cj
Full time employment: Posting here.
- Joined
- Jun 21, 2005
- Messages
- 517
I suggested the other way because of the close relationship they had, did you socialize with your broker in your case?
We didn't socialize, but he did go to our church.
I suggested the other way because of the close relationship they had, did you socialize with your broker in your case?
We didn't socialize, but he did go to our church.
Because that's where all the [-]suckers[/-] customers are.Maybe FinanceDude can tell us why anyone should mix socializing or church with money matters.
You know FA's daughter is being Bat Mitzvah's in October and they wanted an upscale booklet to hand out at the party. I am a print salesman, so FA called me for a meeting to discus project at his home. I gave him the price and he said that looked great and he would get me the info in August. He called me a week later, very apologetically, to tell me he was not going to do the booklet. I guess his wife found a cheaper way to do it.
Maybe FinanceDude can tell us why anyone should mix socializing or church with money matters. Seems to me they are distinctly and inheritantly different activities. Mixing socializing/friendship/religion with money is a BAD idea in my opinion. Would like to hear a counter argument though , , .
The truth of the matter is that most FA's are salesfolks first.
Got to ask the question is my FA smarter than Investment professionals managing 100's of millions of assets (most of the mutual fund managers are well experienced and usually armed with MBA's, CFA's and other useful designations).
Or better yet, very few managers beat the index consistently.
Most folks in ANY business are salespeople, including bsuiness owners, CPAs, attorneys, etc..........
Thanks for all the great advice here. I opened up an account with Fidelity today. They will handle all the covered call stuff at the cheapest cost to me. As the call expire, I will invest in a range of mutual funds with a 60/40 stock to bond percentage.
Should I use managed mutual funds or index funds or a combination of both?
Missionfinder I think that is good advice. I know there are networks of fee-only advisor, but I am curious how you went about finding yours, and .4% seems reasonable. Depending on your assets 2.5 million (a $1000 fee) reasonable 25 million (10K fee less so) and 250 million $100K not at all reasonable.
FinanceDude, my comments were not malicious or biased IMHO.
I thougth that the whole point of participating on this board was to help each other and to share information that can be used constructively.
Don't take it personally and don't have to defend an entire industry. SIA does that job fairly well, last time I checked.
If you want financial advice that is not tied to commissions, kick-backs, favors, etc. consider getting a certified fee-only advisor.
Getting a fee-only planner was the best money decision I've made -- a far cry better than the run of the mill "advisor" who tells you to put your money in these buckets (because I make money when you do).
There isn't a perfect answer for everyone. I personally think that with some self study and reflection most everyone that is smart enough to find this forum can do a reasonable job evaluating everything you mentioned.
One thing this forum teaches is to watch the fees. The thought of writing a check for 0.4% of my portfolio would make my hands shake. Living through 10% market corrections is a necessary part of the game but high fees are not.
I would probably be much more interested in the services of a FA if they were available like lawyers or CPAs -- paid by the hour for the services provided. I would think that their service would be valued at $100 to $200 per hour. When I see what people pay the "full service/full fee" FAs, I can only shake my head.
Because that's where all the [-]suckers[/-] customers are.
How many times have we read a financial disaster article that started with "Mr. Edward Jones was an upstanding financial advisor and a pillar of the community's local church, where he..." ?
Unfortunately that business model is dead. Unless the fee-only CFP's find another avenue to make revenue, they can't pay the bills. Like I said, two well known local hourly CFP's that have been doing it for over 20 years closed up shop due to lack of money..........
We've had this discussion on here numerous times. I see VERY FEW folks on here willing to pay $200 a hour for an FA, regardless of background and experience...............
Our firm is getting more and more requests for it. I just spent the last 4 hours doing a suitability writeup for a trustee who doesn't trust the existing portfolio manager. We charge $250/hr for me to do that, but it can save the clients many times that. That being said, it's never going to be a core business, the demand just isn't there.