Know what you need to know before you hire a financial advisor or financial planner in The Villages, Florida (you don’t need to pay 1% for an Advisor!) We work remotely with many clients in The Villages. I encourage you to get a free 2nd opinion about your total fees.  You might be shocked by how much you are paying! (book meeting below)

* Bonus for retirees, we have free access to a 4% yield account, FDIC insured up to millions!

Picking the best financial advisor or financial planner can be a very challenging task.  It is confusing and mistakes can be VERY expensive.  I urge you to “Trust but Verify” that your current advisor and your current strategy are optimal for your retirement goals.  If you have $500k+, you don’t need to pay 1%+ to your Advisor.  Do the math, you might be spending more on your Advisor than you do on vacations!  Get a 2nd opinion and we will show you the data.

Warning:  If you have been sold annuities, whole life insurance, non-traded REIT’s or commission products like A shares, B shares, or C shares, I strongly suggest you look at your total expenses and seek professional help.

Here are some tips to help you pick the best financial advisor in The Villages.  If you are considering using a traditional stock broker like Wells Fargo, Merrill Lynch, Morgan Stanley, JP Morgan, Chase, Edward Jones, Ameriprise or your local bank (Citizens First Bank) , I encourage you to really take a hard look at the fees and commissions.  If you have over $500k in a portfolio, your total fees and expenses should be under 1%.  I see many portfolios with total fees of 1.5% to 2.5%+ per year.  In my opinion, that is way too much to spend.  Our fees are 0.7% on the first $1 million and decline above $1 million.  We offer a tremendous value to our clients and help build a custom portfolio for your goals and objectives.  You don’t have to pay 1% for access to DFA Dimensional Funds

Click here to subscribe to my blog  or email us. for a free 2nd Opinion about your portfolio

1. Understand how you pay for financial services. Many investors don’t realize that the cost of investing has dramatically declined over the last 10 years.  If expected future returns from a diversified portfolio are 6% per year and you pay 1.5% to 2% in total fees, you pay 25% to 33% of your gains each year to Wall Street.  There are 3 primary ways to pay for investing services:
   • Commission-based Advisor – This type of advisor is typically a broker or financial advisor and they sell you products for commissions. These can be stocks or mutual funds with A shares or B shares or C shares.  The investments can also be some sort of insurance product or non-traded REIT.  The commissions can be from 1% to 5.75%+.  Some insurance products and non-traded REITs can be much higher.  This person is held to “suitability standard of care”; to do what is “suitable” for other similar investors.  This person’s job is to sell you product… like annuities.  Many times these are too good to be true.  Ask about the surrender charges in the contract!
   • Fee-based Advisor – This type of advisor sometimes works on commission and sometimes charges you a fee. This relationship is very confusing for investors.  This person is held to a “suitability standard of care”: to do what is “suitable” for other similar investors.
   • Fee-only Advisor – This type of advisor works on a fee-only basis 100% of the time. There are no hidden commissions or fees.  This person is held to a “fiduciary standard of care”.  By law, this advisor is obligated to put the client’s interests first at all times and disclose any conflicts of interest.

    

2. Understand what services you need to pay for.  Many investors are not aware of how they pay for financial services.  This has serious implications and can drastically reduce your retirement nest egg.  Do you need portfolio management?  Do you need financial planning?  Do you have solid goals for retirement?  Can you maintain your lifestyle in retirement?  When is the optimal time to take Social Security?  Typically, annuities are not an investment.
3. Get a free 2nd opinion from a fee-only Advisor – You work hard for your money and your family.  65% of retirees who did not prepare adequately for a comfortable retirement did not realize this until they had already retired.  We encourage you to take action and get a free 2nd opinion from a fee-only Advisor who is a fiduciary for you 100% of the time.  We offer free 2nd opinions for portfolios over $500k.  I encourage you to “trust but verify” you have a solid solution in place.  Why You Need a Fee Only Fiduciary Advisor! (video) 
4. Find out if you have significant problems with your strategy or portfolio sooner rather than later.  When it comes to retirement planning, a solid retirement will not happen by chance and there are no quick fixes.  It takes years of planning, preparation and discipline to hit your goals.

PS:  For all of the Vanguard “do-it-yourself” fans, I like Vanguard.  They are cheap and offer great exposure to market beta.  That being said, building a market cap weighted 60/40% bond portfolio may not be your best strategy.  Over the last 15 years (ending 1/30/23), Vanguard LifeStrategy Moderate 60/40 (VSMGX) has returned 5.5% per year.  Vanguard LifeStrategy Conservative 40/60 (VSCGX) has returned 4.5% per year, Vanguard Total Bond index (BND) 2.6% per year.  These returns are much lower than many investors expect.  The major problem today is that future expected returns for both stocks and bonds are lower than historical averages.  By targeting other asset classes, value companies, small cap companies, companies with high profit, companies with high investment and companies with momentum, you can potentially increase returns.  If you want to learn more, check out our Why DFA vs. Vanguard page.   Watch some of the DFA videos at the bottom of the page.

It is easy to be a good investor in a raging bull market.  As of 1/30/23, the SP500 has been up 12.4% per year (10 year compound rate of return).  We have also had a 35+ year bull market in bonds.  The next 5 and 10 years will surprise many investors.  A competent, low cost, fee only, fiduciary Advisor can add value to your portfolio.  Most people need a coach.

• Read this — The Pledge Most Advisors Won’t Sign!

• Watch this video – Can You Maintain Your Lifestyle in Retirement?
• Watch this video – The Most Important Decision of Your Financial Life

Click here to subscribe to my blog  or email us for a free 2nd opinion about your portfolio.

Give us a call at 303-549-4720

Todd Moerman, Managing Partner

Integrity Investment Advisors, LLC

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