Certified boglehead professional

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Certified boglehead professional

Postby legion » Thu Feb 14, 2013 12:17 am

Greetings,

I would like to help friends and Family construct Bogle friendly portfolios with what I have learned from this site and in my reading since 2006 (Bogle head guide to investing, Random walk down wall street, four pillars of investing, Common sense on mutual funds, etc) I know how to make a solid diversified portfolio using vanguard funds based on somebody's time horizon. I know too many people who are getting fleeced by Ameritrade and "financial advisers with great annuities". So my question is what do I need legally if anything in California to help people construct portfolios for 1% AUM?

Thanks
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Re: Certified boglehead professional

Postby abuss368 » Thu Feb 14, 2013 12:29 am

I am not sure if any Bogleheads would pay fees of 1% of assets.
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + REITs
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Re: Certified boglehead professional

Postby Beat The Street » Thu Feb 14, 2013 12:30 am

I believe you need a series 65, you could study for 2 weeks and pass the test. It is pretty easy. You may need a series 66 instead of the 65 but I am not certain of that.
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Re: Certified boglehead professional

Postby Beat The Street » Thu Feb 14, 2013 12:36 am

abuss368 wrote:I am not sure if any Bogleheads would pay fees of 1% of assets.


Bogleheads wouldn't need to, but maybe to the people he is trying to help the 1% fee could be well worth it. Who else would give them such good advice? Better to pay 1% for a passive advisor than 2.5% for a sleezy broker.
“Never ask anyone for their opinion, forecast, or recommendation. Just ask them what they have—or don’t have—in their portfolio.” -Taleb
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Re: Certified boglehead professional

Postby legion » Thu Feb 14, 2013 1:38 am

Beat The Street wrote:I believe you need a series 65, you could study for 2 weeks and pass the test. It is pretty easy. You may need a series 66 instead of the 65 but I am not certain of that.


Thanks this is exactly what I am looking for how could I find out for sure?
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Re: Certified boglehead professional

Postby legion » Thu Feb 14, 2013 1:41 am

Beat The Street wrote:
abuss368 wrote:I am not sure if any Bogleheads would pay fees of 1% of assets.


Bogleheads wouldn't need to, but maybe to the people he is trying to help the 1% fee could be well worth it. Who else would give them such good advice? Better to pay 1% for a passive advisor than 2.5% for a sleezy broker.


Thanks that's exactly it, I have tried to explain to people how simple it its but more often than not people just don't have the time or inclination and want somebody to just do it for them and more often than not they end up getting screwed.
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Re: Certified boglehead professional

Postby justus » Thu Feb 14, 2013 5:00 am

abuss368 wrote:I am not sure if any Bogleheads would pay fees of 1% of assets.


How uncertain are you? I'm pretty sure Bogleheads wouldn't ;-)
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Re: Certified boglehead professional

Postby orlandoguy » Thu Feb 14, 2013 6:12 am

You will find at least some of the information you are looking for at this site which provides information about becoming a State Licensed Advisor in California and whether you would need to register with the State or the SEC. Note that this is largely determined by where your clients live and the amount of money under management.

http://www.corp.ca.gov/Laws/CSL/BDIA/State_IA.asp

Note also the actual requirements which are listed here which include either taking the Series 65 exam or the Series 7 along with the So theeries 66.

http://www.corp.ca.gov/Laws/CSL/BDIA/260-231A.asp

I recommend that you pay careful attention to the compliance required to become an RIA.
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Re: Certified boglehead professional

Postby Random Musings » Thu Feb 14, 2013 2:36 pm

For your family, at least be benevolent and only charge them 50 basis points.

With yields so low today, it must be a harder pill for clients with heavier bond portfolios to see such a large percentage of yield chewed up by AUM. That is, if they even have a clue.

RM
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Re: Certified boglehead professional

Postby johnep » Thu Feb 14, 2013 2:41 pm

I do not know the requirements for managing others' money but I would think someone would require some legal advice and a good liability policy in case someone sues you.
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Re: Certified boglehead professional

Postby BBL » Thu Feb 14, 2013 2:44 pm

...A PLI [E&O] policy

EDIT: Yeah - what johnep said!
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Re: Certified boglehead professional

Postby legion » Thu Feb 14, 2013 3:00 pm

Thanks I wish there was a bogle minded investment firm in the SF bay area and I could just jump under their umbrella with all my contacts.
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Re: Certified boglehead professional

Postby legion » Thu Feb 14, 2013 3:01 pm

orlandoguy wrote:You will find at least some of the information you are looking for at this site which provides information about becoming a State Licensed Advisor in California and whether you would need to register with the State or the SEC. Note that this is largely determined by where your clients live and the amount of money under management.

http://www.corp.ca.gov/Laws/CSL/BDIA/State_IA.asp

Note also the actual requirements which are listed here which include either taking the Series 65 exam or the Series 7 along with the So theeries 66.

http://www.corp.ca.gov/Laws/CSL/BDIA/260-231A.asp

I recommend that you pay careful attention to the compliance required to become an RIA.


Thanks very much
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Re: Certified boglehead professional

Postby letsgobobby » Thu Feb 14, 2013 3:02 pm

i think you are playing with fire. It is sort of safe and helpful to provide free, no obligation financial advice to a relative. It is another level of dangerous to actually manage their accounts. To start charging them money is a place I would never go without professional training, credentialing, licensure, and insurance.
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Re: Certified boglehead professional

Postby Beat The Street » Thu Feb 14, 2013 3:30 pm

legion wrote:
Beat The Street wrote:
abuss368 wrote:I am not sure if any Bogleheads would pay fees of 1% of assets.


Bogleheads wouldn't need to, but maybe to the people he is trying to help the 1% fee could be well worth it. Who else would give them such good advice? Better to pay 1% for a passive advisor than 2.5% for a sleezy broker.


Thanks that's exactly it, I have tried to explain to people how simple it its but more often than not people just don't have the time or inclination and want somebody to just do it for them and more often than not they end up getting screwed.


It is very hard to tell someone they are getting screwed when they have worked with the same advisor for 10 years and trust him to give them good advice. 99.9% of retail investors never compare their returns to any sort of benchmark. I met with a guy recently who has 100% in stocks and was bragging he made 12% last year, I suppose he didn't realize the overall market was up 15%+. Do you plan on doing this full time or on the side?
“Never ask anyone for their opinion, forecast, or recommendation. Just ask them what they have—or don’t have—in their portfolio.” -Taleb
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Re: Certified boglehead professional

Postby tj » Thu Feb 14, 2013 4:21 pm

California has a "Professional Fiduciary" license, though I have no idea how useful it would be.

http://www.dca.ca.gov/publications/fidu ... nsee.shtml
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