Stock market investments now or later and who?

Franklin said:
DISCLAIMER NO ADVICE GIVEN
I am a Financial Advisor w Merrill Lynch here in Hickory and the first questions I ask anyone are: 1.what is the goal/trying to accomplish (we break down various strategies for different goals) 2. level of risk, 3. liquidity needs and 4. time horizon.
Risk level is "usually" determined by liquidity needs w time horizon playing a secondary factor. Example: As most Clients get to or in retirement stage they may decrease risk levels unless they have income sources that covers current expenses. At that point they may shift risk higher if there are no liquidity needs. The reverse is also true as well but not as common as you think if the person has been actively planning/ investing for this time.
Picking different portfolios and moving things around is 10-15% of the job once we develop a comprehensive plan that takes into account all factors. The rest of the equation is risk mitigation, modifying the plan based on life events and making sure the Clients sleep well at night after we have addressed their concerns. I greatly enjoy helping people navigate their finances and have seen the impact of both good and bad Advisors in my family.
I 10000% fully believe in DIY investing as well and most of my Clients do. I call it Core & Explore where we handle Core assets and Clients Explore how/where they want on our no cost platform Merrilledge.com
BUT there are things in life that can truly benefit people and having an Advisor is one depending on the situation. I am not a doctor or lawyer or a guy that can build buggies and trucks like many on here and I'm keenly aware of my limitations in those areas. You talented fawks piss me off btw:)
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I'm over here talking shit and there's a real live one right here. When was the last date you advised any client to sell out of anything and sit in cash?
 
jeepinmatt said:
I’ve heard of people promising 30%+ annual returns with some more modern investment methods 🤷‍♂️
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With a 30 year back tested proof of beating the S&P500? Let's hear about it.
 
Wes said:
Just download the app that follows Pelosi’s trading. Guaranteed high returns!
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Inside information! The key to getting super rich!
 
What do y'all hate right now? What sucks and is never going to go up ever again?
 
Atla said:
How do you Edward Jones people get paid?
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The same way you already pay Fidelity, Empower, TIAA, etc. to manage that 401k,etc. except you get no personal touch or anything else other than straight brokerage services (i.e., value for what you’re already paying). You may or may not realize you’re paying fees but you are.

Happy to discuss the further with anybody interested.
 
rcalexander105 said:
The same way you already pay Fidelity, Empower, TIAA, etc. to manage that 401k,etc. except you get no personal touch or anything else other than straight brokerage services (i.e., value for what you’re already paying). You may or may not realize you’re paying fees but you are.

Happy to discuss the further with anybody interested.
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Isn't the direct answer, "With a 1% [or whatever] fee based on the whole portfolio value"?

I know there are lots of good justifications for it but personally it's always rubbed me wrong that management fees are generally based on the total value and irrespective of annual performance change.
 
RatLabGuy said:
Isn't the direct answer, "With a 1% [or whatever] fee based on the whole portfolio value"?

I know there are lots of good justifications for it but personally it's always rubbed me wrong that management fees are generally based on the total value and irrespective of annual performance change.
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There’s more to it than just brokering trades

Also a point heard often, but in a down year (such as 2022) when the market declines 20% but your portfolio only declines 8% you saying we shouldn’t get paid for the work we did to “slow the bleeding”? Or how about the planning work that gets done outside of brokerage services, is that free or would you prefer a la carte (because that’s also an option)? What about when you call to just get advice on an idea you’ve been kicking around & you’re looking for another opinion from you “personal Board of Directors”? Would you prefer getting billed an hourly rate like lawyers? Generally speaking, the more money in your account (and therefore higher fees via basic arithmetic), the more complex the needs and situation which should justify the cost. That said, if you’re not getting value from an advisor (or anybody you pay money for goods or services for that matter) then you should look elsewhere. Not all are created equal, not all do the same things & not all are the best fit for everybody.

Working with an advisor isn’t for everybody - we get that. Could I go buy a welder & hot glue some metal together once or twice a year…sure! Am I better off to take it to somebody that does it daily for a better finished product? Absolutely. I know what I’m good at, what I’m not good at & what I’m decent at but takes a lot of my time. There’s also a lot of ppl out there that choose to do it themselves thinking they know how to research investments but then experience a market downturn a few years before retirement which ultimately keeps them working for another 5ish years because they didn’t understand the risk they exposed themselves to. It’s at that point they regret trying to manage it all themselves & wish they’d found somebody to plan things out a bit better but ultimately it’s too late & that ship has sailed. Different strokes for different folks 🤷🏻‍♂️
 
RatLabGuy said:
Isn't the direct answer, "With a 1% [or whatever] fee based on the whole portfolio value"?

I know there are lots of good justifications for it but personally it's always rubbed me wrong that management fees are generally based on the total value and irrespective of annual performance change.
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For what it is worth, my financial management group has a flat fee (percentage of total) AND a percentage of earnings. I like this model as if I make more they make more. The flat fee is minuscule and I am ok with it as a basis on total investment as the more money I have invested the more I want it diversified which means the more they have to manage and track.

For a long time I managed my own money because “I ain’t paying no one to do what I can do” well I have learned my lesson… pay a professional and you both win
 
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