77

If you had a 50%+ roi trading opportunity, would your first response be to patiently ring up strangers and sell it to them? Big hedge funds fight each other to outrun the S&P by a few percentage points. Ray Dalio's pure Alpha Fund, which is literally closed to new investors has gained an annualized 12.5%. Think about that for a second. Someone with a (...


60

Typical Human Advisor: Advantages: They can recommend funds and allocations that fit to your portfolio. Disadvantages: Those who are just fund salespeople in disguise will usually recommend poor-performing funds for higher commission pay. Their advice will not be much different from random person internet advice. When your portfolio drops, they still get ...


59

Whether your financial status is considered "OK" depends on your aspirations. You aren't spending more than you earn and have no debt. That puts you in the category of OK in my book, but the information in your post indicates that you would benefit from some financial advice--100 grand sounds like a lot of money to have in a bank unless you are on the ...


52

You want a fee-only advisor. He charges like an architect or plumber: by the hour or some other "flat fee". That is his only compensation. He is not paid on commission at all. He is not affiliated with any financial services company of any kind. His office is Starbucks. He does not have a well lit office like the commission broker down the street. He ...


52

If you have $1 million, it makes no sense to pay a 1% of the $1 million annually for asset management on only $500k (the brokerage account). That is basically paying 2%. I agree with the other answers here, but they seem to assume a 1% fee based on the assets under management, which is not the situation you describe. I would refuse the asset management. ...


44

People ... are nearly twice as likely to ... feel confident Great, confidence is amazing. That and $5 will buy you a cup of coffee. 44% [who hired a pro] have $100K or more [vs.] 9% of DIYers There's no way to examine these numbers without a link to the source, but it stands to reason that if you have a plan that you're sticking to you'll save more ...


35

After doing it myself for 35+ years, I considered turning it all over to an asset management company last year. After meeting with a number of them, I found a knowledgeable financial adviser that I really liked and came close to doing it. The 1.00 to 1.25 pct annual fee troubled me because in this era of deep discount commissions, that's a nice chunk of ...


30

There are several ways you can get out of paying your student loans back in the USA: You become disabled and the loan is dismissed once verified by treating doctor or the Social Security Administration. You become a peace officer. You become a teacher; generally K-12, but I have heard from the DOE that teachers at state schools qualify as well. So the "...


23

The risk is that the "free" service may be supporting itself by steering customers to products which part a sales commission, or that are products of the company/bank that employees then, rather than those which are actually best for the customer. If you go in with a skeptical outlook, watching for this sort of conflict of interest, it's possible they ...


21

American Funds? Also look at their annual expenses. And this is from the AMCAP fund, a "growth fund" in their offering, the expenses over 10 years for a $10,000 investment: To put this in perspective, my 401(k) uses Vanguard, and for their S&P fund, VIIIX, offered only to large companies. It has a .02% expense. On $10,000, that's $2 per year. (1% ...


20

The thing that is a red flag for me is your statement of "investing in life insurance". No. You probably need to fire her. Investments are great, and life insurance is necessary. Mixing the two is bad, and very bad. The right solution is to buy Level Term Insurance. It is pretty darn cheap. The level part is the number of years the premiums will ...


18

Liquidity Say you have $50k in student loan debt. You come into a large amount of money and throw $10k at it. Yes, it's now down to $40k, saving you a lot of money in interest over the long run, but it's money you can no longer 'use'. Now if you invest that same $10k instead, you still potentially have access to it if needed. Paying $10k towards a debt ...


18

Let me start with something you might dismiss as trite - Correlation does not mean Causation. A money manager charging say, 1%, isn't likely to take on clients below a minimum level. On the other hand, there's a long debate regarding how, on average, managed funds don't beat the averages. I think that you should look at it this way. People that have ...


18

This is a very opinion based question, but it has a lot of merit. IMHO, you do not need a FA. You guys have done really well up until this point and you are probably astute at picking mutual funds and riding out the inevitable lows. The thing you have to be careful with FAs is that the fees do not stop at 1%. Lets say your FA recommends MDLHX, which ...


17

A few red flags to me: I searched the company name in Japanese, and there are absolutely zero hits in Japanese. Not a one. That is bizarre. Their website is in English only. That is also, to me, bizarre. There are very few businesses in Japan that can afford to be solely based on foreign income. Even foreign financial institutions located in Japan are ...


16

There is no free lunch. "Free" can cost you a small fortune over time. If you wish to sit through a free pitch you may as well go to a time share seminar. Just keep your hands in your pocket and don't sign anything. In the end, you will be best served spending the time it will take to learn to manage your own money. Short term, spend a few hundred ...


15

I'm of the belief that, long term, fees eat away at your performance. If you chose an ETF, say VOO, with its .03% expense, and a short term bond fund or money market fund, you are going be ahead, long term. It's pretty much accepted fact that money managers are not beating the average long term. For you to simply do as well as I do (S&P less .02%) ...


15

Couple of clarifications to start off: Index funds and ETF's are essentially the same investments. ETF's allow you to trade during the day but also make you reinvest your dividends manually instead of doing it for you. Compare VTI and VTSAX, for example. Basically the same returns with very slight differences in how they are run. Because they are so ...


15

From what I have seen, every retail financial advisor who charges as a percentage of wealth is charging what I would consider to be an unreasonable fee and I continue to be amazed how many people pay this. Somehow 1% or more of your assets every year sounds like a reasonable amount while the dollar equivalent would have people running out of their offices. ...


15

They appear to be a legit company, however there's nothing to say the person you talked to has anything to do with them. OSAKA, Japan--(BUSINESS WIRE)--Japanese Wealth Management company Saikyo Sakura Assets has commented on the recent rally in Hong Kong stock markets. The Hang Seng Index surged over 1.5 percent with 47 out of the 50 constituent stocks ...


15

kiss-o-matic's answer really covered it. There's basically 0 chance this place is real. The address for their "headquarters" in Osaka doesn't seem to exist, and for their website and social media to not only defaulting to English but not have Japanese as an option? As obvious as it is based on the other info (and really, just getting cold called is enough), ...


14

I have never double-answered till now. This loan can't be taken out of context. By the way, how much is it? What rate? "Debt bad." Really? Line the debt up. This is the highest debt you have. But, you work for a company that offers a generous match, i.e. the match to your 401(k). Now, it's a choice, pay off 6% debt or deposit that money to get an immediate ...


14

What's "reasonable" is largely dependent on what you're expecting them to do for you. Nerd Wallet has a decent article about the cost structures of various FA arrangements. What you're describing from those 2 FA's you interviewed seems to be option 2, which is essentially an annual retainer. What you paid for originally was option 4 - a flat fee for a plan, ...


14

Beware: two-handed financial advisor Nobody seems to have picked up on this. But the "financial advice fee-based advisor and the "asset management" commission-based advisor are the same guy. This doesn't work. Believe me, I've tried. The interaction went like "I'm looking for a fee-based advisor". "Okay, give me $2000.” Heh, literally. Over the ...


13

If someone recommends a particular investment rather than a class of investments, assume they are getting a commission and walk away. If someone recommends whole life insurance as an investment vehicle, walk away. Find someone whose fiduciary responsibility is explicitly to you as their client. That legally obligated them to consider your best interests ...


13

When your dream car is not just 200 times your disposable income but in fact 200 times your whole monthly salary, then there is no way for you to afford it right now. Any attempt to finance through a loan would put you into a debt trap you won't ever dig yourself out. And if there are any car dealerships in your country which claim otherwise, run away fast....


12

Whole Life is just an insurance product and an investment product wrapped into a single package. The only advantage is that since you're forced to make payments to maintain the insurance, you're forced to invest. It's really just the "Christmas Club" or payroll-deduction idea, though it tries to claim otherwise. If you're unable to make yourself set aside ...


12

Decades ago I read a brochure put out by Vanguard titled "The Triumph of Indexing". It focused on the returns of managed funds vs a low cost S&P index. The concept to grasp is that if the index return is 10% (for example), and fees are 1%, the average return to investors is 9%. 1% to the 'house'. I took that to heart and stuck with the index. VIIIX ...


11

A percentage fee advisor will not have your best interests in mind. It's equivalent to usury, in my opinion. A fixed-fee (or fee-only, or flat fee) financial planner is your best bet. There are several similar questions on this web site that may help you with your search.


10

Any fee based financial adviser should be able to help you. I don't think you need to worry about finding a 401K specific adviser. I'm not even sure that's a thing. A good place to start is the National Association of Personal Financial Advisors. The reason I specifically mentioned a fee based adviser is that the free ones are working on sales commissions, ...


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