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using an advisor is about getting a whole financial road map , not just investing.
had i done it early on i would have had a lot better tax structure today then i do .
it isn’t an advisors function to beat markets.. its about keeping you in the game in a portfolio that matches your goals and money use .
in fact any advisor that handles the investing end himself for clients i would avoid .
that should be farmed out ..an advisor should not be watching markets and planning portfolio's all day ..he should be meeting with clients and working on their individual financial road maps.
i thought because i was investing well i didn’t need advice . but i only know what i know and i didn’t know about all the things i didn’t know yet.
but i will say this , most advisors are a dime a dozen who specialize in the accumulation stage .
a good one up to date on all the latest research and findings on the retirement side is like finding a needle in a haystack.
most are old school running on out dated planning ideas and myth.
our advisor team saved us from a new york inheritance tax cliff i wasn’t aware of .
at the time if you went over the inheritance tax allowance by just 5% you didn’t pay on the overage .
you lost the entire million dollar exclusion and the estate paid from dollar one .
you notice i said team …our financial advisor works with a tax specialist and estate attorney .so all aspects are looked at from different expert perspectives
Last edited by mathjak107; 12-30-2023 at 06:42 AM..
It’s why most would benefit from an advisor. A lot of people are against paying someone else but that stats show it’s absolutely worth it for most people. It’s also entertaining to hear people expecting an advisor to beat the market missing that’s not what the job is, it’s to help beat what a person would do on their own. This thread is littered with examples as is Morningstar’s data
People are already paying fees levied by their mutual funds. I see $$ taken out every so often from my account. For millionaires, yeah, a financial advisor might make sense. For middle class people....not so much IMO
People are already paying fees levied by their mutual funds. I see $$ taken out every so often from my account. For millionaires, yeah, a financial advisor might make sense. For middle class people....not so much IMO
wrong .the less you can save the more you need to make better efficient use of growing what you do have since most hurt their own efforts
vanguards study was about their average investor who routinely does not get what the funds got they were in simply because like you they exhibit poor discipline left to their own devices…
so even with the expense of a manager they found these investors are leaving good money on the table that is the low hanging fruit , doing nothing more then they were doing only with better discipline and better tax planning
Last edited by mathjak107; 12-30-2023 at 07:38 AM..
It wouldn’t matter how many times you posted it for him or others who are simply against getting help.
Another thing people often bring up and you’ve touched on it many times is active managers. I’ve spent a lot of time at Capital Group’s HQ and the metrics they have looking at the industry would match up to a lot of your commentary to dispel active vs passive because “most” don’t beat the index. There’s a few data point overlays you can use to eliminate the noise of small managers and find consistent winners over time.
Full disclosure I’m mostly passive ETFs because I’m lazy
[quote=mathjak107;66243259]wrong .the less you can save the more you need to make better efficient use of growing what you do have since most hurt their own efforts
vanguards study was about their average investor who routinely does not get what the funds got they were in simply because like you they exhibit poor discipline left to their own devices…
so even with the expense of a manager they found these investors are leaving good money on the table that is the low hanging fruit , doing nothing more then they were doing only with better discipline and better tax planning[/QUOT
People hate paying fees, just like the credit card game where they refuse to pay an annual fee despite getting 10x+ the fee back
It wouldn’t matter how many times you posted it for him or others who are simply against getting help.
Another thing people often bring up and you’ve touched on it many times is active managers. I’ve spent a lot of time at Capital Group’s HQ and the metrics they have looking at the industry would match up to a lot of your commentary to dispel active vs passive because “most” don’t beat the index. There’s a few data point overlays you can use to eliminate the noise of small managers and find consistent winners over time.
Full disclosure I’m mostly passive ETFs because I’m lazy
morningstar found as simply as sticking to the top 20% of funds in investor money increased the odds of beating indexing to 80%
People hate paying fees, just like the credit card game where they refuse to pay an annual fee despite getting 10x+ the fee back[/quote]
remember , also it isn’t just the return but the amount of your money being subject to that return ….like i said 90% in cash and 10% in spy would move the growth meter very little compared to 80% equities and 20% cash if all that stopped one from being 80/20 was their own investing temperment or their belief it was a time to not commit, like this year turned out.
so it is also about subjecting as much as you can of long term money to the best compounding you can reasonably get
Last edited by Lizap; 12-30-2023 at 10:11 AM..
Reason: Deleted prior posters comment
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