Q&A Episode: Estate Planning, Advisor Fees, and Fixed-Risk Annuities, Ep #67 

<p>Listener questions have been pouring in these last few weeks! So in this episode of Retirement Made Easy, I’ll dive into a few more questions that have rolled in. How do advisors get paid? What can you do to help your parents with estate planning to avoid probate court after their deaths? Do no-risk no-fee investments exist—and are they worth it? I answer these questions and more in this episode. Check it out! </p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[4:04] Questions we’ll cover in this episode </li> <li>[6:26] Question #1: How do advisors get paid? </li> <li>[10:43] Question #2: How to help your parents with estate planning </li> <li>[16:53] Question #3: Do no risk no-fee investments exist? </li> <li>[19:08] Question #4: Why I love Roth 401ks</li> </ul> <h2>How do advisors get paid?</h2> <p>Some advisors only make money by offering investment products where they make a commission. I feel like this is a conflict of interest—these advisors may push you to invest in something that’s not in your best interest. </p> <p>Other advisors charge hourly. For example, I charge $200 an hour for financial planning services. Some advisors use different methods than others. Another way—and how I’m primarily compensated—is a flat annual fee that comes out of the investment accounts and is broken up quarterly. A common percentage can be 1–1.5%. </p> <h2>How to help your parents with estate planning </h2> <p>How do you help your parents get their ducks in a row so you and other family members don’t end up in probate court? You may be heading into retirement yourself and are helping care for your aging parents. So what can you do to get your parents set up properly? Here are some things to make sure your parents have:</p> <ol> <li><strong>A healthcare directive/power of attorney</strong>: If they can no longer make healthcare decisions for themselves, someone needs to be in place to help make decisions (it can be multiple people). </li> <li><strong>Financial power of attorney</strong>