Those Financial Planners you hire - thoughts, etc

So I was sitting at work and a got a call to my office number from some financial planner who works for a large bank to remain unnamed.

Anyways, she asks me if I would like to set up a brief 15-20 minute to discuss my financial goals, and hiring them as financial planners, and I said "sure that'd be great." Then she ends the conversation with "oh wait we only like to hire those people with >= 100k".

Then fast forward the next week and we have the meeting. The planner shows up, listens to my thoughts, and decides that I don't have enough money. He looks a bit annoyed, and is a hurry to leave to get to his next appointment. I don't think I've felt like such a piece of walking-cash for a while, other than the last time I was at a strip club. LOL

What are your thoughts on these "financial planners"? Do they do anything useful (assuming you have the requisite cash) or do they just do basic investing that you could otherwise do yourself if you put in some more time and effort? Are they just parasites ? I asked him what they charge and he said something like 1.5% of your total assets that they are managing. No wonder they want people with > 100k.

 

My parent's financial planners took us on and they've been a big help. A couple of things I like about them:

They are family run (if under the umbrella of a major organization). This means that the Dad, who is older, has lots of experience and the Daugher, who is closer to our age, has similar circumstances to us. Part of what they offer is that they have many of the funds, plans etc... that they recommend and openly share the progress.

Their relationship with my parents is also nice because it shows a pattern of trust.

I recommend someone who is close to you in age because they can have similar goals and circumstances. If the planner is approaching retirement age, what will you do when he or she is done?

I would always consider a cold-calling planner like the one you talked to a bit dodgy and an opportunist at the very least. Just like Lawyers and Contractors, see if your parents, friends or co-workers can recommend one.

 

They can be very helpful for people who don't have the time or inclination to manage their wealth effectively.
Unfortunately the business is rife with conflicts of interest and opportunities to screw the clients. So YMMV.
Forget about someone that cold calls you.
Go with someone experienced that has done well by family or friends.

 

Very comfortable with mine. It does cost some money but they (a married couple) truly do look out for my interests. They have called me twice in the recent weeks as the markets have collapsed just to answer any questions or see if I want to do something different.

 

I get calls from various financial planners on a regular basis. I always tell them, no thank you. I've been burned by planners in the past and/or made to feel like ejkwt. Not pleasant.

One of my friend's here works for a planner based out of the Isle of Mann. On his recommendation, I met with one of his planners. She's absolutely lovely. She's more like a friend (with massive knowledge). She's help us set up a plan with which we are comfortable. She sends me updates on a regular basis and gives us information before we know we need it (like with the recent declines in the World markets).

Short answer: ask around and get a recommendation

 

Yep. This is a business that (especially in the past) was full of shonks whose soul purpose was to line their pockets. In Oz now, though, they have to be registered and it is fairly easy for them to get in trouble if they rip people off.

I agree with the "get a recommendation". My best mate does this for a living and does pretty well out of the commissions, but he realises the enormity of investing other people's money.

 

Thanks for the feedback, everyone -- it helps alot. Yeah I agree; just judging by the reaction of the cold-calling types (even if they work for a huge bank), they just seem like they don't give a rats ass about your $. I guess painting them all with one color would've been too far also -- seems like alot of people have good experiences with recommended ones or family (professional) friends.

I don't think I'll go this route though; I'd rather take the time to learn some basic investing. Been reading up on econ and will get to investing soon. This will be a long journey.. (!)