Your Thoughts On Financial Advisors?

[Jeff55]

Abused by FA

I am a health care professional in CA. I was too busy with my practice to study up on what I should do with my money. The FA I got hooked up with had mostly his own interests in mind, as I found out later. Some of the warning signs I should have recognized but didn't (until later):
1) Having me purchased an annuity within an IRA. (Huge commissions on annuities and annuities have no business being in a tax-deferred vehicle).
2) Strongly suggesting at almost every quarterly "review" that I need to sell "X" and purchase "Y" instead. (Nice fees for him with every purchase I made).
3) Advising me to put $100,000 in the Executive Life debacle in the 80's where most everyone lost up to 85% of their investment. (Only the FA seemed to do well with that investment).
Best advice: A simple, diversified portfolio through low-cost mutual funds.
Have the courage to stick with it. In the end YOU win.

 

[Dennis]

using a FA?

Well, since most everyone now has a PC and Internet?
Add the Upteen Sites for Both Basic and advance FA guides?
and then I've found just owning a simple Fund Like VWINX (ave 50/50 mix) and just adding Some Extra Fond Funds like VFITX, VFIIX and a Short term Bond like VFISX or Fido's New FIBIX fund has done as well as anyothers advice of a Portfolio...

Another Option for Higher Rtns? Other Balanced Funds Like ;
FPACX,OAKBX,PRPFX and WMRIX or WMMRX
For Those still working and About a few yrs Prior to and After Retirement? To add those Bond Funds to get a 40/60 mix and increasing the Bond side as one gets older..

Doing a past 10 yr on a Per $10k CB , those plans have done about the best with the Lowest Downside risk and ave 8-10% apy..

I recommed to those who want a simple and best Portfolio to just own a 50/50 mix like a VWINX and add seperate Bond Funds as one gets older.. Like VFITX & VFIIX... VWINX is Dwn about -15% YTD and with A 40/60 dnw only about -10% YTD ..and retirees ? age 65+ = a 35/65 mix is only down about -7% ytd..

J. Burton Came out with an Article supporting this as a 50/50 mix doing as well or better than most other mixes for the PAST 20 Yrs!
Link> How to invest well and sleep better, in good markets or bad - MarketWatch

And I have to Agree with him...
Hopefully New youngin's will learn from the rest of us and Follow this advice and not Listen to the likes of these FA's and CNBC types...

Since Those Wall Street People have to get us to Buy more Stocks and Equity funds to make their $.. & Supporting It's Wall Street Industry...vs Making very little selling Bonds..

even Warren Buffet sucmmed to More Bonds with his 10% Yld deal with GE..He wins on both sides with that deal, Unless GE Goes Bankrupt..and even then...

And once I reached Financial Retirement level? I went out and Interviewed over 10 Investment firms and 8 out of the 10 just used Index Funds and the other 2 used Non Index Funds and when Pushed to show me their recommened Ports for the previous 5 and 10 yrs?

They didn't want too, but showed they did either (a) worse or (b) the same as that VWINX type Mix of Funds..or those other Balanced Funds

And when Mentioning This to them? They HATED Balanced Funds! and people like Scott Burns, Fund Advice/Merriman and Paul Ferrells Lazymans Ports...

gee, I wonder why? LOL

could it be if people used them instead of using their firm, they wouldn't be needed anymore and they'd have to go back to being a Accountant for some firm again? or worse..Be a Analyiss for M*?