Comments on: Drawing the Line Between Family and Financial Advisor

By: Kyle

Kyle — Wed, 04 Nov 2009 19:14:16 +0000

@Credit Card Chaser, I agree, the best option is to utilize a fee only planner. That way you know what you are paying up front and you don’t have to question weather or not every reallocation was necessary or if the advisor was just trying to make a quick buck.
Kyle´s last blog ..iPhone App Review: Home Inventory

By: Kyle

Kyle — Wed, 04 Nov 2009 19:12:58 +0000

@Financial Samurai, You aren’t paying someone to tell you spend less. In most cases you are paying someone to help you understand what investments will help you to best achieve your goals. I know very little about investing and markets so it helps to have that resource, I just wish it wasn’t family.
Kyle´s last blog ..Create a Home Inventory and Save Your Stuff

By: Kyle

Kyle — Wed, 04 Nov 2009 19:08:15 +0000

@Mike Piper, That is the other part, she has never really said if she is actually getting paid off our transactions. I assume she is and I am certain it is commission based since we have never paid her a fee. She also sold us an insurance product I am certain she made a pretty penny on.
Kyle´s last blog ..Base Salary Isn’t Everything

By: Credit Card Chaser

Credit Card Chaser — Wed, 04 Nov 2009 07:27:16 +0000

I would stick with a fee only planner instead of someone compensated by sales commission. Granted that most insurance products that is just the way it has to be because that is how the products are designed but the person who is doing the overall planning should be compensated with a fee rather than a commission IMO.
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By: Financial Samurai

Financial Samurai — Tue, 03 Nov 2009 22:50:20 +0000

I just don’t understand why someone would pay someone to tell you “spend less than you earn.” How difficult is that? I can’t imagine someone can’t get free advice from books/online on asset allocation, budgeting, and saving.

Unless you have at least several hundred thousand i assets, and multiple businesses, I’d save your money and find free help from willing people.
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By: ctreit

ctreit — Tue, 03 Nov 2009 22:35:26 +0000

Hiring an advisor from your own family is almost like working with a therapist who is part of your family.
ctreit´s last blog ..Does your family budget have room for a PupStep Plus?

By: Craig

Craig — Tue, 03 Nov 2009 16:24:03 +0000

So far I have not taken any financial advisor and am going on my own. I figure if I start saving now I can worry about specifics down the line when I educate myself more.

By: Mike Piper

Mike Piper — Tue, 03 Nov 2009 13:07:19 +0000

I suspect that a big part of the issue is due to using a financial advisor who is paid via commission. That causes conflicts of interest regardless of whether you’re related to them or not.

If you use an advisor who is paid only via an hourly fee, you’ll never be wondering if he/she recommended something just because it pays best.

That said, you make good points about choosing sides between spouses. That could still come up with a fee-only advisor.
Mike Piper´s last blog ..Review: The New Coffeehouse Investor