Advisors?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Andromeda
Posts: 1
Joined: Thu Sep 07, 2017 2:53 pm

Advisors?

Post by Andromeda » Fri Oct 06, 2017 12:18 pm

Hello!
I was lucky enough to come into some money and am really looking forward to investing it. I've been doing my best to learn and would really prefer to handle my investments personally. I must admit I am nervous (who wasn't when they started!) And thinking maybe finding myself a planner/advisor to get my feet wet or maybe even taking some classes?
When you started did you use some kind of advisor, planner, take classes anything like that?
Any type of advice is appreciated!

Thanks in advance
Hope you are having a fantastic day!

User avatar
ruralavalon
Posts: 11349
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Advisors?

Post by ruralavalon » Fri Oct 06, 2017 4:38 pm

Welcome to the forum :) .
Andromeda wrote:
Fri Oct 06, 2017 12:18 pm
Hello!
I was lucky enough to come into some money and am really looking forward to investing it. I've been doing my best to learn and would really prefer to handle my investments personally. I must admit I am nervous (who wasn't when they started!) And thinking maybe finding myself a planner/advisor to get my feet wet or maybe even taking some classes?
When you started did you use some kind of advisor, planner, take classes anything like that?
Any type of advice is appreciated!

Thanks in advance
Hope you are having a fantastic day!
You could start with some reading on the wiki, see the "getting started" link below. Do read the wiki article "Bogleheads Investment Philosophy" for an outline of the basics.

I think you can begin without paying for an advisor. If you post your financial details as outlined in the post "asking portfolio questions", you can get some specific suggestions for investing your money.

Do you have an IRA? Is there a plan offered at your employer, such as a 401k, 403b, 457, TSP, etc.?

I also suggest that you read one or two books on general investing. Please see the wiki article "books: recommendations and reviews".
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

dbr
Posts: 23391
Joined: Sun Mar 04, 2007 9:50 am

Re: Advisors?

Post by dbr » Fri Oct 06, 2017 4:46 pm

Andromeda wrote:
Fri Oct 06, 2017 12:18 pm
Hello!
I was lucky enough to come into some money and am really looking forward to investing it. I've been doing my best to learn and would really prefer to handle my investments personally. I must admit I am nervous (who wasn't when they started!) And thinking maybe finding myself a planner/advisor to get my feet wet or maybe even taking some classes?
When you started did you use some kind of advisor, planner, take classes anything like that?
Any type of advice is appreciated!

Thanks in advance
Hope you are having a fantastic day!
I have never used an advisor. I tried once and found that one was incompetent and the other misled me and ended up to need 1% assets under management to start in on any meaningful advice.

It is very difficult to find an advisor that will charge you a reasonable fee for time spent and not take too much of your money for too little service. Investors can't afford to pay what advisors need to stay in business.

More than that, almost all advisors are salesmen who need to sell you things you shouldn't buy.

It is far better you avoid advisors unless there is a pressing need for management help, and then one should exercise the greatest caution in doing so.

It is probably not possible to be sure you are getting good advice until you are knowledgeable enough to do it yourself.

Self education is quite possible through books, the Wiki, etc. Most classes that are not actually part of a bona-fide degree program in business and accounting are going to be come-ons operated by salesmen trying to suck in business.

User avatar
arcticpineapplecorp.
Posts: 2198
Joined: Tue Mar 06, 2012 9:22 pm

Re: Advisors?

Post by arcticpineapplecorp. » Fri Oct 06, 2017 9:01 pm

welcome to the forum!

you can start here:

https://www.etf.com/docs/IfYouCan.pdf

It's William Bernstein's free book/pamphlet 16 pages long. Will tell you much of what you'll need to know. Though that book doesn't go into taxable vs. tax advantaged. It assumes for most, they aren't even maxing out all their tax advantaged space. You didn't say how much you received, so we don't know how much of it could be tax sheltered and how much would be in taxable accounts. Speaking of which, you might want to read the page on managing a windfall:

https://www.bogleheads.org/wiki/Managing_a_windfall

You can also look here:

https://www.bogleheads.org/wiki/Boglehe ... art-up_kit

This is the bogleheads investing start up kit. I also like this:

https://www.bogleheads.org/wiki/Boglehe ... philosophy

watch the videos there by Rick Van Ness. very informative.

Finally, if you still decide after all this you want/need an advisor, I'd suggest you look at the two following webistes and only use a fee only financial planner who is a fiduciary all the time (not just with retirement assets). Find more here:

www.garrettplanningnetwork.com
www.napfa.org

Hope that helps. If you have more questions after reading, reading, and reading some more...then ask away. Plenty of helpful people here.
"Invest we must." -- Jack Bogle | “The purpose of investing is not to simply optimise returns and make yourself rich. The purpose is not to die poor.” -- William Bernstein

Ron Scott
Posts: 252
Joined: Tue Apr 05, 2016 5:38 am

Re: Advisors?

Post by Ron Scott » Fri Oct 06, 2017 9:08 pm

Andromeda wrote:
Fri Oct 06, 2017 12:18 pm
I was lucky enough to come into some money and am really looking forward to investing it. I've been doing my best to learn and would really prefer to handle my investments personally. I must admit I am nervous (who wasn't when they started!) And thinking maybe finding myself a planner/advisor to get my feet wet or maybe even taking some classes?
When you started did you use some kind of advisor, planner, take classes anything like that?
There are many aspects of handling finances where experts can be extremely helpful. I stopped doing my own taxes 15 years ago (I still do a rough draft) and I have an attorney for estate planning and a few other jobs (I try come to every meeting well prepared).

I used a financial advisor once and will never do so again. Two reasons: they're not the brightest, and they've got a hidden agenda--to make money using your money.

Read. Read. Read. This forum can be invaluable. Relax and get into it. "The Bogleheads Guide" is a great book to start with and Bogle himself will release the latest version of his classic in another week or so: https://www.amazon.com/gp/product/11194 ... DER&psc=1

There are 4 general concepts you might want to keep in the back of your mind to as you learn:
1. Understanding your own risk tolerance, for investing in stocks vs. bonds. (And learn not to give a damn what other people do.)
2. Diversification within asset classes
3. Low-cost, low-fee investing
4. Asset location (for tax efficient investing)

Finally, there is no major rush to move money into permanent investments immediately. You can park it somewhere safe and take your time to develop a plan.

Good luck.

pkcrafter
Posts: 12001
Joined: Sun Mar 04, 2007 12:19 pm
Location: CA
Contact:

Re: Advisors?

Post by pkcrafter » Fri Oct 06, 2017 10:18 pm

Andromeda wrote:
Fri Oct 06, 2017 12:18 pm
Hello!
I was lucky enough to come into some money and am really looking forward to investing it. I've been doing my best to learn and would really prefer to handle my investments personally. I must admit I am nervous (who wasn't when they started!) And thinking maybe finding myself a planner/advisor to get my feet wet or maybe even taking some classes?
When you started did you use some kind of advisor, planner, take classes anything like that?
Any type of advice is appreciated!

Thanks in advance
Hope you are having a fantastic day!
Welcome,

Boglehead Rick Van Ness is just starting up an online investing class, so have a look. Also, our Wiki has lots of information.

http://academy.financinglife.org/course ... es/2947218

https://www.bogleheads.org/wiki/Getting_started

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

User avatar
FIREchief
Posts: 1309
Joined: Fri Aug 19, 2016 6:40 pm

Re: Advisors?

Post by FIREchief » Fri Oct 06, 2017 10:27 pm

25 years ago at Megacorp, they let us listen to the radio and my favorite was G. Gordon Liddy's call in show. You may find the link interesting. What happens when you incarcerate an extremely intelligent man for four years, in a medium security prison with access to educational materials, is that they actually become even smarter. One day a lady called in and asked how to invest some money that she had. She mentioned various funds that had done this and that. The host politely told her that there is something called an S&P 500 index fund and that this was all she would need. I followed the same advice for several decades and it paid handsomely. I believe that the advice is equally valid today. Good luck!

https://en.wikipedia.org/wiki/G._Gordon_Liddy
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

Post Reply