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Old 02-08-2016, 11:40 AM   #81
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A friend of mine uses Edward Jones and he is very pleased. I have been surprised at the lack of information his FA has passed along to him in regard to general investment knowledge. I am sure many users of FAs have zero interest in what's going on behind the curtain, but my friend will often ask me a question and my internal thought is (Why don't you ask your FA, isn't that what you are paying him for?) The same type of thing happens on this board, actually.

In my friend's case, I think his DW thinks managing their finances is brain surgery and the path of least resistance for him is to assure her that he's hired a pro. The extra cost is worth it for her peace of mind.
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Old 02-08-2016, 12:34 PM   #82
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Originally Posted by aja8888 View Post
I think Nash fails to realize that back in the early 1980's (when I had an "FA" of sorts too) there was virtually no internet or a plethora of computers along with only a few ways to even learn the "ropes" of investing.

I remember having to go to Merrill Lynch offices during lunch just to "see" what the market was doing. I had a ML FA who helped me with an AA and made trades that I approved (or at least agreed to). It worked back then.

Now it is so easy to learn about investments, and for some of us who are old enough to have experienced the early days, it is amazing the info available with the push of a keyboard key.

I'd venture to say that in the early 1980's there were very few folks who invested purely on their own.
1966. Dean Witter Broker. Load Funds. Education is can be somewhat expensive.

heh heh heh -
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Old 02-27-2016, 06:55 AM   #83
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You pay a Dr. And lawyer to take the complex and make it simple to understand. You pay a financial advisor to take available information and make it complex. That's how you stay hooked. It kills your returns over time. You are basically buying a friend. Get a couple of low cost index ETFs and give the rest to charity. It doesn't matter if you have $20k or $4MM in account, it's the same playbook.


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Old 02-27-2016, 08:06 AM   #84
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You pay a Dr. And lawyer to take the complex and make it simple to understand. You pay a financial advisor to take available information and make it complex. That's how you stay hooked. It kills your returns over time. You are basically buying a friend. Get a couple of low cost index ETFs and give the rest to charity. It doesn't matter if you have $20k or $4MM in account, it's the same playbook.
+1

If you find an FA who will build the plan with specific instructions how to make it play, that would be an exception. That FA would charge by the hour, or by the plan.

Another idea is to use a lower fee advisor, maybe a Schwab or Vanguard or Fidelity bot advised. Pay the fee for a year, learn the ins and outs, and then cut the cord.

Have to be careful with that last suggestion. I found that with one institution, once a management agreement is in place, your funds and investments are held in such a way that you can not just terminate the agreement and go forward. For example, the plan may use an institutional fund, and you must sell, and then buy the investor series to get an equivalent investment. You also must establish a new account to do this. So, in the specific case I mention, you have all of the tax implications of selling ALL of your investments.
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Old 02-27-2016, 08:10 AM   #85
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You pay a Dr. And lawyer to take the complex and make it simple to understand. You pay a financial advisor to take available information and make it complex. That's how you stay hooked. It kills your returns over time. You are basically buying a friend. Get a couple of low cost index ETFs and give the rest to charity. It doesn't matter if you have $20k or $4MM in account, it's the same playbook.
A good FA will not only send you birthday cards, but will know the name of your spouse.
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Old 02-27-2016, 09:21 AM   #86
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Originally Posted by thepalmersinking View Post
You pay a Dr. And lawyer to take the complex and make it simple to understand. You pay a financial advisor to take available information and make it complex. That's how you stay hooked. It kills your returns over time. You are basically buying a friend. Get a couple of low cost index ETFs and give the rest to charity. It doesn't matter if you have $20k or $4MM in account, it's the same playbook.
Very good!

When I read the first sentence, I was assuming you were going to try to defend the complexity of all this financial stuff and the need for the FA (we sometimes hear "You wouldn't do an appendectimy on yourself, would you?").

But you made a quick turn after that set up, I like it -'You pay a financial advisor to take available information and make it complex.'.

Although, I often think lawyers fit that description as well

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Old 02-27-2016, 10:48 AM   #87
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A local online help group in my area has a person asking for a recommendation for a financial adviser. Apparently, this person had come into a one time windfall that was substantially more than she would could acquire even with a strong savings program.

I was amazed at the number of people who gave glowing reports about various advisers. And of course, several FA's posted their names and phone numbers so they could 'help' the person. IMHO, if a person wants to use an FA, that is their decision.

But....

Several people took a few minutes to advise a slower, do-it-yourself approach, even to the point of recommending some good books on the subject written for the masses. The reply was quick - "I am not good at math so I can't do it myself."

Groan........
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Old 02-27-2016, 11:03 AM   #88
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"I am not good at math so I can't do it myself."
The differential equations I have to solve when checking my index funds every month are not really that difficult.
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Old 02-27-2016, 11:07 AM   #89
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..... "I am not good at math so I can't do it myself."
A fool and his money.......
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Old 02-27-2016, 01:00 PM   #90
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The differential equations I have to solve when checking my index funds every month are not really that difficult.
It's just grade school stuff, I don't know why so many folks find it so hard:
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Old 02-27-2016, 01:03 PM   #91
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Yup, math is hard. Thank you NEA.
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