No. of Recommendations: 1
The fact that they advertised it as "free" means they are crooks, or ignorant.


Brokerages will put you in funds with "B" shares... B shares have no up-front costs, but will charge some extra 12b-1 management fees, usually costing around 1% more a year than their A shares...

After 7 years or so, your B shares will change to A shares...

You'll end up paying an extra 1% a year for the next 7 years.... That is NOT free (They also have surrender charges to keep you from cashing out before the 7 years is up)

Ask the brokerage if they plan on buying B shares for you... Then ask them how much more B shares will cost you and how long until they turn into A shares...

Then ask them how they can honestly say their services are "free". (And then, if I were you, flip them the bird and walk out)

(That last step is optional) :)

That said, $4,000 for a plan seems a bit high to me... But I have no idea how much they are doing for you (retirement alone, or insurance, wills, etc. as well).

Also I suppose it depends on how much money you're investing... but I always thought fee-only planners were per hour.. not as a percentage of your assets.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.