Issue with Financial Planner--looking for thoughts/input

[princesscinderella]

Seconding that YOU are your best internal control. DH downloads all our transactions in all accounts most every day into a Quicken file. He gets "antsy" if we are traveling even though he can still log on and see the transactions. Maybe you don't want to do that every day but at least check accounts once a week or when you know the transfers are supposed to be made.

As mentioned see if the transfer OUT equals the transfer IN - you haven't lost any money. But if $10,000 was taken OUT and only $5,000 transferred in, you may have embezzlement. I'd want some "higher ups" on that call.

I second using Quicken, I hit one button and it updates all my accounts with all the transactions. It literally takes 5-10 minutes each day to keep on top of everything.

 

[wabbott]

I would add to the thread this comment - don't beat yourself up too much about money decisions you made or didn't make. We all do the best we can, given the data we have at the moment. The thing to do is learn. There's a world of information available out there about what to do. Take advantage and be inquisitive, just like you are about all things Disney. Trust yourself.

I like the discussion group Bogleheads. It's kind of a DisBoards for money freaks. Someone, somewhere has either seen it, done it, bought it, sold it, or knows someone who has.

 

[dvcgirl67]

I would add to the thread this comment - don't beat yourself up too much about money decisions you made or didn't make. We all do the best we can, given the data we have at the moment. The thing to do is learn. There's a world of information available out there about what to do. Take advantage and be inquisitive, just like you are about all things Disney. Trust yourself.

I like the discussion group Bogleheads. It's kind of a DisBoards for money freaks. Someone, somewhere has either seen it, done it, bought it, sold it, or knows someone who has.

Second the Bogleheads group.

 

[QueenIsabella]

I'm actually on Bogleheads regularly. I didn't post this there, because I wanted input from a more well-rounded group of people, not just the investment nerds.

Obviously, I should have looked at my checking account statements more closely, but with a lot of money flying in and out, they didn't look "off". You know how it is--not all checks have been deposited, you're not looking at the mailed statement in real time, etc. The numbers didn't seem wildly off.

I have a list of questions that I emailed the advisor today, and I've added a couple since posting this. I'm not ready to let him go at this point--we'll see how the Monday discussion goes. And I'll see what DH thinks, too.

 

[tvguy]

I still write checks too, but I check my account balances every day online. I don't put a deposit in my checkbook register until I see it online. We live the same way as you, off a monthly transfer from my IRA, although we are living on a fraction of the figure you used in your example.
Also, why don't you have overdraft protection?

 

[princesscinderella]

I still write checks too, but I check my account balances every day online. I don't put a deposit in my checkbook register until I see it online. We live the same way as you, off a monthly transfer from my IRA, although we are living on a fraction of the figure you used in your example.
Also, why don't you have overdraft protection?

Overdraft protection isn’t recommended anymore due to the amount of bank fraud, if someone has hacks your ATM and drains your checking, they will then be able to move onto your other accounts that are going to keep covering the overdrafts.

 

[tvguy]

Overdraft protection isn’t recommended anymore due to the amount of bank fraud, if someone has hacks your ATM and drains your checking, they will then be able to move onto your other accounts that are going to keep covering the overdrafts.

My overdraft is not linked to any other account.
Everyone seems to recommend it.
https://www.investopedia.com/ask/answers/071114/what-are-pros-and-cons-overdraft-protection.asp

 

[QueenIsabella]

We do have some kind of protection--I don't know that it's called "overdraft" specifically. That's why the bank sent an email saying "You're about to overdraw". It gave me enough time to quickly transfer in other funds, to take care of the immediate problem. I had a one-day grace period. No fees or returned checks were incurred for this.

I don't know how overdraft protection works these days--we had it, back ~30 years ago, where the limit was $1000. That wouldn't have been enough in this situation. Plus I had the problem of my DH getting an overdraft notice, and instead of figuring out where he went wrong, he would just add the overdraft money to his checking account balance and go on his way. This worked really well with his "make an ATM withdrawal and not record it" technique. This is why I do the day-to-day banking. Ironically, DH is an engineer with an IQ of 147. Just careless about money!

One thing I AM going to do is update my cell phone. My current one is notoriously old and bad--it's the family joke. Most apps don't work. If I finally upgrade my creaky phone, I can ask one of my IT people (i.e., kids) to help me set up phone banking. They all bank by phone, 99% of the time.

 

[dvcgirl67]

I'm actually the bigger math nerd, but I realized there IS an issue that I need to work on. I have a respectable IRA (that we're not touching right now). DH's is much bigger--no surprise, I've been a SAHM for 28 years, he's always had 401ks that have been rolled over. But the rest of our assets came from his mother--directly, to the kids, and then when she died, DH inherited a lot (kids did, too). So, even though it's our money, jointly, I still don't feel comfortable treating it like it's "my" money, if that makes sense. So, I don't watch it as closely as maybe I should. This is a "me" issue.

I'd work on that "me" part for sure. We're married for 25 years, together for 27, and while I don't expect an inheritance at all from my FIL (he's 92 with a dwindling nest egg....and the house that very well may go towards end of life care), if we did get one I would feel 100% like I *earned* it .

 

[jo-jo]

No input about the situation, but DH also loves paper. 90% bill are paid by check. He makes sure that little paper book thingie balances.

We recently shredded about 10 years of records. We are talking early 2000s. At one time we had decades of records. A few dozen 3 rings binders. fortunately, DD is a teacher. Brings in extra supplies to classroom.

 

[princesscinderella]

My overdraft is not linked to any other account.
Everyone seems to recommend it.
https://www.investopedia.com/ask/answers/071114/what-are-pros-and-cons-overdraft-protection.asp

No not everyone does, and this article doesn’t even touch on overdraft due to fraud. It’s all about the fees banks can charge. Personal checks are also not secure either, you are literally handing someone your bank account and routing number. They can then go and use those numbers to pay numerous things with it. In the case of my sister, someone went online and used her account numbers and paid off their student loan balance to the tune of $15k. She had to fight for a few months to get the money returned to her bank account. Online bill pay is the way to go since checks get written from a clearing house and have no link to your banking information.

https://www.consumerreports.org/ban...e-before-signing-up-for-overdraft-protection/

 

[princesscinderella]

We do have some kind of protection--I don't know that it's called "overdraft" specifically. That's why the bank sent an email saying "You're about to overdraw". It gave me enough time to quickly transfer in other funds, to take care of the immediate problem. I had a one-day grace period. No fees or returned checks were incurred for this.

I don't know how overdraft protection works these days--we had it, back ~30 years ago, where the limit was $1000. That wouldn't have been enough in this situation. Plus I had the problem of my DH getting an overdraft notice, and instead of figuring out where he went wrong, he would just add the overdraft money to his checking account balance and go on his way. This worked really well with his "make an ATM withdrawal and not record it" technique. This is why I do the day-to-day banking. Ironically, DH is an engineer with an IQ of 147. Just careless about money!

One thing I AM going to do is update my cell phone. My current one is notoriously old and bad--it's the family joke. Most apps don't work. If I finally upgrade my creaky phone, I can ask one of my IT people (i.e., kids) to help me set up phone banking. They all bank by phone, 99% of the time.

I recommend going to all your financial websites for all your accounts (banks, credit cards, investment etc) and set up alerts, they all have them now. You will get a text notification and/or email letting you know what activity is happening on your accounts.

I have a great example of how credit card alerts helped stop fraud, I was sitting on the couch with my husband and I got a text asking if I was at Walgreens trying to spend $500 as it had been denied. I turned to him and asked if he was at Walgreens shopping right now and immediately indicated in the text that it wasn’t me and the card was closed and new ones were issued super quickly.

 

[SteveH]

They had two big failures IMHO. First, was the obvious failure to withdraw the correct amount and deposit it. They owe complete details about this and they need to own it. Second, and IMHO the worst part was the advisor not calling you personally. There is no excuse at all for that. I'd be talking with friends and finding a new advisor and interviewing candidates ASAP, then fire your current advisor. They failed.

 

[wabbott]

We do have some kind of protection--I don't know that it's called "overdraft" specifically. That's why the bank sent an email saying "You're about to overdraw". It gave me enough time to quickly transfer in other funds, to take care of the immediate problem. I had a one-day grace period. No fees or returned checks were incurred for this.

I don't know how overdraft protection works these days--we had it, back ~30 years ago, where the limit was $1000. That wouldn't have been enough in this situation. Plus I had the problem of my DH getting an overdraft notice, and instead of figuring out where he went wrong, he would just add the overdraft money to his checking account balance and go on his way. This worked really well with his "make an ATM withdrawal and not record it" technique. This is why I do the day-to-day banking. Ironically, DH is an engineer with an IQ of 147. Just careless about money!

One thing I AM going to do is update my cell phone. My current one is notoriously old and bad--it's the family joke. Most apps don't work. If I finally upgrade my creaky phone, I can ask one of my IT people (i.e., kids) to help me set up phone banking. They all bank by phone, 99% of the time.

I went back and re-read your original post and noted what you wrote about online banking. I sympathize with you, and also yearn for simpler times.

But as us DisBoard types know all too well, that age has come and gone. WDW and DLR/DCA vacations are nowadays an impossible dream without going online or having the Disney app on your phone. I guess the way to look at it is that life is a learning experience every day, and we have to make the best of it.

Not to drag the thread too far off point, I had a chuckle when you mentioned your "Spreadsheet of Phenomenal Cosmic Power." Immediately I thought of the scene in Toy Story 2 where the Little Green Men told Mr. Potato Head to "Use the Wand of Power!"

 

[clh2]

Our financial planners also manage a monthly withdrawal from an IRA, take taxes out, and deposit it in our checking account on the 1st of the month. I would be livid if this got screwed up.

DH checks online daily banking activity.

The financial planner needs to be able to explain what exactly happened and why it won’t be happening again,

i Would be asking for a refund of fees to some extent over the past couple of months as Well.

I would also be revisiting how much control this FP has over my accounts.

 

[DisneyHardin]

I think you and your DH need to get away from your fear of "online" banking and need to make sure you have the login information for all your various financial accounts so that you can check them regularly. Waiting until the bank mailed you your monthly statement to look for errors cost you a lot of time if there had actually been fraud going on.

 

[lifesavacation]

This is a big enough concern that I would have demanded a call ASAP. Waiting until Monday for an explanation isn’t sufficient. I would have fired them.

Not noticing for two months is an issue on your end that needs fixed.

ETA: I think the failure to monitor the transfer of your funds is a fiduciary failure. I’d demand a higher up on Monday’s call. But for sure I would transfer my investments out of that firm.

 

[Marrila]

I think you and your DH need to get away from your fear of "online" banking and need to make sure you have the login information for all your various financial accounts so that you can check them regularly. Waiting until the bank mailed you your monthly statement to look for errors cost you a lot of time if there had actually been fraud going on.

This. OP really needs to get comfortable with checking their accounts online. It's easy to do frequently.

 

[MillauFr]

This. OP really needs to get comfortable with checking their accounts online. It's easy to do frequently.

If the OP wants simplicity, I would suggest moving all of their financial accounts to Schwab or Fidelity. Makes it far easier to track and they both have excellent customer service.

 

[barkley]

No not everyone does, and this article doesn’t even touch on overdraft due to fraud. It’s all about the fees banks can charge. Personal checks are also not secure either, you are literally handing someone your bank account and routing number. They can then go and use those numbers to pay numerous things with it. In the case of my sister, someone went online and used her account numbers and paid off their student loan balance to the tune of $15k. She had to fight for a few months to get the money returned to her bank account. Online bill pay is the way to go since checks get written from a clearing house and have no link to your banking information.

https://www.consumerreports.org/ban...e-before-signing-up-for-overdraft-protection/

we've experienced/known of issues with both paper checks and overdraft protection pitfalls-

overdraft protection-oldest's wallett was stolen and although recovered in less than 30 minutes the debit card info had already been transmitted to an associate of the theif. in less than 30 minutes a number of charges had posted in increasing amounts such that it started going into overdraft first to one account (that had next to nothing in it) THEN into all the other associated bank accounts. i immediatly transferred all the funds remaining into non associated accounts. lesson learned-if you want overdraft protection MAKE SURE it is limited to just one associated account with a minimal balance (bank did cover all the charges as fraud due to debit card w/mastercard fraud protection).

paper checks-a neighbor got a call from her credit union questioning a check presented by a local company. did'nt seem norm for her account's habits. sure enough it was fraudulent. she ended up being part of a local sheme wherein theives would drive in neighborhoods before mail pickup and grab outgoing mail looking for checks to wash and recreate on printers. i don't put any checks in the mailbox, i drop them off at the usps. i don't use checks much at all anymore-unless a vendor has an upcharge for using it i have a single credit card i use for payments, purchases. i monitor it on a regular basis. we have another card all subscriptions/streaming are paid with so it's one stop monitoring for us on that.