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Can you elaborate on why you think he should not listen to a personal wealth manager (assuming that's the same as a financial advisor)?

by flarco 8y ago

jeremyjh 8y ago
Most of them are simply salesmen, selling high-load products. Incentives are not aligned, but if you can find one is who independent of any particular set of funds and who only earns from a percentage of your earnings, and not from brokerage fees or commissions, then it might be worthwhile but you should still learn about this stuff yourself.
- mr_spothawk 8y ago
  ^^ seconded. I've lost a windfall to an investment manager. my business partner is all about liability insurance, and has had to use it. to the OP, re: "should I donate it?" yes, but not all of it. buy potting soil & sow some seeds somewhere. also, to the point about investing generally... seems like maybe we're at a top, so pick something stable
- zip1234 8y ago
  There are different types of advisers. People often get burned because broker dealers, stockbrokers, and insurance agents do not have fiduciary responsibility (they do not need to act in your best interest). A fee only adviser (with fiduciary responsibility, which will only charge you a fixed fee is a solid choice and worthwhile to keep you out of trouble.
- Dirlewanger 8y ago
  Yup, this is why if you really want to be hands-off with your wealth and put it in the hands of an independent professional, look for FEE BASED financial advisors/wealth planners. Finding one via NAPFA is one's best bet.
masklinn 8y ago
https://www.reddit.com/r/AskReddit/comments/24vo34/whats_the_happiest_5word_sentence_you_could_hear/chb51su/ https://www.reddit.com/r/AskReddit/comments/24vo34/whats_the... > You will be encouraged to hire an investment manager. Considerable pressure will be applied. Don't. > Investment managers charge fees, usually a percentage of assets. Consider this: If they charge 1% (which is low, I doubt you could find this deal, actually) they have to beat the market by 1% every year just to break even with a general market index fund. It is not worth it, and you don't need the extra return or the extra risk. Go for the index fund instead if you must invest in stocks. This is a hard rule to follow. They will come recommended by friends. They will come recommended by family. They will be your second cousin on your mother's side. Investment managers will sound smart. They will have lots of cool acronyms. They will have nice PowerPoint presentations. They might (MIGHT) pay for your shrimp cocktail lunch at TGI Friday's while reminding you how poor their side of the family is. They live for this stuff. > You should smile, thank them for their time, and then tell them you will get back to them next week. Don't sign ANYTHING. Don't write it on a cocktail napkin (lottery lawsuit cases have been won and lost over drunkenly scrawled cocktail napkin addition and subtraction figures with lots of zeros on them). Never call them back. Trust me. You will thank me later. This tactic, smiling, thanking people for their time, and promising to get back to people, is going to have to become familiar. You will have to learn to say no gently, without saying the word "no." It sounds underhanded. Sneaky. It is. And its part of your new survival strategy. I mean the word "survival" quite literally.
- ryanwaggoner 8y ago
  Eh. You can just say no and save yourself all this hassle and risk.
- mbesto 8y ago
  I have a personal friend who is a wealth manager who basically gets his clients to put their money in index funds. I wouldn't paint the whole industry this way. Some people are simply not good at handling money and paying someone to keep your hands off of it is wise. For the record, my buddy works with sports/entertainment stars (and including tech founders who exit) that categorically have the worst discipline when it comes to money.
__derek__ 8y ago
This is not nearly enough money to justify a wealth manager. People always think they're special when they aren't, and salespeople are always willing to encourage their delusions.

Can you elaborate on why you think he should not listen to a personal wealth manager (assuming that's the same as a financial advisor)?

by flarco 8y ago

Can you elaborate on why you think he should not listen to a personal wealth manager (assuming that's the same as a financial advisor)?

jeremyjh 8y ago

Most of them are simply salesmen, selling high-load products. Incentives are not aligned, but if you can find one is who independent of any particular set of funds and who only earns from a percentage of your earnings, and not from brokerage fees or commissions, then it might be worthwhile but you should still learn about this stuff yourself.

mr_spothawk 8y ago
^^ seconded. I've lost a windfall to an investment manager. my business partner is all about liability insurance, and has had to use it. to the OP, re: "should I donate it?" yes, but not all of it. buy potting soil & sow some seeds somewhere. also, to the point about investing generally... seems like maybe we're at a top, so pick something stable
zip1234 8y ago
There are different types of advisers. People often get burned because broker dealers, stockbrokers, and insurance agents do not have fiduciary responsibility (they do not need to act in your best interest). A fee only adviser (with fiduciary responsibility, which will only charge you a fixed fee is a solid choice and worthwhile to keep you out of trouble.
Dirlewanger 8y ago
Yup, this is why if you really want to be hands-off with your wealth and put it in the hands of an independent professional, look for FEE BASED financial advisors/wealth planners. Finding one via NAPFA is one's best bet.

masklinn 8y ago

https://www.reddit.com/r/AskReddit/comments/24vo34/whats_the_happiest_5word_sentence_you_could_hear/chb51su/ https://www.reddit.com/r/AskReddit/comments/24vo34/whats_the... > You will be encouraged to hire an investment manager. Considerable pressure will be applied. Don't. > Investment managers charge fees, usually a percentage of assets. Consider this: If they charge 1% (which is low, I doubt you could find this deal, actually) they have to beat the market by 1% every year just to break even with a general market index fund. It is not worth it, and you don't need the extra return or the extra risk. Go for the index fund instead if you must invest in stocks. This is a hard rule to follow. They will come recommended by friends. They will come recommended by family. They will be your second cousin on your mother's side. Investment managers will sound smart. They will have lots of cool acronyms. They will have nice PowerPoint presentations. They might (MIGHT) pay for your shrimp cocktail lunch at TGI Friday's while reminding you how poor their side of the family is. They live for this stuff. > You should smile, thank them for their time, and then tell them you will get back to them next week. Don't sign ANYTHING. Don't write it on a cocktail napkin (lottery lawsuit cases have been won and lost over drunkenly scrawled cocktail napkin addition and subtraction figures with lots of zeros on them). Never call them back. Trust me. You will thank me later. This tactic, smiling, thanking people for their time, and promising to get back to people, is going to have to become familiar. You will have to learn to say no gently, without saying the word "no." It sounds underhanded. Sneaky. It is. And its part of your new survival strategy. I mean the word "survival" quite literally.

ryanwaggoner 8y ago
Eh. You can just say no and save yourself all this hassle and risk.
mbesto 8y ago
I have a personal friend who is a wealth manager who basically gets his clients to put their money in index funds. I wouldn't paint the whole industry this way. Some people are simply not good at handling money and paying someone to keep your hands off of it is wise. For the record, my buddy works with sports/entertainment stars (and including tech founders who exit) that categorically have the worst discipline when it comes to money.

__derek__ 8y ago

This is not nearly enough money to justify a wealth manager. People always think they're special when they aren't, and salespeople are always willing to encourage their delusions.