Financial Advisors

B

BigJoe

New Member
Location
Near Dallas TX
I paid an advisor for stock tips and then got swamped with emails from at least 7 other experts. So obviously they sell your name to other 'experts'.
Has this happened to others? The original 'expert' keeps coming up with new ways to hustle me for more money or to sell his new book.
 

In every post I've done on this kind of topic I've recommended people research for themselves all they can about their investing. If a person comes to the conclusion that paying someone to advise them by researching they may have a better understanding of what an advisor should be doing.

Understanding the various ways to plan for your future takes time but so often people are not willing to take the time.


Is your life and how you want to live it when you are no longer working worth time spent?
 

Investing, and financial management is a fairly complex endeavor, and should Never be left solely to some 3rd party. There are several good books on the subject, and even watching CNBC on TV, can be time well spent. No one has a person's best interest at heart, more than the individual involved. Consider time spent on self education as one of the most valuable things a person can do to insure a decent retirement. Finding a good financial advisor who places the clients best interest ahead of his/her own gain is a real gamble.
 
Understand that the best financial advisers prefer to work with wealthier clients. As my ex-boss said, it takes just as much time, if not more, to handle a $400K acct as a $4M or a $40M acct. If you were him and had limited # of hours in a day, which would you concentrate on?

Really good advisers don't "hard advertise". They are known and respected within their industry and by their peers. They are interviewed on CNBC and quoted on the WSJournal. A good portion of their client base - in fact most of it - are long-term clients who go into second and even third generations of doing business with them.

Also, the best clients are those who DO know enough to know what they DON'T know. They ask questions, and know that no question is ever "too dumb to ask". They are also willing to expend time to work on their planning. They consider the financial adviser as part of "their team", which includes the tax adviser and the attorney/legal firm.

Of all the thousands of useless adviser titles, only 3 are allowed to do "financial planning" by the SEC. And that, NOT investing, is actually what you need from a fiduciary adviser.

Can you DIY on planning? Yes. But it takes more than a knowledge of stocks vs bonds or market trends. It requires the ability to do comprehensive risk assessment as you go through life and your situation changes. And frankly, most people don't know how to do that.

If you just want investing help, you can get that from a variety of sources. All major brokerages have perks for their customers who meet minimum #s on investment accounts, so if you meet those minimums you should try them first.

"Stock tips" are a risky come-on. As a small investor you cannot play with the big boys of finance. Slow and steady will get you further ahead, in the long run, than dashing and darting around, futilely trying to beat micro-second high-speed trading accounts (which deal in hundreds of millions of $$$$$ on every deal, if not billions).

If you like day trading - I have a couple of friends that enjoy it - park the majority of your funds in a balanced portfolio, and reserve a portion for the "wild and crazy". When I worked in the CFP office, we had a couple of clients who did just that. As a fiduciary, my boss could not and would not recommend risky investments to his clients. So both clients (separately) took a certain amount of money from their portfolio and reserved it for DIY high-risk investments. That way, the bulk of their assets were lower-risk, and they felt secure in engaging in high-risk market sectors without endangering their overall finances.
 
Years ago I tried, experts, stock tips, penny stocks, IPO's, etc... and I managed to turn $15,000.00 into about $1,200.00 in less than six months. Then I started saving and investing on my own, doing my own research. I made small steady investments in no load balanced mutual funds and index mutual funds for thirty years. Those investments allowed me to stop working and live independently when I reached fifty. Not very glamorous, no champagne wishes and caviar dreams, just enough to pay the bills and have a little spurge every now and then.

I don't know anything about Smith Barney but I love this advice from John Houseman, good luck!!!


 
I only used a financial advisor, really he was a broker, one time. That was about 32 years ago after I had gone to a seminar about investing. I don't remember other brokerages sending me stuff after that.
 
Hi. New to the forum. I may be the exception here. After being widowed 6 years ago after 38 years of marriage, I came into a substantial amount of money due to insurances and retirement accounts. We had always lived month to month but did max out our 401, retirement options, and work place insurance options. I paid off all debts including mortgage then interviewed financial people. I am so glad I did. For the past 6 years I have a comfortable income and my principle has grown. I know that I do not have the knowledge or temperament to handle that money. I do watch it, meet regularly with my advisor and learn more each year. For me a good advisor was essential.
 
Sueveee said:
I am so glad I did. For the past 6 years I have a comfortable income and my principle has grown. I know that I do not have the knowledge or temperament to handle that money. I do watch it, meet regularly with my advisor and learn more each year. For me a good advisor was essential.
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Good for you! It's wise to realize what you don't know, and get good advice from a pro fiduciary. The more you know about finances, the easier it is for the fiduciary adviser to help you. There is no such thing as a dumb question, but 'knowing the ropes' saves a lot of time, LOL.

We also use an independent CFP firm, mid-sized. I handled all our investments for decades, but didn't want to do it any longer. Good thing, too, since DH ended up inheriting most of his mom's assets.

We use the firm because DH has little interest in financial distributions, taxes, and investing. He can do it; he just doesn't enjoy it. Also, our heir is his stepsister and she has zilch idea how to handle money. At least this way she has ethical professional advice to rely on.
 
.

God is not only my co-pilot... He's also my pilot, navigator, communications officer and bombardier.

I am now following my personal custom made eight year plan... so far, so good.

My plan will be tweaked once I hit RMD age.
 
Knight said:
In every post I've done on this kind of topic I've recommended people research for themselves all they can about their investing. If a person comes to the conclusion that paying someone to advise them by researching they may have a better understanding of what an advisor should be doing.

Understanding the various ways to plan for your future takes time but so often people are not willing to take the time.


Is your life and how you want to live it when you are no longer working worth time spent?
Click to expand...

Absolutely!
 
I do research on my own and pretty much know what stocks I want to buy before I talk to my financial advisor. She has access to more in depth details of the companies I'm interested in and can offer other suggestions too. The final decision, of course, is mine then she purchases the stock for me.
 
i dabble for fun in individual stocks but i learned a long time ago . stick to funds .why add another layer of risk to your investing . it is hard enough to deal with market risk . but to introduce individual company risk in to the mix never made a lot of sense to me .

i have to be dependent on buying just the right company ,at just the right time , in just the right sector in just the right market sentiment . even if i got that correct i still need to know what the competitors are doing .

i am not smart enough to do all that nor do i want individual company risk . i grew a lot of money using diversified funds over the decades and that is good enough for me. i do play around for fun and trade but no serious dough gets used most of the time . .
 
"Investing" requires some good "investigation" on the part of the Investor. Simply following the advice of a "financial advisor" may not work out very well...unless a person takes the time, and makes the effort to do some serious research on their own. If one listens to the advice of a dozen "advisors", they will probably get a dozen different opinions on what to buy/sell, and when. There is no shortage of good financial information on the Internet, and TV shows such as CNBC and Fox Business, and publications such as Wall Street Journal, and IBD...but that information must be "absorbed" to be of value.

Most days, I spend a good hour browsing various financial new sources...and So Far, So Good.
 
far easier to just buy some diversified index funds , season to taste and call it a day unless you need an adviser for tax planning. why add a whole other element of risk trying to pick individual stocks and being held to the whims of how they do . not something i would do except for my fun trading
 
Lethe200 said:
Understand that the best financial advisers prefer to work with wealthier clients. As my ex-boss said, it takes just as much time, if not more, to handle a $400K acct as a $4M or a $40M acct. If you were him and had limited # of hours in a day, which would you concentrate on?

Really good advisers don't "hard advertise". They are known and respected within their industry and by their peers. They are interviewed on CNBC and quoted on the WSJournal. A good portion of their client base - in fact most of it - are long-term clients who go into second and even third generations of doing business with them.

Also, the best clients are those who DO know enough to know what they DON'T know. They ask questions, and know that no question is ever "too dumb to ask". They are also willing to expend time to work on their planning. They consider the financial adviser as part of "their team", which includes the tax adviser and the attorney/legal firm.

Of all the thousands of useless adviser titles, only 3 are allowed to do "financial planning" by the SEC. And that, NOT investing, is actually what you need from a fiduciary adviser.

Can you DIY on planning? Yes. But it takes more than a knowledge of stocks vs bonds or market trends. It requires the ability to do comprehensive risk assessment as you go through life and your situation changes. And frankly, most people don't know how to do that.

If you just want investing help, you can get that from a variety of sources. All major brokerages have perks for their customers who meet minimum #s on investment accounts, so if you meet those minimums you should try them first.

"Stock tips" are a risky come-on. As a small investor you cannot play with the big boys of finance. Slow and steady will get you further ahead, in the long run, than dashing and darting around, futilely trying to beat micro-second high-speed trading accounts (which deal in hundreds of millions of $$$$$ on every deal, if not billions).

If you like day trading - I have a couple of friends that enjoy it - park the majority of your funds in a balanced portfolio, and reserve a portion for the "wild and crazy". When I worked in the CFP office, we had a couple of clients who did just that. As a fiduciary, my boss could not and would not recommend risky investments to his clients. So both clients (separately) took a certain amount of money from their portfolio and reserved it for DIY high-risk investments. That way, the bulk of their assets were lower-risk, and they felt secure in engaging in high-risk market sectors without endangering their overall finances.
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This is quotable advice. A CFP is worth every penny. I have been a client for over twenty years and my son is a client as well. We have been very pleased with both our investment gains and his advice. I consider myself to be a reasonably astute investor but in no way am I up to the task of managing every aspect of my financial planning.
 
When my siblings and I were much younger than we are now,our parents started to buy stocks for us. As we grew older,we each went with a different financial adviser.The guy I had for about 10yrs was good,but after awhile I felt it was time for a change. I heeded my mom's advice,went with her adviser.I've been with him 25 yrs,couldn't be more happier,trust him completely Sue
 
BigJoe said:
I paid an advisor for stock tips and then got swamped with emails from at least 7 other experts. So obviously they sell your name to other 'experts'.
Has this happened to others? The original 'expert' keeps coming up with new ways to hustle me for more money or to sell his new book.
Click to expand...

"Experts" don't call people, people call experts!!!!
 
Most mistakes are due to 1.) Lack of knowledge and 2.) greed. Buying a stock should on the average be a play for 10 years over which time it will go up and it will go down. Everyone should diversify and have some $$$ in a S&P 500 mutual fund, small caps, large caps, emerging markets, foreign markets and some in an REIT. Avoid precious metals for an "investment" as they are not an investment rather backup if the market goes screwy and buy only hard currency, not mining shares or funds. Also minimize your debts if you are investing because matching the interest rates your debts are costing will most likely exceed you percent in gains from stocks.
 
the problem is knowing what constitutes a good adviser . most people lack the knowledge to know if an adviser is skillful , ordinary or even is the right person for the job .

most adviser's suck in the second half of the game -decumulation . they basically followed the baby boomers through their accumulation stages . the 2nd half of the game which is decumulation is played very differently .

i found that most fee only adviser's were the least skilled in the 2nd half. many are fee only because they lack the credentials ,training and certification to sell other products or they would not be fee only .

the problem is modern retirement planning research by the likes of kitce's , blanchett, milevksy have disproved many old school ways . i know when i was looking for an adviser to help us with our final plan , i would interview them to see just how up to date they were .

sadly the fee only guys were the worst .

i finally went with a commissioned guy who was sharp as a tack . i ended up buying my ny long term care partnership plan from him. he was a wealth of knowledge and skilled in all the latest planning methods .
 

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