Should I hire a financial advisor or do it myself? // Financial advice, Stock market investing tips Options trading basics, Stock market investing tips, stock market for beginners, options trading 101, stock trading basics, financial planning, cpa, cfa, cpf, financial planner, investment adviser welcome to looking at the markets with David Moadel
Today's topic is going to be a little controversial
I'm probably not going to make a lot of friends today with this one but that's
ok I've got to tell the truth and i have to say it the way I see it
all right today's topic is why certified financial advisors are useless or worse
here we go taking the easy way out
if you think you'd rather leave your personal investing to a licensed expert
and I put expert in quotes there today I'm going to explain why i truly believe
you'd be doing yourself a disservice
I'm sure that these experts work very hard to obtain their CMT cfp or cfa
licenses
I'm sure that they learn a few things along the way
however when it comes to my money
I'm concerned with what they can do not what they know paying a high priced
licensed financial advisor to make decisions for you
good idea what do you think let's find out
letting a licensed professional make your financial decisions for you might
sound like a good idea
however consider the following
according to CNN Money in 2014
get this eighty-six percent of investment managers under-performed
stock market benchmarks including the Dow and the S&P 500
that means they did worse then the overall markets and the charge hefty
fees for this service
so you'd probably be paying someone a sizable amount of money to do worse than
if you had just parked your money in the S&P 500 or the dow and good luck trying
to find the fourteen percent of money managers who outperformed the market
benchmarks
it's different people every year in other words the ones who are successful
in any given year couldn't replicate their success on a consistent basis now
believe it or not I actually considered changing careers from educator
yes i am a teacher - licensed financial advisor
heck I thought that those two careers were one in the same
boy was I wrong about that these license financial advisors are salesmen and
sales women too plain and simple
I informally interviewed with several of them over the phone and had a formal in
person interview with one of them
he informed me that only five percent of the job is knowing the financial stuff
the rest is
acquiring nuclear none of them
the people i spoke to cared about my knowledge of finance
they all just wanted to know if I could sell and if i could get more clients for
the company
yep that's all they cared about you know what I'm proud to be an educator I
worked hard to get a masters degree in education and a teaching license and
I've taught students of all ages in many different subjects so there's something
to be said for getting licensed in one's profession
however after having taken a peek behind the scenes
I'm not impressed with the licensure or the motives of these financial planners
if selling is priority number one
where does that leave you the client something to think about
so what's the bottom line when it comes to personal investing my proudly
unlicensed opinion is do it yourself
get some help when you need it but don't just hand your hard-earned capital over
to someone who sells financial products for a bank or other institution after
all
they'll probably underperform the market and laugh all the way to the bank
no pun intended when they send you the bill for it
so if you'd like some unlicensed help or if you just want somebody to talk to
about these issues whether it's finance trading stocks options investing you can
contact me anytime
just shoot me an email at David Modell @ gmail.com thanks a lot
hope I didn't offend too many people but you know what if I did too bad because
i'm just telling the truth as i see it
thanks a lot and I'll talk to you next time