Financial Adviser

[gcgang]

Rather than interesting, I found the video infuriating.

You don't have to be a sociopath, with a lack of conscience or interest in the welfare of others, to work for this guy, but I'll bet it would help.

 

[mickeyd]

Some of these folks are quite intelligent and are very comfortable with the
advice he provides and the performance of their portfolios.

I'm often pretty slow-witted, however I never forget the "relentless rules of humble arithmetic", as Jack Bogle puts it.

 

[Fedup]

I don't know if I trust anybody. I reluctantly agreed to a meeting with a financial advisor and after telling her my boring investment in Vanguard Wellington and Wellesley, she showed me Wellington could drop to 20% and then proceeded to tell me to invest in structured notes. I told her, I would do some googling first and that was the last I've heard of her. This was at a big bank.


Sent from my iPad using Early Retirement Forum

 

[rayinpenn]

Study after study has shown financial advisors
1. Are more likely to steer you to high cost (commission) products that are inefficient products not in their clients best interest
2. Even if held to a fiduciary responsibility rarely are held responsible for doing a bad job.
3. Are costly and don't do as well as self directed investors who spread their funds in a few inexpensive index funds.

Finally how many horror stories do you need to hear? Keep it simple, efficient and let compounding do its magic.
So my answer is I don't look for any traits because I don't use them. If I did i would find one that charged by the hour never a %.

http://www.transparentinvesting.com/uploads/wholestory.pdf

 

[Bryan Barnfellow]

I've used my wife's husband for more than 25 years now. Does a decent job and hardly charges anything--it amounts to coffee money, really. I would stay away from these people in general, however.

-BB

 

[DrRoy]

I found a fee-only planner for my mother in Atlanta, which has worked out well. The planner has her invested in the Vanguard Wellesley mutual fund and helps her with her budget and ad hoc decisions. I am very happy to pay for the advisor's time for my mother when she needs help, and the advisor has never once tried to hawk anything else to us besides her counsel, and actually doesn't even push that. Here is where I found my mother's planner in case interested, though I would still interview any candidate thoroughly and make them swear that they they will never ever hawk any product beyond their neutral advice: Garrett Planning Network - Making competent, objective financial advice accessible

This is the only arrangement with a financial advisor that I could support. Reasonable flat fee, paid only once or occasionally. Pass on commission, loads, or % of assets type fees.

 

[Retch The Grate]

I've used my wife's husband for more than 25 years now. Does a decent job and hardly charges anything--it amounts to coffee money, really. I would stay away from these people in general, however.

-BB

thanks, that made me chuckle.