Anyone out there have a Finacial Advisors?

[lovelife22 0]

If so, what are the pros/cons to it? I really want to start planning for a house, organizing my $$$ better, etc. I met w/a financial advisor from American Express--he will put together a portfolio including budget for me, savings plan, etc. up front cost of $450...this also includes education, information I may need, and so on. And of course, he will make $$ off me from whatever I invest (if I understand this correctly!).
ANY HELP HERE? I have never been one to understand all the intricacies of fixed assets, equity, etc. I need to start somewhere, but is this worth it?

[usskydiver 0]

Kari,
I use Edward Jones (look them up). They are not too aggressive. They invest conservatively. I am much older than you and want to hedge my bets rather than "bet on black." Just my thoughts...

Tim T.
Team Paraclete

[freeflir29 0]

Don't know which thread it was in but someone was discussing Amex investment advisors. From a former employee came the advice of........avoid them.......they are much more worried about selling you things than making sure your money is working for you.

[Slurp56 0]

Yeah, I think you are referring to my post. I checked out my paperwork and the installment plan that AMEX offers actually isnt that bad, I should really start one. Just be wary of all the "services, insurance, etc" they will try to sell you.

________________________________________
I have proof-read this post 500 times, but I guarantee you'll still manage to find a flaw.

[freeflyimpaired 0]

I have worked with several as brokers but have never paid for financial counseling. $450 is a lot of money to pay someone to draw up a buget and savings plan. If you don't have anything that money would be better spent going into a Roth IRA which any financial advisor should set up for you free of charge seeing as they are paid salesmen of the fund they are selling you. There are a lot of good books out there that can get you started on setting up a buget saving for retirement and/or a house.

On a side note, I would stay away from anyone who has anything to do with credit cards offering me financial advice.

Dave Ramsey is an author of some really good books. I don't agree with everything he says but his stuff can make financial planning understandable, and he will teach you what to stay away from.
Financial Peace by Dave Ramsey easy read.

Joe.

"Human beings, who are almost unique in having the ability to learn from the experience of others, are also remarkable for their apparent disinclination to do so."

[bob.dino 1]

Buy or borrow Scott Adam's Dilbert and the Way of the Weasel. About half-way through there's a one-page summary of everything you need to know. Seriously.

[lovelife22 0]

Quote

Yeah, I think you are referring to my post. I checked out my paperwork and the installment plan that AMEX offers actually isnt that bad, I should really start one. Just be wary of all the "services, insurance, etc" they will try to sell you.

So, what if I choose not to buy any of his products??

[Slurp56 0]

Quote

If you don't have anything that money would be better spent going into a Roth IRA which any financial advisor should set up for you free of charge.

Great advice!

I think I pay about $20 per year as a custodial fee for my Roth IRA. The earlier you start, the better shape you'll be in. You have until april 15th to put money into an IRA for LAST year.

________________________________________
I have proof-read this post 500 times, but I guarantee you'll still manage to find a flaw.

[ChasingBlueSky 0]

Let me know how that goes since I may be in the market for one within the next year. I'm in the process of making some changes that should have me beyond the financial struggles of the past few years. My best guess is another 6-8 months of being tight on the money before I'm on my way back to where I was before I started jumping.

_________________________________________
you can burn the land and boil the sea, but you can't take the sky from me....
I WILL fly again.....

[lovelife22 0]

Quote

I have worked with several as brokers but have never paid for financial counseling. $450 is a lot of money to pay someone to draw up a buget and savings plan. If you don't have anything that money would be better spent going into a Roth IRA which any financial advisor should set up for you free of charge seeing as they are paid salesmen of the fund they are selling you. There are a lot of good books out there that can get you started on setting up a buget saving for retirement and/or a house.

On a side note, I would stay away from anyone who has anything to do with credit cards offering me financial advice.

Dave Ramsey is an author of some really good books. I don't agree with everything he says but his stuff can make financial planning understandable, and he will teach you what to stay away from.
Financial Peace by Dave Ramsey easy read.

Joe.

Yeh, that is true huh...$450, everything I have been reading so far, I haven't really found anyone who charges an "up-front" fee, I mean, unless they are hourly...
Thanks, great advice!

[Slurp56 0]

Quote

Quote

Yeah, I think you are referring to my post. I checked out my paperwork and the installment plan that AMEX offers actually isnt that bad, I should really start one. Just be wary of all the "services, insurance, etc" they will try to sell you.

So, what if I choose not to buy any of his products??

Depends, definately check out atleast 3 places to get an idea of what a going rate is. Just about every financial house will offer your basics: IRA's, Money Market Accounts, Stock, and Savings Bonds. Some of these you should be able to get through your existing bank which is probably a better value than AMEX, but check the rates.

If you would like information, I recommend you check out http://www.fool.com. Despite its name, it has information on all kinds of money management and investing. Definately a good place to start and will keep you busy for hours learning.

When you meet with a financial advisor, they will ask if you have any questions. Ask about their sucess, what methods they are using, what percentage are they socking away or investing. Never trust financial advisor who doesnt invest themselves.

And lastly, next time you talk to the AMEX advisor, ask for all the info they have on their installment plans. The installments are a great way to save up for a down payment or a new car.

Good luck!

________________________________________
I have proof-read this post 500 times, but I guarantee you'll still manage to find a flaw.

[dove 0]

Funny you should ask! I just spent $300 today to set up an account with an AMEX Financial Advisor. I am much happier paying a flat fee upfront than paying per investment. My planner has no incentive to use one investment tool/company than another. The only money he will make off of me is my $300. And if he wants me to sign up for another year, he will have to make good, sound investments and make me some moolah. I'd rather pay up front and have his goal to be making me money than to invest based on which products will make him the most money. I can meet with him quarterly or weekly, call him anytime and I still only pay the $300. And if at any time during the year I decide I don't like what he's doing or I'm not happy with the service provided, they will prorate that fee back to me.

Today was the 2nd time I met with him. He did a fabulous job of really explaining things to me that I never quite understood. And he is not just picking a single investment and then letting it roll. He is MANAGING my finances so that if he sees any positive or negative trends, he can adjust accordingly. Since I tend to be a bit of a worry wart (understatement of the year!) I'd rather let someone else keep an eye on my investments on a day-to-day basis and just look at it myself every once in awhile. I would have the tendency to completely freak out whenever there was a downturn.

Anyway - totally LOVE my guy and felt so wonderful to finally be doing something to plan for the long term. Being self employed and without a company to match a 401k or set up a pension, I really needed to get this going. Good luck with whatever you decide.

Fall in dove.

[Feeblemind 1]

Not to be an ass here but why are you paying someone to tell you the obvious?

So you ant a house...Simple stop spending oney on non-essential items (staying current is essential though). Pay off your credit cards and stop using them. Eat alot of top ramen or other food that is 10 for a buck. Tjhis is how I bought my 1st house and now my wife has a nice new 3200 sq.ft 2 story

Phil

Fire Safety Tip: Don't fry bacon while naked

[bobsled92 0]

Wife wife is my advisor.
I get paid weekly and she informs me each week that I will have NO money for jumping.
So far, she has been 100% correct!

_______________________________
If I could be a Super Hero,
I chose to be: "GRANT-A-CLAUS". and work 365 days a Year.
http://www.hangout.no/speednews/

[Stacy 0]

I have two accounts through Valic (a perk of my employer). They have a guided portfolio that has very minimal cost to me and they've managed it well.

[mouth 0]

I have a tax lawyer, 2 investment counselors and an accountant on retainer.

I invest through Edward Jones and through a 403B at work. They take the max allowed out of my paycheck pretax to invest in the 403B then I add to my Edward Jones account monthly. I plan on being totally financially secure when I can retire in 15 years and be able to live the lifestyle in which I have become accoustomed. That said I am very cautious with my investments because I do want it to be there and I KNOW social security is just a pipe dream. I strongly suggest talking with an Edward Jones investment counselor and comparing them to AMEX....I just don't know much about AMEX.

Do something though.

--
Hot Mama
At least you know where you stand even if it is in a pile of shit.

[GTAVercetti 0]

Quote

If so, what are the pros/cons to it? I really want to start planning for a house, organizing my $$$ better, etc. I met w/a financial advisor from American Express--he will put together a portfolio including budget for me, savings plan, etc. up front cost of $450...this also includes education, information I may need, and so on. And of course, he will make $$ off me from whatever I invest (if I understand this correctly!).
ANY HELP HERE? I have never been one to understand all the intricacies of fixed assets, equity, etc. I need to start somewhere, but is this worth it?

Yeah, I got one: Me

Sound saving plan, 401K, Sharebuilder (buying stock in well know stoc, ie. Pepsi, Coke, Fulton Bank), and you are set.

You cannot go wrong with an index fund.

go to The Motley Fool .

They have free info and a pay site. I would rather pay to read their articles and do it myselfthan pay someone else

Why yes, my license number is a palindrome. Thank you for noticing.

[Designer 0]

Work Hard and take the money and run!

[Remster 30]

Buy high and sell low! Its always worked for me!

Remster

[mjosparky 4]

I had one once, but then we got a divorce. Haven't needed one since.

Sparky

My idea of a fair fight is clubbing baby seals

[larsrulz 0]

Quote

Sound saving plan, 401K, Sharebuilder (buying stock in well know stoc, ie. Pepsi, Coke, Fulton Bank), and you are set.

You cannot go wrong with an index fund.

go to The Motley Fool .

They have free info and a pay site. I would rather pay to read their articles and do it myselfthan pay someone else

I am the same way. The good thing about Roth IRAs is that you don't pay any tax on the money you make on the investment, and you can use it to buy a house without penalty for early withdrawel, but this would be best for if you want to buy a house in 3+ years. Any short term investing should generally avoid mutual funds, and especially stocks. A stock can drop 5% in 6 months and still be a good investment over 5 years. Many futual fund companies give you free financial advice. They will of course try to direct you to their funds, but you don't pay anything until you purchase a fund, so you needn't listen. I would recommend Fidelity and Vanguard for their financial advice, although I have rarely used it. If you are military, former military, or one of your parents was military then USAA is by far the best one of these free financial planners out there. I second GTAVs comment of index funds. Now if you need more help with budgeting and savings then you would probably need help from one of these types of financial planners such as AmEx. If you can sit down and do this stuff yourself, then you don't really need help with the particulars of investing.

I got a strong urge to fly, but I got no where to fly to. -PF

[lovelife22 0]

Quote

Quote

Sound saving plan, 401K, Sharebuilder (buying stock in well know stoc, ie. Pepsi, Coke, Fulton Bank), and you are set.

You cannot go wrong with an index fund.

go to The Motley Fool .

They have free info and a pay site. I would rather pay to read their articles and do it myselfthan pay someone else

I am the same way. The good thing about Roth IRAs is that you don't pay any tax on the money you make on the investment, and you can use it to buy a house without penalty for early withdrawel, but this would be best for if you want to buy a house in 3+ years. Any short term investing should generally avoid mutual funds, and especially stocks. A stock can drop 5% in 6 months and still be a good investment over 5 years. Many futual fund companies give you free financial advice. They will of course try to direct you to their funds, but you don't pay anything until you purchase a fund, so you needn't listen. I would recommend Fidelity and Vanguard for their financial advice, although I have rarely used it. If you are military, former military, or one of your parents was military then USAA is by far the best one of these free financial planners out there. I second GTAVs comment of index funds. Now if you need more help with budgeting and savings then you would probably need help from one of these types of financial planners such as AmEx. If you can sit down and do this stuff yourself, then you don't really need help with the particulars of investing.

W/Roth IRA's isn't true that you cannot purchase if you make over a certain amt. of $$$? (if I am already investing in 401K)? Or am I off base?

[freeflyimpaired 0]

The income limit for the ROTH IRA is $95,000 ($150,000 if filing jointly). If your close to that amount you can lower your annual income with tax write-offs, such as putting more money into your 401K. Theres a limit on that as well, but if you can put enough money in your 401k to get your taxed income below $95k then you can put up to $3000 per year in a ROTH.
If money is tight and you can't max out both put all the money that your employer will match into your 401k (because thats free money) but then put the rest of the money you want to invest (as much as you can) into a ROTH because it won't be taxed when you take it out.

Happy investing,
Joe.

My info came from kiplinger.com

"Human beings, who are almost unique in having the ability to learn from the experience of others, are also remarkable for their apparent disinclination to do so."