Do you think its worth every penny to pay for a financial advisor?
Question:
Answer:
If you have a lot of money, (hundred of thousands to invest, aside from your home) it might be a good choice, because a financial planner can give you a more holistic view of your investments than your accountant or stockbroker would.
If you're like the rest of us meager schlubs, who may only have thousands to invest, then you might be better off just doing your own research, or only seeing a financial planner a few times when you're facing big changes (marriage, first home, etc). Most of the certified financial planners I've found charge at least $200 an hour.
If s/he's a good advisor,Perhaps!?
Often banks will have something called "investment day" or some sort of derevation of it. Regardless of what its called they usually bring in their own finical advisor who they pay to give you advice. Usually they do this when they have a promotion going on. Just walk into your bank and ask to speak with a finical representative, if he/she isnt there then they can make an appointment for you to meet them.
Highly unlikely. With a little research, most people can manage their investments better than any advisor, and at zero cost. And of course, you are the one who is most interested in your money!
It depends on the advisor. Its just like any other profession. Some mechanics are good and some arent. If you need a tire changed you probably dont need a mechanic. If you need a tune-up you might. It depnds on what your needs are. Typically advisors charge an hourly rate for a set number of hours, and then you implement the adice yourself. Or, they charge a percentage of the portfoilo for continuous management. You can be your own lawyer, and save a lot of money. But you know what they say about the client that acts as his own lawyer. You probably dont need one in small claims court. In a civil case you might. Its kind of the same with an advisor. A relationship with an advisor is much like with a lawyer. They have a fiduciary responsiblity to act in your best interests. Stockbrokers dont. If all you want to do is stick your money in a mutual fund, you can do that on your own. Funds have many restrictions and a narrow focus. Stock picking isnt investing. You should only do that with risk capial. Money you can afford to lose. Advisors make money from increasing what you have. Not maintaining what you have. Most clients wouldnt stay with them if that were the case I would be wary of advisors that work on commission. Choose a fee-only advisor.
Never. As for budgeting you could easily write down a budget and follow it to the T. For investing, all you need is a good mutual fund. Charles Schwab has no load no annual fee mutual funds, and finding one that returns 10-15% annually is not uncommon. When you purchase a fund, you automatically have anywhere from 1-10 financial advisors working on the growth of your investment. There only purpose is to analyze and choose a portfolio that will earn maximum return (in most cases). A financial advisor is only concerned with maximizing his/her commissions, and the amount you have to invest is directly correlated with how much attention he/she is willing to allocate towards you (John Doe's portfolio with $1.5 million, is going to receive much more attention than yours). With a mutual fund that is never a factor, money is pooled, and the fund manager(s) have the same level of interest in your investment as they do with the tycoon who invested $12 million. Hope this helped.
Yes - if the advisor is GOOD. Most aren't. You are better off becoming your own financial advisor. If you don't have the time, the alternative is to subscribe to an investment / stock picking service like:
http://www.tradingzoom.com/home...
More Related Questions & Answers...