quote:

Originally posted by old rugged cross:
Having a guy or gal for that matter is purely a choice.

Of course it is. That's essentially a tautology in this context.

quote:

Originally posted by old rugged cross:
Thinking that they are sitting at their computer focused on your account and financial well being each and every day is well, being optimistic and naive.

Except for the fact that "my guy" is actually a team of experienced people, of which "our guy" is but one, and that is, in fact, what they do.

You see: We asked about that, by way of "What happens to our plan management if, say, The Big Guy arranges for you an unfortunate meeting with a bus?"

Yes, they have probably hundreds of accounts. But, if you think about it, the stuff they recommend to us they also recommend to other of their clients. So, yes: I expect they are watching like a hawk the instruments in which I, and the other of their clients, are invested. I expect if they See Something, their software identifies which of their clients' accounts they should tweak, in response, and they get to it.

ok E, you run with that. I am not bashing you. If that is how you see it. Great. I hope the outcome is positive. I really do.

There are many who see just as you do. In the end it has worked out for many.

I am a bit more skeptical of this industry and their motives. Their primary function is to get rich off of your money in a nutshell, Doing things you could do for yourself and not pay them.
But having said that I understand many find comfort in hiring a paying for a professional who may or may not be as capable as you.

quote:

Originally posted by old rugged cross:
ok E, you run with that. I am not bashing you. If that is how you see it. Great. I hope the outcome is positive. I really do.

There are many who see just as you do. In the end it has worked out for many.

I am a bit more skeptical of this industry and their motives. Their primary function is to get rich off of your money in a nutshell, Doing things you could do for yourself and not pay them.
But having said that I understand many find comfort in hiring a paying for a professional who may or may not be as capable as you.

In some ways, hiring “a guy” is no different than hiring a plumber, an electrician, a lawyer, a doctor, or any other professional. ALL of them them are doing work for you in exchange for your money. There are some in all fields who are excellent, scrupulously honest, go out of their way to do the best for their clients, and do a really good job. There are others in all fields who do as little as they can get away with while lining your pockets with their money. You research the best you can, make your decision, then, “Trust but verify.”

There are a good many reasons to be skeptical of financial services industry.

For one thing, past performance is no guarantee of future results, as they are required to tell you, despite the sales literature is designed to, and their conduct, imply that you should give them your patronage because they have done so well in the past. But you can't count on it.

Most of the people the average retail customer will talk to are not financial analysts but salesmen. Control of investments is closely and zealously guarded. A salesman has been trained at a superficial level to talk about investments, and some have gone to the trouble to educate themselves in the arcanities of investment decision making, but this is not encouraged.

Due to the way mutual funds especially are sold, the incentive is to avoid being too different than your competitors. If you have a brilliant idea that works very well, it may help the sales force but if it turns out less so, your numbers will tank and investors will take their business elsewhere, and you will be elsewhere as well.

quote:

Originally posted by old rugged cross:

I am a bit more skeptical of this industry and their motives. Their primary function is to get rich off of your money in a nutshell, Doing things you could do for yourself and not pay them.
But having said that I understand many find comfort in hiring a paying for a professional who may or may not be as capable as you.

You definitely are correct on that one. With some, you pay for their services. Then they get you in funds that give them a kickback. They'll get you in annuities for the expressed purpose of "safety" nevermind that they get paid lucrative commissions on those. Or they put you on an electronic program that determines your portfolio based on some algorithm.

Our search took us three months and it wasn't exhaustive, we were just exhausted so we stopped. Now I understand what you mean when you said I proved your point. If it was easy and plenty of good money managers, we would have made a choice in a week.

The one thing you must avoid at all costs is putting your money in the hands of a hot shot, usually local, who boasts a fantastic track record, is getting big returns for your friends year after year.

He, or she, is an independent, not affiliated with any of the big national brokerages like Fidelity or Schwab, or even a big bank. There are things even worse than a big bank! These financial gurus have done very well themselves, often living in palacial homes, driving very expensive cars, maybe even traveling in their own airplane, entertaining lavishly.

These conmen eventually end up broke, having spent your money themselves. Far worse, if you took some of your money out, for what ever reason, you will be required to pay it back to the bankruptcy trustee who unwinds the ponzi scheme.

If you want to see what to look out for, watch a couple of dozen episodes of American Greed.

Make sure your funds and investments are held by a large reputable financial institution, not the manager. Get statements regularly from that institution, review them skeptically. Trust, but verify! Don’t end up on American Greed!

[QUOTE]Originally posted by JALLEN:
The one thing you must avoid at all costs is putting your money in the hands of a hot shot, usually local, who boasts a fantastic track record, is getting big returns for your friends year after year.

He, or she, is an independent, not affiliated with any of the big national brokerages like Fidelity or Schwab, or even a big bank. There are things even worse than a big bank! These financial gurus have done very well themselves, often living in palacial homes, driving very expensive cars, maybe even traveling in their own airplane, entertaining lavishly.

These conmen eventually end up broke, having spent your money themselves. Far worse, if you took some of your money out, for what ever reason, you will be required to pay it back to the bankruptcy trustee who unwinds the ponzi scheme.

If you want to see what to look out for, watch a couple of dozen episodes of American Greed.

Make sure your funds and investments are held by a large reputable financial institution, not the manager. Get statements regularly from that institution, review them skeptically. Trust, but verify! Don’t end up on American Greed![/QUOTE

You mean like Bernie Madoff??? He's not living in a palatial estate! (anymore) hhahahaa

One of my customers was the manager of a large fund on wall street. He spent money like water.....$2 million yacht, G4 jet from NY to Fl for a weeks vacation etc. etc. This was before 2008. He paid us very very well, BUT had no people skills whatsoever and didn't know how to talk to people. He thought everything was like NYC and you could snap your fingers and it would appear.

JeffSig2022,

$300K @ 4.00%, 30yr = Total $515,610 ($215,610 interest)
$100K @ 4.00%, 30yr = Total $171,871.20 ($71,871.20 of interest)

$300K @ 8.00%, 30yrs = $792,464.40 ($492,464.40 interest)
$100K @ 8.00%, 30yr = $264,153.60 ($164,153.60 interest)

This excludes Property Tax, Insurance, maintenance, etc. and those are all costs you cannot re-coop. For me those costs in round numbers are $7K/yr excluding maintenance. My home cost $325K to build in 1999 and I bought it for $274K in 2010.

They (banks, government, etc.) want you to take out a mortgage to keep the money flowing through the system. You are correct, it is not the best financial decision for someone to make. Also, most people today think they "deserve" a $300K home, something it took most couples a lifetime or a good portion of it to build up to. A fool and his money will quickly be departed. Live within your means, purchase what you can afford and do it wisely. Look for that house that's a little rough and needs some work you can buy on the cheap, but is in a good neighborhood with good schools. Put some sweat equity into the home. There is nothing wrong with saving up, investing and paying cash for a home. My wife's cousin bought a starter house at a sheriff's sale for $10K. It's not in a great neighborhood, but it's not ghetto either. It's a small box of a house, but they have fixed it up and will save a ton of money and use it as a rental property to help pay for the home they really want.