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6/2/11

I'll get straight to the point: a family tragedy has left me with a sizable piggy bank, roughly $300K. As far as investing goes, I am pretty clueless. I am meeting with my boss's financial advisor and accountant later in the week, but I would prefer to invest my own money myself rather than pay someone else to do something I could probably figure out on my own.

My goal is to earn a modest and reasonable risk-adjusted return on my portfolio. I am willing to forego a +20% return for a safety net.

So far, I am thinking about investing in mutuals funds in the following sectors:

*Emerging markets
*Natural resources
*REITs
*Healthcare
*Maybe commodities, precious metals and agriculture

Any of you guys have any ideas? Can you recommend any resources for a novice invetor like myself?

Comments (61)

6/9/11

If a financial advisor was any good at what he did, he wouldn't be working as a financial advisor.

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In reply to mr1234
6/9/11

mr1234:
shorttheworld:
i have my cash at UBS and have a very internationally/alternative exposed portfolio

tactical income funds, global expansion funds, commodity fund thru highbridge, fund of funds through first eagle and ivy, some S&P structured products and some SPY that im going to sell off in a month once i have long term gains and diversify, some high income funds, i had bought preferred stock at distressed prices but sold out i think... commodity producing countries like norway brazil canada new zealand shorting the US dollar...

all depends on your style nad your investment 'story'. i like macro themes

Nice, that's exactly what I am talking about. I want to go with an international/alternative deal, as well.

Got any good resources/research/reading material you can toss my way?

suze orman

In reply to shera
6/9/11

shera:
If a financial advisor was any good at what he did, he wouldn't be working as a financial advisor.

+1

In reply to shera
6/9/11

shera:
If a financial advisor was any good at what he did, he wouldn't be working as a financial advisor.

Do explain your logic...

In reply to Chicago85
6/12/11

Chicago85:
shera:
If a financial advisor was any good at what he did, he wouldn't be working as a financial advisor.

Do explain your logic...

I'll explain his logic for him. Financial advisors are leeches that just make their money off the management fee and do cookie cutter portfolios that just diversify for the sake of diversifying. Mindless, shitty portfolios with no chance of ever having exemplary risk-return profiles. Anyone who's truly talented at investment management runs their own hedge fund. There are some financial advisors that are worth their salt, but you really have to do your homework to find them, and often, they cater to ultra high net worth individuals (and I'm not talking about the private banking groups at places like JPM and GS, those guys don't impress me at all).

To the OP: My condolences for your loss. Feel free to PM me if you wish to get a second opinion on the financial advisor's recommendations (I have my own fund and on top of that manage the majority of my family's money).

Consultant to a Fortune 50 Company

In reply to alexpasch
6/12/11

alexpasch:
Chicago85:
shera:
If a financial advisor was any good at what he did, he wouldn't be working as a financial advisor.

Do explain your logic...

I'll explain his logic for him. Financial advisors are leeches that just make their money off the management fee and do cookie cutter portfolios that just diversify for the sake of diversifying. Mindless, shitty portfolios with no chance of ever having exemplary risk-return profiles. Anyone who's truly talented at investment management runs their own hedge fund. There are some financial advisors that are worth their salt, but you really have to do your homework to find them, and often, they cater to ultra high net worth individuals (and I'm not talking about the private banking groups at places like JPM and GS, those guys don't impress me at all).

To the OP: My condolences for your loss. Feel free to PM me if you wish to get a second opinion on the financial advisor's recommendations (I have my own fund and on top of that manage the majority of my family's money).

This is exactly right, I did advising for 2 years while I was in college. I can tell you that the portfolios for the most part are cookie cutter. They are usually made by the fund managers of the company. These guys know their stuff but they can't look into every situation and make a truely custom portfolio. While there are some advisors who could actually do better then what their companies funds do, they can't do that. Their company wants to sell its own products and would never take the risk of having agents who just go awol and basicly run their own firm under the umbrella of another firm.

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Life is hard, it's even harder when you're stupid - John Wayne

In reply to alexpasch
6/13/11

alexpasch:
Chicago85:
shera:
If a financial advisor was any good at what he did, he wouldn't be working as a financial advisor.

Do explain your logic...

I'll explain his logic for him. Financial advisors are leeches that just make their money off the management fee and do cookie cutter portfolios that just diversify for the sake of diversifying. Mindless, shitty portfolios with no chance of ever having exemplary risk-return profiles. Anyone who's truly talented at investment management runs their own hedge fund. There are some financial advisors that are worth their salt, but you really have to do your homework to find them, and often, they cater to ultra high net worth individuals (and I'm not talking about the private banking groups at places like JPM and GS, those guys don't impress me at all).

To the OP: My condolences for your loss. Feel free to PM me if you wish to get a second opinion on the financial advisor's recommendations (I have my own fund and on top of that manage the majority of my family's money).

I think that is a very narrow and naive approach to looking at what a financial advisor does, although I would agree with some of what you said, especially as it relates to doing your homework. An overwhelming majority of a financial advisor's clients do not even qualify to invest in a hedge fund so this notion that a good FA would run his own fund does not equate. Also, since you work in the financial service industry and more specifically investment management, your knowledge of the market is going to be a lot better than almost any clients, especially one that uses an FA. A good FA is a sales person, their main goal is to bring in assets but they also need to maintain their assets so if they are shitty at picking investments their clients will likely leave.

In reply to alexpasch
6/13/11

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10/19/12

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