Selecting a good investment advisor
invite response
2013 May 20, 11:37pm 5,760 views 13 comments
by bg ➕follow (1) 💰tip ignore
Comments 1 - 13 of 13 Search these comments
I just sent you a friend request. If you befriend me, we can send PM via e-mail.
MisdemeanorRebel
2013 May 21, 1:53am
Get a revolver and put only one bullet in the chamber, then spin the barrel.
Get 6 financial advisers together. The one who bites the bullet was the best financial adviser, the rest will just BS you and take your money.
justme
2013 May 21, 2:01am
The one who bites the bullet was the best financial adviser, the rest will just BS you and take your money.
+100
justme
2013 May 21, 3:56am
What are you saying here, a good financial adviser is a dead financial adviser? ;)
The only financial advisers I have ever met make a heck of a lot less than I do and just read from scripts in their 'investing for dummies' books.
So are there actually better advisers out there who actually know how to make better money, or are they using the same books but with gold plating?
There are, but they're not the rejects that work for Fidelity or Scottrade.
You'll need to be relatively high net worth, and they charge a commission, but if you're too busy to actively manage portfolios, it's a way to go.
Heraclitusstudent
2013 May 21, 8:50am
Make them sign a fiduciary pledge, that legally forces them to at least act in your interest. Otherwise they will sell you stuff that they are paid to sell you. If they refuse, fire them.
http://bucks.blogs.nytimes.com/2010/02/16/will-you-be-my-fiduciary/
This being said, it has been scientifically proven that the best money managers are no better than a monkey throwing darts.
So I recommend the monkey.
msilenus
2013 May 21, 9:03am
This is everything you need to know about investing for yourself. At least as far as stocks and bonds are concerned. It's short. I read it in a few hours.
MsBennet
2013 May 21, 11:44am
That's an eye opener video! Same conclusion I came to a couple of years ago when Fidelity called me into their office and offered to manage my portfolio and gave me a list of funds. I went home and looked at the funds and noticed some had over 1% fees, and the guy at Fidelity never mentioned the cost once.
Then I discovered that most investment advisers charge 1.5 to 2% fees, and that's on top of the cost of the funds.
I agree now that index funds are the way to go try to follow the principles of Jack Bogle.
http://www.bogleheads.org/wiki/Main_Page
Btw, Fidelity does have the Spartan Total Stock Market index fund, which has low costs, so I invest in that, too.
The guy in this video just couldn't get the JP Morgan people to admit that index funds have been proven over decades to outperform actively managed. They can't admit it because that's their livelihood. They depend on ignorant people.
Thank you guys. I worked about 15 hours today. My brain is fried tonight, but I will go reading your recommendations tomorrow.
I would like to find a good investment advisor in Norcal. I really don't have great ideas about how to do this. I talked to someone at Fidelity, but they sere limited in a couple of ways. First, they didn't want to comment on tax related questions. Second, I didn't trust her recommendation to use the Fidelity branded vehicles. That seemed hinky. Also, she didn't ask me a thing about my short and long term goals. I just don't think she was the one.
I *think* I want someone who I would either pay hourly or whose fees were tied to my performance, but those are just hunches from me. How do I go about this?
BG
#investing