OT: Anyone ever fire their financial guy before?

[57stratdawg]

What do I really need an Edward Jones or Hancock guy for?

 

[Hoover Dawg]

For the life of me, I do not understand the stock market. That's why I have one.

 

[seshomoru]

To help you convert everything to cash before you take it all to Vanguard?

 

[fishwater99]

You really don't if you do a little research. It might help that I have a degree in Finance though..

 

[coach66]

I've been doing my own with Schwab and Option Express for over 20 years now. No

need for a financial advisor, just read the Morningstar discussion Blogs.

 

[patdog]

You really don't need one. Just go to Morningstar and pick a 4* or 5* mutual fund (stars do matter in the mutual fund business) that is a reasonable fit with your investment objectives. Don't sweat finding the perfect fund. Any of the 4* or 5* ones will be pretty good, probably better than what your paid adviser or commissioned stock broker would do and definitely a lot cheaper. If you want to learn more, they've got some tools you can use and basic classes you can use through.

 

[Moe Cabelle]

I have approx half mine with a Merryl Lynch guy that was my dad's broker. He now handles my mom's affairs and has become like "family".

My Advice - Do not do what I did. I have outperformed this guy with my Ameritrade account for some time, but especially this past year. I keep wanting to pull my funds, but just don't have the heart to tell him.

I think his niche was keeping some blue hairs from loosing their money. I am way more aggressive.

IF you enjoy watching the market often (as I do, up or down), then you probably can do well on your own. I pick stocks, but would agree funds are probably better if you don't really follow it all much.

IF you don't have a clue about the market, or don't care to know, get a trusted broker... just make sure he's not a friend or you'll get stuck like me.

For a while I thought he might be a good yin to my yang, but it's on my list to merge all my stuff in my TD accts.

 

[Dawgbite]

I have my money separated so to speak. I have the majority with Edward Jones and invested in mutual funds but I also have a Fidelity account that I manage myself that is 100% stocks. That way I cant totally screw it up but I still feel like I am contributing more than just deposits. Up until the second week of January I was kicking Edward Jones *** but the last two weeks of december humbled me back to being about even in returns.

 

[coach66]

A couple of things I've learned the hard way. If you are young take a very long

term view invest in good stocks or funds reinvest dividends and don't try to get in and out of the market and stay diversified. As you grow older start to focus some on intermediate term fixed income, stay away from long bonds. Learn about Closed End Funds, they use leverage to juice returns. CEFconnect.com, wish I had discovered them much earlier in life but you have to educate yourself and be nimble if you are going to play in the CEF game. Don't try to be a trader, it's not recommended by the National Sleep Organization.

 

[o_Hot Rock]

Broker? Never thought of one for myself but my parents have theirs with a broker. He has never done much better or worse than my various mutual funds that are in my 401K. My parents are in their 80/90's and still bring in more than they spend ever month. That's pretty good if you ask me.

I have other funds in a TD Ameritrade account. I keep about 2/3rds of my TD Ameritrade in highly rated mutual fund. The other 1/3 I invest in various stocks that have actually made more than the other 2/3rds. So far, so good.. Now, find a way to retire within the next 7-8 years and I will be happy.

One thing I have noticed, it's hard to lose money when the stock market is doing well and hard to make it when it's not. Good luck!

If I had millions to invest? I would never be coming here for advice, that's for sure.

 

[Dawgbite]

term view invest in good stocks or funds reinvest dividends and don't try to get in and out of the market and stay diversified. As you grow older start to focus some on intermediate term fixed income, stay away from long bonds. Learn about Closed End Funds, they use leverage to juice returns. CEFconnect.com, wish I had discovered them much earlier in life but you have to educate yourself and be nimble if you are going to play in the CEF game. Don't try to be a trader, it's not recommended by the National Sleep Organization.[/QUOTE]
Tell me about it. I'll look in to the Closed End Funds, I've never heard of it before. I had 5000 shares of an energy stock before christmas and was up about $3 per share, so I sold half but was too greedy to sell the other 2500. Two days later it dropped $6 a share and has stayed there.

 

[dorndawg]

They're roughly as useful to society as travel agents - used to be vital, now only needed in very select circumstances.

 

[coach66]

You will lose battles just don't lose the war. Oh yeah and don't put more than

3 percent in any position unless you absolutely love it or its a fund like SCHD, DIA, SDog, etc.

 

[TheStateUofMS]

I'd say the most important factor is how emotional you are

What do I really need an Edward Jones or Hancock guy for?

If you're the type who feels like you need to sell when things go bad, you need an advisor.

I'm a psychologist half the time.

If you don't have a clue or care to learn about the market, you need an advisor.

The catch really is your asset size. If you have $100k, you won't get good advice, because good advisors won't have time for you, so you should be in mutual funds.

If you have substantial assets, over $500K, I would say the average person needs an advisor.

I know people who sold at the top of 2008, but never got back in.

I know people who sold at the bottom of 2008, and never got back in.

If you're a strong minded person and believe in the market over time, you're fine with out one.

Can't tell you how many people call me and thank me for having them stick it out with our models. It works.

 

[LawDawg97]

Really?

The catch really is your asset size. If you have $100k, you won't get good advice, because good advisors won't have time for you, so you should be in mutual funds.

If you're not talking to medical residents/first year engineering employees/young lawyers, etc who may not have crap for assets now but will in a few years that's a pretty poor approach. A friend specializes in this and the returns pay off. There are plenty of good advisors that manage small portfolios.

 

[dawgoneyall]

What do I really need an Edward Jones or Hancock guy for?

One little misstep can cost plenty

 

[coach66]

Excellent post.

nm

 

[57stratdawg]

This more or less echos my thoughts. I'm paying a guy to call me once a year to invest at the risk tolerance that I pick. Just seems kind of pointless. I have no idea what I'm paying him to do this either, but last time I meet with him he told me there was federal legistlation coming mandiating all IRAs over $X be in managed accounts.

That seems like complete ********.

 

[dorndawg]

This actually sounds pretty legit.

 

[TheStateUofMS]

He's right there is a new DOL rule coming out

This more or less echos my thoughts. I'm paying a guy to call me once a year to invest at the risk tolerance that I pick. Just seems kind of pointless. I have no idea what I'm paying him to do this either, but last time I meet with him he told me there was federal legistlation coming mandiating all IRAs over $X be in managed accounts.

That seems like complete ********.

It's in client's best interest to work with an advisor on a fee basis. You don't want to work with someone who makes money only when they buy and sell something. That's what the rule is intended to do, but it also has some other BS in there that I'm not going to go in to.

 

[TheStateUofMS]

The guy you're talking about probably is paid on a salary.

If you're not talking to medical residents/first year engineering employees/young lawyers, etc who may not have crap for assets now but will in a few years that's a pretty poor approach. A friend specializes in this and the returns pay off. There are plenty of good advisors that manage small portfolios.

If you're charging .7%, you're gonna starve on people that are just starting out.

It's not fair to give someone with $800K in assets the same attention to someone with $100k. The solution is your offer has a minimum asset limit usually around $250K to $500K with $500K becoming more popular.

Our offer is $500K or above.

 

[Dawg1976]

I'm not firing myself! All you need is a good discount broker like Fidelity, Vanguard or Schwab. If you want to have a total hands off approach just pick the AA for your age and find a balanced or target fund to match. Those funds will be a hell of a lot cheaper(less fees) than what Edward Jones would recommend. I'm a little more hands on but keep most of my stocks in ETF's and may buy an individual stock or two for fun. But not much money in those.

 

[SwampDawg]

I have never had one. While working I put my investments in the company 401K. When I retired I pulled it all out and put it in bank/credit union regular savings. Yeah I know I have lost, or rather not made money, this way but at retirement age I couldn't stand the thought of losing everything because of the actions of a bunch of guys wearing $5000 suits. As an afterthought, two advisers here in my small swamp were caught diverting funds to themselves. Don't know if insurance saved their investors or not. I know another adviser who seems to be honest but lives in the mansion on the water with the yacht and fine cars. Also, somewhat related, the Singing River Hospital system failed to fund the retirement accounts of a bunch of employees, placing them in financial trouble. Guess the bottom line is I don't trust anybody with my money.

 

[LawDawg97]

I get it, just don't talk like everyone had to operate that way. My point is you applied your (or your firm's) approach and made a blanket statement that someone with 100k in assets can't get good advice because all brokers are too busy for them. Not everyone takes that approach, thank goodness. You can have big and small accounts.

Imagine telling Sam Walton to take a hike in the early 80s because you only wanted to represent the big boys like Sears and Kmart. That would've been smart.

And no, the guy I'm talking about is not on a salary. He's just not short-sighted.

 

[TheStateUofMS]

I think you just don't understand and that's okay. If you think the $100K guy gets the same level of service as the $1mil guy, you're mistaken.

That's not a good business model for the firm or the client, okay? My firm doesn't have this issue, bc our offer is $500k or above, so we don't disservice the $100k guy. Usually the $100k guy has more unnecessary maintenance than the $1mil guy. How would it make business sense to spend more time with the $100k guy than the $1mil guy?

Yes, there are good advisors who manage $100k accounts, but they use a differ business model.

 

[LawDawg97]

Yes, there are good advisors who manage $100k accounts, but they use a differ business model.

This is not what your first post said. That is my point. You just didn't get it and that's okay.

 

[TheStateUofMS]

I stand by my blanket statement that the $100K guy generally won't get great advice.

 

[dawgoneyall]

What do I really need an Edward Jones or Hancock guy for?

Porkbellys! Put every thing there

 

[was21]

Rule of thumb for the average guy or gal is to invest in mutual funds rather than individual stocks. It's not rocket science. Vanguard group is the best there is....low expenses and no load funds is the way to go. If you're confident, you really don't need to have a broker invest your money for you. Go to Vanguard.com and start clicking around.

 

[Dawgbite]

I'm going to share with you guys the best investment advice I ever received. Take half your money and stuff it in mayonnaise jars and bury it in the back yard. Take the other half to the dog track and bet it on the dog that takes a dump right before the race. You're welcome.

 

[WhiteShepherd07]

What do I really need an Edward Jones or Hancock guy for?

What town is your advisor in?

 

[bocephus.sixpack]

Had an older gentleman who was a dear friend of my grand dads. He was very successful during his years and I remember him telling all the kids sitting around one night some very valuable information. He said," when everybody runs, you walk and when everybody walks, you run". He went on to say that the majority of the people were wrong the majority of the time. Basically, don't follow the crowd and do the opposite and you'll be right a lot more times than wrong. A lot of truth to that and he's been pretty dead on with that advice.

 

[MSU601Dawg]

What a bunch of poors itt, no wonder we can't get any decent football croots

 

[jdbulldog]

With all due respect to one only 5 or 6 years removed from college, I will pass on allowing that person the opportunity to manage my assets.

 

[karlchilders.sixpack]

Yes ,

on the phone, while driving down the highway, in route to sign some papers with Scottrade.

The fees were too much.

 

[patdog]

There is no rule requiring IRA's to be in managed accounts. The new rule coming into play in 2017 is that any financial adviser managing money in an IRA or a 401(k) will be required to recommend investments that will be in the client's best interest and not ones that will make the adviser more money. You would have thought that was already a requirement, but it wasn't. And it's still not a requirement for an adviser managing money in a non-retirement account.

 

[Msubulldogfan1]

How much money do you need to invest in stocks or mutual funds?

This question comes from a broke guy that is extremely ignorant to financial ****

 

[WhiteShepherd07]

Yea but the only way to reasonably do that an eliminate any conflict of interest is for a client to go into a fee based account.. unless they sign a best interest contract waving that conflict of interest, yet that's not totally eliminating the liability from the advisor.

 

[Msubulldogfan1]

Just signed up on the robinhood app. Gonna make some money, 1 share at a time lol

 

[Dogariffic]

First question to a financial advisor.
How do you make money?
If you like how they make money and value their advice use them. If you don't like how they make their money don't use them.
Also, make sure to ask if they make money from the mutual funds they recommend as well as from making trades on your behalf....then educate yourself on the funds they recommend and why they are recommending them.