At what point does it start to make sense to hire a financial advisor to help with investment decisions, etc? I have no knowledge about investing and dont really want to spend my time on it right now. My spouse and I both work and total TC is $300k. Curious to hear what others do.
I do have a financial advisor and it’s working good so far. Earlier I had a fake portfolio comparing my investments to the FA strategy. Long term FA outperformed.
Long term investing in index fund (s&p 500) will beat 99% of all money managers. Yet you pay 1% annual fee for inferior advice. Don’t do it!!
Yeah, I agree with compass. Read “common sense on investing” by john bogle (founder of vanguard ) if you are considering FA. Just go with index funds + bonds - 3 fund portfolio. I suggest try Fiduciary CFP (fee only ) if you need initial planning & hand holding
Thank you! I love when people can recommend me books instead of saying “just search X” because it keeps me from going down rabbit holes.
It’s hard to find a good advisor unfortunately but you certainly need one already.
Certainly not advice id take from someone at your firm. It’s commercial is worse than peloton’s. Zero credibility https://m.youtube.com/watch?v=WgmJ_ivEVvw
Advice is not an order, you’re free to take it. Actually if you consider E*TRADE then unlike some competition we don’t have investments to sell. If you talk to our fsr they don’t need to sell E*TRADE etf or funds, because we do t even have them 🤯 I know everything about investing and money yet even I often chat with folks here, the product specialists know details that I may not. I don’t trade bonds daily so it makes a sense to pick the brain from experts. Don’t be arrogant if you care for your wealth
A financial advisor should not be trying to beat the S&P for you. That benchmark isn't appropriate for many individuals. They should help make sure your investments are aligned with your risk tolerance and goals. More importantly, they should be helping you be more tax efficient, ensuring your estate is in good order, and bringing strategies to the table that you might not be aware of. If all your FA is doing is trying to beat the market, I agree, we are not worth the money.
Op is asking about wealth accumulation , not income generation and asset preservation. Even so why would I pay you 1% aum of my hard earned millions after busting my ass. Shouldn’t you only receive a portion of the returns you generate beyond an agreed upon benchmark? It’s a scam and you know it. Go get a real job.
Nothing I mentioned couldn't be used in the wealth accumulation phase. Just because a financial advisor isnt right for you, it doesnt preclude the need for someone else. I dont need a CPA to file my taxes or a personal trainer to work out, doesnt mean they dont offer value to others.
I used Fidelity for a year and it was horrible. They had me in a ton of assets (~20). Their algorithm didn’t allow for $0 in cash even though I told them I had cash outside of this account. So I had to pay 1% for them to manage cash 😑 So, I got out of it. I suggest that you spend some time and manage it on your own. It makes no difference if you have $1k or &1m, the principals are the same. You don’t need to diversify into more than 5/6 assets, buy low cost index funds, divide them in a risk ratio that you’re happy with, then just forget about it. Check and rebalance every year.
Typically never. Otherwise when you have zero money invest and need someone to point you to a book or website that can give you advice orders of magnitude better for no nothing. FAs are used car salesmen with nicer suits.