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There was a discussion recently on HD about the costs/benefit of a financial advisor.
I have more questions. Who needs a financial advisor and why? I have looked up the pros and cons and certainly a case can be made for using an advisor, but not always.
I have never used an advisor, but that doesn’t mean I wouldn’t be better off if I did. I asked at Fidelity, but the fee percentage – I think it was 1% a few years ago – turned me off.
How does your advisor add value for you? Does it go beyond just where to invest?
Is your financial situation better having used an advisor?
Does your advisor make specific investment recommendations and, if so, do you always follow them? Does your advisor have authority to make or change investments without your approval each time?
Any other thoughts on using an advisor these days?
My retirement income was planned for me-a pension and SS. Everything else we have accumulated is extra, backup if you will.
As a read about planning and investing for retirement income in the real world of 2024, not mine from the 1960s, I can certainly see how a retirement planner would be valuable.
One thing for sure, if the timing had been different I would have used Roth accounts and I should have added the Roth option to my employer 401k I was managing in 2006, but unfortunately we were mired in what turned out to be failed merger negotiations and changes were not going to be made.
Obviously an investment advisor can add value, but then again, sticking with an array of index and bond funds may minimize that need.
I’d sure like to hear Jonathan’s thought on this.
I was late to the game in understanding all the benefits of HSAs. I had read for several years about all the benefits, but it took speaking with a free financial planner paid for by my employer (Aetna) before I truly understood all the benefits. I tried to max out my contributions the last few years working. I accumulated about $25K before retiring. We use it primarily to pay our federal part B premiums, and other few acceptable medical expenses we incur. Not sure the reasoning by the government (if they even use reason) why HSA funds can NOT be used for traditional Medicare supplement premiums.
All should be ware that when a non-spouse inherits a Health Savings Account (HSA), the account loses its HSA status, and the beneficiary must pay income tax on the fair market value of the account in the year of the original owner’s death. This is unlike a spouse beneficiary, who can take over the HSA and treat it as their own. So make sure to utilize the funds heavily.
David, I have an HSA than I am currently using sparingly. My daughter will inherit in the future. I am keeping a detailed list of all health care expenses/receipts that I have accumulated and not tapped the HSA for. My goal is to see the account grow – hoping for at least another 10 years or so. The list is accessible, and my instructions are that she could reimburse the estate immediately for all the built-up expenses. So the funds would effectively ‘used up.’ I will keep an eye on it, though, in case I need to take this step in advance.
I seem to recall reading that only recent expenses could be reimbursed after death, so you may need to take that step in advance. HSAs are probably the worst kind of account to inherit, as non-spouse beneficiaries are taxed in one year for the whole amount as ordinary income. Much better to reimburse yourself into a taxable account which gets inherited.