Who is YOUR advisor?

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Oct 18, 2009 1:08 pm

Do you manage your own money and financial planning, or do you have someone else do it?
I recently gave my family's accounts to another advisor, mainly to get another perspective and  to have somebody to talk to.
It's not a great solution, because this guy is like most advisors -- busy building his business giving generic advice. But it's one less thing I have to do and at this point I don't have a lot of money anyway. Certainly later I will want to get better help.
If you do have an outside advisor, do you want somebody who really follows markets and has strong, informed opinions on what you should do? Or somebody who will  take you to lunch every now and then and makes sure you stay the course?



Oct 18, 2009 2:45 pm

Huh? I'm very confused. You don't trust yourself enough to advise your own family? I doubt most people on this board are giving their family's accounts to another advisor.

Oct 18, 2009 5:32 pm

OMG.  Do you tell your clients that you don't even manage your own money?

Oct 18, 2009 5:42 pm

Hmmm, didn't think it was that crazy an idea. Sure I trust myself, but like I said I want somebody to discuss my situation with me and my wife. I might be missing something, I might want more ideas.
Also, I am under no illusion that I know how to run money. Jones didn't hire any of us because we were well versed in investing.  There are many guys on the board -- including you, Ice -- that know a lot more. Why wouldn't I look around and find somebody with strengths that I lack.
What's the old saying, that a lawyer who represents himself has a fool for a client.




Oct 18, 2009 5:44 pm
etj4588:

OMG.  Do you tell your clients that you don't even manage your own money?



No, I tell my clients I keep a close eye on their investments. Bullsh*t, of course, since I'm too busy cold calling and cold walking.

Oct 18, 2009 5:45 pm

Buy - I have thought about this as well from an emotional standpoint.  I find myself taking too much risk from time to time with my own money that I'd never take with my clients.  Don't think it's so far fetched.

Are you using a Jones guy?  In town? How did you choose this guy?

Oct 18, 2009 5:51 pm
voltmoie:

Buy - I have thought about this as well from an emotional standpoint.  I find myself taking too much risk from time to time with my own money that I'd never take with my clients.  Don't think it's so far fetched.

Are you using a Jones guy?  In town? How did you choose this guy?



I'm using a Jones guy for now, but will probably find somebody else longterm. For one thing, it's been helpful sitting down with my wife and an advisor, just to make sure that if I get capped by an angry client there is somebody there to help her invest the life insurance money.


Oct 18, 2009 6:00 pm

B&H- I don't think it's a bad idea, especially being newer. I'm not doing exactly the same thing, but I am taking advantage of free advice from my legacy host FA in regards to my money. It is nice to have an objective, non-emotional opinion.

Oct 18, 2009 6:03 pm
buyandhold:
voltmoie:


Buy - I have thought about this as well from an emotional standpoint. I find myself taking too much risk from time to time with my own money that I'd never take with my clients. Don't think it's so far fetched. Are you using a Jones guy? In town? How did you choose this guy?

I'm using a Jones guy for now, but will probably find somebody else longterm. For one thing, it's been helpful sitting down with my wife and an advisor, just to make sure that if I get capped by an angry client there is somebody there to help her invest the life insurance money.





That is an excellent point, especially since this is the same point we make to DIY-er prospects.

Oct 18, 2009 6:34 pm

B & H - you make good points. Especially given that you may be advising people that have different goals than you do. Creating an asset allocation plan for someone with $50k in an IRA is a lot different than a Jones broker who has the ability (after some time) to put away a lot of money.



I also admire the fact that you are under no illusions about how you have chosen to structure your practice.



I think this will allow you to put away more and have a better life than those of us who make the attempt to do everything.



Bravo.



Oct 18, 2009 7:56 pm
etj4588:

OMG. Do you tell your clients that you don't even manage your own money?





Yeah I would be suspect if my advisor paid another advisor.. I think you are an idiot for doing so. Hope that doesn't get out of the bag.. I would nail you for it... If you don't have the confidence in your self find a 3rdparty money manager..

Oct 18, 2009 10:34 pm

Do you want his or the advisor who manages his money....

Oct 18, 2009 11:27 pm

Personally, I think it's pretty weak to be an advisor and hire another broker to manage your money.  That being said, a collegue of mine almost moved over 500k to me to manage because he was making alot of bad decisions buying penny stocks and stupid sh*t where he would NEVER recomend doing this with a clients dollars.   Now, he just calls me to ask what stocks I'd buy and does it himself.  Whatever. 

Oct 19, 2009 12:05 pm

B&H - there's a simple solution here, that doesn't involve handing your money to another advisor.  Just have someone do an annual review for you.  Take a fellow FA to lunch with you and your wife and have him review your accounts.  Pay him $100 if it makes you feel better.  Just keep the assets in your own office.  It's not a horrible idea to have someone who isn't emotionally involved in your family situation look at your holdings and give you some objective advice.  I would hesitate, though, to actually give someone else control over my portfolio.   

 
Just FYI, I don't believe Jones will let  you establish accounts with someone at a different firm. 
Oct 19, 2009 12:16 pm
Spaceman Spiff:

B&H - there's a simple solution here, that doesn't involve handing your money to another advisor. Just have someone do an annual review for you. Take a fellow FA to lunch with you and your wife and have him review your accounts. Pay him $100 if it makes you feel better. Just keep the assets in your own office. It's not a horrible idea to have someone who isn't emotionally involved in your family situation look at your holdings and give you some objective advice. I would hesitate, though, to actually give someone else control over my portfolio.



Just FYI, I don't believe Jones will let you establish accounts with someone at a different firm.





I think Spiff is right. It would be hard to get another advisor from another firm while working at Jones. So, when are you leaving?



Spiff makes a good point though. I'm not sure you can pay a Jones FA $100 to look over your accounts though. That would make that advisor unethical.

Oct 19, 2009 12:38 pm

Fantastic! buyandhold is my adviser.


 
His reasoning makes sense to me.  Ecspecially if something happend to me, my wife would be clueless with what to do and would be a terrible person to trust with picking a financial adviser.
Oct 19, 2009 1:00 pm

If you're wife is clueless you should set up a trust that, upon your untimely demise, is run by a corporate trustee.  That way she can continue to be clueless, but yet have someone looking after the large chunk of money she is now going to be living off of.  You run it during your life, but let someone who knows more than her run it after you're gone. 


I've given my wife specific instructions as to who she should go to if I should die.  She'll have a big chunk of money from my life insurance, but it will have to be handled well in order to last as long as necessary.  I've picked someone I'm comfortable with that I know won't try to take advantage of a rich young widow.  Perhaps you should do the same. 
Oct 19, 2009 1:14 pm

I think I'll avoid the trust route for now, but may consider FAs to my wife in the event of my demise.  She'll have a good insurance check as well and would probably due something stupid like put it towards the kids' educations instead of her retirement / living.  Ofcourse, if I go soon, she'll still be young enough and hot enough to find another suitor.

 
If that is the case, then I need to have a FA in place who will honor my request to hide the assets and not give them a dime.
Oct 19, 2009 1:40 pm

I was managing my own money but I dint like my advisor or the firm so I moved it to another firm...

Oct 19, 2009 1:49 pm

Think about how much energy you may have exerted trying to convert tire kickers or other prospects who really just wanted a second opinion, but are not delegators.


 
Professionals shouldn't have to chase people, and don't once established and confident. Having someone else advise you might be a good exercise in delegating and feeling what it takes to trust someone else as your advisor, and that could be useful in building relationships with prospects.
 
Of course, if you're delegating after you're established, how much confidence do you have in yourself?
 
I never delegated, but did partner with seniors on some new client cases. That taught me a lot. It also took a long time to just buy and hold  and rebalance for my own account. With the obvious exception of loading up on stocks after events like 9/11 and holding a good cash reserve. How complicated is investing?
 
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