What if baby boomers want to use a financial planner?
July 14, 2008 by Jean Murray
One last question in my interview with Bill Losey for National Retirement Planning Month:
Q: We talked about baby boomers being their own financial planners. What if I decided I needed a retirement plann. What would I have to pay? What kinds of people typically use a financial advisor?
A: Baby boomers who are between 50 and 62, most of whom are nearing 60, and who have portfolios between $500,000 and $2.5 million can benefit from a financial advisor. The typical financial advisor charges a retainer based on the value of the portfolio. If you are getting estimates from planners, be sure to ask for fees both on a percentage and a DOLLAR basis. As the portfolio grows, the amount you pay increases. The fee structure depends on the credentials of the person and the part of the country you’re in. If you work with a broker or representative at a major national firm, it’s not uncommon for fees to be from 1.5% to 3%. And you should be getting really personalized service for that. When clients call me, I answer the phone personally. If you’re paying upwards of 3% and you’re not getting good service, change advisors.
Another reminder: Go to the National Retirement Planning Month website to get your free copy of Bill Losey’s book and find out what else he has in store for this month.