Daily Money - How to Dump Your Financial Advisor

Elizabeth O'Brien is a senior writer at Money

They might be a golfing buddy, a sorority sister, or your son’s best friend. They remember your kids’ names, invite you to free lunches and send a lovely card at the holidays. They’re your financial professional, and they’re delightful. But do they have your best interests at heart? It bears asking. Some financial advisors are held to a strict, fiduciary standard, and they must always put you first. Others are held to a less rigorous standard of care. For example, your broker might put your money in a high-cost investment because it pays him a hefty commission. But you’ve been with him forever. How could you possibly break up? In today’s edition, learn how to evaluate whether it’s time to find a new advisor and if so, how to split with your old one.

Best wishes,
Elizabeth

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TIMELY RETIREMENT NEWS, INSIGHTS, AND ADVICE

5 Signs It's Time to Break up With Your Financial Advisor

Plus, here's how to execute a split if one is needed.

Millennials Need to Save Extra if They Want to Retire Like Their Parents and Grandparents

Younger workers face stronger headwinds than prior generations.

Despite The Pandemic, 44% of Americans Expect Their Financial Position to Improve in 2021

Read the results of Money’s exclusive poll.

RETIRE WITH MONEY COMMUNITY NEWS

I’m excited to introduce our first reader of the week, Mark R. Lindon, 65 from Longmont, Colo.! He’s a retired U.S. Army Field Artillery Colonel who moved from Northern Virginia to Colorado to be closer to family in retirement. Thanks so much to Mark for volunteering! Let’s learn a little bit about him:

What surprised you most about retirement?
The fact that I did not miss going to work.

What advice do you have for people about to retire?
Figure out what you want to do with your time. Do you want to volunteer or take up a new hobby? Maybe travel? If you are in a relationship with someone, make sure you talk to them about what they want to do.

What are your hobbies?

My hobby is collecting American political campaign items such as buttons, posters, literature, etc. The book “Grant” by Ron Chernow is currently on my nightstand.

What’s your best investing advice?
Start investing early, stay consistent, and think long-term. There are a lot of things you can borrow for, such as housing and college education. Once you are in retirement, you cannot borrow for it.

HOW TO INVEST TAX-EFFICIENTLY

Evaluating your investments through a tax lens can improve your after-tax returns. Tax-smart investing techniques, such as tax-loss harvesting, monitoring holding periods, and investing in municipal securities, may help you defer near-term taxes or reduce your tax bill so that your money can stay invested and has the potential to grow. Morningstar estimates that a hypothetical investor who did not employ a tax-smart strategy gave up an average of 1% to 2% of return per year to federal income taxes for the 93 years from 1926 to 2018. Click below to learn about 3 tax-smart saving techniques.

Learn 3 tax-smart techniques

Investing involves risk, including risk of loss.
Morningstar and Fidelity Investments are independent entities and are not legally affiliated.
Fidelity Brokerage Services LLC, Member NYSE, SIPC. © 2020 FMR LLC. All rights reserved. 938453.1.0

RETIREMENT NEWS FROM AROUND THE WEB

Prior Pneumonia Cases May Pose Unseen Covid Dangers

A new Harvard study finds that, after age, a prior episode of pneumonia was the greatest overall risk factor for death from Covid-19. BLOOMBERG

The Career Pivot: How Leapers and Planners Do It

About 80% of those who create second acts plan them carefully, a careers expert finds, but the other 20% can be surprisingly successful leaping without a net. NEXT AVENUE

How Robinhood’s Trading App Spurs Investors’ Herding Instincts

A business school professor explains how the popular app makes money and his concerns that it has made trading too easy. BERKELEY HAAS

After COVID-19 Took Their Jobs, This Older Couple Lives on Social Security Alone

Half of jobless workers over age 55 were long-term unemployed in January, compared with 35% of younger adults. CNBC

Elizabeth O'Brien is deputy editor at Money. She has covered retirement and health care for nearly a decade. A Brooklyn resident and mom of two boys, she navigates the alphabet soup of Medicare and the New York City subway system with equal ease. You can email her at elizabeth.obrien@money.com and follow her on Twitter at @elizobrien.

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Daily Money - How to Dump Your Financial Advisor

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