The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Re: Talk me out of a Financial Advisor Date:  6/2/2013  9:10 AM
Author:  Rayvt Number:  72357 of 78166

I spoke with two highly compensated coworkers and they both love the guy.

So what? Are you looking for love or to make money? Everybody "loves" whatever product they bought, even if it it's bad.

I tend to take the advice of people I know personally over anonymous internet posters,
Sure. But what is important is what backs up the advice. Is it authoritative or just personal opinion. Do your co-workers *know* (vs. just think or believe) that this guy has outperformed something like Fidelity Contra? Do they *know* what level of risk their accounts have been facing? (The answer to this is No. Almost nobody does.)

My question is should I put some assets under his management and potentially earn higher returns with lower volatility.
First, I would ask him HOW he gets "higher returns with lower volatility". What is his strategy? Does he have a concrete method, or is it seat-of-the-pants. Can he articulate it?

Frankly, it's not all that impressive to have beaten the S&P500 over the last 10 years, since the S&P just went thru a 10-year period that went essentially nowhere. Depends on the exact dates he's quoting. Is it some specific dates 10 years apart, or is it handwaving ten-ish years. More importantly, is he comparing to S&a