Financial Advisors

[welshhibbyParticipant 86]

Hey Guys,

Not posted in some time but wanted to see what your views were on financial advisors.

Started earning some decent money in the couple of years and want to set myself up for retirement which is only 21 years away.

Main points to note are
50,000 in the bank cash
Started the company pension with 23% of salary going towards that.

I’m thinking of starting a second pension and using my full 25% tax free savings allowance rather than putting the money in the bank.

Do you think a financial advisor many have other ideas ? such as putting my 50,000 to better use.

Thanks in advance

Welshhibby

[Anonymous 7]

Here is what I do:
I use an Investment Company that has no-load funds and handle my investments myself online.

A no load fund means you don’t have an ‘advisor’ taking a cut.

A loaded fund means someone other than the fund manger and the company gets a cut of your s~~~.

The different types are A, B and C with C being no load (I think). The other two someone else gets a cut. If you have a 401-K this, I think is unavoidable.

What I do, do is about every five years I pay a financial advisor to look over my s~~~ and give his opinion/advice.
The dude I hire is not affiliated with the investment company. IMO, an advisor that works for the company you use to handle your investments is like asking the fox to guard the hen house.

Having said all that I have a buddy whose family has made a lot of money with a financial advisor so, ymmv.

Look up Dave Ramsey, he endorses advisors all over the country.

If you are interested in who I use PM me.

[Anonymous 7]

Sorry, I just re-read your question.

It doesn’t hurt to talk to a financial adviser but like I mentioned above I wouldn’t necessarily allow the advisor to handle my money.

Years ago I read one of those ‘dummies’ books on investing. I found the book to be straight forward and an easy read.

It is a good place to start as you will have some knowledge before you talk to anyone.

[AussieParticipant 2509]

Ya gotta get into bitcoins man ! It’s the new gold rush I tells ya !

Or was it Ostrich farms…?

" I feel threatened "

[Anonymous 1]

Grue has good words above. This will be slightly redundant, but it needs to be emphasized. My humble suggestions only…

(1) Ask the dude how HE is paid:
– Does he charge a fee (per $, per transaction, per month, etc.)?
– Does he get a percent of the investment (front end) meaning of your $1000 input only $900 gets invested, etc.?
– Does he get a percent of the return (rear end) meaning instead of earning $1000 you keep only $900 ?
(2) Ask a second dude (another company, second opinion).
(3) Do your own direct investing after analyzing the suggestions of the pros.

Understand that they are going to make you do lots of work “to customize a plan just for you and your retirement goals.”
There will be LOTS of questions about “where you want to be”…
late model car and late model truck paid off, house paid off, boat paid off, trips twice a year, money to leave to family, etc.
Also, there will be lots of talk of “risk tolerance.”

Again, play the game, get their intel (from 2 sources) but understand they have to get paid somehow.

[Two Time WinnerParticipant 1090]

Most financial advisers recommend the investments that either pay them the most commission or the ones the company they work for is forcing them to sell. They will want to put you into annuities or high load funds.

If you do go to one, get one that charges by the hour and doesn’t make anything off any investment that you purchase.

TTW

I ain't got a wife to spend my money, I have to do that all by myself.

[DarkRyuParticipant 2354]

Financial “Advisors” are absolute BS.

As a person with wealth, you need the following things:

1. An asset protection lawyer – they help you set things up so that your assets are owned anonymously and can’t be stolen from you in a lawsuit.

2. A REALLY GOOD CPA – They are NOT a replacement for your asset protection lawyer, but can help you with smaller questions relating to keeping more of your money in YOUR pocket.

3. A financial planner that’s part of a prestigious wealth management group. This is the person you go to in order to plan your moves far into the future.

As someone with wealth myself, I would be lost without these three people. If you have good people that actually communicate with one another and actually give a s~~~ about their clients, you’ll go much further than you could on your own. What they charge is peanuts compared to the money they save you in the long run. With only $50,000 to work with you’ll be a small fry, but they can help you grow that money and avoid financial pitfalls in the future.

[welshhibbyParticipant 86]

Thanks for the advice guys

[TheSpiceParticipant 2644]

Most financial advisors are s~~~. They might be able to make reasonable decisions on investing, but they WAY too often take such a huge slice of your pie, you’d be better off without them.

There was one that approached my friend a few years ago who said he only took a percentage of profit each month. While this SOUNDS ok, imagine an investment that goes up $10,000 one month and then drops $10,000 the next month. You SHOULD be even, but your advisor took 10% of the winning month profit, so you’re now down $1,000 while the underlying investment is flat.

DarkRyu is probably onto something with his team of guys, but for a small fry you can likely look into passive ETF investing using a “lazy portfolio” with a brokerage to start seeing a return on your money.

"I've been thinking about what it would be like if we got back together."
"You know it's too late for that."

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