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[Historian] honeybee I look for someone who has many years of experience analyzing investments and helping clients prepare their personal financial strategy. This person should have a large # of clients. If a big % of those clients stayed with them after 2008, that is a good sign.
[Historian] honeybee I ask the financial adviser for statistics on their performance. What % gain did their clients earn each year for the last 10 years. I ask for the highest %, the lowest, and the average. I want to see consistency, maybe a few high years, or slightly lower years, but not a lot of ups and downs.
[Historian] honeybee I ask them if they handled many accounts that are similar to my own. If I were a foundation, I would ask what % of the $value of their accounts are foundations. If I have a family trust, I ask them for that %.
[Historian] honeybee Is this what you were looking for?
[Historian] amigomiwest A key question is to ask financial advisers for their philosophy and approach to managing risk. This is key. Getting a good return is one thing, but preventing loss is more important.
[amigomiwest] Historian been thinking about getting together a team of financial counselors post RV. I do not have such now... I thought I would start with a tax attorney and learn who else would be needed...
[Historian] amigomiwest That is a good place to start. And it is a good idea to develop a team over time. Also a very good idea to split your investments into 3-5 buckets, and place them with different institutions and advisers.
[Historian] amigomiwest Divide your investment into 3 to 5 portions. Find several financial advisers / financial institutions. Give each adviser/institution one of the portions to handle for you. This is one way to manage risk -- diversifying your portfolio. Make sure the advisers don't all invest in the same thing!
[Historian] amigomiwest For example, I put a % into very secure investments -- interest bearing, guaranteed, fully insured, etc. Another % goes into something more balanced, with some growth but not high risk. Another % may be for riskier investments with high %. Another might be real estate or rental properties. Another might be stable foreign currencies.
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[bluedog] Historian meaning do not let one institution handle it all for you
[Historian] amigomiwest Each of these types of investments is a different area of specialization, so I look for the best adviser and institution to handle it for me. I do not look for an adviser to be a "generalist".
[Historian] bluedog Absolutely not!
[amigomiwest] Historian do your advisers include those employed by banks, or other corporations, etc
[Historian] amigomiwest Now a financial strategist is someone who can help you decide what types of investments you should invest in, and what % to put into each. I look for strategists who charge me a fee for their time, and are not trying to sell me their company's products.
[amigomiwest] Historian what percentage of you earnings will you set aside for investments, buying new houses, cars etc.
[Historian] amigomiwest That isn't always possible, and I have found great strategists at banks. I get their advice, but a little of their product, and then go elsewhere for the rest of the investments.
[Historian] amigomiwest RE: what % I set aside for investments, do you mean after the RV?
[amigomiwest] Historian yes ...with RV money..
[Historian] amigomiwest Well, I actually prepared some notes to help people plan what to do post RV. Perhaps I should tidy these up and post them to the forum.
[amigomiwest] Historian I agree Historian you should do that !
[Historian] amigomiwest This is actually a process to follow post-RV . . . simple steps.
[Agent 007] Historian that would be great and then we can periodically post the link in chat for people
[Historian] Agent 007 amigomiwest OK. I will tidy that up. I was going to use it for a CC a few weeks ago, then decided not to.
[amigomiwest] Historian being a new investor, this will help many of us tremendously... it is a big investment world out there... so many directions to go!
[Agent 007] Historian sometimes it is better to just have it as a post - written word is sometimes better to comprehend than spoken on a call.
[Historian] Agent 007 amigomiwest It walks you through what financial info or decisions you need from your 1st cash-in (say, one 25K note) through to what you bring to speak with your attorney, accountant and financial strategist.
[amigomiwest] Historian awesome....
[Historian] Then you cash in the bulk after you speak with your advisory team, and after they set up the proper financial / legal structure for your particular needs.
[Agent 007] Historian sounds perfect
[Agent 007] thanks
[Historian] OK. I will tidy it up and post it in the next day or so. I will have some time on the weekend.
[amigomiwest] Historian I heard it may be best to only cash in 10K at a time.. what do you think about that?
[Historian] amigomiwest Oh, yes. That is because they are watching for money laundering. But that is $10K USD, and they will be watching for amounts just under $10K as well, such as $9500 deposited every day. You don't need to worry about that. They just need to know who you are, and where you got the funds.
[Historian] amigomiwest Just research what the financial strategists and accountants have to say about when to cash in, then plan what works best.
[GrannieAnnie] Historian Wouldn't a fiduciary financial planners be a great person to visit with as well?
[Historian] GrannieAnnie We were talking early about Financial Planners. I look for their experience, rather than their designation.
[Historian] amigomiwest RE: what % to invest in or spend on what, I don't plan on investing right away. I will focus on securing the funds -- that is, put them somewhere where they are very safe and guaranteed. Then I will take my time deciding what to invest in, and how much.
[amigomiwest] Historian this advise comes by attorneys and accountants? or do you have your own plan?
[Historian] amigomiwest I talk to attorneys, accountants and financial strategists. Then I watch business / investment programs on TV, and read some books. Then I take all the advice to set the plan that works for me.
[Historian] amigomiwest I always follow the accountant's advice -- I can't think of a time when I have not. But I don't always do what the financial strategist suggests. For example, instead of investing in mutual funds, I invested in the IQD.
[WHOSONFIRST] Historian ++++ We'll have to see what they say after the RV
[Historian] WHOSONFIRST I think they'll all be in shock! I kept telling them to get some IQD. They understood it, but didn't
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