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My husband and I are considering working with a firm that will develop a strategic financial masterplan that will include tax strategies, Roth IRA conversions, estate planning, charitable giving and gifting among other things . We are also talking with an advisor who invests in Dimensional Funds. This is a big change for us currently investing in individual stocks, bonds and mutual/ETF funds. We have worked with individual CFPs who claim they offer these services but rarely do they provide comprehensive financial strategies and the main focus is on the portfolio performance. We have a Trust and our taxes are pretty straightforward. What is your experience working with an all inclusive team of advisors and using mostly funds for the investment piece of the plan?
Couple of sources of interest.
https://www.etf.com/search?gq=dimensional+funds
The other is https://www.ifa.com/search?q=dfa%20funds
With IFA, you need to agree to the questions at the bottom to proceed on the site. Mark Hebner, the CEO, likes DFA funds a lot.
I am a longtime index investor and totally happy to get what the market gives me, without adviser fees. I use treasuries, TIPS, and CDs for fixed income and have accounts at Fidelity (without advisory services).
I seriously considered using a local advisory company that I trust, which is the first and most important criteria for an adviser. However AUM fee was .8%. When I multiplied that by our assets, I quickly changed my mind.
Friend told me recently he is paying .8% on all assets. The AUM fee model should be dead and buried
I have been with Dimensional Funds since 2006. I used an advisor in Dallas in person and after retirement in 2008 and moving I switched to an on line advisor who was cheaper. Best decision I ever made. The Funds are invested using a very solid approach and they screen advisors to try to avoid lots of switching. I don’t have them do anything other than rebalance yearly between my existing funds. My Dallas advisor did initial planning. I brother in law started using a Dimensional Fund advisor when he was unhappy with his Fidelity group. All have been conservative and never push any other product.
Do you pay an AUM fee? If so, how much? Thanks