I just can't decide whether to get a financial advisor or not

[Ralph]

Not only are you paying for "convenience" but you're also getting sub-par portfolio performance as a result. You're literally paying more and getting less in return. It's ridiculous. If your goal is to grow wealth, stay far away from paid advisors unless you have some unique situation (like you do jenn_jennn) that actually warrants it.

There's a very good financial podcast I listen to (Afford Anything by Paula Pant) and they sometimes say that most people should just put 100% of their money into VTI and be done with it. If you're investing for the long term, that is the simplest possible way to go and will get you a great return over a few decades with very minimal expense.

Had to google VTI, sounds good! The advisor’s main pitch to me is he thinks I am taking more risk than I need to, and he did mention writing “notes” which are basically groups of options as I understand it, that they would usually cover under the aum fee. A decent pitch since it does feel queasy being so exposed to the market, yet my safe part in cash feels pretty suboptimal too!

[disneysteve]

I have never been a money man so DIY scares me.

DIY investing is quite simple. There are a zillion options out there but you can very safely ignore all but a handful of them. Look up info on the 2-fund or 3-fund portfolio. That's truly all you really need.

Forget about paying someone thousands of dollars a year. Ask your questions here for free. There are many very successful DIY investors in this group including numerous millionaires.

[srblanco7]

Had to google VTI, sounds good! The advisor’s main pitch to me is he thinks I am taking more risk than I need to, and he did mention writing “notes” which are basically groups of options as I understand it, that they would usually cover under the aum fee. A decent pitch since it does feel queasy being so exposed to the market, yet my safe part in cash feels pretty suboptimal too!

With the caveat that I'm not an expert (or even a novice) as it relates to options trading - this has the feel of an advisor adding complexity to a portfolio when it's not necessary. And as I recollect, it may limit your downside but will also likely limit your upside (via fees paid for options contracts as well as the need for liquidity if you need to exercise options). Find a portfolio allocation model that you can live with (we're at approximately 70% equities and 30% bonds/short term treasuries). The 30% represents 10 years of expenses as there are very few periods (e.g., the great depression and the great recession) when equity returns over a 10 year period are not positive.


And the statement "usually cover under the AUM fee" makes me twitch. If it's not in writing their word doesn't mean squat.

[Ralph]

Picked up a very good for me book, The 5 Mistakes Every Investor Makes and How to Avoid them, by Peter Mallouk, apparently a pretty big financial advisor who started the big company Creative Planning.

He says they are:
1. Market timing
2. Active trading
3. Misunderstanding performance
4. Letting yourself get in the way
5. Working with the wrong advisor
That sure sounds spot on to me!

Also, I was talking to someone who uses Fidelity for a flat fee of $750 per quarter. Two consultations per year. That is closer to what I was thinking is a fair price. My younger brother does it himself, but he is way more into it than I am.

[disneysteve]

5. Working with the wrong advisor

Gee, a financial advisor is recommending you work with a financial advisor. Can you say BIAS?

Also, I was talking to someone who uses Fidelity for a flat fee of $750 per quarter.

$3,000/year for worse performance than I can get on my own? No thanks.

[Ralph]

Found another excellent book, The Psychology of Money by Morgan Housel. Very readable and useful. Right up my alley.

[Ralph]

Gee, a financial advisor is recommending you work with a financial advisor. Can you say BIAS?



$3,000/year for worse performance than I can get on my own? No thanks.

The main thing I am looking for is to make sure I make the right moves. Roth conversions, mainly tax stuff.

[LivingAlmostLarge]

I think at least it's a flat fee and if you want do it a year