April 9, 2014
If you or a loved one are unable to handle your own investing where would you go and where would you not go for help? Why?
If you or a loved one are unable to handle your own investing where would you go and where would you not go for help? Why?
You would want to find someone who is a fiduciary and is legally out for your best. They get paid on salary normally and dont have a conflict of interests. A second option would be to go to Vanguard and ask for help, you can contact or call them and have them help you through the process of setting up an account. The most important part is not to go to a financial advisory who is not a fiduciary, they are out for their own best interest. If someone gets payed on commission they have a conflict of interest in helping you, if you get something that has low fees and commissions then they get payed less. Life insurance agencies are also up there in the worst places to go, never go there, there is never a reason to with the online options people have. Make sure you go to someone who is a teacher and not a sales man.
This is very simple. Stay away from the sellers! Those that are making a profit off of your lack of knowledge or your inability to comprehend the financial industry. You have to turn to educators. The Warren Buffett, John Bogle, and even people like Bill Gates. Their only interest is to educate and not to sell. By staying away from the financial industry sellers, you will be successful in your investments. Knowledge is truly power in the matters of investing.
Go to someone who DOES NOT have a conflict of interest. For example, you should not got to a financial advisor for investing advise the same way you would not go to a car salesman for car buying information. This is because they have a conflict of interest, that being the fact that the largest way they make their money and commissions is buying selling to YOU! Go to someone who is simply there to teach not sell you. An example of this is John Bogle, one of the greatest investors of our time. Also, pick up a book or two. If you buy a book such as “Your Money Or Your Life” no one is in your face trying to sell you.
Those were wonderful answers. Well done you three! Let’s review.
First, most people are capable of investing on their own. They just need a bit of a nudge down the path of financial enlightenment as they start to learn from some great teachers like John Bogle, William Bernstein, Burton Malkiel, Daniel Solin, and some guy by the name of Warren Buffett!
Saying that, some folks are just not able for one reason or another. If this is the case, look for fee-only advisors, specifically, financial planners. Fee-only eliminates most of the conflict of interest because their should be no commissions paid from other parties. Start your search with napfa.org in identifying a fee-only planner near you. In the meantime, start your education with The Little Book of Common Sense Investing by John Bogle. Awake!