/biz/ - Business & Finance

Why is your financial advisor so poor that he has to work?

>>17333340
Buy BSV

>>17333359
he's actually effectively retired at the point and owns his own winery

>>17333333

you must be in your 20s if your financial advisor is recommending such an extreme equity weighting
the reason for doing so is that stonks are a medium to long-term investment
given your age and your ability to weather a downturn (financial resilience i.e. high income) he's entirely correct in his presumption
however you'll probably shit yourself if your portfolio drops xx% and we're in the midst of the 'everything bubble' so a downturn is just around the corner
if you are a PASSIVE investor then listen to your financial advisor (watch out for conflicts of interest; pay attention to fees, commissions and hidden costs)
if you are an ACTIVE investor then buy up stonks with negative beta and perhaps consider starting up a biz that does fairly well in downturns i.e. liquor store

>>17333486
we're in our early/mid 30s
the FA previously was a buy-side analyst for 10+ years at one of the elite banks, followed by being an analyst for several years at an institutional asset manager
his recommended strategy is low-cost ETFs. a basket of
> market-tracking index funds
> ETFs in undervalued/countercyclical industries
> out of favor and/or over-looked dividend-yielding equities

churn is low. his fee is low.

i feel like we wouldn't sell everything during a 2008-style drop. but it's impossible to say until you're actually looking at the red prices.

>>17333609
market-tracking index funds are always a good go-to, however as previously stated I would stay away right now given the everything bubble
ETFs in undervalued/countercyclical industries are also pretty good tell us more
>out of favor and/or over-looked dividend-yielding equities
this is a tricky one since 'out of favor' can mean a great many things. Generally, if the company has a decent cash flow and low gearing coupled with a low P/E it's a great sign that it's undervalued; dividend-yielding isn't always good and depends on your tax liabilities more than anything. Furthermore are dividends stable? Increasing? Has the firm ever suspended payments? NB. If the firm is giving out dividends (or conducting share repurchases, for that matter; the difference is income vs. capital gains) then it probably lacks decent investment opportunities (may be cause for concern)

>churn is low
always a good thing... higher churn = higher tax liabilities, higher transaction fees and more
>fee is low
how low? what's the fee structure? do you have agency alignment; does he receive a base fee plus a cut of all earnings? pls elaborate

>>17333812
25 bp (F&F discount)

>>17333848
>>17333812
the fee doesn't apply to cash in money market acct btw

>>17333812
>everything bubble
there's no reason to think that this everything bubble necessarily will pop in the next 5 - 10 years, let alone my lifetime. and without investing we'll never be able to fund retirement short of living in a van down by the river. so what else can we do?

So if one is waiting for the crash, is it a good idea to park money in VMMXX?

Invest all 800k to the internet coin with the funniest memes.

>>17333884
>so what else can we do?
YOU can fuck off and quit wasting my time you spineless retard
take control of your finances or forever be at the mercy of others

Every midwit thinks the stock market is about to crash.
>muh everything bubble
Don't be a midwit.

>>17333848
Market tracking funds are 0 to 5 bps my dude

>>17333340
but you can just buy btc, hold until end of 2021 / beginning of 2022, sell, buy tech stocks, and that's it
we all know a stock market is at the top of the market cycle, yes we will see a parabolic run before the crash, but it will crash indeed and we don't know what will be the bottom, are you really willing to take a 50% correction and hold for 10 year just to break even?
yes, in 20 years you probably will be up, but it's a fucking stupid strategy to waste 10 year of gains
market timing is real my friend, it's literally the only thing that matters

>>17333340
>falling for the vaginal jew
>falling for the financial jew
>falling for the market jew
never gonna make it, OP.

>>17334316
Yes, and 25 BP is the fee on top of that for asset management services

>>17333376
yeah from scamming idiots like you to buy his stocks at the top

>>17333884
You could keep a large cash sum in case of a crash(maybe Bernie will win in November lol).
Choose a low cost online brokerage. Do your research.
You do not need a financial advisor. You just need to invest some time in learning about investing. I will break down what you need to do and what most competent advisors should recommend.
At your age you should have a heavy allocation to stocks. Say 90% stocks(etfs), 5% bonds and 5% cash. Optional: A small portion of those stocks should be in small cap etf. Google the 3 etf portfolio and allocate accordingly.
Have a low cost mutual fund that you can DCA into and when it reaches a certain threshold($5k,10k), make the needed purchases into the 3 etfs. This can be done once a year to mitigate trading fees. Thats it. No financial advisor needed.
Also make sure to max out all government tax deferred/free savings plan. Google rebalancing a portfolio(done once a year). You could set up a spreadsheet to track all this shit or download one.
If you think this is all too complicated or too much time then you are a brainlet. Aside from the actual research and setting up accounts, it takes 30mins a year to maintain your portfolio.
Reminder that the biggest drag on a portfolio in the long term is fees and trying to time the market.

Imagine paying someone so they can tell you how to accumulate... Holy fuck boomer.

>>17333340
Do dollar cost averaging in the stock market.
for example, each month invest 5% of the total amount you are willing to invest in the market.
After 20 months, you're fully invested, and you've hedged if the market happens to go up or down.

>>17333340
Just go all in on chainlink and turn your 800k into 40 million EOY. It's THAT EASY.

>>17334868
DCA is a meme

>>17333340
>are we asking for trouble if we buy in now?
Generally yes. Because you want to buy cheap, and most things are not cheap. Also ask yourself what are you buying? Are you buying stocks or real estate for the cashflow? Or are you buying it for the captital gains? What about insurance/inflation hedge in the form of physical gold? Ask yourself these questions first.

>>17334731
Exactly this

>>17335640
>Because you want to buy cheap, and most things are not cheap
I'd like to point out that this is not 'market timing'. Because even now there are stonks (and other assets) that are historically cheap. You just have to DYOR if they are a good investment right now.

>>17334464
That's not a good thing nigga

>>17335201
DCA is only a meme in a bull market because you keep buying higher

>>17333340
>25% bonds

NIGGA WHAT ARE YOU DOING LMAO

>>17333340
There are so many people on this board that have 6 figure and up networths that are 100% crypto. I'm in figures and i'm a fuckin linklet.

Do you expect to get objective advice here? Buy 3x leveraged btc tokens you fucking idiot. Put $5k in now and you'll be a millionare. Go lose money on bonds with the rest.

>>17334868
Nice

>>17333340
Put it all in Chainlink you stupid fuck

>>17333359
Because financial advisors actually have no idea how to invest, they're just salespeople.

>>17333359
Imagine being this dumb

>>17333340
Can I trust that you printed out various crypto-memes to review during the meeting?

Most “financial advisors” are boomer and boomers love print-outs so it is really the only way to get them to digest the memes. Some, like pee pee poo poo, will sail well over their heads so you have to be very selective. What has worked well for me are just Sergey photos with Link logos shopped into them.

>>17333340

In the current year I'd go (and am in) loosely

>20% cash
>20% stocks (high dividend yield stocks in undervalued sectors, miners, reits, undervalued utilities, do not buy anything at or near alltime highs, yes that means avoid apple and tesla FOR NOW. Buy them next recession. )
>20% crypto (70% BTC, eth,) 30% high potential altcoins (link,tezos ect)
>20% precious metals (physical only)
>20% realestate

>>17336700
I can vouch for this. Went to college for finance and banking before dropping out

>financial advisor

Only a boomer would be stupid enough to listen to these charlatans

>>17337158
Good job to get into though since they mog most other jobs pay wise. Still plenty of boomers out there who just want someone else to take care of all their millions. Only boomers could ever make sense of paying someone else a commission to move their money from a savings to a CD and simultaneously tell others they're stupid for investing in fake online monopoly money on their own.

>>17335735
>even now there are stonks (and other assets) that are historically cheap
yeah that’s why Buffett is sitting on a 120B pile of cash and not investing a penny before recession happens