A Deer In The Head Lights
A reader asks: in the final analysis what does one do with their money? How does one go forward with a plan to retire in 15 years? Deer in the Head Lights
We responded: Thanks for the questions.
Question 1: Educate thyself, exert due diligence
Question 2: Be prudent, caveat emptor
As for "professional" help I can offer the following common sense which is not intended to take a swipe at competent professionals: And for all those who believe in letting a "professional" handle it... when the market is going up, up, up, a monkey can pick stocks better than most, you can throw darts at a board blindfolded and have success.
What you want to know is how the "pro" did in down cycles and when the shit hit the fan. That's what separates the wheat from the chaff. Did they have exit points, hedges and stop losses on their clients holdings which mitigated loss, etc?
Just because someone has a drivers license doesn't mean they know how to drive. Just because someone has a law degree, doesn't mean they know how to take advantage of the law. The former means someone passed a drivers test, the latter, a state bar exam. Neither of which makes a safe driver or Perry Mason.
And just because a financial advisor has a series 7 & 63 or 66 license doesn't mean they know jack about finance, markets, investing or fiduciary matters. One of the most successful financial advisors I know, and people hand over millions to him on an annual basis, knows NOT how a debenture or derivative actually works, nor the relationship of LIBOR to TED Spread.
Like the others, he passed a test, which proves NOTHING but an adherence to seat smarts, not street smarts. So, as Sgt. Phil Esterhaus always said...
We responded: Thanks for the questions.
Question 1: Educate thyself, exert due diligence
Question 2: Be prudent, caveat emptor
As for "professional" help I can offer the following common sense which is not intended to take a swipe at competent professionals: And for all those who believe in letting a "professional" handle it... when the market is going up, up, up, a monkey can pick stocks better than most, you can throw darts at a board blindfolded and have success.
What you want to know is how the "pro" did in down cycles and when the shit hit the fan. That's what separates the wheat from the chaff. Did they have exit points, hedges and stop losses on their clients holdings which mitigated loss, etc?
Just because someone has a drivers license doesn't mean they know how to drive. Just because someone has a law degree, doesn't mean they know how to take advantage of the law. The former means someone passed a drivers test, the latter, a state bar exam. Neither of which makes a safe driver or Perry Mason.
And just because a financial advisor has a series 7 & 63 or 66 license doesn't mean they know jack about finance, markets, investing or fiduciary matters. One of the most successful financial advisors I know, and people hand over millions to him on an annual basis, knows NOT how a debenture or derivative actually works, nor the relationship of LIBOR to TED Spread.
Like the others, he passed a test, which proves NOTHING but an adherence to seat smarts, not street smarts. So, as Sgt. Phil Esterhaus always said...
Comments