About thirty years ago, Wife and I had some savings but it was all in CDs and similar interest bearing accounts. An investment advisor that worked for one of the bigger investment firms cold called me. He was helping some of my colleagues. Long story short, he convinced to give him a try. I gave him I believe $25,000. He made recommendations on 3-4 places to put that money. I’ve given him every extra dollar I have since and the account is in eight figures now. I did put in a lot along the way, but he has put us in lots investments that made good money, and a few have lost money. We meet once or twice a year to rebalance and he calls occasionally if he has an investment opportunity that he think fits us a or thinks we should exit some investments. What do we pay him? I have no idea! What I’m concerned with is “our net”. Wife and I are more than happy with what he makes us.
In my view, unless you have a lot of time almost daily to study the market, and understand lots of economic variables, you’re better off hiring a professional that fits your risk tolerance.
I am very good with that.
But I see this as a teachable moment where my son who is typically, got a dollar, gotta spend it kind of kid, wants to learn. I want him to learn the basics so he has an understanding of the entire process and ultimately, yes hire a person to manage the investments.
I have a couple friends who are truly high-net-worth individuals who have very good investment advisors. Would love to get into one of those myself. That is where I am ultimately looking to go with any excess money the wife and I have over the next 10 years.
