[Saul]

What’s everyone’s opinion about having someone else manage your money?

For Example… Edward Jones, Myrell Lynch, Northwestern, Raymond James to name a few.

What’s your opinion on others managing your money, like Edward Jones?

Many people choose to let financial advisors or investment firms manage their money to gain professional insights, save time, or because they lack confidence in handling investments themselves.

However, entrusting your finances to someone else also comes with risks, such as fees, potential conflicts of interest, or not fully understanding where your money is being invested.

What do you think about relying on services like Edward Jones for managing your finances?

Do you prefer to handle your own investments, or do you trust professionals to manage your money?

Why or why not? Share your experiences and thoughts

[Russ]

investment advisors. It’s a profession where you the investor put up 100% of the capital, take 100% of the risk, and they take a percentage of everything whether you make a profit or loss.

The bigger your account that they manage for you, the bigger their cut even if their advice is pretty much on autopilot with a phone call to you every now and then telling you not to panic or swapping to something conservative that stifles your growth because they panicked when you have decades left to be in the game.

Their cut isn’t this big but it is just an example because it is simple to do the math.

If they are taking 10% for managing your money, 10% of $100,000 is $10,000. If it is 10% of $1,000,000 it’s $100,000.

Again, their cut is no where near this and just used to illustrate because its easy on the eyes.

But they have dozen of clients and they aren’t playing with their money.

If you do use a financial advisor, use a fiduciary and pay a flat fee.

[Aubree]

I would definitely try someone from a local bank or credit union first alot of places do have an investment / wealth management department.

I saw start local because these are the people that work in small towns and hold their reputation at a high importance.

Plus they could easily be someone you see around town and just over have a better relationship with.

Basically supporting local.

It is worth it depending on your situation and the complexity of it.

There is alot of things you can learn but there is usually a specific situation that you eventually.

[Garret]

It’s a great way to send someone else’s kids to college.

[Tara]

A lot of people do not have the self-discipline to maintain a level head when markets get rocky.

Nor do they have the time or energy to educate themselves to the extent a financial advisor does.

If you can, definitely do it yourself.

But for those who can’t or won’t, it’s a good idea to have someone who is licensed and attained further designations (CFP, etc) to reevaluate and reassess your investments and goals periodically throughout the year.

Also, if you have a higher net worth, financial advisors will have access to investments that you wouldn’t have on your own through a self directed brokerage.

[Jim]

No one will take greater care than I will and, as another poster suggests, you can keep it simple and outperform the vast, vast majority of professional money managers (due to vastly lower fees).

[Alison]

In April 2022 – I ran an experiment and took the exact same amount of money to see how it would compare doing it myself in a brokerage account versus giving it to a financial advisor.

(She would be considered lower cost because she does not work for one of those big firms you listed).

So I had $2k …

1) put $1k in vanguard mostly in VTI and a few other ETFs,

2) gave the other $1k to an advisor.

Vanguard ETFs won hands-down

and in 2.5 years – I have literally made 4 times the investment income off of my ETFs at Vanguard ($1500 vs $1100).

[Gary]

The answer is it depends, the simple equation is do they add more value than the fees you are paying them.

Many people talk badly about them but then miss huge opportunities in estate planning, income tax planning, retirement planning, risk management strategies to name but a few.

Then don’t stick to their plans in a down market costing them significant gains.

All the wealthiest people I know have financial advisors and they are all smart people.

But this is a decision for you to make over time.

Perhaps read the books many suggest.

Whatever you decide good luck!

[Zane]

I think good financial planners will concede that their role is not so much on the investment side, but more on the behavioral side, along with handling aspects like tax planning and other stuff I’m clueless about.

Anyhow, I think if you need it, a “fee only” ​planner from a solid firm is what you want.

Problem is, those are harder to find versus crappy firms like Edward Jones, insurance sales companies like Northwestern, etc.

[Tom]

If you are 10-20-30 years out from retirement it would be hard to go wrong with just buying a Total Market Index Fund like FSKAX or VTSAX for 100% of your portfolio every year and just forget you have it.

When you are gray like me you’ll be wearing a smile.

[Anne]

I’m so impressed that they convinced people to use their services. Just wow that much money taken from someone and they have no risk or responsibility if it goes up or down.

People still decide to use them, I’m just in awe.

I think about getting a job as one, but morally I just can’t do it, but the money would be so nice, but stealing from others retirement.

[Paula]

They make money on the funds they recommended which will be an expensive fund and they money along they way.

[Molly]

My friend lost a fortune with Ed Jones… churning stocks, high fees, etc.

I think you should read a bit about diversification strategies and buy some ETFs, especially Tech ETFs because the world is still expanding tech use…

[Tristan]

Depends what you are looking for. I’m a wealth advisor (independent through LPL, previously with EJ) and I meet with people who I have then told probably don’t need my help, those who definitely could use it, and those who could be fine on their own but they don’t want to deal with it.

So, in my opinion it all depends on your situation

[Kimberly]

You can easily do a better job and pay no one! If you’re in the US, Fidelity has free, excellent one-hour consultation sessions (I do one every year) that will teach you everything you need to know.

[Rob]

Tried to twice and no dice on either. I track and care more about my money than anyone.

Additionally, most people can manage their own money in 1, 2, or 3 funds vs the 8-10 high expense ratio funds an advisor will have you in.

You’ll also keep the 1%-1.5% AUM that adds up and takes tens of thousands (or more) from you over an investing lifetime.

And if you’re a simple tax return you can. Learn how to best optimize brackets today and in the future.

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