Ever wonder about firing your advisor? One woman wrote to Joe about firing her advisor, and we realized that’s a question that many people have. How does the process work? Do you tell them? How do you move your money somewhere else? In their haste to get rid of an advisor, some people make big mistakes that end up costing them lots of money.
Today we’re letting you be a fly on the wall. In place of our regularly featured interview, we’ll let you listen in on the recorded conversation Joe had with an anonymous listener who’s gotten fed up with her financial advisor. They’ll discuss whether to sell assets, what records to keep, how to talk to the advisor, and what to look for in new/better help and brokerages.
Plus, in our headlines segment (couldn’t get rid of that, could we?), the nation’s biggest bond investor has dismissed the possibility of a stock market downturn in the near future. BUT, many in the financial media think the signs all point to
And later in the
Then, in our letters segment, we’ll cover a (totally) hypothetical question from Matt. Would it make much sense to have his kid forgo the traditional college experience and instead put all the savings into an investment account? It’s all about time in the market, right?
Don’t you worry, we’ll cover it all and more (including Doug’s trivia), on today’s content-packed episode of Stacking Benjamins.
- Investors Doubled Their Stock Market Losses in 2018 By Making This Costly Mistake. Here’s How to Avoid It (Money)
- Why the world’s biggest bond investor is dismissing the yield curve’s recession warning (MarketWatch)
<> Listener Call
We’re mixing up the usual format with a special listener call today. This listener is at a tipping point with her advisor, and she needs some advice on how she should “break-up.” With the promise of anonymity, she agreed to let us record the conversation. This won’t be so much of an interview as it is a chance for you to be a fly on the wall.
<> Doug’s Trivia
- You can’t think big money cities without thinking of New York, and on today’s date in 1904, Long Acre Square, named after the square in London, was renamed to what?
<> Haven Life Line
- Danielle’s son has special needs and recently started his first job. They want to open a savings account for him at a brick-and-mortar location that also has easy access to ATMs. Thoughts?
Matt has a hypothetical situation about forgoing the college experience and sticking the savings into an investing account. You can read Matt’s question (and his fantastic compliment to us) in its entirety below:
As a parent, I have been wondering lately: Would it be better for a recent high school grad to forego the college experience and stick the amount of money spent on the education (100k-125k) and accumulate that into a 401K/Roth IRA by the time they would have graduated (6-8yrs)? Would this set them up to retire much earlier and give them a good mindset on how money can work for them?
Let’s assume the kid was able to live at home and had minimal expenses. This is just an exercise in the way we all think about money, NOT THAT I WANT MY KID TO LIVE WITH ME THAT LONG! (I am counting down the days….) I would call and leave a message if you feel this question is show worthy. PS, love the show, you guys make taking about money tolerable/bearable, and might I say even enjoyable. Keep up the great work!
Thank you for recording the phone call conversation on leaving a financial advisor. I am struggling with the same decision. After years of reading DIY investment / FIRE blogs, I’m finally convinced that passive is better for me than active. A significant percentage of my investment assets is with an RIA and I am ready to leave them to manage it myself. No issues with them in terms of fiduciary behavior or the custodian/suite of offerings (Fidelity), just ready to stop paying % AUM (early retired recently and have more time/interest). The problem is this account has in over 100 positions in stocks and bonds, with significant unrealized capital gains. I’m looking to minimize my taxes and transaction fees associated with this move and would appreciate any advice you might have. I know there will be some pain but hope to do this cost-effectively. Thanks in advance.
If it’s inside an IRA, no problem. Just move the money. Outside of an IRA, make sure you’ve collected ALL of your cost basis information before moving. Use what’s called an ACAT transfer to move the money and positions “in kind” (as is) to your new home so that you don’t eat a ton of tax all at once. Then, plan your sales based on cost basis AND (probably more important) on what actually meets your long term goals. If possible, match winners with losers to cover some of the taxes when you sell. Don’t let the tax tail wag the dog, though…sometimes people do lots of damage to their portfolio because they’re more focused on taxes than on results. – Joe.
thank you Joe – appreciate your sound advice!