All things STOCKS

#201
#201
Thunder Good-Oil said:
There are all types. A good fee based financial planner is a real good idea for people with wealth that don't know much about finance. They're also appropriate for not so wealthy folks that need help planning for retirement and/or their kids' educations. People that have 8 figures to invest should probably be serviced by the wealth advisory department at a regional bank or at one of the big banks or brokers.

There's a certain level where people will need to be with a firm rather than any individual advisor. At those levels they should get the broker(s) to sign a fiduciary agreement and have their attorneys review it.

The more you got, the better position you should be in to insist that they cut back on the salesmanship bull**** and actually find good opportunities. Private equity and hedge funds become a relevant component in the portfolio mix.

More important than anything else, anybody promising investment returns in any amount, especially 10% plus... well they're crooked. Run away from them. That's different from licensed brokers selling fixed annuity contracts at stated returns... but most of the fees on annuities are nearly criminal.
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TGO - I appreciate the good advice. When you say, “at a certain level, you need to be with a firm......”, would you explain why? What level of wealth and any firms you recommend?
 
#202
#202
OldandStillaVol said:
TGO - I appreciate the good advice. When you say, “at a certain level, you need to be with a firm......”, would you explain why? What level of wealth and any firms you recommend?
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Your profile says you are 61. Are you getting ready for retirement soon, or when will that be?
 
#203
#203
OldandStillaVol said:
TGO - I appreciate the good advice. When you say, “at a certain level, you need to be with a firm......”, would you explain why? What level of wealth and any firms you recommend?
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I'd say at a certain level would be a few million. Even a million or two isn't a real important client for a Morgan Stanley or a Goldman Sachs office.

I think that Schwab is really good for most people. They have a wide range of funds and their commission on stock trades is only about $5. They have a very helpful staff as well. Another is Ameritrade/Scottrade. They are direct competitors with Schwab. Some people like e-Trade. Fidelity is probably similar. Vanguard is a great firm... they are a mutual company and are therefore owned by their account holders.

College athletes that are about to sign professional contracts should be clients of the Morgan Stanley's rather than the Charles Schwabs. College coaches, MDs, highly successful business owners, lottery winners, and those inheriting large sums too. And rich widows and divorcees.

I'm not impressed with banks as money managers... at least not the one based in Memphis.
 
#204
#204
In Knoxville, Patriot seems like a good local option for a fee based investment advisor. It's worth hiring a firm like that when the client doesn't understand investing. I think that they will either consult at an hourly rate or manage accounts for a percent or two of the invested assets.

Any firm that first tries to get their clients into variable annuities is most likely putting their own interests ahead of their client's.
 
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#205
#205
I was reading about a pharmaceutical company working on a new drug for arthritis patients with knee issues. They had performed a successful clinical trial and somehow "lost" the results, which caused their stock price to fall. They were in the final stages of another trial so I rolled the dice and bought 2100 shares at $1.65/share.
Right after I bought, they hired a marketing firm and a couple of weeks later published their trial results.
Stock went as high as $4.95/share and is currently at $4.07.
 
#206
#206
In the Vanguard line they have some balanced funds, depending upon your risk tolerance:

1) VWINX Wellesley Income Fund : 40/60% stocks/bonds.
2) VBIAX Balanced Fund: 60/40 stocks/bonds
3) VWELX Wellington Fund: 65/35 stocks/bonds

If you want some exposure to foreign stocks and bonds:

1) VASIX 20/80 stocks/bonds
2) VSCGX 40/60
3) VSMGX 60/40
4) VASGX 80/20

If you want all stocks, there is VFIAX which is a broad S&P 500 fund.

That should cover most risk categories. Historically, the higher the percentage of stocks, the higher risk, and the higher returns. It depends how much stomach you have to lose money, and your time horizon. If you are old, you generally don't want to risk huge losses. If you are younger, you can ride it out.
 
#207
#207
1972 Grad said:
In the Vanguard line they have some balanced funds, depending upon your risk tolerance:

1) VWINX Wellesley Income Fund : 40/60% stocks/bonds.
2) VBIAX Balanced Fund: 60/40 stocks/bonds
3) VWELX Wellington Fund: 65/35 stocks/bonds

If you want some exposure to foreign stocks and bonds:

1) VASIX 20/80 stocks/bonds
2) VSCGX 40/60
3) VSMGX 60/40
4) VASGX 80/20

If you want all stocks, there is VFIAX which is a broad S&P 500 fund.

That should cover most risk categories. Historically, the higher the percentage of stocks, the higher risk, and the higher returns. It depends how much stomach you have to lose money, and your time horizon. If you are old, you generally don't want to risk huge losses. If you are younger, you can ride it out.
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There's a somewhat obsolete formula for a stock/bond mix. 100 minus your age is the percentage of stocks to own. A 40 year old is supposed to hold 60% stocks and 40% bonds. I'd think about half as much in bonds is better.
 
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#208
#208
Thunder Good-Oil said:
There's a somewhat obsolete formula for a stock/bond mix. 100 minus your age is the percentage of stocks to own. A 40 year old is supposed to hold 60% stocks and 40% bonds. I'd think about half as much in bonds is better.
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I had always heard of that formula, but according to that I should have 32% stock/68% bonds. I have a little more in stocks than bonds. When I include real estate, I only have about one third in stocks.
 
#209
#209
1972 Grad said:
I had always heard of that formula, but according to that I should have 32% stock/68% bonds. I have a little more in stocks than bonds. When I include real estate, I only have about one third in stocks.
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It might be 100 minus age equals stocks and the balance is "fixed income" rather than "bonds", but it's pretty conservative either way.
 
#210
#210
Thunder Good-Oil said:
It might be 100 minus age equals stocks and the balance is "fixed income" rather than "bonds", but it's pretty conservative either way.
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Especially now that bond yields don't look too great going forward. When you get to be nearly 70, you tend to draw in your horns a bit when it comes to losing money.
 
#212
#212
OldandStillaVol said:
Yes, hope to retire by 65. Wondering if I should get more help with financial planning.
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It never hurts. There's lots of help out there.

There's a fast growing company called Personal Capital that does investment management for a much lower fee than a face-to-face advisor usually charges. They avoid mutual funds and utilize Exchange Traded Funds quite a bit.

Financial Software and Wealth Management | Personal Capital

Or you can do it yourself at Schwab, Ameritrade, e-Trade, or Fidelity and buy ETFs like these:

Home - Unique ETF's that divide the S&P 500 into 10 sectors | Select Sector SPDRs

^^^^ I highly recommend these for buy and hold, passive investors.

ETFs are great. It's a good idea to stick to those that are traded at a higher volume:

https://us.spdrs.com/en

https://us.spdrs.com/en/etf/spdr-dow-jones-industrial-average-etf-DIA

https://us.spdrs.com/en/etf/spdr-sp-midcap-400-etf-MDY

403 Forbidden

What is the QQQ ETF? | Investopedia
 
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#213
#213
OldandStillaVol said:
Yes, hope to retire by 65. Wondering if I should get more help with financial planning.
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You probably should if you aren't sure if you have enough money, or aren't savvy about investing, or just don't want to worry about where it should be invested.

I have an investment advisory firm that invests my money (mostly dividend paying stocks and bond funds) , and sends me a monthly check. I take out about 3.5% per year. I have quite a bit more now than I started with when I retired 3 years ago, even though I am invested conservatively, and have lived out of it for that long.
 
#217
#217
Thunder Good-Oil said:
They really aren't going to earn anything by suggesting a certain stock. If there's a commission involved then it's pretty silly for a client to pay a lot... commissions on stock trades are now $4.95 or less. If they take a percentage of the total account then they'll make more the bigger the returns are (and therefore recommend stocks). Those that aren't fee based advisors can make a cut steering clients into specific funds, annuities, and insurance products. Individual stocks for clients aren't very profitable for advisors unless they charge a fee on the total value of a managed account.
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Yelp, I believe I pay up to $5.00 on my personal online account, and if I buy through my CFP, to be honest, I don't know his commission fee. I'm not going to pay anyone a dime (monthly, annually, or percentage) to manage my account. I own individual stocks and tend to keep them in my CFP account, however I do trade in and out of stocks more regularly in my online account (that I manage). I only own 1 index fund and 2 mutual funds.....no annuities or insurance products (other than life insurance), however I do own real estate (commercial, raw/unimproved/vacant, and rental).
 
#218
#218
1972 Grad said:
You probably should if you aren't sure if you have enough money, or aren't savvy about investing, or just don't want to worry about where it should be invested.

I have an investment advisory firm that invests my money (mostly dividend paying stocks and bond funds) , and sends me a monthly check. I take out about 3.5% per year. I have quite a bit more now than I started with when I retired 3 years ago, even though I am invested conservatively, and have lived out of it for that long.
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Can you share who the advisory firm is?
 
#220
#220
1972 Grad said:
Home | Capital Advisors

They are headquartered in Tulsa, Okla. They also have a location in Birmingham and somewhere else. I deal with Tulsa. Scottrade put me in touch with them. If you need a contact there, and who I deal with, let me know.
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Thanks again 1972, A contact would be great, you can send it via a private message if you prefer
 
#221
#221
Zues1 said:
Thanks again 1972, A contact would be great, you can send it via a private message if you prefer
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Jon Althage (Pronounced All taggy). He is a Mizzou Tiger, and a good guy. I spoke with him an hour ago. He will be back to work Monday morning.

Use the phone number on the website. Their minimum initial investment for a new customer is 500k. If this is not what you are looking for, I can suggest alternatives.
 
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#222
#222
1972 Grad said:
Jon Althage (Pronounced All taggy). He is a Mizzou Tiger, and a good guy. I spoke with him an hour ago. He will be back to work Monday morning.

Use the phone number on the website. Their minimum initial investment for a new customer is 500k. If this is not what you are looking for, I can suggest alternatives.
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Perfect, thank you
 
#223
#223
Zues1 said:
Perfect, thank you
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What part of the country are you in? If you talk to Jon, tell him one of his clients, who is a U.T. grad in East Tennessee, recommended his firm. He'll know who it is. I told him today that you might be calling.
 
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#224
#224
1972 Grad said:
What part of the country are you in? If you talk to Jon, tell him one of his clients, who is a U.T. grad in East Tennessee, recommended his firm. He'll know who it is. I told him today that you might be calling.
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East Tennessee as well
 
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