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I made a bunch of money (via stock in a tiny company) in the mid-90's, then lost a bunch of money (along with everyone else) after the high tech bust in 2000. I got rid of the brokerage firm managing my money in 2002, amazed that they lost so much of it, and disappointed in myself for not being more pro-active. I moved it to another financial planner, fee-only, who is doing okay. I wanted someone with a lot of financial experience to make sure my portfolio was balanced, in good funds/stocks, etc.
About 16 months ago another venture I'm involved with repaid a loan and paid out a dividend, giving me about $500k after taxes. I decided to try my hand again at investing and put it in another account for me to manage. I subscribed to a few Motley Fool newsletters (Hidden Gems and Rule Breakers, both high-risk, high-return newsletters) and started following their advice.
At the beginning, it was just some pretty bad luck, of the stocks they selected I happen to pick some real dogs , but over the subsequent months I became more active in research and started picking better stocks from their recommendations. With the recent run-up in the market, the portfolio I manage is looking stellar, one stock up over 100%, 4 over 50% (and, of course, some down 60%, some sold down 50%, etc.) Annual return is running at 20% right now, even carrying a significant margin balance.
So, I'm feeling smug and brilliant with my selections and astute management (please read a bit of sarcastic tone into that!). The portfolio managed by advisor, who takes about 1%, is up about 8%. So I'm tempted to start managing more of my own money (and get rid of that margin!), although I know my risk tolerance is pretty high, possibly too high for my own good.
I remember reading a Washington Post article about a retiree who had started day-trading to boost his reasonably-sized retirement account during the late 90's. Even then I was thinking "This guy is pathetic and living very dangerously." I never saw a follow-up article about what happened to him, but I've seen others where people had to go back to work after making bad retirement decisions. And I don't want to be like that guy! Though I don't do day trading (much).
So, long post, but really wanted to hear people's thoughts and stories on financial planners, especially people who are comfortable and active in managing their own money.
About me: 44, about to get married, hoping to have kids.
Michael
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