Financial advisor recommendations - Tilted Forum Project Discussion Community

MontanaXVI · 01-18-2007, 04:58 AM

I was just wondering, I have been at a new job just over a year now (left last job after 12+ years for this one) it has tremendous money making potential, not to mention training of an actual skill that I could use elsewhere if anything was to happen at this job which is why I had to make the move after such a tenure at the old job, but anyway back to the topic...

With the money making potential at the new job (high 5 figures, depending on how much OT I work, 6 figures is not out of the question) the significant other, is almost done with her masters degree and a possible raise at her job (also very high 5 figures) would it be bad for me to look into getting a financial adviser or read up what I can online and research my own investments etc? I do have a small savings, and an IRA I rolled over from the old job, but I just really have no idea what I should be looking for at my age or what potential my money has to earn me over time.

I am young still in my mind (30 years) but we don't have a house so I feel that should be our first priority, but I really wanna start socking money away so that it can work for me and make my later years (and hers) a good time for both of us and allow us the financial freedom to do just about whatever we want and not be worried about having money to do the simple things like take nice vacations/cruises/trips etc as we get older.

What type of suggestions, or options should I look into?

Thanks for the input.

The_Jazz · 01-18-2007, 06:45 AM

The only longterm investment that is guaranteed to grow over time is real estate. Any sort of "bubble burst" that you experience is short term, and the housing market will always rebound, although it may take a couple of years. Given that there are several bubbles that have already burst, you may find some deals in your area, wherever that may be. However, if you expect that you'll have to move in the next year or so, renting may be a better option.

Beyond that, max out your 401k every year without fail. It will start small but once it's had 10 years to grow, you'll be amazed at how big it is.

Call a real, professional financial advisor, like Northwestern Mutual. They can really give you a detailed plan based on what you want.

iccky · 01-18-2007, 10:40 PM

The best advice I've had is to find a fee-only financial advisor. Most advisors are basicaly salesmen; they get commissions for selling certain stocks. They may be good people, but their financial incentives mean they don't have your best interests at heat.

Check out this article:

http://www.fool.com/news/foth/2002/foth020401.htm

Keep in mind as well how much the advisor is costing you, and what that does to your overall returns. Doring as well as the market means making about 10% a year. If your advisor is charging you 1% of your portfolio a year, you have to make 11% to do as well as you would placing everything into index mutual funds or ETFs.

The_Jazz · 01-19-2007, 08:00 AM

That's a pretty good article, but I think that I need to point out that there's a big difference between a stock broker and a financial advisor. The stock broker just sells stock. A financial advisor may sell stock as a part of an overall plan but typcially will refer you to a broker for stock ideas.

Also, anyone who gets commission only for certain stocks is probably not on the up-and-up. They should get paid for every transaction, not just the ones that are currently being pushed.

Advisors and brokers are both there to make money themselves, not out of the goodness of their hearts. If you aren't getting good advice, move your portfolio, but don't begrudge them their right to get paid. Yes, they should add value, but they should also get paid for that value.

iccky · 01-20-2007, 04:45 PM

Quote:

Originally Posted by The_Jazz

Advisors and brokers are both there to make money themselves, not out of the goodness of their hearts. If you aren't getting good advice, move your portfolio, but don't begrudge them their right to get paid. Yes, they should add value, but they should also get paid for that value.

Certainly, but the question is whether the advisor is being paid for advice or for making trades. If they're getting paid for making trades, they have a financial incentive to get you to make a lot of trades, even when your best interest might be in sinking everything into a low-cost mutual fund and letting it sit there for years.

Fee-only financial planners have no such incentive: they make the same amount of money no matter how many trades their advice involves, so their only incentive is to give you good advice so that you'll come back for more.

Update: Here's another good article about how to choose a financial planner, with a balanced summary of the commission vs. fee-only debate.

http://www.ricedelman.com/planning/chooseadvisor.asp

01-18-2007, 04:58 AM	#1 (permalink)
MontanaXVI Junkie Location: Go A's!!!!	Financial advisor recommendations I was just wondering, I have been at a new job just over a year now (left last job after 12+ years for this one) it has tremendous money making potential, not to mention training of an actual skill that I could use elsewhere if anything was to happen at this job which is why I had to make the move after such a tenure at the old job, but anyway back to the topic... With the money making potential at the new job (high 5 figures, depending on how much OT I work, 6 figures is not out of the question) the significant other, is almost done with her masters degree and a possible raise at her job (also very high 5 figures) would it be bad for me to look into getting a financial adviser or read up what I can online and research my own investments etc? I do have a small savings, and an IRA I rolled over from the old job, but I just really have no idea what I should be looking for at my age or what potential my money has to earn me over time. I am young still in my mind (30 years) but we don't have a house so I feel that should be our first priority, but I really wanna start socking money away so that it can work for me and make my later years (and hers) a good time for both of us and allow us the financial freedom to do just about whatever we want and not be worried about having money to do the simple things like take nice vacations/cruises/trips etc as we get older. What type of suggestions, or options should I look into? Thanks for the input. __________________ Spank you very much

01-18-2007, 06:45 AM	#2 (permalink)
The_Jazz Asshole Administrator Location: Chicago	The only longterm investment that is guaranteed to grow over time is real estate. Any sort of "bubble burst" that you experience is short term, and the housing market will always rebound, although it may take a couple of years. Given that there are several bubbles that have already burst, you may find some deals in your area, wherever that may be. However, if you expect that you'll have to move in the next year or so, renting may be a better option. Beyond that, max out your 401k every year without fail. It will start small but once it's had 10 years to grow, you'll be amazed at how big it is. Call a real, professional financial advisor, like Northwestern Mutual. They can really give you a detailed plan based on what you want. __________________ "They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety." - B. Franklin "There ought to be limits to freedom." - George W. Bush "We have met the enemy and he is us." - Pogo

01-19-2007, 08:00 AM	#4 (permalink)
The_Jazz Asshole Administrator Location: Chicago	That's a pretty good article, but I think that I need to point out that there's a big difference between a stock broker and a financial advisor. The stock broker just sells stock. A financial advisor may sell stock as a part of an overall plan but typcially will refer you to a broker for stock ideas. Also, anyone who gets commission only for certain stocks is probably not on the up-and-up. They should get paid for every transaction, not just the ones that are currently being pushed. Advisors and brokers are both there to make money themselves, not out of the goodness of their hearts. If you aren't getting good advice, move your portfolio, but don't begrudge them their right to get paid. Yes, they should add value, but they should also get paid for that value. __________________ "They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety." - B. Franklin "There ought to be limits to freedom." - George W. Bush "We have met the enemy and he is us." - Pogo

01-18-2007, 10:40 PM	#3 (permalink)
iccky Psycho Location: Princeton, NJ	The best advice I've had is to find a fee-only financial advisor. Most advisors are basicaly salesmen; they get commissions for selling certain stocks. They may be good people, but their financial incentives mean they don't have your best interests at heat. Check out this article: http://www.fool.com/news/foth/2002/foth020401.htm Keep in mind as well how much the advisor is costing you, and what that does to your overall returns. Doring as well as the market means making about 10% a year. If your advisor is charging you 1% of your portfolio a year, you have to make 11% to do as well as you would placing everything into index mutual funds or ETFs.