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Post by curious1 on Jul 27, 2023 2:17:28 GMT
I know most people in this forum self manage, but need help on a good FA /wealth management company Charles Schwab, Merrill Lynch etc... Brother passed away, sister-in-law unable to make any decisions on finance etc. Currently with a FA (UBS) which has not advised them very well, they have a "very" large amount of cash acct making only .10% for the past year. Very disappointing and feel they took total advantage of them as they could of invested in MM or T-bills. Looking for another FA/wealth management co... Any recommendations and why?
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Post by steadyeddy on Jul 27, 2023 2:39:48 GMT
I know most people in this forum self manage, but need help on a good FA /wealth management company Charles Schwab, Merrill Lynch etc... Brother passed away, sister-in-law unable to make any decisions on finance etc. Currently with a FA (UBS) which has not advised them very well, they have a "very" large amount of cash acct making only .10% for the past year. Very disappointing and feel they took total advantage of them as they could of invested in MM or T-bills. Looking for another FA/wealth management co... Any recommendations and why? Schwab or Vanguard come to mind. Vanguard charges 0.3% of assets, Schwab has a flat fee structure. Depending on the asset size either one would work. Vanguard would use mutual funds, and Schwab ETFs. Please call them to discuss if you like these two suggestions. |
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Post by Fearchar on Jul 27, 2023 7:44:52 GMT
I agree with steady eddy.
Vanguard, Schwab or Fidelity are all good companies to deal with. I favor Vanguard the most since they are owned by customers.
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Post by anitya on Jul 27, 2023 8:03:30 GMT
I do not have managed accounts anywhere and as such can not comment how good Schwab managed account service is like but their sweep account pays practically nothing. Their sweep account is not a money market account. I have to manually move money into and out of money market account if I want to earn any return on uninvested cash. Fidelity and Vanguard automatically deposit uninvested cash into money market sweep accounts that currently earn in excess of 4.5%.
Strangers do not take care of one’s money or kids like one would. No substitute to keeping an eye on what is important.
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Post by yogibearbull on Jul 27, 2023 10:55:43 GMT
Vanguard has 2 versions of its robo-advisor PAS - Digital+ (with some call center support), Digital. Don't expect much beyond cookie-cutter Vanguard index solutions.
Fido and Schwab have affiliated advisors, i.e. they are screened by the brokerage and use the brokerage platform for trading, recordkeeping. Fees may range from 0.75-1.25%. I think that both Fido and Schwab also do limited in-house portfolio management.
Stay away from heavily advertised Fisher Investments, etc - they advertise a lot on social-media, TV, radio, just to keep even as their client turnovers are very high.
Edelman Financial Engine may be OK. Ric Edelman's firm took over the 401k/403b business of William Sharpe's Financial Engine (yes, that is the Nobel Laureate behind the Sharpe Ratio, etc). While the firm target mass market (min as low as $5K), its fees may be high.
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Post by judger on Jul 28, 2023 0:01:21 GMT
Just got through looking at Fisher Investments. Fees are a bit high, but they sent performance numbers net fees going back to inception of 8.9% and 9.8% total annualized performance (compounded) for last 10 years. I did not go with them, but somebody lacking investment skills might find these numbers from a very large advisor attractive.
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Post by catdog on Jul 28, 2023 1:55:45 GMT
curious1,
If you have over one million to put into fidelity, it will make you a card carrying member of the Fidelity Private Client Group. (just kidding about card carrying) It does not get you much free advise or portfolio designs, but someone answers your calls pretty quickly and offers basic advice. Sounds like you should set her up with a three fund portfolio and set and forget.
My stepson started with Edward Jones but the fees and commissions were killing me and it wasn't even my money. He is now with Fidelity.
Catdog
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bruce
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Post by bruce on Jul 28, 2023 2:07:19 GMT
Judger, SPY has returned 12.51% over the past ten years. I would imagine that an S&P etf would be much more tax efficient and less volatile. |
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Post by steadyeddy on Jul 28, 2023 11:56:41 GMT
Judger, SPY has returned 12.51% over the past ten years. I would imagine that an S&P etf would be much more tax efficient and less volatile. The "volatile" part we may never be sure unless we know the composition of Fisher portfolio. But agree that getting 8% to 9% is achievable over a decade if one has a discipline to leave things alone via self-directed investing. |
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Post by steadyeddy on Jul 28, 2023 11:57:25 GMT
curious1, If you have over one million to put into fidelity, it will make you a card carrying member of the Fidelity Private Client Group. (just kidding about card carrying) It does not get you much free advise or portfolio designs, but someone answers your calls pretty quickly and offers basic advice. Sounds like you should set her up with a three fund portfolio and set and forget. My stepson started with Edward Jones but the fees and commissions were killing me and it wasn't even my money. He is now with Fidelity. Catdog What does Fido charge as fees in their private client group? Is it based on AUM? |
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Post by yogibearbull on Jul 28, 2023 12:14:42 GMT
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Post by steadyeddy on Jul 28, 2023 13:19:57 GMT
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Post by curious1 on Jul 28, 2023 13:30:55 GMT
Thank you all for your input. My SIL is going to require in home care as she does not want to leave her home. I know that is going to be quite expensive as she does not have LTC, except for their portfolio. They have a mix of IRA's and taxable accounts. It seems Fidelity and Vanguard have a more workable system. My husband and I are the trustees to their trust, so going to have to figure out what would be best.
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Post by curious1 on Jul 28, 2023 13:39:27 GMT
Forgot to add Charles Schwab would be a good look into option as well...
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Post by yogibearbull on Jul 28, 2023 13:47:03 GMT
For most part, Schwab is similar to Fido. It may be more tiled to affiliated advisors, but does offer all 3 channels - robo-advisor, internal advisory, external advisory. www.schwab.com/investment-advice |
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Post by Fearchar on Jul 28, 2023 13:55:50 GMT
curious1 , Sorry about your brother. That your SIL needs in home care is a very different topic from finding a FA/Wealth manager. Does she have children? My father passed away in 2019 and Mom has required in home care ever since. She needed care before then, but Dad was able to manage it. Mom has really slowly deteriorated since 2019 and is now pretty much fully incontinent. I manage the FA part (it's not that difficult). My oldest sister manages the in-home care which is much more difficult. Fortunately, for us, financing this is not the real issue. Rather finding people to cover shifts and the escalating level of care is difficult. I have 3 sisters in total and we have a few other family members to help. There are also people outside of our family, and they are not as dependable with the exception of a retired nurse. She stops by 3 days a week for 1hr (MWF). Weekends are more difficult to get coverage, so we pay premium. That there are 4 of us children and we all live reasonably nearby is a very positive factor. We are starting to burn out and Mom may have to go into an institution. Time will tell. When she was better, she would have objected to an institution. Now however, she may not even realize it. If it's only you and your husband, I'm concerned that this may be too much. It could be a very long and difficult for you. I wish you the best, but am concerned how this thread started out.
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bruno
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Post by bruno on Jul 28, 2023 15:21:27 GMT
Forgot to add Charles Schwab would be a good look into option as well... When i was looking at the options It seems that Schwab keeps quite a bit of cash that does not pay you much. I got a schwab account few months ago and unlike Fido you have to sell or have money in low interest account to buy an investment. |
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Post by yogibearbull on Jul 28, 2023 15:49:46 GMT
bruno, Schwab doesn't offer m-mkt funds as core/settlement fund (as do Fido, Vanguard). So, you have to use Schwab's m-mkt funds that settle as T+1 just as other OEFs. Stocks/ETFs/CEFs settle as T+2.
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Post by catdog on Jul 28, 2023 16:54:18 GMT
We keep quite a bit of money in our fidelity SPAXX fund (at least while it is paying 4.8%). We can write six checks a month against it or do transfers from it to our local bank. It takes 24 to 48 hours for our money to be available, but I can't think of many times when I need a large sum of money RIGHT NOW. It works well for us and our fidelity credit card 2% monthly kickback goes directly to SPAXX.
Catdog
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Post by catdog on Jul 28, 2023 16:59:36 GMT
Steadyeddy,
The fidelity Private Client Group is really nothing special, but I have noticed over the years fidelity like others does not really want you to call them. The time on hold seem to be getting longer and longer. I think they treat you a little better if you are in this group.
Catdog
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Post by bigseal on Jul 28, 2023 20:34:42 GMT
Never understood why educated people are happy paying someone to manage their money. There are plenty of books available to help people manage their own money. As Peter Lynch said, the most important organ in investing isn’t the brain but rather the stomach. The fees you pay would look better in your account rather than your advisor’s pocket.
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Post by steadyeddy on Jul 28, 2023 20:48:05 GMT
Forgot to add Charles Schwab would be a good look into option as well... Schwab has a unique option called "Intelligent Income" that looks at all the accounts an individual has and takes a "tax smart" withdrawal every month and deposits into a checking account. In a way one can create an annuity payment automatically. This requires enrolling the accounts into their intelligent portfolios (robo) program. Some complain about higher cash holding, some have issues with lack of settlement fund - but it may be worthwhile exploring the intelligent income feature. |
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sam
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Post by sam on Jul 29, 2023 1:00:43 GMT
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sam
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Post by sam on Jul 29, 2023 1:11:04 GMT
Fidelity wealth management has interesting offering but you need 2 Million to get there. 3% cash back reward on Visa card ( I have only seen this level of reward with quite high yearly fees ) Identity theft Unlimited Options trade and up til 100,000 Contract / year Free. If you trade a lot then you can recover cost of wealth Management fees just in Trading cost savings! www.fidelity.com/rewards/overview |
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sam
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Post by sam on Jul 29, 2023 1:38:53 GMT
Forgot to add Charles Schwab would be a good look into option as well... Schwab has a unique option called "Intelligent Income" that looks at all the accounts an individual has and takes a "tax smart" withdrawal every month and deposits into a checking account. In a way one can create an annuity payment automatically. This requires enrolling the accounts into their intelligent portfolios (robo) program. Some complain about higher cash holding, some have issues with lack of settlement fund - but it may be worthwhile exploring the intelligent income feature. Most so called advisors are trained in Human Psychology to play your insecurities? It is like CON game which is like can I have your confidence to screw you legally! I had bad experience with so call FA. |
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Post by curious1 on Jul 29, 2023 14:27:44 GMT
Fearchar
Thank you. No children and family members are 2 plus hours away. My heart goes out to you and yr family as this is such a hard task taking care of a loved one. This is why I am looking for a new FA/WM Co. One that will advise for the interest of the client and not their own. I don't have the experience to manager a large portfolio and feel it would be better served at this point by someone who does. I am often reading the post in this forum with hope I can learn by the lessons of other.
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bruno
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Post by bruno on Jul 31, 2023 1:36:44 GMT
bruno , So, you have to use Schwab's m-mkt funds that settle as T+1 just as other OEFs. Stocks/ETFs/CEFs settle as T+2. Sorry YBB you are speaking a little above my head, It was my understanding my Divs show up at Schwab i have to Trade it into a MF called SWVXX. Is this the T+1 and T+2 you are talking about? I am NEW to Schwab so I might not be understanding how it works. Maybe there is a better way to handle it. My understanding was unlike at Fido if a bargin shows up at Schwab I want to buy i must sell the SWVXX that takes over night and MISS out of a DEAL. |
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Post by yakers on Jul 31, 2023 2:20:46 GMT
Followed countless similar threads on various sites, VG, Fidelity and Schwab can all do the job decently but you still need to stay conscious. VG cheap fee simple portfolio, I am considering Schwab and I usderstand the issue with too much in low return cash but this can be managed adequately in my case, I have Wells Fargo and I have to tansfer funds into the clearing account to buy assets and it works OK, not a frequent trader. Simplifying for my wife, no interest in things financial, I told her to (in order) go to VG, Schwab and one local FA I actually tust (rare entity IMHO), avoid EJ.
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Post by yogibearbull on Jul 31, 2023 12:10:01 GMT
bruno , So, you have to use Schwab's m-mkt funds that settle as T+1 just as other OEFs. Stocks/ETFs/CEFs settle as T+2. Sorry YBB you are speaking a little above my head, It was my understanding my Divs show up at Schwab i have to Trade it into a MF called SWVXX. Is this the T+1 and T+2 you are talking about? I am NEW to Schwab so I might not be understanding how it works. Maybe there is a better way to handle it. My understanding was unlike at Fido if a bargin shows up at Schwab I want to buy i must sell the SWVXX that takes over night and MISS out of a DEAL. Schwab treats m-mkt funds as any other OEF/mutual fund, so they settle as T+1 (i.e. the next day). In most Schwab accounts, one can offset OEF purchase (T+1) or stock/ETF/CEF purchase (T+2) with Schwab m-mkt sell (T+1), but at least in Schwab IRAs, one needs cash-available to trade. This isn't an issue at Fidelity or Vanguard where a m-mkt fund is core/settlement fund. |
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Post by johntaylor on Aug 3, 2023 15:19:43 GMT
T Rowe Price offers private mgt if ya have = > $5 million to invest (per account)
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