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Post by jongaltiii on Sept 4, 2021 22:48:12 GMT
I’m making an assumption that many on this board manage their own portfolios. I fall in this category. That said, I need some advice. I have a close friend that has substantial wealth and he just acquired quite a bit of money from a sale. He’s used some “Wall Street” brokers (referred by “friends”) in the past that made a ton of money in commissions off of him with subpar results. He’s currently in cash and won’t retire for 10-15 years. He‘s asking my advice about funds and investments. Being a good friend, I give him general advice but won’t design a portfolio for him. It’s not what I do for a living and even if I did- I wouldn’t do it.
So my question is… knowing him and his business… he doesn’t have the time or interest to invest for himself. Where would you advise him to investigate?
Fee based vs commission based. If fee based, 1% or 2% of AUM or flat fee or hourly? Advisor at a discount brokerage like Fido or Vanguard or Schwab etc? Advisor at a wirehouse like Merrill, UBS, Goldman or Morgan Stanley etc.? Registered independent advisor? A CFP and fiduciary?
Interested in your experience with any of the above or general take along with any advice on how to find the best financial advisor. I realize this is a general or broad question and I have opinions but wanted to know yours. I just know that he won’t research and do the due diligence that I do and is in need of a professional. Any advice or tips?
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Post by yogibearbull on Sept 4, 2021 23:09:11 GMT
For a portion, he can try newer robo-advisors. He will fill out online questionnaire and robo-advisor will produce a computer-generated portfolio for him. As he learns more, he can do other things. Examples include Fidelity Go, Schwab SIP/SIP-Premium, Vanguard PAS, etc.
IMO, the older target-risk funds (conservative/moderate/aggressive-allocation) are also good one-stop solution. A new twist is multi-asset funds that broaden asset classes.
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