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As for your analogy, yes you could join an automotive forum and get advice for free and as I’ve given on how to repair there car. That's more cut and dry though, in other words, if you own a corvette and you want to diagnose a master cylinder problem I can tell you exactly what to look for so you can diagnose it yourself. I can also help you with the lingo when you talk to your mechanic and be able to sound as though you’re not a push over so to speak. Or you could tell me your location and I can find a fellow member to either meet you a service station and talk to the mechanic of your choice (on your behalf) or a center will be recommended and we can walk you through the process. I've repaired new auto forum members cars for free and other members have done the same. I don't see any need to spend $300.00 when there are other avenues you can choose from.
To me financial forums aren't as cut and dry as auto forums, mind you it depends on the individual forums. If someone can recommend a financial forum that I’m not already a member of that isn’t to hard on newbies I’d be more then willing to join.
I know I've gone way off topic but to me I've found the financial forums not as helpful as I had hoped therefore I'm willing to pay someone to invest some of my money until I'm comfortable doing it all on my own, this is after they’ve proven they can outperform me.
As for this thread, I think it's run it's course for me, Earl E Retyre good luck with your decision.
I hope I was able to show a different side of the equation.
By for now.
I think you may very well be right. I am willing to spend an hour or so research explaining something to newbie on the forum, but I'd try the line at driving to help them.
You are absolutely correct that stuff is more cut and dried on automotive forum. Sure there maybe areas of disagreement how often do you really need to change your oil, the best after market turbo charger etc. But by and large a master cylinder is either working or it is broken. Replacing the cylinder either fixed the problem with the brakes or didn't.
Virtually nothing is that straight forward in the financial world. In fact, there is a lot more agreement on this forum as what not to do then what to do.
So when a new person, posts my "Amerprise adviser suggested I buy an Equity Index Annuity for my IRA," we can all collective shout NO DONT DO THAT and here is why. However, when the new person ask well what should I do instead. We will ask well it depends on and ask a bunch of question like you were asked and answered.
So here is a few dirty little secrets about financial advisers including folks like myself who play one on the internet.
We really don't know the answers. So in a lot ways it doesn't matter how you answer the question. If Bill and Joe are both competent advisers and Susie goes to Bob says that she 40 and conservative investor and want to retire at at 65 and take out $50,0000/year, and Cindy goes to Joe and says the same thing they make get the different advice, if Cindy say she is aggressive investor. Cindy and Susie may indeed with the same advice.
. So who is right Bob or Joe? The truthful answer would be comeback in 25 years and we MAY be able to tell you.
If at this point if you decide, my god you folks are pretty much useless, I can't say I'd blame you...
However, what we can tell is we know something about the other financial advisers the vast majority aren't any smarter than we are, if you are lucky they just charge money for same advice we give for free.
Broadly speaking financial advisers follow into four categories.
1. The liars who tell you they can make you more money than the markets.
2. People who tell you the same thing, but are too stupid to know they are lying.
3. Folks who have learned a few things about taxes and investments, and will keep you from making bonehead financial moves.
4. The folks who are actually talented investors who can beat the market.
The vast majority of financial helpers fall in categories 1 or 2, we have a few #3 on the forums, and we can help you find other in your areas.
As for the #4, there is an on-going debate if anybody other than Warren Buffett who qualifies.
'm willing to pay someone to invest some of my money until I'm comfortable doing it all on my own, this is after they’ve proven they can outperform me.
Good for you for making him prove it. Here is the rub, because so much of investing is luck this is really hard. The adviser who's client gave him a million March 2007, looks like an idiot, the adviser who's client gave him a million March 2009, looks like a genius. The reality is one much luckier than the other.
In fact, in order to prove that your adviser is outperforming some very simple investment ideas (stick 1/2 your money in the Vanguard Total Stock Market Index fund and the other 1/2 in the Vanguard Total Bond fund, every year even the two amounts up.) you actually need a very deep and sophisticated understanding of investing..
