All: greetings. I'm a new member here but heard great things about the forum so looking forward to getting to know you all.
I am curious to get some opinions. I'm turning 30 this week and I'd like to start learning about my personal wealth management. I'm generally aggressive in the way that I invest, so I'm looking to really diversify and make sure I'm staying relatively safe.
- I have a great job that pays over $210,000 after bonuses etc.
- This job gives me options, worth $150,000 at the moment, vesting fully in 2019
- I sold both of my restaurants in 2015 for a profit
- I have interest in angel investing, and I am currently invested in two companies that have increased valuation over the last year by 2 fold, total spent was $75,000
- I also have loans from school (roughly $40,000 left from a doctorate and MBA). I recently re-fi'd to 1.9% which I'm extremely excited about!
- I am saving quite a bit, invested in the stock market (low risk), and have a growing 401k (low risk).
- Single and no dependents
I usually like to stay a little bit liquid and I'm almost always above $75,000.
That said, I wish to be more safe with some of my investments. I am extremely aggressive with where my money goes and I'm not blind to that. I spend a lot of my time reading about my angel investing that I forget to read about the things like bonds, indexes, etc. I feel so much more confident about my angel work than I do about my long-term growth portfolios.
Therefore, I'm wondering whether or not I should consider hiring a personal wealth management advisor. Someone reached out to me this week and we had a great conversation. I understand that my angel investments are risky so I want to focus a bit more on the long term, slow-growing portfolios... you know the less exciting stuff.
1. Do you think I should hire this advisor?
2. Do you think I should keep this advisor for the long term?
3. What questions should I ask this individual to make sure they are the right fit?
Thanks very much in advance - really looking forward to what you have to say.
Sun Feb 28, 2016 2:32 am
Cash: $ 3.90
Joined: 28 Jan 2016
Location: South Carolina
Not really my area of expertise, but happy to throw my 2 cents to you. Alpha is almost impossible to determine. Since picking an advisor is basically throwing your money to someone who claims to get you alpha, I'm not a fan. If you want low risk stock investing, just flip through a few vangaurd funds. Find anything that says "bond" with an acceptable rate of return and invest.
If you're looking for a little bit of handholding, robo-advisors are the big trend right now. The fees are very low (less than 0.50%) and you'll get advice on how to invest. Including Roth vs. Traditional IRAs (yes you can still backdoor a Roth IRA at your income) and IRAs vs Taxable accounts. They'll suggest specific funds that have at least matched the 11% return of the S&P500. The advantage is that the low fees offset the cost of the advisor.
If the advisor is charging 2% he'd have to net you a 13% return over you purchasing an S&P index fund on your own. The robo-advisor should be netting you about 11.5% which I find much more reasonable. Or open your own vangaurd accound and pick a few funds for yourself. This gets you to pay a flat fee to buy/sell and you pocket all of your profits.
Congrats on the great job and realizing that developing your own passive income stream beats the day job anyday.
Fri Mar 04, 2016 12:27 am
selina9 Contributing Member
Cash: $ 2.75
Joined: 17 May 2016
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