If you do get an advisor, you will want one that you pay per session. Not one that invests your money for you. When they invest your money for you, their fees are so astronomical that it can literally cost you hundreds of thousands of dollars over your lifetime--and for no improvement in performance vs what you could do on your own.
If you do get an advisor, you will want one that you pay per session. Not one that invests your money for you. When they invest your money for you, their fees are so astronomical that it can literally cost you hundreds of thousands of dollars over your lifetime--and for no improvement in performance vs what you could do on your own.
To clarify a little more, in case it isn't clear. You want a fee-only advisor who will typically charge by the hour. That's assuming you don't want them to manage your money (which there is usually no need for). If by some chance you DO want them to manage your portfolio, then you should most appropriately be charged a percentage of assets under management, so that their incentive is not to screw up and lose money for you.
What you want to avoid is people who offer 'free' advice, because that usually means they are going to be paid by a third party kickback from a particular fund or insurance company, in exchange for selling particular funds or annuities.
So do what forummm says: Get someone who pays for advice by the hour, and not someone paid by commission or third-party.
If you do get an advisor, you will want one that you pay per session. Not one that invests your money for you. When they invest your money for you, their fees are so astronomical that it can literally cost you hundreds of thousands of dollars over your lifetime--and for no improvement in performance vs what you could do on your own.
To clarify a little more, in case it isn't clear. You want a fee-only advisor who will typically charge by the hour. That's assuming you don't want them to manage your money (which there is usually no need for). If by some chance you DO want them to manage your portfolio, then you should most appropriately be charged a percentage of assets under management, so that their incentive is not to screw up and lose money for you.
What you want to avoid is people who offer 'free' advice, because that usually means they are going to be paid by a third party kickback from a particular fund or insurance company, in exchange for selling particular funds or annuities.
So do what forummm says: Get someone who pays for advice by the hour, and not someone paid by commission or third-party.
I would actually say that there is almost no scenario where I recommend someone pay an advisor a percentage of their funds to invest money for them. Those people are almost always getting screwed. If you do want to pay an advisor to manage your funds, the only one I could recommend would be Vanguard, with their 0.3% fee. And even then I would suggest just using Vanguard's free online advisor tool instead.
Info on cost of fees:
https://personal.vanguard.com/us/insights/investingtruths/investing-truth-about-cost
https://investor.vanguard.com/mutual-funds/low-cost
Free online advisor:
https://personal.vanguard.com/us/funds/tools/recommendation
Agree. Hence the "which there is usually no need for".
It is good to get a second opinion.+1
It is good to have someone go through your stuff, ask questions about it, and make suggestions.
It is good to have someone who gives you their opinion on what is happening and how to take advantage of it.
I use an adviser, and I know that they have saved me much more than they have cost.
It doesn't hurt to have a pro tell you how they catch big fish.Great idea, especially if one can find a pro who actually has caught and continues to catch big fish (aka has and continues to make millions investing his/her own money). Beware of advice from someone who makes more money from clients than his/her own investments (aka someone who stands on the shore and tells fish stories).
And even then I would suggest just using Vanguard's free online advisor tool instead.
I use FA to invest in public securities and I pay a percentage of the fund as fee. I work with public companies so having an FA that manages my money alleviate potential insider trading issues. Otherwise, on every single purchase/disposition, I have to report and get clearance before I can execute a trade.
I am also outside the US, so the FA is really helpful on other stuff like taking care of international banking needs and other related matters.
I think once I am out of the current industry or back to the US, I will reassess whether I still need the FA (I am thinking not).
The price one has to pay to work in a particular industry and as an expat.
I use FA to invest in public securities and I pay a percentage of the fund as fee. I work with public companies so having an FA that manages my money alleviate potential insider trading issues. Otherwise, on every single purchase/disposition, I have to report and get clearance before I can execute a trade.
I am also outside the US, so the FA is really helpful on other stuff like taking care of international banking needs and other related matters.
I think once I am out of the current industry or back to the US, I will reassess whether I still need the FA (I am thinking not).
The price one has to pay to work in a particular industry and as an expat.
Hi deborah - just wondering, if there was a forum like this around when you were first starting out, would you have considered doing it without an adviser?When I was "starting out" I didn't have an adviser, nor for many years afterwards.
I use FA to invest in public securities and I pay a percentage of the fund as fee. I work with public companies so having an FA that manages my money alleviate potential insider trading issues. Otherwise, on every single purchase/disposition, I have to report and get clearance before I can execute a trade.
I am also outside the US, so the FA is really helpful on other stuff like taking care of international banking needs and other related matters.
I think once I am out of the current industry or back to the US, I will reassess whether I still need the FA (I am thinking not).
The price one has to pay to work in a particular industry and as an expat.
Why not just by VT? Who can possibly accuse you of insider trading if you're buying the whole globe? It's probably what you should be buying anyway.
I use FA to invest in public securities and I pay a percentage of the fund as fee. I work with public companies so having an FA that manages my money alleviate potential insider trading issues. Otherwise, on every single purchase/disposition, I have to report and get clearance before I can execute a trade.
I am also outside the US, so the FA is really helpful on other stuff like taking care of international banking needs and other related matters.
I think once I am out of the current industry or back to the US, I will reassess whether I still need the FA (I am thinking not).
The price one has to pay to work in a particular industry and as an expat.
I hope you're not in one of those ILAS/life insurance wraps.
Hello, not too close to FIRE but trying step by step... Wondering do you use financial advisers or do everything on your own?
I would like to consult one or two about whether I am close to the right decisions, compare and decide what the best route will be.
What do you do? How do you make most of your decisions? TIA
PS. I am in Chicago, if you have anyone to refer me to, pls pm me.