Financial Advisors

[ike]

I've made a lot of money playing poker and know next to nothing about investing. How would I find someone to hire to manage my money and how do I know whether or not they're good at what they do?

[kimchi]

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90% of financial advisers suck

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go to www.ifa.com complete the detailed risk capacity survey and invest in index funds. You'll save yourself money and end up with a more +EV portfolio.

Most FA know sweet FA.

[DcifrThs]

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These questions make anybody else feel really lucky?

1. More than 10 years
2. More than 10 years
3. Under 40
4. Over 250k
5. Over 250k


Edit: During times of market declines I prefer to sell of my riskier investments and invest in safer assets...agree or disagree.

I had no idea how to reply to this. What is the correct answer here if you are young and have a high risk tolerance, but are also looking to make +EV decisions.

Also that test is pretty interesting, others should take it and post the results.

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that questions looks retarded.

why repeat the same choices over and over?

Barron

[jively]

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when i got to the end of the test though it appears to just be a sales tool to get people using their advisors as they require you to put in your phone number/email address...and all the index funds they reccomend are theirs lol

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This is a good firm. They use DFA mutual funds, which are the same ones I use. They have a low minimum ($100,000), which is lower than my company's minimum. Their fees are very reasonable. The material on their website and their e-book / print book are excellent.

If you want to use an advisor, and meet their minimum, this is a good firm to choose.

-Tom

[jively]

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Edit: During times of market declines I prefer to sell of my riskier investments and invest in safer assets...agree or disagree.

I had no idea how to reply to this. What is the correct answer here if you are young and have a high risk tolerance, but are also looking to make +EV decisions.

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The "correct" answer for someone who is young with a high risk tolerance, and who believes that market timing is not possible, is "disagree." If market timing is not possible, then the best EV decision is to keep the same asset allocation year after year, through the good markets and the bear markets.

-Tom

P.S. Market timing is not possible is the belief of me, of DFA and of IFA. Others on this board disagree.

[DcifrThs]

[ QUOTE ]
[ QUOTE ]
Edit: During times of market declines I prefer to sell of my riskier investments and invest in safer assets...agree or disagree.

I had no idea how to reply to this. What is the correct answer here if you are young and have a high risk tolerance, but are also looking to make +EV decisions.

[/ QUOTE ]
The "correct" answer for someone who is young with a high risk tolerance, and who believes that market timing is not possible, is "disagree." If market timing is not possible, then the best EV decision is to keep the same asset allocation year after year, through the good markets and the bear markets.

-Tom

P.S. Market timing is not possible is the belief of me, of DFA and of IFA. Others on this board disagree.

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if we are talking about strictly passive investments:

1) market timing is not optimal

2) dollar cost averaging is not optimal

if you are talking about active investments (i.e. from my vantage point, that consists of actively managed portfolio of currencies, commodities, fixed income bets of all types, equities, diff bets etc. and a smattering of other bets), then:

1) market timing is very significant (again from my vantage point that is based on signal generation. my favorite professor from my alma mater recently recommended the Grinold & Kahn book on that subject)

2) dollar cost averaging is important, again based on signals (-100% to 100% calc'd from varying indicators that have their own signals as well as flows & intermarket action)

Barron

[gull]

I think advisors can be great.

IFA is a solid company.

Some cheaper, and imo better, choices would be altruistfa.com or portfoliosolutions.com. Eric Haas and Rick Ferri are both very informed and responsible.