Financial planners and money managers are an outdated business model. I have had a lot of experience with both for the last 15 years and my conclusions are that they are both a waste of time. I retired early and am also involved in the management of several trusts with large pools of capital.
First off I have never met a money manager that can consistently beat the market indexes over time.
Second the first thing a manager will do is ask you a bunch of questions about your goals and then, based on your risk exposure plug
you into a computer model
that is conservative and covers the legal
requirement for them not getting sued. This recipe will, after fees
perform very poorly over time.
will kill you. Your chosen financial advisor does not work
for free so you are going to pay a lot of fees to support this bad performance.
The S&P 500 has returned 8% since it started, if you cannot find (and you won't) a manager who can agree to do better than that then why do you need them.
Warren Buffett's advice
to the average investor is to buy something linked to the S&P 500 and hold it forever. There will be ups and downs but 8% is a very good return.
With my own money I have educated myself to the financial markets and do my own planning. It took some effort and a lot of time in the beginning but I am retired and it was worth it to beat the shitty returns of a planner. I am a non resident Canadian and this allows me to legally not pay any taxes
, an option which is not available to U.S. citizens who are required to pay taxes
, under most circumstances, forever no matter where you live. Not paying taxes on your income
increases your returns by a huge amount. If you live in the U.S.A or Libya, the only two countries that still tax their citizens on world wide income, then taxes are going to matter and you will need a tax advisor not a financial planner.
Hiring a money manager is not going to guarantee you will not lose money, or even worse lose your capital. Someone bought all those mortgage derivatives in the last recession. You just have to pay fees on top of the loses.
Wall Street is just a big casino and the house always wins. Educate yourself, do some reading, keep it simple it is your money and no one has more interest in seeing you hang on to it than you do.
Hiring a money manager is like asking the casino to show you how to win, not going to happen. They are just going to charge you fees to show you how to lose.