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Re: fixed fee investment advisor
Old 05-14-2007, 05:01 PM   #61
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Re: fixed fee investment advisor

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Originally Posted by REWahoo!
I wouldn't go quite that far, but I would agree you aren't doing so very effectively.
Kinda like trying to set up an ice mfg. operation in Hell...

About choked on my damn gum
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Re: fixed fee investment advisor
Old 05-14-2007, 05:11 PM   #62
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Re: fixed fee investment advisor

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Originally Posted by FinanceDude
there are a fair number of folks who have done well investing WITHOUT the help of advisors, but have reached a point where the $$$ are too big for their comfort.
I'm curious-- what point is that and why are they no longer comfortable? What's the typical situation?

Is it the point of FI where they're about to quit a job, or is it a dollar figure where they cross $500K-$1M net worth, or a life situation when they're starting a family or getting an inheritance?

And what makes them uncomfortable? Have they been doing it too long and they're tired of it, or did one spouse get fired by the other, or are they approaching dementia/senility, or is it just the feeling of "We can't spend it fast enough!!"...?
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Re: fixed fee investment advisor
Old 05-14-2007, 07:56 PM   #63
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Re: fixed fee investment advisor

Quote:
Originally Posted by Nords
I'm curious-- what point is that and why are they no longer comfortable? What's the typical situation?

Is it the point of FI where they're about to quit a job, or is it a dollar figure where they cross $500K-$1M net worth, or a life situation when they're starting a family or getting an inheritance?

And what makes them uncomfortable? Have they been doing it too long and they're tired of it, or did one spouse get fired by the other, or are they approaching dementia/senility, or is it just the feeling of "We can't spend it fast enough!!"...?
Funny things happen where I am about when the portfolio hits seven figures...........people start freaking out.

Paritcularly those GE folks I keep trying to talk off the ledge...........guess how much of their GE that is 90% of their portfolio they are willing to sell Oh, about 1%................ :P
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Re: fixed fee investment advisor
Old 05-14-2007, 09:23 PM   #64
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Re: fixed fee investment advisor

Quote:
Originally Posted by FinanceDude
Funny things happen where I am about when the portfolio hits seven figures...........people start freaking out.

Paritcularly those GE folks I keep trying to talk off the ledge...........guess how much of their GE that is 90% of their portfolio they are willing to sell Oh, about 1%................ :P
I would agree.

Our offices are located in a nice triangle between the HQs of Allstate Insurance, Motorola, and Abbott. There seems to be a moment that strikes senior executives in their mid to late 50s when they wake up screaming HOLY F@c$Ing SHI#, I have 90% of MY NET WORTH IN ONE STOCK!!!!!!


That is usually when they call their attorney or accountant and ask them to reccomend an FA
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Re: fixed fee investment advisor
Old 05-14-2007, 09:36 PM   #65
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Re: fixed fee investment advisor

People read too much investment stuff.

I remember (being a somewhat older phart) hearing fat dumb and happy souls retiring on Ma Bell and SS.

Two back at the old rocket plant one JNJ and the other Home Depot had no plans to diversify - unless the 401k did it in the years they had left before retiring.

Before MPT and all that rot - other than widows and orphans mixes - hitting 'the one' that set your retirement on a higher plane was kinda the Holy Grail.

heh heh heh - my, my how fads can change. Maybe - one of my Norwegian widow stocks will catch fire and get me to Margaritaville yet - of course Kansas City ain't that bad.
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Re: fixed fee investment advisor
Old 05-14-2007, 09:44 PM   #66
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Re: fixed fee investment advisor

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Originally Posted by saluki9
I would agree.

Our offices are located in a nice triangle between the HQs of Allstate Insurance, Motorola, and Abbott. There seems to be a moment that strikes senior executives in their mid to late 50s when they wake up screaming HOLY F@c$Ing SHI#, I have 90% of MY NET WORTH IN ONE STOCK!!!!!!


That is usually when they call their attorney or accountant and ask them to reccomend an FA
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Re: fixed fee investment advisor
Old 05-14-2007, 09:46 PM   #67
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Re: fixed fee investment advisor

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Originally Posted by unclemick2
People read too much investment stuff.
Or in the case of FD's & Saluki's new clients, they think diversification is an HR program...

Or maybe they want to diversify out of the company stock via Ken Lay's method?
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Re: fixed fee investment advisor
Old 05-14-2007, 09:59 PM   #68
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Re: fixed fee investment advisor

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Originally Posted by Nords
Or in the case of FD's & Saluki's new clients, they think diversification is an HR program...

Or maybe they want to diversify out of the company stock via Ken Lay's method?
More than that Nords, they get brainwashed into thinking somehow that it's disloyal to the company. At older established companies the board and other executives exert real pressure to load up on company stock and not diversify. That want peopl to "eat their own cooking"

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Re: fixed fee investment advisor
Old 05-14-2007, 10:12 PM   #69
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Re: fixed fee investment advisor

Thanks, guys, I was wondering what would cause an experienced driver to yank their hands off the wheel and cover their eyes. I'm relieved to see it's nothing that I'd worry about in our future.

Quote:
Originally Posted by saluki9
That want peopl to "eat their own cooking"
Speaking as a retail investor that's just the way I want it too. Maybe those board members have some spinal osteoblasts after all.

The execs can use their savings from their salaries to diversify their family's IRAs, 529s, & taxable accounts away from their all-company-stock 401(k)s... of course that would imply that they'd actually need to save money from their salaries. Ending up shocked, I say shocked by being 90% in one stock is their own darn greed fault.

To put executive pay packages in perspective, my BIL the CPA has processed exec W-2s with more money deducted for Medicare, let alone SS, than I ever earned during my entire career.
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Re: fixed fee investment advisor
Old 05-14-2007, 10:23 PM   #70
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Re: fixed fee investment advisor

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Originally Posted by Nords
The execs can use their savings from their salaries to diversify their family's IRAs, 529s, & taxable accounts away from their all-company-stock 401(k)s... of course that would imply that they'd actually need to save money from their salaries. Ending up shocked, I say shocked by being 90% in one 1 stock is their own darn greed fault.
Trust me, they aren't the LBYM types that are on here. Their company stock is acumulated through options, meaning they don't use their salaries to get their "nest egg".

One CFO told me once: "Why bother with a 401K? After January 15th, I'd be all in for the year"...........
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Re: fixed fee investment advisor
Old 05-14-2007, 10:32 PM   #71
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Re: fixed fee investment advisor

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Originally Posted by FinanceDude
Let me guess, you have a bumper sticker that says:"We're Out Spending Our Kid's Retirement"..............
Inheritance! All those RVer's are out there spending their kid's inheritance.

Audrey
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Re: fixed fee investment advisor
Old 05-15-2007, 06:50 AM   #72
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Re: fixed fee investment advisor

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Originally Posted by audreyh1
Inheritance! All those RVer's are out there spending their kid's inheritance.

Audrey
Absolutely correct Audrey - you caught it and I didn't remember right.

heh heh heh - 8)
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Re: fixed fee investment advisor
Old 05-15-2007, 09:16 AM   #73
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Re: fixed fee investment advisor

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Originally Posted by saluki9
More than that Nords, they get brainwashed into thinking somehow that it's disloyal to the company. At older established companies the board and other executives exert real pressure to load up on company stock and not diversify. That want peopl to "eat their own cooking"
I think i'd have a hard look at what % of the board/exec's net worth was tied up in the stock, what their basis in the stock is, and intelligently follow suit.
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Re: fixed fee investment advisor
Old 05-15-2007, 11:49 AM   #74
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Re: fixed fee investment advisor

Wow, FD, you caught some serious heat here. Small wonder I don't get in these threads! Not that I'd be caught dead giving investment advice here!

I work in a consulting wealth management practice. We have several ltd partnerships and refer clients to boutique managers. We do not manage portfolios directly. Most of our clients come to us because they do not have the time to properly manage their investments, as they are using their time to make said money. I would say that most have an active interest in their portfolios and follow them closely, but are content to have the managers do the heavy lifting (for 1%, of which we get a portion, paid by the managers).

We, too, do a lot of work for kids, employees, neighbors, etc of clients. They trust our judgement in a lot of different areas like estate planning and taxes. I think most of our clients enjoy their work and do not want to retire early--they like the lifestyle and stature of their positions too much.

My CFP credentials will be a source of great pride to me, and an asset to the firm that employs me. I use the knowledge gained in this course of study every day. I do not think that the CFP alone would qualify me to give investment advice to anyone. I agree with the others in my industry that post here that there is a wide range of expertise in advisors, and a great many charlatans (like amnesia-boy here in Charleston, Al Parrish, who stashed a sketch by Picasso in a software manual, that he bought with pilfered money ). I feel good about the help our firm gives our clients, protecting them from fraud and overpriced investments.

Sarah
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Re: fixed fee investment advisor
Old 05-17-2007, 07:36 PM   #75
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Re: fixed fee investment advisor

Quote:
Originally Posted by FinanceDude
Funny things happen where I am about when the portfolio hits seven figures...........people start freaking out.

Paritcularly those GE folks I keep trying to talk off the ledge...........guess how much of their GE that is 90% of their portfolio they are willing to sell Oh, about 1%................ :P
Quote:
Originally Posted by saluki9
Our offices are located in a nice triangle between the HQs of Allstate Insurance, Motorola, and Abbott. There seems to be a moment that strikes senior executives in their mid to late 50s when they wake up screaming HOLY F@c$Ing SHI#, I have 90% of MY NET WORTH IN ONE STOCK!!!!!!


That is usually when they call their attorney or accountant and ask them to reccomend an FA
These types don't frequent this forum. I'd be surprised if any longterm participant here has more than about 5% of their assets in any one stock or what any respectable FA would consider an undiversified portfolio.

I've run into the "Coca Cola till I die" types and the same thing can be applied to many companies (Enron ). These types are not the thoughtful investment oriented types that FIRE appeals to. In general, I suspect the bulk of us are less loyal to our companies than to our personal finacial future.

As far as the seven figures goes, we've already demonstated that this forum is covered up with seven figure portfolios.
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Re: fixed fee investment advisor
Old 05-17-2007, 08:33 PM   #76
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Re: fixed fee investment advisor

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Originally Posted by 2B
These types don't frequent this forum. I'd be surprised if any longterm participant here has more than about 5% of their assets in any one stock
I've been here for about a year, so maybe I'm not long term, but I have about 30% in a single stock. Everytime I dump 1/2 it doubles. IIRC Brewer asked me if I was comfortable with it as he was uncomfortable with 2 * 20% holdings in a single industry: http://early-retirement.org/forums/i...8311#msg258311

DD: I know the industry and company well and I watch it like a hawk. I might bail if we get a 10% decline, but I might not. Know your own comfort level.
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Re: fixed fee investment advisor
Old 05-17-2007, 08:36 PM   #77
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Re: fixed fee investment advisor

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Originally Posted by 2B
These types don't frequent this forum. I'd be surprised if any longterm participant here has more than about 5% of their assets in any one stock or what any respectable FA would consider an undiversified portfolio.
Quote:
Originally Posted by kumquat
I've been here for about a year, so maybe I'm not long term, but I have about 30% in a single stock.
Yeah, we're guilty too-- on both counts.
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Re: fixed fee investment advisor
Old 05-17-2007, 08:48 PM   #78
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Re: fixed fee investment advisor

Nope - But my left handed interpretation of Bernstein's 15 Stock Myth or Ben Graham's Postscript chapter in The Intelligent Investor or even a Monty Pythonesque Quest For The Holy Grail says:

Once you get to 7 figures via hmmm - Psst! Target Retirement or something like that then:

going to 8 figures with one great stock and moving to Margaritaville to really make use of your Jimmy Buffett shirts is ok.

Dreams and hormones!

heh heh heh - :
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Re: fixed fee investment advisor
Old 05-18-2007, 07:08 AM   #79
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Re: fixed fee investment advisor

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Originally Posted by unclemick2
Nope - But my left handed interpretation of Bernstein's 15 Stock Myth or Ben Graham's Postscript chapter in The Intelligent Investor or even a Monty Pythonesque Quest For The Holy Grail says:

Once you get to 7 figures via hmmm - Psst! Target Retirement or something like that then:
Only problem with that is, have you bothered to see how many asset classes most target retirement funds leave out?
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Re: fixed fee investment advisor
Old 05-18-2007, 07:47 AM   #80
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Re: fixed fee investment advisor

We have the AllianceBernstein target retirement funds in our 401(k). They have a healthy dose of REITs. We get them for no-load, but the expense ratio is a bit high.
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