Reply to How do I find a reliable financial planner?

Forum Index » Money and Finances

Reply to "How do I find a reliable financial planner?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]Please just do it yourself. Most financial planners are unable to beat the broad indexes anyway, but they wil charge you at least 1% of your portfolio value every year to manage your account. So that's $7000 per year you will be losing regardless whether or not the stock market has a winning or losing year. Then if you have mutual funds in your portfolio they charge 2% management fees. Now you are up to $21,000 per annum in management fees and on average the stock market only increases by 5% annually. Figure in capital gains taxes when you retire and liquidate your profits will be practically 0%.

Years ago buying and selling stocks was very expensive - not so today. Years ago quality information about corporations was difficult to comeby - no so today.  Today we get information just as fast as the brokerage firms themselves and it's all free.

If you really want to do nothing and not be bothered at all. Let Warren Buffet manage your money. Buy shares of Berkshire Hathaway (BRK/A or BRK/B) and you'll have the best money manager in the world managing your money and you'll pay no management fees whatsoever. Or if you want to be slightly more involved you can buy ETFs that are diversified across broad spectrums of the economy e.g. financials, technology, indUstrials, bonds, energy, industrials, dividends, emerging markets, etc. etc.

I personally favor stocks and ETFs which pay dividends in which I then reinvest, usually in the same corporations. When I do that, I don't even have to pay brokerage fees to purchase the new shares or the fractions of the shares I'm purchasing. Over time because I've paid so little in management fees and I've reinvested my dividends, my weath has grown significantly.

So just to recap, money managers charge 1.0%, mutual funds charge 2.0% and ETFs charge .06%. Owning individual shares of stocks cost 0%. Brokerage fees are roughly $8-9 per purchase or sale of stocks. Reinvesting dividends in the same corporations is free of charge.

Managing your own money is easy and it's really the only way to increase your wealth. If you are paying money managers 3% of your wealth every year to manage your money you'll find that you've saved your entire life and your wealth has never had the opportunity to compound and to increase.

No one cares more about your money than yourself. Do it yourself. Become a capitalist and retire wealthy. [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics