Quote:
Originally Posted by Bend it like Bourgeois
Can I ask dumb questions?
How do financial advisors really work, and when is it really worthwhile to work with one? If you have 10k in investments/cash? 100k? 1m? Somewhere the cost has to be more than the gain - in short term dollars - though over time I am sure a good one will pay back well.
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Ask me anything really and I'll do my best to answer. There is really no easy answer to this because it depends on how the advisor is compensated. For me and my practice this varies depending on the situation and while I'm open and have no issue disclosing what I get paid and how I get paid it doesn't always come out of your pocket directly. For example if you buy a bank mutual fund from the bank, you pay an MER there, and if you buy the same fund through me, you pay that same MER. There is no difference in fees, but I would suggest there is a great deal of difference in the advice and certainly in the independence of that advice.
I build portfolios quite differently for clients depending on their assets and goals as well as tax ramifications and overall stage in life. So a guy walking in with zero dollars and putting away $25/month isn't going to buy stocks with me, whereas a guy with a million bucks could if they're comfortable. In either case though, I think that professional advice and expertise is still effective. Its just different advice because the two people have different needs.
I'm not really sure if I'm answering this very clearly...maybe not. Feel free to ask me something more direct if that might help!
Quote:
Originally Posted by Tyler
What makes you more useful than a fiduciary? Honest question.
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I'm not sure exactly what you mean by this. I definitely have a fiduciary duty, although maybe the distinction is in discretionary trading (which I don't do)? While the money would be in my care and control though, its never in my custody. Again, I'm not entirely sure that this answers anything because I'm not sure of the distinction.