DW wants financial advisor...

**livefreebrewfree** · 11-05-2010, 09:13 AM

So, I've been listening to Dave and reading his books for a couple months now. We have a baby on the way so right now we're piling up cash so she can stay home for awhile with a baby. After that, I planned kicking it into high gear to pay off about $67k in debt (mostly student loans and one car).

However, my wife thinks that we need to see a financial advisor that her parents use to get us on track. We have very simplified expenses right now, but she thinks paying $300 for a consult with this person will make a difference. I don't think we're at the point where we need an advisor (I actually work in finance and am working towards my MBA/CFA so I do know my way around money and have quite the disdain for financial advisors). She doesn't see the car or student loans as "bad debt", just the $3000 in credit card debt. Not sure how to convey the fact that it's ALL bad.

Suggestions?

**Russ** · 11-05-2010, 09:16 AM

Yes, Do not waste your money on a financial advisor. Of course this is my opinion.

I don't believe they can tell you anything more than you probably already know.

**livefreebrewfree** · 11-05-2010, 09:19 AM

Originally Posted by Russ

Yes, Do not waste your money on a financial advisor. Of course this is my opinion.

I don't believe they can tell you anything more than you probably already know.

Oh, I know that. FA's are my clients and I'd have to say 95% of them mess things up weekly and half of them don't really know what they're trying to do.

Just not sure how to convey this to DW since she sees how well off her parents are (Dad is an HR exec making close to 200k) and they're retiring soon.

**Russ** · 11-05-2010, 09:27 AM

Admittedly, I have one and would love to can him but my wife insists.

That said, I shut him and her up one day by asking them...

Can you guarantee a 4.75% ROI in the market vs me paying off my 4.75% mortgage at a faster rate? Of course, he could not.

I suggest reading and her especially reading some Dave Ramsey and maybe even both of you take the FPU course.

**Ceashels** · 11-05-2010, 09:28 AM

Greebo and I even consulted a FP that was recommended on the DR website. I was not impressed. We were mailed a packet of information to fill out. He met with us, talked with us then made a "plan" us filling out the paperwork we already did.

I also think he was also trying to force me into the epiphany of my "lifes dream" such as ... "I've always wanted to be a teacher" or something like that but most of my life's dreams have already been met. He wouldn't explain to me what he was asking for, he just kept trying to force me into BS... very frustrating. So if you do go that route... one financial planner is not like another.

But I agree with you that if your financial situation is not complex, if you know the tools that are available for saving for your future and your child's education, if you know that life insurance is important and are able to research the available financial options. You will do much better managing your own money than paying someone else $300 to write down what you already know.

**livefreebrewfree** · 11-05-2010, 09:30 AM

Yeah, I guess her reading DR would be easier than me trying to get her to listen to the podcasts. It's a little more informative than just listening to other peoples' stories. She's not really a "money" person (schoolteacher). Maybe if I can show her the babysteps and how soon we could have everything paid off, that'll work. I can try to distract her long enough that we can get the snowball in place. Then when she sees progress, who needs an FA!

Thanks!

**littleplum** · 11-05-2010, 09:31 AM

Any financial planner with a brain is going to tell you that step one is either to save an emergency fund or pay off your unsecured debt.

Oh, lookee there. That's what Dave Ramsey recommends!

**frugal is fun** · 11-05-2010, 09:34 AM

I have a FA and I'm very happy with her, however a while back I read one of Suze Orman's books. I know, FV isn't a big fan of Suze but basically what she said in her book is exactly what my FA told me to do/set up for me.

i guess it depends what you expect your FA to do for you. Can you have a free consultation first before dropping $300?

The reason I hired a FA was that I received a large to me amount of money when I got divorced and I didn't know what to do with it and I didn't want to blow it.

We invested it in Mutual funds, she set me up with a Roth IRA, started a 529 for my son and made sure I had enough coverage as far as insurance goes.

I actually really enjoy my FA and the advice she gives and how far I've come in such a short period of time.

If you want someone to help you with your budget thats not really what a FA does. At least thats my experience. They look at the bigger picture, what are your goals and they will tell you what you need to do financially to meet your goals. Again, this has been my experience.

**Ceashels** · 11-05-2010, 09:35 AM

Originally Posted by livefreebrewfree

Oh, I know that. FA's are my clients and I'd have to say 95% of them mess things up weekly and half of them don't really know what they're trying to do.

Just not sure how to convey this to DW since she sees how well off her parents are (Dad is an HR exec making close to 200k) and they're retiring soon.

Conveying it. Hmm.

Have you asked her what she hopes to get out of having a FA? Does she expect the great financial success to come from the FA to be the equivalent of her parents years of diligent and hard work?
I think she really needs to know what she is looking for from them.

**livefreebrewfree** · 11-05-2010, 09:47 AM

Originally Posted by Ceashels

Conveying it. Hmm.

Have you asked her what she hopes to get out of having a FA? Does she expect the great financial success to come from the FA to be the equivalent of her parents years of diligent and hard work?
I think she really needs to know what she is looking for from them.

That sounds like a plan. I think she's under the impression she'd help us with our spending. I don't need to spend $300 to have someone to tell me to save more and spend less! Looks like I'll have to sit down this weekend and see if we can get on the same page by asking that question first. It's a good one. Thanks. Always nice to have an outside opinion.

**Russ** · 11-05-2010, 09:50 AM

Good luck, and let us know how it goes.

**livefreebrewfree** · 11-05-2010, 10:07 AM

Originally Posted by Russ

Good luck, and let us know how it goes.

Will do, hoping to be a little more regular on this forum (especially since it's FREE).

**forHISglory** · 11-05-2010, 11:22 AM

One of the smartest money moves we ever did was to go with a financial planner. I had a 403b account at work, and was trying to decide whether or not to retire early, and what to do with the account. Should I leave it there? Roll it over into something else? I had worked hard and saved hard to have a sizeable amount and didnt want to squander it. So I contacted a planner. He did not charge for a consulatation, which was wonderful. He simply looked over our accounts, and did some calculations. He gave some advice about directions that we could go. He said that he usually only handled accounts that were worth a million or more, and there was no way we were close to that. But he said that based on our track record of what we had done with a modest income, he would consider taking us on as clients. He advised us to think about it and not make any rash decisions. We talked to some other people. Some had tried to get on as his client (and they had more money than we had), but the advisor had turned them down. All who had worked with him were pleased. So we decided to work with him. That was in 2007, and I went ahead and retired early. Now in 2010, he has almost tripled our money. He does not work with budgeting; that is our job. He only advises us on how to invest what we have.

All this to say that there are various types of planners and advisors. Everyone's situation is different, and you need to be wise in your choices. Just don't write off using a planner/advisor without investigating it first. And I would advise NOT paying for a consulatation.

**livefreebrewfree** · 11-05-2010, 11:28 AM

forHISglory,

I agree, I don't write off all of them, but we're just at a point starting out (just married last year) I'm 29 (on Monday) and she's 27. We don't have any taxable investments, our retirement accounts I'm comfortable with managing. If we were starting to plan our retirement or had a sizable estate, I could see the benefit.

But thanks for the info about not paying for a consult. That seemed a bit nuts for me too, especially since we'd probably need a follow up after she looked over all our info.

**mndtrp** · 11-05-2010, 11:31 AM

I think it would be wise for your wife to determine if you are in a similar financial place as her parents were when they got their adviser. Personally, I think an adviser would be more beneficial once you aren't entirely sure where to put your money for maximum results. At this point, paying off debt and securing an emergency fund is where you should get the best results.