Posted on May 2, 2015
Do you use a financial advisor? If not, why not?
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In a given day, I speak to many professionals about investing. Many well-educated people typically respond with "I manage my own investments," which I've come to understand usually means they aren't doing any investing. Too often, they aren't even doing any saving. As vets and retirees, we have resources available to us 'free of charge,' but after examining plenty of 'free' services and packages available to vets from big name companies, I'm less than impressed. If you're using a financial advisor or investment company, which one do you use? How did that advisor earn your business? If you're not using an advisor, what are you doing to prepare for life after working?
Investing
Retirement
Planning
Finance
Posted >1 y ago
Responses: 14
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I used to work with 1st Command. But I felt their products performed poorly in all markets. I closed all accounts with them.
After looking at several other companies I concluded that "advisors" are just salesmen who earn commission selling managed funds and insurance. I haven't found any who can really understand the economy, the financial system or the numbers on the products they are selling.
Today I am a self directed investor focused on high yield, short term trading as well as development of revenue streams. This does not require much money but it does require some serious Google time and reading fine print. I avoid insurance like the plague as it is a liability and I can do better by putting my saved cash into a low risk/low yield account.
My platform of choice is NinjaTrader which you can use for free while you learn.
After looking at several other companies I concluded that "advisors" are just salesmen who earn commission selling managed funds and insurance. I haven't found any who can really understand the economy, the financial system or the numbers on the products they are selling.
Today I am a self directed investor focused on high yield, short term trading as well as development of revenue streams. This does not require much money but it does require some serious Google time and reading fine print. I avoid insurance like the plague as it is a liability and I can do better by putting my saved cash into a low risk/low yield account.
My platform of choice is NinjaTrader which you can use for free while you learn.
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TSgt Christopher D.
MAJ (Join to see) I'm sorry to hear of your experience with First Command. And though I hate to admit it/agree with you, there are many, MANY "advisors" out there who are precisely what you say: salesmen with little to no knowledge of the markets, financial system or economy.
For about 12 years before I became an advisor, I studied economics and the financial sector (markets for FOREX, credit markets, commodities etc). Some of my colleagues (even those who have been in the game quite a bit longer than I have) will call me and ask things like "What does the ECB bond-buying really mean for investment opportunities in Europe," or "Will Chinese QE produce the stimulus they need to get high growth again?" I have no degree in economics, but its a real treat when a multi-million dollar producer gives you an "atta boy" for calling JP Morgan out on BS they were trying to hock on us back in October on the continuing strength of the Euro while the Fed decides what to do with our dollar... even if that atta boy didn't come until after the ECB announced their own QE.
Congratulations on your efforts, sir.
For about 12 years before I became an advisor, I studied economics and the financial sector (markets for FOREX, credit markets, commodities etc). Some of my colleagues (even those who have been in the game quite a bit longer than I have) will call me and ask things like "What does the ECB bond-buying really mean for investment opportunities in Europe," or "Will Chinese QE produce the stimulus they need to get high growth again?" I have no degree in economics, but its a real treat when a multi-million dollar producer gives you an "atta boy" for calling JP Morgan out on BS they were trying to hock on us back in October on the continuing strength of the Euro while the Fed decides what to do with our dollar... even if that atta boy didn't come until after the ECB announced their own QE.
Congratulations on your efforts, sir.
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I have in the past, when I spent the majority of my time under water and was unable to read/learn/invest on my own. What are your thoughts on the book Killing Sacred Cows?
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TSgt Christopher D.
CDR (Join to see) Thank you for your comment and question.
Killing Sacred Cows highlighted something that almost always gets overlooked by many people: what does it truly mean to be wealthy? I appreciate their premise that a wealthy life includes what one contributes to their society, i.e. making life better for more people. I take this into account every day. I am not a wealthy man in terms of the size of my bank account or holdings, but I am the richest man on earth for all the love and joy in my home.
I did not get to finish the book, but I don't recall reading much in the way of alternatives to what the book says are tremendous risks most individual investors are shoved into, whether working with an advisor or not. Was it real estate? Commodities? Using software programs designed to predict the likelihood of positive outcome on trading debit/credit spreads, covered calls or put options? I'll have to revisit the book.
What I do know is this: in 2008, a lot of people watched the market fall, sold out at or near the bottom, and didn't venture back in until their holdings had regained their previous values. The sold low and bought high. Having a financial advisor to talk them off the proverbial ledge, to convince them to hang on might have saved many, many people a veritable ton of money in the long run.
What do you read to make your investment decisions, if you don't mind sharing?
Killing Sacred Cows highlighted something that almost always gets overlooked by many people: what does it truly mean to be wealthy? I appreciate their premise that a wealthy life includes what one contributes to their society, i.e. making life better for more people. I take this into account every day. I am not a wealthy man in terms of the size of my bank account or holdings, but I am the richest man on earth for all the love and joy in my home.
I did not get to finish the book, but I don't recall reading much in the way of alternatives to what the book says are tremendous risks most individual investors are shoved into, whether working with an advisor or not. Was it real estate? Commodities? Using software programs designed to predict the likelihood of positive outcome on trading debit/credit spreads, covered calls or put options? I'll have to revisit the book.
What I do know is this: in 2008, a lot of people watched the market fall, sold out at or near the bottom, and didn't venture back in until their holdings had regained their previous values. The sold low and bought high. Having a financial advisor to talk them off the proverbial ledge, to convince them to hang on might have saved many, many people a veritable ton of money in the long run.
What do you read to make your investment decisions, if you don't mind sharing?
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CDR (Join to see)
KSC focused on abundance v. scarcity (hoarding all throughout working life to only not want to spend in retirement for fear of losing), utilization v. accumulation (cash flow instead of net worth), value creation v. money as a byproduct, proper insurance v. self-insurance, liabilities v. true debt, value v. price, and many mentions of lost opportunity costs by diverting money into typical 401k plans. The 401k piece and the difference between average return / actual yield (adviser makes money whether the client does or not) were both mentioned as major pitfalls.
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TSgt Christopher D.
Lt Kidwell, I hear that more often than you'd believe. As I mentioned in another comment, I have clients contributing as little as $25 per month toward a financial goal. Savings takes discipline, and I would humbly suggest people develop that discipline earlier rather than later. The long-term benefits simply cannot be adequately quantified.
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1LT Nick Kidwell
It's more of a joke based on my historic choice of low-paying careers than anything else.
I actually have an IRA that I contribute to, albeit minimally.
I actually have an IRA that I contribute to, albeit minimally.
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That is what my step-daughter thinks she if for. She is full of ways for me to spend my money on her and her kids. Seriously though, I don't simply cannot afford a financial adviser.
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TSgt Christopher D.
SPC C. Brown, you might be surprised. I have clients contributing as little as $25 each month to one particular financial goal or another (retirement, child's education etc). Every little bit helps! Many of my colleagues provide budget counseling and preparation as a free service for prospects and clients. Using a financial advisor isn't as costly as most believe.
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