Long story short: received a windfall and am looking at financial advising. It's large enough a sum where i would rather not fuck it up by doing it all on my own. I'm not convinced 100% passive investing is the way to go (though I will still maintain a passive index fund portfolio). I don't think I could access the following investment vehicles on my own; what do you guys think of them? FYI: These are taxable accounts. I am maxing both my 401k and IRA with Roth contributions for 3-5 years (24/M with 90K in retirement accounts already - part of the windfall).
The advisor's group is under UBS (CRPS, with a CFP in his group). He is a friend of a friend, you could say. In addition to these products, he would be providing comprehensive financial planning and assisting along the whole way (life), annual reviews, and has given me his proposal and projections. (I also personally like/trust the guy.)
- Separately Managed Account (SMAs) through UBS. An advantage would be tax efficiency. (~25 bps fee - however UBS has a 100 bps AUM fee as well)
- Structured (Leveraged) Products. Specifically ones with a 3-5 year maturity, focused on Europe. I don't have them in front of me at the moment, but I believe they were Capped Trigger GEARS and Capped Buffer GEARS. One through UBS and one was from GS. Can choose uncapped and unleveraged ones as well. (~80 bps annual fee)
- Fixed Index Annuity (7 years): JPM Mozaic II or Nationwide Summit. Guarantee of principal back, with capped (6%) upside. No fees if I hold the 7 years, no CDSC incurred. This investment vehicle would be for a house down payment in 7 years. It would be put in my mother's name w/me as the beneficiary, as to avoid the withdrawal penalty prior to age 59½. The "risk" with this is inflationary; I could roughly maintain the real value of said down payment with CDs over this timespan. The guaranteed return of principal would have that down payment purchasing power eroded by inflation over the timespan.
I have read about these products and (mostly) understand how they work. I am looking for opinions on them from r/investing.
An alternative could be using a fee-only advisor ($750 initial onboarding fee, $250/hr) for financial planning and investment advice. I would execute transactions/manage all assets on my own (lots of time on my end, stress, risk of mistakes on my end). The CFP i have found is the "CFP Ambassador" of my area and is a nationally recognized speaker on ethics in finance.
Any other advice/suggestions/opinions on choosing a financial advisor/planner are greatly appreciated, too!
Submitted October 05, 2017 at 01:29PM by Kunu2 http://ift.tt/2hQccpN
