Finding a Financial Advisor - Three More Tips for Finding the Right One

Suppose you are frustrated with having a financial consultant after another financial advisor you provide insufficient profits in your stock portfolio. In that case, I hope you find my first article, "Three Tips for Finding the Top Financial Advisor," "We will read. In this blog, I will try to do more of these points on the hammer house.

Finding a top financial advisor is not always about a financial advisor. Sometimes it's about you. Are you willing to make promises to find a chief economic advisor? This article will discuss another crucial financial advisor practice and, two, your investor behavior.

Three more points:

(1) Do not keep mutual funds.

(2) Don't be stingy if you find a top advisor; And

()) Be cool and ask a lot of questions of the answers in search of a top financial advisor.

Don't keep mutual funds.

Let me know why I'm not a fan of mutual funds. Mutual funds have such hidden fees that it is often difficult to understand what your expenses are. The costs can be as high as 5% for some funds, plus the 12b-1 advertising, marketing, and distribution fees range from 0.25% to 1.0%, with administrative fees ranging from 0.20% to 0.40%. The course management fee is also paid to the mutual fund manager for more than 50 0.50 per annum. This does not include the unknown "soft" costs of trade commissions, which are likely to increase by 2.0% to 4.0%. And yes, you did not read the first part of this last sentence incorrectly. Many mutual funds charge you 12b-1 for advertising and advertising costs that motivate you to buy their funds, and if you are not purchasing a burden fund, chances are you The 12b-1 fee is above average.

In addition, sacrifices are made to maintain the level of liquidity required to meet the redemption of shares, such as non-transferable expenses, and your costs are even higher. For a fund that exceeds 100% of its assets annually, Roger Edelson of the University of Pennsylvania Wharton School estimates that this sacrificed performance yields 1.5 annual returns. To ultimately increase the risk of injury, sometimes fund managers sell to their biggest winners to meet liquidity needs. You would generate a capitalist income tax for the investor, even if the mutual fund wasted money this year.

But it is also not a place where the negative features of mutual funds disappear. Suppose you have many financial advisors who are just trying to grow in an emerging market by buying mutual funds in China, India, or any other country. In that case, I advise you to be very careful. When the economies of these countries back off, as will inevitably happen, you run the risk of losing money quickly. Why? In a mutual fund, you are at the mercy of a herd mentality that will often be frightened by the release of bad news and will cause millions of investors to return their shares in a short time. If this happens, the fund's value will decrease before you even know what you have lost.

But if you choose only the best stocks in the best industries in these countries, it is most likely that your stock prices will be much more insulated and less volatile in such a scenario. Although these stocks may still below, it is expected that they will be much smaller than the fund. The stock prices of strong companies are a trend of the economic downturn across the country, far better than fund prices, and if they are in the right place, they could continue to grow.

Be willing to pay a fee for Superior Advice.

High advice is superior because a lot of hard work and time goes into preparing this advice. I once talked to a potential client who had 1 million in the stock market and was adamant about not paying the fee. He just wanted to pay a commission on the stock trade. When he showed me his statements (the way he was with a large Wall Street firm I will not name), it seemed that there was no structure or investment strategy in his portfolio. It had a mix of mutual funds and individual stocks, and as soon as one of these stocks increased marginally by 5%, it traded several times.
Moreover, the statements of his financial advisers were misleading. The consultant wrote in his statement that he was doing very well because it was 6% this quarter (which I believe is the only match for the S&P 500's performance this quarter). He told me that annually that 6% translated into 24% profit.

But when I explained that its net profit would be meager because the 100 turn turnover rate in the quarterly of their departments produced excessive capitalist profit taxes that would waste their net profit, Did not understand. I guess his financial adviser didn't bother to explain this little detail to him. Still, he insisted on paying no fees. I could tell that person.