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#24238 of 32000 Re: Long Road [busiris] by uplanderguy

May 04, 2012 (8:46 am)

Replying to: busiris (May 04, 2012 8:42 am)
You've obviously got the wrong financial adviser. Go with a guy who works for a larger company that has a series of financial pros who are routinely screened and replaced if they're not up to the task. My investments are a mix of things, of course, and my guy will advise me of changes that should be taking place. I've yet to be disappointed in ten years of dealing with this particular guy, who came highly recommended to me and whom I've recommended to several others who have gone with him.

#24239 of 32000 Cool CTS Track Vid by ateixeira

May 04, 2012 (9:03 am)

http://www.youtube.com/watch?v=Aa9XP89pxHA&feature=player_embedded#!
 
Almost like a lesson, pretty neat.

#24240 of 32000 Re: Long Road [uplanderguy] by busiris

May 04, 2012 (9:19 am)

Replying to: uplanderguy (May 04, 2012 8:44 am)
Then you don't appear to understand much about financial planning OR the time value of money.
 
Financial planners make money one of 2 ways...either in direct fees, or on fees coming from the trading of YOUR investments....or some combination of the two.
 
I'm not suggesting that financial advisors aren't decent folks, but THEIR personal interest, like everyone else's, will always triumph over YOUR best interests when it comes down to making a choice.
 
There is certainly nothing wrong with saving, and I encourage it, but only if it makes financial sense. And, everyone should have a basic amount of cash readily available saved up for contingencies and emergencies.
 
Example: you need a durable good... House, car, whatever. The inflation rate for the foreseeable future is 10% on the item, yet you only increase your savings at 5%. Ultimately you will have to have the product. And, the product is readily available and can be put into use today.
 
Assuming an interest rate that is lesser than the inflation rate of the product's price, and you can meet the cash flow requirements, better to buy now than later. Of course, one can interject all kinds of unknowns into the equation (job security, possibility of country going to war, etc.), but they are mathematically irrelevant.
 
Nor should that be an excuse to go out and simply buy something you want, such as a car, unless it's a real necessity. Historically speaking, a car is a fairly bad investment, with high depreciation and poor resale value.
 
That's basic math.
 
Unfortunately, too many folks didn't understand that over the last few years and bought inflated housing that they could neither afford nor needed.

#24241 of 32000 Re: Cool CTS Track Vid [ateixeira] by busiris

May 04, 2012 (9:21 am)

Replying to: ateixeira (May 04, 2012 9:03 am)
Looks like it would be a fun ride...

#24242 of 32000 Re: Long Road [uplanderguy] by busiris

May 04, 2012 (9:25 am)

Replying to: uplanderguy (May 04, 2012 8:46 am)
My first rule of selecting a financial advisor...
 
What asset ownership level does he have?
 
Seems common sense to avoid using anyone with less assets that you have. After all, if he's that good, why isn't he ahead of you?

#24243 of 32000 Re: Long Road [busiris] by ateixeira

May 04, 2012 (9:29 am)

Replying to: busiris (May 04, 2012 9:25 am)
But it takes money to make money. They could have started will 2 million, lost half, have 1 million now. Even if that's more than you have - NOT a good advisor.
 
For me it's more useful to look at the rate of return.

#24244 of 32000 Re: Long Road [ateixeira] by busiris

May 04, 2012 (10:21 am)

Replying to: ateixeira (May 04, 2012 9:29 am)
Good point.
 
Like most thinks in life, there really isn't any black or white, but multitudes of gray shades.
 
I guess some investors might actually prefer the guy in your example... No pain, no gain... Nothing ventured, nothing gained. In fact, I know a couple of folks that invest like that. Either on top of the world or in the gutter. It would be very mentally draining for me.
 
Personally, I'm happy with a little less risk, a little less return, and a little more piece of mind... And with a little luck, do OK.

#24245 of 32000 Re: Long Road [ateixeira] by andre1969

May 04, 2012 (10:23 am)

Replying to: ateixeira (May 04, 2012 9:29 am)
But it takes money to make money. They could have started will 2 million, lost half, have 1 million now. Even if that's more than you have - NOT a good advisor.
 
Plus, what happens with high net worth individuals? As you make more and more money, the pool of individuals who have more assets than you will continue to shrink.
 
Plus, will a financial planner even disclose to you what they have? I'm sure that even if they did, most of them would pad it somehow.

#24246 of 32000 Re: Long Road [busiris] by uplanderguy

May 04, 2012 (11:02 am)

Replying to: busiris (May 04, 2012 9:25 am)
My financial adviser is a retired university professor...a PhD, and a conservative guy, which anybody knows is a rare thing. He loved investing and got into it after he retired about fifteen years ago. He's a longtime friend of a thirty-year-coworker and friend of mine, and that guy is as tight as they come! I consider my adviser a friend of mine by this time as well. He most assuredly has more assets than I do.

#24247 of 32000 Re: Long Road [uplanderguy] by andre1969

May 04, 2012 (11:11 am)

Replying to: uplanderguy (May 04, 2012 11:02 am)
Your situation sounds different from what I usually think of when I hear the words "financial advisor". In your case, it sounds like you have a longtime friend who happens to be knowledgeable about finance, might do it as a hobby, but doesn't depend on the money. So in this case, he's more concerned with helping out a friend, than making fat commissions off of you.
 
In a similar fashion, I guess, I'm my uncle's financial advisor. He lets me manage his retirement account any way I want, but with one caveat...if I lose his money, he's gonna come live with me when he retires!
 
Personally, I hate handling other people's money. I don't mind if I lose some of my own if I make a bad decision or the market tanks, but when it's someone else's, I feel guilty.

Messages Page 2425 of 3201

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