Financial Advisor Selection?

[Gonefishin5555]

then do a structured note in the IRA which guaranteed us 12.50% percent over the timeframe of the note.

If the financial guy offered to do this you have a problem

 

[steamin rice]

I managed our investment strategies for years while we had 401k’s to invest in and did very well. We always talked about living within our means and having the ability to live off of one salary. My wife was an executive of the company she worked for, had some stock options and so did I where I worked. The grind finally got to us, over 2 decades of flying every week, on call 24 hours a day, working 40 plus days in a row during our busy season had us both wondering wtf we were doing.

My wife quit 1.5 years ago, it started as “taking a break” but after 3 months, we had the discussion that if she wanted to call it quits, have at it but you have to manage the check book. If we dip in to savings, you go back to work. I quit my job 3 weeks ago, I am “taking a break” for the rest of the year until I finally find something I want to do when I grow up. It Is amazing, when the kids are off the payroll how you can live on so much less money. We both worked our asses off for a long time, so I don’t feel guilty but I am wondering what the fuck we are doing. It is not the “normal” way of retiring or living life but we just feel the next 5 years are more important from a family perspective than our last 5. Nobody is getting any younger, including my mom.

Now to the financial advisor part of the question. We met a friends “guy“ about a year ago, talked with him multiple times before we made any commitment. I wouldn’t know how to turn my wifes’ 401k to an IRA, then do a structured note in the IRA which guaranteed us 12.50% percent over the timeframe of the note. He also has access the some private equity companies that invest in apartment buildings. He takes all his clients, takes their smaller investments and rolls them together with this PE firm and now we own apartment buildings and get the advantage of all the write offs. I never would have figure this out.

Do what works for you but I am on the Financial Advisor train for now. We are selling all the river stuff…we don’t have to but are just resetting our life goals. It will be interesting to see what is next.

Headed to the neighbors for happy hour…I might add some to this later but wanted to share.

Fuck it.

A guaranteed 12.5% return, or an expected 12.5% return?

Everyone should go with what they are comfortable with, but I would guess that your return isn't as guaranteed as you think it is.

I have some $$ tied up in private, non-traded REITs, so technically I'm a part owner of some apt buildings, office buildings, and strip malls. I'd rather have my $$ back, but private funds have a way of not wanting to liquidate in the expected timeframe...

 

[Gonefishin5555]

A structured note sounds like loaning someone money out of your IRA which is technically legal but a super bad idea. Maybe a trust deed investment but hose are the equivalent of hard money loans but again The risk you are taking makes it far from a guaranteed investment

 

[JanM1I]

I agree with this 100%

When you add up their fees and taxes on realized gains from them selling things mid year it doesn't look as good as advertised.








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Thanks for the information!

 

[BabyRay]

You might be surprised - I forget where to look, but there are some investments that pay a commission to the broker who sells them. They are disclosed in the fine print, but aren't obvious unless you know where to look. My old advisor put me into some funds that I didn't understand, and when I finally got myself educated enough, I realized that some of those private funds paid a 6-8% commission to the broker, which explained why he sold them to me. Shame on me, but at least I learned and changed course. I still have around $50k that is stuck in miscellaneous non-public investments that I can't sell.

Since this thread popped up again, I’ll reply….

We primarily use Moss Adams Wealth Advisors. They are a fee-only financial advisor, and do not earn any commissions or incentives, per their policy statement and the signed agreement. They have also never billed us for financial planning services.

We also use U.S. Bank Wealth Management for a portion of our portfolio, with the same type of fee-based arrangement.

In the 2-3 years that we’ve used both firms, the returns have been nearly identical, only varying slightly in any given quarter.

 

[bocco]

A few of my experiances:

Back in the dot com days I used Smith Barney for investments mostly because they handled the stock options for the company. I was real impressed with the fact that I was talking to a VP. It turns out they have lots of VPs just to impress people. He was great at calling me to recommend a buy but not so good at recommending when to sell. Why? Because telling me to buy is easy, just a phone to push the latest stock they were pushing. Telling me when to see would have required him paying attention to my portfolio which he only did during phone calls.

At one point my mom had a pile of cash at Chase bank. They calling her about a managed portfolio. They had her convinced so I went to talk to them. They simply had 4 risk levels and you picked one. I put 300K in a moderate risk account. I then set a watch list based on my account based on the same 300K. Guess what, they didn't do any better than I did but they kept charging every month. When the market went down, so did they. I gave them a year and the I pulled the money and moved it to Fidelty where I invested it myself.

My general opinion on financial guys is that purely for investment purposes they are redundant. Each ETF or Mutual Fund has a team of people managing the investments so why pay one more guy top of that.

 

[FCT]

Like others have said and maybe I’m doing it wrong but I love investing into myself with business and my real estate. I don’t trust people and I like having control of it all

 

[DLC]

Stock tip….

should of bought that stock @Cya bought for the AI - think it was Nvidia 2 -3 years ago!

lol

follow me for more lost opportunities !!

 

[C-Ya]

FWIW……… There is a ton of stock investing educational materials on the web. If it’s free…… you get what you paid for. I suggest subscribing to the Motley Fools newsletter. Or something as established. Your membership will include access to tutorials and other stuff.

Just for fun, after getting a bit of an education, invest an imaginary 100k into 5 stocks for one quarter. See how you do, before jumping in. Let your own common sense be your guide as to which “future” markets you want to put your imaginary investment in. This exercise will help you build confidence.

My wife and I are currently doing the above with PLTR. Mainly because we are thinking about a 250k purchase. We are just confirming what we already believe. That it will grow by 27% over the next 3 years. If it does what analysts predict, that 250k, should be worth slightly over 500k in the summer of 2027. That’s a great return.

We do not shoot for Grand Slams. But when investing in future markets, grand slams can happen. Nvidia is a perfect example. Every $19 I invested…….. turned into $5500. However, I purchased it because Motley Fool predicted it would grow by 27% over the next 3 years. Here I am, 11 years later with the best investment of my lifetime! But my initial investment was based on what it was predicted to do over 3 years, not 11. It just turned out that every 3 years, analysts continued to predict blue skies and more growth. So we kept it.

We are long term investors. We never do any form of day trading. FWIW

 

[Instigator]

FWIW……… There is a ton of stock investing educational materials on the web. If it’s free…… you get what you paid for. I suggest subscribing to the Motley Fools newsletter. Or something as established. Your membership will include access to tutorials and other stuff.

Just for fun, after getting a bit of an education, invest an imaginary 100k into 5 stocks for one quarter. See how you do, before jumping in. Let your own common sense be your guide as to which “future” markets you want to put your imaginary investment in. This exercise will help you build confidence.

My wife and I are currently doing the above with PLTR. Mainly because we are thinking about a 250k purchase. We are just confirming what we already believe. That it will grow by 27% over the next 3 years. If it does what analysts predict, that 250k, should be worth slightly over 500k in the summer of 2027. That’s a great return.

We do not shoot for Grand Slams. But when investing in future markets, grand slams can happen. Nvidia is a perfect example. Every $19 I invested…….. turned into $5500. However, I purchased it because Motley Fool predicted it would grow by 27% over the next 3 years. Here I am, 11 years later with the best investment of my lifetime! But my initial investment was based on what it was predicted to do over 3 years, not 11. It just turned out that every 3 years, analysts continued to predict blue skies and more growth. So we kept it.

We are long term investors. We never do any form of day trading. FWIW

A little luck helps too.
If your stock falls 75% your still ahead of a good return. That's great. I'm hoping to find one of those deals.
Those deals don't happen very often unless your very lucky. Luck is like Karma. It always seems to come around when you least expect it to.
Lol

 

[LuauLounge]

I buy, at this point, no reason to sell. My criteria for purchasing was I bought stock in companies that I did business with as a consumer, one that delivered good products and/or services, longevity and customer service in employees and good value. My best return wasn't anywhere near Nvidia, however, the stocks returned $0.97/share into $186.00/share with Amazon over a 25 year span. Others were Costco $32 to $850/share, Intuit $11 to $632, Home Depot, $32 to $356, Southwest $9 to $28, which was the bottom performer.

 

[sdpm]

34 years ago I went to see a Financial Investment/Management Advisor. At that time he was probably close to retirement age. He was suggested to go see by a long time friend of my parents. While we were sitting there going through everything, I got completely lost in what he was talking about. Didn't understand any of it to be honest. When he made his advisements to me, he said take a look at my portfolio and see how it has performed over the years. He asked me if I was a gambler or a slow and steady type of person. I said I don't gamble at all. I like the slow and steady. I was very impressed and satisfied and said sign me up. He told me at that time that by the time I retire at 65 1/2 and if I kept contributing this relatively modest amount of money each month, he showed me what I would have at that age. He told me that it would average 10% over it's lifetime. All I can say is that he absolutely nailed it. Over it's lifetime as of my last statement, it has averaged 10.3%. I am 64 years old now and this older gentleman has set me up for the rest of my life. Now keep in mind, I have always lived a "Thrifty" lifestyle and it looks like I will continue to do so when I retire.

On that note I have also spoke with other "go getters" in the same field. I was told that I could do much better then that. Most of these people were young and energetic but also very green. I asked them if I could see their portfolio and not one ever did. Very happy today with my decision.