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Posted: 1/30/2017 9:22:47 AM EDT
Looking for advice on what to do with my savings account.
Already have a 401K, and thinking of more options.
Link Posted: 1/30/2017 10:44:32 AM EDT
[#1]
Quoted:
Looking for advice on what to do with my savings account.
Already have a 401K, and thinking of more options.
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How much money are we talking?
Link Posted: 1/30/2017 1:35:48 PM EDT
[#2]
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Quoted:
How much money are we talking?
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This: Need to know a sketch of your financial situation in order to offer meaningful advice. See My response to a similar thread on GD further down.
Link Posted: 1/30/2017 4:50:18 PM EDT
[#3]
To me the money is better spent educating yourself.

It's a catch 22.

If you don't know much, then you likely don't have much so there isn't anything to pay the adviser from so he can't spend much time on you.

If you know much, you likely don't need an adviser.

Not saying they don't have their place, but I think you need to educate yourself first.
Link Posted: 1/30/2017 5:04:59 PM EDT
[#4]
Used one initially to get everything set up. Beyond that I leave everything on auto deposit and generally talk to him/her once a year to make sure everything is on track.
Link Posted: 1/31/2017 6:59:23 PM EDT
[#5]
Do your own research. This way you will learn what to do and more importantly how to manage it.
In my experience, paying someone else to invest or manage ones money seems to end up making more money for that other person that it does for you.
Only you are really out for your own interest.
Link Posted: 1/31/2017 8:28:39 PM EDT
[#6]
For everyone saying do it yourself I think it may be relative to how much money you have and how much time you have.

If you are running two businesses and working 16 hours a day making 4 million a year, you may just want to trust someone to manage your money if you want to make real money off of it. Just one example.
Link Posted: 1/31/2017 10:03:44 PM EDT
[#7]
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Quoted:
For everyone saying do it yourself I think it may be relative to how much money you have and how much time you have.

If you are running two businesses and working 16 hours a day making 4 million a year, you may just want to trust someone to manage your money if you want to make real money off of it. Just one example.
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I kind of see your point.

But.

I've been in business all of my life. I haven't met a business owner yet, in that circumstance that can't think of a million ways to put that money into his business or semi related type business and have a much better return on cash.

Usually just the tax implications alone would dictate some heavy investment back in the infrastructure of his business.

Obviously there will always be a place for such a devil, but I feel like it would be very very limited if people educated themselves. A guy in that spot will likely have some investments but usually it's much much less than a layman would reckon.

Disclaimer - My opinion may be skewed because I work in a high overhead industry. 4 million in profit isn't much and could be wiped out pretty quick by a market down turn. 4 million is "pay down the loc and get ready to weather a bad year" type of money. Not shrimp and lobster money. And most of the banks have limits on how much you can take in distributions anyway so you might make 4 million, but you ain't touching much of it. It will go to service debt or expand.
Link Posted: 2/1/2017 1:37:07 PM EDT
[#8]
Discussion ForumsJump to Quoted PostQuote History
Quoted:


I kind of see your point.

But.

I've been in business all of my life. I haven't met a business owner yet, in that circumstance that can't think of a million ways to put that money into his business or semi related type business and have a much better return on cash.

Usually just the tax implications alone would dictate some heavy investment back in the infrastructure of his business.

Obviously there will always be a place for such a devil, but I feel like it would be very very limited if people educated themselves. A guy in that spot will likely have some investments but usually it's much much less than a layman would reckon.

Disclaimer - My opinion may be skewed because I work in a high overhead industry. 4 million in profit isn't much and could be wiped out pretty quick by a market down turn. 4 million is "pay down the loc and get ready to weather a bad year" type of money. Not shrimp and lobster money. And most of the banks have limits on how much you can take in distributions anyway so you might make 4 million, but you ain't touching much of it. It will go to service debt or expand.
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Just curious how old are you? Do you have a lot of people you discuss finances with who take home 500k+ a year? One thing I didn't specify is I meant profit as in take home pay, not business profit. Working with business owners/executives for a living I often get in financial discussions with them even though we do insurance, and it seems the majority deal with advisors/investors.
Link Posted: 2/1/2017 1:38:56 PM EDT
[#9]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
For everyone saying do it yourself I think it may be relative to how much money you have and how much time you have.

If you are running two businesses and working 16 hours a day making 4 million a year, you may just want to trust someone to manage your money if you want to make real money off of it. Just one example.
View Quote

That same business owner should not only be concerned about making money, but what he will do with that money after it is earned.  If your financial Advisor is putting you in to funds with huge front load fees, high expense ratios and charging inflated asset under management fees - is that a good use of your hard earned money?

NO ONE WILL TAKE CARE OF YOUR MONEY AS WELL AS YOU WILL.
Link Posted: 2/2/2017 2:35:23 AM EDT
[#10]
Discussion ForumsJump to Quoted PostQuote History
Quoted:


Just curious how old are you? Do you have a lot of people you discuss finances with who take home 500k+ a year? One thing I didn't specify is I meant profit as in take home pay, not business profit. Working with business owners/executives for a living I often get in financial discussions with them even though we do insurance, and it seems the majority deal with advisors/investors.
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Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:


I kind of see your point.

But.

I've been in business all of my life. I haven't met a business owner yet, in that circumstance that can't think of a million ways to put that money into his business or semi related type business and have a much better return on cash.

Usually just the tax implications alone would dictate some heavy investment back in the infrastructure of his business.

Obviously there will always be a place for such a devil, but I feel like it would be very very limited if people educated themselves. A guy in that spot will likely have some investments but usually it's much much less than a layman would reckon.

Disclaimer - My opinion may be skewed because I work in a high overhead industry. 4 million in profit isn't much and could be wiped out pretty quick by a market down turn. 4 million is "pay down the loc and get ready to weather a bad year" type of money. Not shrimp and lobster money. And most of the banks have limits on how much you can take in distributions anyway so you might make 4 million, but you ain't touching much of it. It will go to service debt or expand.


Just curious how old are you? Do you have a lot of people you discuss finances with who take home 500k+ a year? One thing I didn't specify is I meant profit as in take home pay, not business profit. Working with business owners/executives for a living I often get in financial discussions with them even though we do insurance, and it seems the majority deal with advisors/investors.


Im 29, been a manager for 9 years in a business that does 18 to 24 million a year and a partner for part of that time. Liquidity is a big topic of discussion bc of high overhead so we talk about it a fair amount. That would be one distinction though, almost no one takes home significant money bc the banks have so many restrictions on it. They pay themselves 2 to 400k salary and most cant distribute more than a few hundred k at most. Even at 80% equity the bank usually wont let up on the restrictions.

Im not saying they dont use advisors, but considering their income and net worth, its a small piece of the pie in my experience. If a guy has a million or even 10 with an advisor but has a business that took 200 million to build then its pretty insignificant.

Obviously our industry has very little liquidity so that changes things compared to white collar execs.

I literally have customers with 100 million dollar operations that will sell used farm equipment for cash bc they are desperate to get money out of the business. Lol.
Link Posted: 2/3/2017 12:46:44 PM EDT
[#11]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Do your own research. This way you will learn what to do and more importantly how to manage it.
In my experience, paying someone else to invest or manage ones money seems to end up making more money for that other person that it does for you.
Only you are really out for your own interest.
View Quote


that sucks...but hence why all advisors aren't created equal.
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