More details on my introduction:
For example, the "cost" to you may be something like this:
If you have $500,000 in investments and plan to withdraw $20,000 per year from this for a portion of your retirement living, then think of this:
$20,000 per year is what you would like to spend but you may have to deduct:
$ 4,000 per year (if your "effective" tax rate for federal and state are 20%)
$ 7,500 per year (your 'annual' advisor's 1.5% fee for managing your assets that you can do)
$ 8,500 per year for you is your real annual spending income.
And this does not even take into account the transaction, turnover, management and administrative costs of the funds you are invested in yet.
The "value-added" may be in dispute if you believe, like I do once you learn about them, that Nobel Prize winning economists provide evidence time and time again that no one can consistently beat the market. You will learn that asset allocation, patience and diversification are key to successful investing and that money managers (financial advisers) are not miracle stock-pickers or market timers.
They may convince you that you cannot invest on your own, that the economic world is too complex and that additional return is consistently possible.
Don't let this happen to you.
You do not need a babysitter for your money. But you do need to understand some things about the economy, the markets, money managers and financial and investment planning. My website and this blog will be a good start but you do need to see a NAPFA-Registered Financial Advisor(tm) who is Fee-Only(tm). Someone who will not sell you products but provide a valuable service of advice. NAPFA advisors only receive fees paid directly by you (not commissions from product sales) and some, like me, will not even charge a percentage of assets under management because you can manage your own money.
They are available. I am one if you happen to be near Loudoun County, Virginia.
Enjoy. Read on. Let me know if I have convinced you yet. Maybe check out the Portfolio-Allocations label first.
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.