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Message
1
Posted on 3/29/18 at 12:45 am to white perch
Already have Robinhood, but it's not good for someone like me that needs any sort of guidance (unless I've totally missed a feature set).
Posted on 3/29/18 at 5:02 am to S1C EM
If you trust the guy and feel he will give you good guidance it’s worth sitting down and hearing him out.
I’ve seen a lot of individual investors trying to be cheap really screw themselves and cost them more than they would have paid for an advisor in the first place. -sure you can get asset allocation for 10 bps at betterment but an advisor that is worth his/her salt is going to be doing a lot more than asset allocation.
I’ve seen a lot of individual investors trying to be cheap really screw themselves and cost them more than they would have paid for an advisor in the first place. -sure you can get asset allocation for 10 bps at betterment but an advisor that is worth his/her salt is going to be doing a lot more than asset allocation.
This post was edited on 3/29/18 at 5:04 am
Posted on 3/29/18 at 6:34 am to AugustaTiger
Well said. There is a reason why the market has returned around 9% and the individual investor has returned around 3%.
Posted on 3/29/18 at 6:42 am to AugustaTiger
Good points. Thank you, sir. 
To the point that the other poster made about using Robinhood, I suppose that does offer the ability to buy into funds I was considering like Vanguard's information tech ETF, the VGT, and others. But it won't offer the tax-loss harvesting or rebalancing that Betterment would do or that a financial advisor could possibly offer.
BTW, my friend said their fee ranges from .75 to 1.5% and decreases as the balance increases. Seems high, but still will probably hear him out.
To the point that the other poster made about using Robinhood, I suppose that does offer the ability to buy into funds I was considering like Vanguard's information tech ETF, the VGT, and others. But it won't offer the tax-loss harvesting or rebalancing that Betterment would do or that a financial advisor could possibly offer.
BTW, my friend said their fee ranges from .75 to 1.5% and decreases as the balance increases. Seems high, but still will probably hear him out.
Posted on 3/29/18 at 6:49 am to S1C EM
1.5 is high. Typically 1.0 until you get to one or two million. Some also have a tiered fee structure, the highest fee is 1.25. How much money are we talking here? $0-$50k or $50k-$100k?
Posted on 3/29/18 at 7:17 am to Janky
$30k
Posted on 3/29/18 at 7:43 am to S1C EM
1.25-1.0 would accept. Will you need this money in the future? Is this your emergency reserve?
Posted on 3/29/18 at 7:48 am to Janky
May need a little of it in a couple years for some home improvements. May not, though.
Definitely not an emergency stash or anything. I've got several other thousand to go through before I'd need this stack.
Definitely not an emergency stash or anything. I've got several other thousand to go through before I'd need this stack.
Posted on 3/29/18 at 7:54 am to S1C EM
Then I would consider an allocated etf and forget about it. You don’t need to pay someone for that.
Posted on 3/29/18 at 7:57 am to S1C EM
quote:
BTW, my friend said their fee ranges from .75 to 1.5% and decreases as the balance increases. Seems high, but still will probably hear him out.
That's very high.
I'd point out that while the previous poster did identify that individual investors return less than advisors, advisors returned less than S&p500 and they almost always do
Advisors for someone who isn't high wealth are helpful mostly to help create a retirement plan and execute that plan. If you aren't near that point, some quick googling on asset allocation in major funds/etf is the smart way
The people who get bad returns either leave money out of the market or think they're Warren buffet and try picking stocks themselves... And fail
This post was edited on 3/29/18 at 8:01 am
Posted on 3/29/18 at 8:06 am to GenesChin
They do but not by that much. An advisor will invest with risk management in mind as well. You can buy the index and be fine if you never sell it, but my previous post shows that doesn’t happen. I my opinion a steady growth rate is preferable to giant swings.
Posted on 3/29/18 at 8:16 am to Janky
quote:
Then I would consider an allocated etf and forget about it. You don’t need to pay someone for that.
Okay, because I'm a dumbass with this, what is an example of what you're talking about? Are you talking a single ETF (like the VGT) or are you talking a more diversified set of ETFs as in what Betterment was suggesting?
I could totally buy a Vanguard ETF through Robinhood if that's the best way for me to do it.
My plan is not to touch this money any more than I have to and, if I do, only take gains when absolutely needed (leaving no less than what I started with at any given time).
Posted on 3/29/18 at 8:21 am to S1C EM
Something like AOA. You can buy it in a Fidelity or similar account.
Posted on 3/29/18 at 9:38 am to Janky
quote:
Well said. There is a reason why the market has returned around 9% and the individual investor has returned around 3%
Where is that number from?
It is incredibly easy to manage your own investments with mutual funds or ETFs.
Furthermore, how much help do you really expect from someone that is making $500/ year off of you or less? Sure if you have $1 mil or more a financial adviser is going to give you some great advice.
I have countless stories of financial advisers that sold extremely expensive actively managed funds, Annuities, and insurance policies to people that do not need them at all. Its a hell of a lot easier to be talked into a bad product by a financial "adviser" as it is to have them actually make you more than their commission.
I'm not saying they are bad, I'm simply saying you absolutely have to due your due diligence and use common sense.
Posted on 3/29/18 at 9:59 am to Janky
I'm looking at splitting up $10k to try this all out first. The first $5k I think I will throw at the VGT fund via Robinhood. Is there a disadvantage to buying Vanguard's fund through another party/brokerage or does it just save me some money?
Posted on 3/29/18 at 10:24 am to baldona
quote:
Where is that number from?
The numbers are close to being right, but poster didn't point out that S&P >9% + it isn't just stock picks but bad financial decisions like leaving $ in cash instead of putting it in funds such as
LINK
quote:
I have countless stories of financial advisers that sold extremely expensive actively managed funds, Annuities, and insurance policies to people that do not need them at all.
Big reason why there was a push at one time for advisors to have to disclose their commission/kickbacks for pushing these products. Trump killed that idea though if I remember correctly
Posted on 3/29/18 at 10:33 am to GenesChin
quote:
but bad financial decisions like leaving $ in cash instead of putting it in funds such as
Thanks for making my point. This is where an advisor would be beneficial.
There are also some numbers out there that show how missing just a few certain days lowered your return tremendously.
ETA: Found a chart
This post was edited on 3/29/18 at 10:36 am
Posted on 3/29/18 at 10:46 am to Janky
quote:
Thanks for making my point. This is where an advisor would be beneficial.
If the poster is already committing to put his full $ amount into the market, this isn't a problem he is facing
You sound like you are a FA
Posted on 3/29/18 at 10:48 am to GenesChin
quote:
If the poster is already committing to put his full $ amount into the market, this isn't a problem he is facing
You sound like you are a FA
Yes, for the record, I plan to put it all in. I don't want any of my money sitting around doing nothing or making a measly 1.5% return in a MMA.
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