well investing isnt quite the same as resetting a leg. but it does depend on how much the guy is investing, what his goal is, etc..plus how much he wants to learn about it. if its just short term returns and a relatively small amount of money he could easily do it himself.
If it is short term returns, he should keep it in a CD or a MM account. If it is a small amount of money, he should stick to mutual funds. And Financial Advisors need quite a few licenses before they can even begin. I find it ludicrous that everyone thinks it is a piece of cake. But what do I know? Y'all handle it anyway you'd like. Just enjoy your 5% returns that you saved fees on. I'll gladly pay 2% for a 12% return.
fine and dandym, but you dont have to pay 2% for 12% if you have some understanding..thats the point. he can still be relatively short term and not have to deal with the marginal returns of CDs or MM. those are more of a place to temporary hold money, rather than an investment (in my mind) i dont think everyone is saying that its a piece of cake. It can be as complicated or simple as you like. Again, it depends on your goals..these things are personal.
Sorry, I got a 17.3% return last year, doing it myself. BTW, I hope you like that variable annuity that your full service broker sold you.
I have averaged over 23% per year for the last 4 years doing it myself. If you have the time and desire to educate yourself, no one else will give it the attention you will.
People's fate is made not when the market is rising, but when it is falling. Absolute returns tell little of ones prowess, and more important is the risk used to create those returns. Develop a plan in which an investor determines what the goal of the money is and then set a plan in motion as investing more aggresively widens the margin for error. An advisor should temper one's risk more than anything. Help them determine what their goals are and lay out a sustainable plan to get them there. While we've had a multi-year bull market, its easy to make money, but the discipline to sell a winner and reinvest in the areas of the market you hate is where an advisor may add value. Just look at why institutions outperform individuals by SUCH a wide margin. The reasons are a disciplined investment process, the diversity in the investments and the tools used that are mainly available through larger companies which makes scale a benefit (though many advisors in big companies are fools). Cheers.
Save the fees, buy a good mix of ETF's, don't touch them for decades. Do not buy individual stocks. Don't bother with mutual funds because the expense ratios hurt bad in the long run. It's not that hard.
1. Max out your 401k 2. Max out your IRA If you still have money left over then give high risk option trading a try.
