviewed by a third party for clarity / effectiveness etc...

How common is it to change advisors ?

I am not financially illiterate but I do need help in understanding some of the finer details.

I am wondering if my advisors and I are in the same mindset.

I want to reduce debt while they are steadfast in retirement planning.

I know I'm being vague here but am wondering how other people have dealt with this.
First I'm not a financial advisor and I think there is nothing wrong with seeking a third party to review your portfolio. That said you should be able to evaluate what you are being told.

You may be financially illiterate but your situation seems pretty straight fwd from your vague post. I would assume the reason you are told that reducing debt isn't worth it vs investing for retirement is that your debt has a low interest rate and you are getting a better rate of return on your investments. This is typical advice but if you have an extremely low risk tolerance than you should tell your advisors this and they should factor this in.

You or your current advisor should know your current debt interest rates. Ask them how this compares to the interest return for investments. Do the investments have any risk or are they guaranteed? If they aren't guaranteed (ask if you can lose $ or are they completely guaranteed in writing, most likely they are not) and you have a low risk tolerance than paying off debt may make the most sense.

A good financial advisor will have explained why they recommend investing for retirement planning over paying off debt. Make sure that you understand any risks with investing and if you have little tolerance for risk than tell them that. You might or might not be on the same page but definitely ask some basic questions and make it clear what your goals and risk tolerance is. If your getting advice from a major bank definitely consider a third party to review as they often are trying to make commission for themselves.
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