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Old 12-21-2012, 12:28 PM   #41
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My Dream, I am super good at wasting my own time so don't worry about that!

I don't know how investing in Canada differs from the US but imho you should just park your investments in whatever version of a target retirement fund is available to you (Vanguard offers them in the US, not sure in Canada) and then forget about it.

We take our cars to the dealers, not even to a regular mechanic; we don't worry about being taken by them, whether we are or not, because we don't understand or care to learn about how cars work today (I have changed the oil once, a long time ago, because I wanted to be able to do it). We don't really understand investing in things like puts and calls and short and long and preferred and common so we don't do any of that. Wellesley, total stock market index, total bond fund index, done. And we don't worry about whether the performance could be improved. But we don't feel we need an FA.

You might be happier if you just pulled the financial investment trigger and were done with it so you could concentrate on other things.

Sorry about your parents and parents-in-law situation right now.

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Old 12-21-2012, 02:22 PM   #42
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My Dream, I understand your situation, the burden it places on you and the way it pushes all other matters aside and consumes your thinking. It is hard to learn (or even focus) when you are caring for family members.

You are right that you need a good FA. Instead of learning about the products they may sell you, you might want to use your limited time to learn how to select and evaluate a financial planner. Folks here can give you good advice, useful links and even recommend a good book or two. Here's one thread Seeking advice on picking a new broker

A valuable point in this thread is the importance of shifting the conversation between you and your FA to topics you understand. That is your key to keeping control and making certain your best interest is being served. If you don't understand that much it is imperative to keep the conversation and investments simple.

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Old 12-21-2012, 03:16 PM   #43
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Originally Posted by My Dream View Post

Texas Proud,

I believe Warren Buffet was referring to those investors that manage their own portfolio, not those that need to trust there FA to do manage their portfolio. Have you ever asked those clients if they understand every fund theyíre invested in, Iíd say maybe less than 10% do since I know many donít even know what theyíre invested in. I couldnít imagine giving either parents Warren Buffets advice since they simply didnít understand and had no desire, therefore trust in there advisor was key.
I didnít mean to try to make it complicated, I just wanted to be part of the 10% thatís trying to understand, albeit at a very slow pace, but I figured no question is a stupid question, although I know some will disagree with that. Eventually my plan is to make all my own financial decisions; I just donít know how long that will take as my spare time is limited based on my commitments, and sorry family doesnít come second.

I did not see any caveat with the quote... you seem to have added it for some reason... and even if it were for people without FA, I would advise that it also IS for people with FA...

79 Warren Buffett Quotes On Investing

Also, remember who you are talking about... a financial ADVISOR.... someone to advise YOU so you understand... not make decisions for you... it is your responsibility to make the final decision on purchasing or not purchasing....

Again, if you do not understand ANY investment, do not make it... to use the car analogy, you do not have to understand anything about oil to know you should have it changed.... and if your advisor said 'I got this great oil that you will never have to change again in your life... and it only cost $2,000 per quart'..... would you buy it Nope... you do not know anything about it and the cost seem very high... so, for the time being, change the oil to something you KNOW and do some research on that 'special oil' he is pushing...

If what people say in this thread is true, and you have spent the last year without reading any of the books recommended... then we have found the problem..... hint, it is not your FA....
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Old 12-22-2012, 11:26 PM   #44
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Originally Posted by My Dream View Post
My FA asked if I wanted to move some funds to a Prefered Stock yelding 5%.
I'd appreciate some clarification.
I think you'd appreciate a new financial advisor more.

Just the fact that they'd ask the question and not help you with an objective answer indicates that their interests are aligned with the preferred stock market maker, not with you.

You need a financial advisor who's not charging you 1% to exploit your lack of financial knowledge. Rick Ferri at Portfolio Solutions is one of a number of cheap FAs who use simple portfolios. I bet the Bogleheads know a few more like him.

Brewer knows what he's talking about. I see no reason for anyone to touch preferred shares of anything but a startup company, and even that's probably not such a hot idea for most investors. For your level of knowledge (let alone your comfort level) it's not even close to appropriate.


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