Quote:
Originally Posted by golfing eagles
Unless you have a seat on the stock exchange, in one way or another you have to utilize a "broker", even if it is Charles Schwab. I think what is being discussed here falls into the category of "wealth management" or "financial advisors".
Which brings up another point. While these guys make money regardless of performance, how many individual investors have more knowledge than the professionals, not to mention the data and analysis of a large team? Unless you're just going to dump everything into a fixed asset, they are probably worth their 3/4%
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I use a brokerage house to make trades, I don't use a broker.
I have more knowledge than the professionals that used to handle my friends accounts. Also, I would be a more knowledgeable professional investor than a professional working at a brokerage house. Why? Because I know what I'm looking for, I know my risk level, and I know what I want to invest in. I don't need somebody I don't know to tell me how to invest. For example, you mentioned a large team of professionals, I will never go with a large team, which means I will never go down the active fund route, mine are all index funds if not individual stocks.
Also, all my life I have ignored bonds and the last couple of decades, never been in a target or balanced fund. Why? They don't make you money. When I'm fully invested, I go for the index funds and stocks that I have been in for 1 or 2 decades that keep making me 30+% in good times or in stocks that make me more than that. Then the last few years, I get out when things don't look good and get back in when I think I can make good money, if its a sideways market, I'll be in money market funds until its time to invest.
I used to keep my portfolio intact during the 3 big downturns in the last 24 years and it worked out to stay in. Now, I don't want to wait years for my portfolio to recover.
Will a team of brokers direct me to do this? No way.