[TNLAKEPANDA]

An interesting article showing some statistics on who uses a financial advisor for self-directed IRA's and reasons given why they do or do not.

Why Don't Self-Directed Investors Use a Financial Advisor?

[Gary7]

I don't use a Financial Advisor ... I use a Financial Planner .... which covers a broad spectrum of our financial needs.
Even if I did (which I don't) have the knowledge of the complex world of investments, I do not have the required daily attention to the global economic happenings that can affect my portfolio ... nor the immediate access to the financial levers.
I also am not good at taking a dependent / non-biased view of investments ... not wanting to sell because I "think" it will turn around.
I also hear stories from people who direct their own investments ... I hear all of the great stories about what they made .... not too many stories about the missed opportunities or losses ... that actually happened.
That's my opinion. Others may be fortunate to be able to do what I can't do. :-)

[tcxr750]

I've been retired more or less for 15 years. I've had four different Financial Advisors. I imagine that with research and planning I could put together a portfolio of investments that matches what a Financial Advisor creates, minus his fees. You can go to Vanguard and Fidelity websites and use information that creates a suggested portfolio based on risk tolerance.
Perhaps, asking others what their Advisor/Planner has done for them may be useful.
My first advisor was well regarded until the Tech Bubble of 2000. Only 135 clients in on the lawsuit. Also, being on Barron's Top 100 list isn't always a guarantee "that past performance will indicate future results".
Like buying a car you want to do the research before making the commitment.

[TomW]

If they knew how to make money, that's what they would be doing instead of trying to sell themselves as 'advisors.' No confidence in any of them.

[tcxr750]

Remember, they make money with fees and commissions no matter what happens to yours.

[JoMar]

Have two guys, two different firms, they work together and the portfolio has performed well.....and I play golf. The one guy has been with me for 25 years, the other guy for 15.

[Shimpy]

Originally Posted by TomW

If they knew how to make money, that's what they would be doing instead of trying to sell themselves as 'advisors.' No confidence in any of them.

Exactly.....Just like these guys that spend for advertising their tapes on how to get rich.

[Wandatime]

I know there are people out there that know more than us. I am willing to learn from them. I am not willing to be taken advantage of by them. And therein lies the rub.

[Cedwards38]

There are people who don't know what the market is going to do.

There are people who don't know that they don't know what the market is going to do.

And there are people who don't know what the market is going to do, but whose livelihood depends on convincing the public that they do know what the market is going to do, and charge you handsomely for that ruse.

But let me say, if you just know that you won't take the time to do your own analysis (and trust me, it doesn't take that much time to pick out some good index funds) then by all means pay someone to do it for you.

[manaboutown]

In my experience most of the stock brokers I have known since the late 1950's have been commission driven. They do not eat, or remain employed, unless they sell. Many want to obtain the largest commissions they can get, given the opportunity, like car salesmen.

A few years ago I asked my primary broker who I have known almost 25 years which client of his was most successful at investing. He hardly paused before he said a bookie he knew who timed his investments - in and out - of gambling stocks.

[TomW]

We retirees have to get paid regardless of market direction. I know of two ways to do that and one is options which I know nothing about. The other is dividends from solid payers. There may be others but I prefer to swim in my lane.

[RayinPenn]

I have always invested in vanguard low cost index funds, dividend paying stocks of firms whose business I understand. I do not watch the market and like Warren Buffet said I buy a good stock at a good price and hold it forever. Why would I need an costly investment advisor who may try to steer me into high commission low yield investments or worse yet insurance products?

I do not chase returns because that is folly, I buy and hold.
I urger you to read this article it is some oF the best advise ever written

http://www.transparentinvesting.com/...wholestory.pdf

[RayinPenn]

Originally Posted by JoMar

Have two guys, two different firms, they work together and the portfolio has performed well.....and I play golf. The one guy has been with me for 25 years, the other guy for 15.

Have you plotted your net returns against the S&P? Otherwise how can you say that your portfolio has done well? Study after study says 99.9% of investors both professional and personal won't beat the market over time.


We have done well with a simple portfolio of blue chips, index funds and Dividend paying international mutual funds (IDV).
And it didn't cost me a dime..

[manaboutown]

Originally Posted by RayinPenn

I have always invested in vanguard low cost index funds, dividend paying stocks of firms whose business I understand. I do not watch the market and like Warren Buffet said I buy a good stock at a good price and hold it forever. Why would I need an costly investment advisor who may try to steer me into high commission low yield investments or worse yet insurance products?

I do not chase returns because that is folly, I buy and hold.
I urger you to read this article it is some oF the best advise ever written

http://www.transparentinvesting.com/...wholestory.pdf

Pretty well sums up my philosophy which has delivered for me quite well over the last 50 years. Thanks!

[er9027]

Very Smart in My Opinon!