Consumer debt payment to income ratios & housing inventory to sales ratios

[disneysteve]

He will be controlling my inheritance money.

And he will do this totally free of charge? I find that very hard to believe.

[swanson719]

Rerod, no one looks out for you better than you. How has this guy done himself? Meaning, ask to look at his portfolio. Any Financial Adviser worth his salt uses their personal portfolio as an example of what they can do given time. My FA and I have very similair portfolios - mine is a little more aggressive than his since I'm about 10 years younger. We sat down and went over what I wanted to do, and how he could do that for me. I asked for some examples, and he showed me his and some of the other advisers portfolios, based on their age and what they did when. If this guy can't do the same for you, then it's all bad. Just because he has alphabet soup after his name, doesn't mean he knows what he's doing. There are a lot of broke finance professors out there, and a lot of millionaire entrepreneurs. I'd want proof this guy can do what he says he can before I let him handle all of my inheritance money.

[rerod]

Rerod, no one looks out for you better than you. How has this guy done himself? Meaning, ask to look at his portfolio. Any Financial Adviser worth his salt uses their personal portfolio as an example of what they can do given time. My FA and I have very similair portfolios - mine is a little more aggressive than his since I'm about 10 years younger. We sat down and went over what I wanted to do, and how he could do that for me. I asked for some examples, and he showed me his and some of the other advisers portfolios, based on their age and what they did when. If this guy can't do the same for you, then it's all bad. Just because he has alphabet soup after his name, doesn't mean he knows what he's doing. There are a lot of broke finance professors out there, and a lot of millionaire entrepreneurs. I'd want proof this guy can do what he says he can before I let him handle all of my inheritance money.

Thats a great suggestion. He has given me a list of references who I have contacted and are all very happy with his service.

His resume:
================================

Chair of the Department of Finance at the University of Iowa from 1981 to 1986

Chair of the Board of the University of Iowa Credit Union from 1970 to 1986

Acting Treasurer of the University of Iowa from 1986 to 1988

- Wrote the University of Iowa's investment policy statement
- Was directly responsible for managing endowment funds worth about $20 million
and for supervising the investment of operating funds of over $200 million

Member of UI Funded Retirement and Insurance Committee, 1989 - 1995

Knowledgeable and Recognized Investment Professional

Holds Ph.D. in Finance from Michigan State University

Taught Security Analysis at the University of Iowa for 30 Years

Became a Chartered Financial Analyst (CFA) in 1973

Member of the Iowa Society of Financial Analysts and the Association for Investment
Management and Research

Lead co-author:
Fundamentals of Investments, 4th edition, West Publishing, 1988
Asset-Liability Management for Credit Unions, 2nd edition, Kendall- Hunt, 1994

Author: Fundamentals of Finance, McGraw-Hill, 1980
as well as numerous articles in academic and professional publications
including the Journal of Finance, Financial Analysts Journal, Journal of Portfolio Management, and Journal of Futures Markets.

President of Midwest Finance Association, 1983-84

========================================

And yes.. He is a millionaire. Helped his Dad become one. He is retired but continues his own business because he loves it and "wants to give it back"

I honestly feel lucky to know him and to receive his services.

[boosami]

Have you informed your advisor that the money is going to be used for your own retirement? It doesn't sound like it from his suggestion. At 20+ years away from retirement, your portfolio should be mostly (80-90%) stocks.

[disneysteve]

Have you informed your advisor that the money is going to be used for your own retirement? It doesn't sound like it from his suggestion. At 20+ years away from retirement, your portfolio should be mostly (80-90%) stocks.

This is my problem. His resume sounds very impressive but his advice doesn't. Stocks are at historic lows and he is advising someone with over 20 years until retirement to hold nearly everything in fixed income investments. I'd like to hear his answer to why he is suggesting that course of action.

[wincrasher]

Steve,

He's just following the industry line like the rest of the lemmings. Everyone is talking safety right now. Buy and hold is dead for the time being. People are suing their advisors left and right, so their advice is getting alot more conservative. ETF's, Treasuries and municipal bonds are all the rage.

[wincrasher]

By the way,

Bernie Madoff has an impressive resume too.

[rerod]

By the way,

Bernie Madoff has an impressive resume too.

LOL

Yes.. But did Madoff stop charging his clients for his service's during the latest recession? Richard Stevenson did.

Have you informed your advisor that the money is going to be used for your own retirement? It doesn't sound like it from his suggestion.

Yes.

At 20+ years away from retirement, your portfolio should be mostly (80-90%) stocks.

That's pretty aggressive. But I tend to agree because I do feel you can time a long term market.