Financial Advisor

[Hillbilly Deluxe]

Why? Local can rip you off as well.

What's wrong with Schwab or Fidelity?

That is absolutely correct, but the retail, store-front investment houses, along with those like Merril-Lynch are horrible with regards to advice, fees and overall yield.

My point is this - like many needs in life, you really should establish a relationship with service providers in your area, mainly with those that are from the area. How do you do that? Well, it takes some effort, grey matter, common sense and experience. The experience can come from paying attention to things that matter starting at a young age instead of TikTok/etc.

I always hear people B*******ing and griping about how rich people have it made. If you want to be "rich", do what "rich" (real rich) people do - pay attention to them. Many of them use trusted, vetted, local advisors.

 

[dishdude]

That is absolutely correct, but the retail, store-front investment houses, along with those like Merril-Lynch are horrible with regards to advice, fees and overall yield.

My point is this - like many needs in life, you really should establish a relationship with service providers in your area, mainly with those that are from the area. How do you do that? Well, it takes some effort, grey matter, common sense and experience. The experience can come from paying attention to things that matter starting at a young age instead of TikTok/etc.

I always hear people B*******ing and griping about how rich people have it made. If you want to be "rich", do what "rich" (real rich) people do - pay attention to them. Many of them use trusted, vetted, local advisors.

I trust Vanguard more than some local yokel. I don't need an "advisor" to buy an S&P 500 index fund.

 

[PWMDMD]

I must say it's always interesting to eavesdrop on financial discussions.


Whooo boy. Edward Jones, Charles Schwab, Fidelity.....


Shop local folks. That's all I can say.

With the internet and Zoom why?
My accountant is in Boston. We've met in person but during CV-19 and now everything is via Zoom.

The following people I've never met in person and some of them I've been with for 10 years:
My personal financial advisor is in Boston
CPA that did the valuation on my practice was in NYC
Lawyer that represented me in buying my practice was in Baltimore
Practice TPA is in Arizona
Practice financial advisor/fiduciary for 401k in Florida
Practice's law firm is in Providence, RI

These people were chosen based on vetting/reputation/referred by people I trust. I could've gone local but these people are better than anyone local to me. None of them work for a large corporation and most of them are independent business owners.

 

[PandaBear]

How much do you really need? You can only eat one steak at a time. There comes a point where you have enough that you don't have to worry about money too much. While I'm probably not there yet and don't exactly know what that figure is, but think somewhere around $1M cash is my ballpark.

This is a bad mindset in terms of investment. Regardless of how much you need you should invest with best long term return you have in mind and keep the amount you need each year (i.e. living expense) in liquidity (cash). So in the end it is the risk tolerance of your living year and the amount you don't need that year (so you can invest it) that matters. After you take the living expense out of the portfolio you should invest the rest in a good long term investment with the right risk and cost that has the appropriate return for that risk.

If all you think of is "I only need to eat rice and beans" and the solution to your investment is "I only need my portfolio to return enough rice and bean each year", it is not really a good investment.

 

[zzyzzx]

Shop local folks. That's all I can say.

T Rowe Price

 

[PWMDMD]

I trust Vanguard more than some local yokel. I don't need an "advisor" to buy an S&P 500 index fund.

Sure, I use Fidelity for their products and cheap market access. I have not and never will use any of their advisory services.

 

[macarose]

Very hard to beat Warren Buffett.

Over 95% of mutual funds can't even beat an S&P Index fund in the long-term.

There is a site called Bogleheads that can give you better advice than anyone here.

I would go there. Personally I put the bulk of my money in the above two for obvious reasons. The remainder goes to VMFXX due to the rise of inflation and i-bonds. Once or if inflation tails off for a couple of years I'll adjust the safety portion of my portfolio.

 

[Dave Hess]

No one. No one should trust anyone else with their money. Period. Stop. Do not pass go.

She's 42. Still working? Put some in the market next dive coming up. Be patient. Make a CD ladder or just buy 3 month rolling CD's. Pay around 5%. I assume in the $1million + range? Next market retreat put $100K in VTI and don't look at it.

You are 100% correct, with the next retreat / big correction / recession, etc…. she can simply invest in VTI.

Bottom Line:
Donald and his daughter must meet with this financial advisor to get all their questions answered.


I was managing my kids Vanguard IRAs when they were younger, now 10 years later they know enough to do it themselves with basic index funds. Not really that complicated.

 

[Dave Hess]

I don't know if you follow my losses with a few financial firms I have used. Once changing due to near-fraudulent practices (Ameriprise).

1) Ameriprise did not do what I asked and instead invested my funds in exactly what I requested they NOT do. I chose a program with low annual interest, but principal not at risk. What I got was nothing of the sort. Lost a lot.
2) Saloman Smith Barney/Morgan Stanley was a cousin, who paid no attention to my account, let companies go bankrupt without ever selling the stock before they were worthless. (GM) Oh, sorry, I know you asked to sell, but I was busy with real customers....
3) UBS is currently churning my account. Lost 40% recently, yet had to pay $8K in unexpected taxes this year due to dividends and the sale of profitable stock. So 40% loss plus taxes, a double whammy.

I only "invest" money I'm willing to risk. Other money needed for retirement is in conventional and insured banks, earning modest rates.

Bad news you recently lost 40%.
Good news recession is on the horizon and you can gain back some of your losses.

Close your account and manage your own hard earned money.

Ive seen too many episodes of TV show American Greed and scum financial advisors destroying people’s nest egg.

 

[csandste]

Must be a fiduciary, many lie about that. Flat fee only. If they even mention annuities, run as fast as you can. Most people don't need an advisor, a simple account at Schwab or Fidelity with no added services (Vanguard has great products but slipping customer service). Think VT, it's got about every stock in the world and you can't beat average. Also it's cheap and costs are everything. Few reasons to pay over ten basis points for an ETF, though I have a few of them.

Paul Merriman has some three fund/ETF portfolios that are simple, simple simple with a slight lean to value. Good advice in the long run but out of favor for the last decade. What did Jack Bogle say? Simplist possible index funds, never look at the balance sheet until you retire and you'll fall off the chair with surprise at how much you have.

Final bit of advice: never, never, ever use an insurance company or a bank to manage your investments. Also, be nice to the friendly Ed Jones guy at church but don't give him your money.