financial planner....how to choose one

[REWahoo]

All along I felt a good advisor would have told me that based on recent events they felt that the market was too unstable and that I should put our portfolio into fund that net a better return until the market was more stable such as maybe bonds.

Is this a correct assumption, if not then my way of thinking is flawed?

Advisors make money from fees and commissions you pay them. I don't think any of them would tell you "Sorry, I can't help you" regardless of market conditions. They probably believed they could make you money, they certainly knew they wouldn't make any money off you if they turned you away.

If there is any lesson to be learned from all this it should be this: No one is more concerned about your money than you. Take the excellent advice you've been repeatedly given on this thread and learn enough to DIY with a little assistance. Talk with Vanguard. Get an idea of what you think you should do with an investment strategy/AA and post it here for input. It really isn't rocket science.

Not to be harsh, but all the "where did I go wrong" analysis regarding poor financial advisor performance is not moving you in the direction you need to go. Invest some time and effort into educating yourself and it will be rewarded many times over. Here is an excellent place to start: Road Map for Investing Success | An Investing Primer

 

[FinanceDude]

FD, can you honestly say that you can consistently beat the market more so than just indexing?

Well, DFA has been able to do that failry consistently, but most folks on here would never pay an advisor for that access............

If I personally could beat the market consistently, I would be a hedge fund or MF manager.

 

[kcowan]

Oh and doneff, I've tried to figure it out myself, as a matter of fact I've been a member of The Financial Webring forum since 2007 and have left several times since I needed to get a thicker layer of skin before returning.

As a sponsor of FWF, I can only recommend that you read their finiki before stumbling into the forum itself. It turns out that there are not many Gods posting there (although there are many balanced index fund ETF bigots). But you can get past that and find some value.

Plus the FAs in Canada extract a large fee every year so you have to get over 3% just to pay them. Yes Vanguard has just entered Canada but they do not have the long history like in the US. There are TD efunds that offer low overheads and have a proven track record.

But I strongly advice the finiki because Canada is different. A helper from Bogleheads wiki is contributing.

(Think of it like plumbing basics.)

 

[Midpack]

I still maintain there are more bad FA/FP's than good but...

Based on listening to my former employees, using a financial advisor is usually a Catch-22 unless you are very, very rich (that's another topic, let's not go there in this thread). People who can't or won't learn enough to invest on their own and turn to an FA usually have completely unrealistic expectations. They expect a guarantee of positive returns irrespective of the market/economy and/or well above average returns.

And those customers often undermine the FA by panic selling or acting on "hot tips" from relatives and friends and then wondering why their results are so erratic. I have watched others first hand not only make obvious mistakes, but then repeat them over and over.

And we see evidence of this behavior here too, though fortunately it seems to be a minority here.

I watched it with sadness with employees when I was working...

 

[73ss454]

If I personally could beat the market consistently, I would be a hedge fund or MF manager.

IMHO I don't think hedge fund or MF managers do any better than indexing on a constant basis. So you are correct, I won't be paying any "advisors"

 

[haha]

Sorry Ha, but “one week”?

You misquoted me in a way that completely inverts what I said.

So, do whatever you want, I am sorry I contributed.

Ha

 

[MichaelB]

Really learning to be a good investor takes interest, time, some money, and a certain habit of mind. Most here do not believe it is possible to be a really good investor, only that it is possible to minimize drag from expenses, transactions, and taxes-and to choose a reasonable allocation and very complete diversification within the bounds of that allocation. To achieve this level of skill should take at most about one week.

Ha

This was the original quote and my understanding was that what takes a week is learning to minimize drag from expenses and choose an allocation. My Dream may have misunderstood.

 

[My Dream]

First off thanks to the member that send me the pm re Ha's post, I appreciate the heads up.

Also thanks MichaelB for stating what truly happened which was a misunderstanding as it appears I misread the quote and have no problems deleting my error.

If you took that as an offence then I have no problem in saying "l"m sorry" Ha. As members on this forum I don't see any added value or advantage in misquoting a fellow member. I would like to think fellow member work together to help each other out.

Again.........my apologise and thanks to both of you for quickly bringing this to my attention.

 

[haha]

I see. I was oversensitive, as I do not like to be misquoted. Misunderstood, sure. But the misquote applied the one week to an level of expertise that only some can achieve, and that many people do not in fact think even exists. The one week applied to a far more modest goal- as Michael B indicated. One week applies to a level of skill to choose an AA, and to understand the concept of rebalancing, and to get Vanguard for example to suggest vehicles to populate the asset categories chosen. People who are interested can spend much more time on this, but for those with moderate interest it seems unnecessary.

It is at least very unlikely that any degree of messing with this can make up for the 1% or possibly more drag from advisor fees.

Ha

 

[Nords]

When I tell an advisor that I want to make money and I haven’t, what part didn’t they understand?

Oh, they understand you just fine. But they don't have your best interests at heart.

To answer another one of your questions: Yes, your way of thinking is flawed. Now change what you're thinking about.

I think you're way too focused on finding an adviser, or at least holding someone else accountable, than you are on educating yourself. Maybe you should stop trying to find an adviser and start trying to learn what your ideal portfolio would look like.

You've been given plenty of suggestions and advice, and you keep jerking the subject back around to advisers. Perhaps before you continue this thread any further you should indicate that you've at least read the Bogleheads Wiki.

Start here: Getting Started - Bogleheads

 

[Chuckanut]

Do it yourself is not that difficult. One fellow who offers a financial management service mentioned that a simple portfolio of index funds, rebalanced once a year would have earned about 6% during the so-called lost decade of the 21st century. He compared that figure with the results of various public pension managers who did not do as well as the index fund portfolio.

 

[kcowan]

Oh, they understand you just fine. But they don't have your best interests at heart.

But it is a lot more satisfying to rant about advisors than to start doing something yourself...

It is like asking whether politicians will start caring about who elected them rather than who the powerful people are.

 

[FinanceDude]

Oh, they understand you just fine. But they don't have your best interests at heart.

Define "they"..........