Financial advisor?

Amazon / Consultant grown_up
Dec 6, 2019 15 Comments

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.

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TOP 15 Comments
  • Merrill Lynch Jbox5002
    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.
    Dec 6, 2019 4
    • Compass HWV39
      The question isn’t whether they/you can add value. The problem I have is the cost associated with the advice relative to the value of your advice. Your aum model is a massive ripoff. Period. And you know it.
      Dec 6, 2019
    • Amazon / Consultant grown_up
      OP
      Thank you for the thoughtful response. I’ll keep it in mind.
      Dec 6, 2019
  • Apple 7AHRIK3
    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.
    Dec 6, 2019 0
  • Compass HWV39
    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.
    Dec 6, 2019 0
  • E*Trade / Finance cbEV72
    It’s hard to find a good advisor unfortunately but you certainly need one already.
    Dec 6, 2019 3
    • E*Trade / Finance cbEV72
      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
      Dec 6, 2019
    • Compass HWV39
      Sorry but I’m not paying you 1% aum for advice after doing all the work.
      Dec 6, 2019
  • Facebook WhoAmI🤔
    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
    Dec 6, 2019 1
    • Amazon / Consultant grown_up
      OP
      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.
      Dec 6, 2019
  • eBay / Other MetaMorph
    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.
    Dec 6, 2019 1
    • Compass HWV39
      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!!
      Dec 6, 2019

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