Q. I'm retiring at year-end and am interviewing financial planners. The planner who I'm considering hiring doesn't charge any fees. He said that he does not charge a management fee because all the vehicles into which they would invest my money have compensation for the advisor already built into the product. Read more
This sounds "too good to be true." What are your thoughts about this? Is it legit? Is the financial planner limiting himself by only investing in vehicles in which he will make a commission? Will he invest my money only in vehicles that pay the highest commission?
I've considered doing the investing myself with one of your Couch Potato portfolios. But I have decided to use a planner for at least the first couple of years of retirement. I’m doing this primarily for tax advice and to make sure I don't make any huge mistakes when moving my money out of my company savings/pension (lump sum) plans.
It's as important to know what is motivating an advisor as it is to understand the advice being given.