As the CEO of www.taxconnections.com, I had been searching for a top expert in Financial Planning. Once I read Ed Mahaffy’s book titled “How To Select A Financial Advisor: The Least You Should Know”, interviewed him, reviewed his video library, I knew we had the right person for this special financial planning series.
On Fridays, TaxConnections presents questions often asked of a Financial Planner. Although the majority of Ed Mahaffy’s clients have in excess of 1M in assets, Ed has made himself available to answer financial planning questions for our readers.
Dear Ed: Financial Planning Questions
Question: How can I determine my investment expenses?
Answer: Ask your financial advisor to identify, in writing, the total investment expenses incurred by your account last year and what portion – expressed in dollars as well as percentage – his firm received. Have him compare expenses to Vanguard index funds.
Question: How can I identify any overlap among my investments and why does it exist?
Answer: Your financial advisor should be able to provide this information. The software is available.
Question: What should I know about privately traded real estate investment trusts (REITS)?
Answer: Be careful. Privately traded REITS are illiquid and can have huge markups (undisclosed commissions). These are not to be confused with publicly traded REITS, which can be part of a cost-effective balanced portfolio. Sunlight cures many ills.
Do You Have More Financial Planning Questions? Ask Below Or
You can reach Ed Mahaffy directly at ed@clientfirstwm.com or call 501.603.0406
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