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How To Find The Right Financial Pro


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#46 sschullo

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Posted 19 June 2017 - 07:50 PM

I love articles by Tara, but there is one thing that isn't accurate:

 

$1,200 for a financial plan in New York is a stab in the dark number. You can visit six different fee only planners - even hourly planners - and the range will be from $1,200 to $12,000. Your situation and the advisors expertise should determine how expensive it will be. Slightly misleading of Tara to pin a number on it.

 

Dave,

Inaccurate? She wrote according to you $1200, which is at the low end of your range. What is inaccurate? Might be incomplete. 

Here tweet a message to her: https://twitter.com/tarasbernard

Lets find out what she says. 

 

Why doesn't the industry publish a simple and comprehensive booklet of the range of fees that fee-only, AUM, FAs charge? 


Steve Schullo

Author and Co-Author of two books:

1. Late Bloomer Millionaires: A Financial Story and Investment Guide for the Late Starter (2013)

2. Fighting Powerful Interests: Educators Challenge Tax-sheltered Annuities and WIN! (2015)


#47 sschullo

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Posted Yesterday, 09:02 AM

Dave,

You are a valuable contributor to this forum. Your fees are too expensive for most of us DIYers here but just the same, you are mistaken to think I am hostile towards you personally or that continuing this dialog is too time-consuming for your business.  

 

Our public dialog might be the only teacher and financial adviser dialog in the entire history of 403b plans that is 100% transparent, because out here in California ANY discussion about 403(b) plans with public k-12 school districts absolutely does not exist publically!!! Like it or not continuing this dialog IS your business. I remember an old truism, be careful what you want because you might get it. Do you understand that you are a rarity because you are respected by Dan, Scotty and others here? 

 

Most of us here are on to the industry's game of how your profession makes money. That is your business to continue the dialog so that this conversation plays out so that all parties are satisfied. It may take time to work out, but its been 55 years of highly successful sales of TSAs in public schools and so changing that dialog will never end unless we talk. And when we do talk, it will take time. Our advocacy started in the mid-1990s and we made sporadic progress, but total reform is years away, probably another generation of educators will be abused and ex ploided.  

 

Dave, I know you know that the problem is not with me, or the rest of the frequent posters here, it's with the teachers' unions, districts, and the education profession with the massively isolating mentality. You know how our profession thinks. Educators are a highly diversified group of professionals from all ethnic and racial groups, but when it comes to saving in a 403(b) or 457(b) for retirement, according to statistics, 70% of all k-12 public educators, the thinking does not come to fruition because we have a pension. My colleagues pretty much think as one--fear of the market by believing their 403(b) annuity sales person over everybody else.

 

I am positive you have already read Scotty D's excellent book, The Wild West: Providing Fiduciary Advice to Public School Employees. Just the same I included here for other FAs to consider reading. Mr. or Ms. professional FA, you can have a business within the constraints of this highly secretive profession. Scott has lived it. It's written for professionals like yourself who want to offer fiduciary FA to our profession, and that in itself will reform this terrible current 403(b) system. Here is my review on Amazon: https://www.amazon.c...ASIN=B01AGRT4SA

 

Steve


Steve Schullo

Author and Co-Author of two books:

1. Late Bloomer Millionaires: A Financial Story and Investment Guide for the Late Starter (2013)

2. Fighting Powerful Interests: Educators Challenge Tax-sheltered Annuities and WIN! (2015)


#48 davegrant82

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Posted Yesterday, 10:52 AM

Steve,

 

Steve,

 

Tara quoted $1,200 for a financial plan in New York. I'm in the suburbs of Chicago and my retirement plans alone start at $2,000. It would be even more in New York. I research financial planners to understand trends in the industry as I'm a columnist in a trade magazine read by 200,000 advisors, so her numbers are low given by the data I've gathered.

 

Anyway.... I appreciate the kind words. With your comment on myself being too expensive - it depends on what you value, as value is subjective. However, I've found that many in the K-12 space don't value the services I provide even at a lower price point. For that reason, my business pivoted away from K-12 last summer. Given a rebrand, my business is now thriving. I hold no ill will to the K-12 profession but understand my services might not be top of mind to them as it might be for someone in a different profession.

 

Given continuing the dialogue - there's only so many hours in a day. As I now focus on building a business that meets my personal goals and educating advisors on how to do the same, my input here will be limited. Finance for Teachers (my blog for educators) is still active, but is no longer being updated with fresh content. Keep fighting the good fight.



#49 sschullo

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Posted Yesterday, 12:46 PM

So Tara's $1200 quote would not get people inside any Fee only adviser. Your correct cost of Fee Only is pretty expensive. I have no ill will towards the fiduciary standard expense, but there is only so much return to pay for it, including ordinary taxes, keeping pace with inflation, and other investment costs. The stock market only returns 9-10% over long periods of time.  

 

Back to K-12 services. Have you read Scotty's book? Is your message changed since pivoting away from teachers? 

 

I agree if you are trying to work through the unions or the districts, they will blindside your efforts on all fronts. I have been accused of self-interests from union officers who knew me! When it comes to discussing money or investments, my profession exhibits some of the strangest reactions on the planet. 

 

But if you can somehow, and somewhere reach the teachers, you will find that they are begging for help. For example, I asked my local fee-only FA to give a 50-minute presentation 4 years ago in front of about 50 of my LAUSD colleagues, and he immediately got 6 clients, and I believe that number has grown. That's just ONE presentation.

 

But the culture here in California is different. I think teachers are screaming for help, but they don't know where to turn, and who to ask. Even after a workshop or two, so many are lost afterward as there are no follow ups. 

 

Steve


Steve Schullo

Author and Co-Author of two books:

1. Late Bloomer Millionaires: A Financial Story and Investment Guide for the Late Starter (2013)

2. Fighting Powerful Interests: Educators Challenge Tax-sheltered Annuities and WIN! (2015)