Do any of you use PWM services?
Instead of having several thousand just sitting in my bank account earning 0.01% interest, do you suggest I go to a bank's PWM service and just have them invest the money for me?
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Invest it yourself using a discount online brokerage ... Any "talented" PWM FA will only take multimillion dollar+ accounts and the FAs that bring on small accounts (PWM account structures usually will charge you a 1-2% fee on your total account value and then probably just put you into mutual funds that will carry another 1-2%
Dead on.
Who the fuck is going to manage your pathetic $5,000?
No, open an account with an online brokerage and dump money into the SPY, or sector etfs. Insurmountably cheaper and probably better return than PWM.
I had like 30k with a manager, and the rest with TD Ameritrade, but I'm going to move it all to TD, because your FA will not give a shit about you. Their Bud Fox wanna-be high commissions given their community college education don't justify you giving them your money.
The only way I'd use an adviser is if I had like 10mm+ to invest, but even then, it would be with a seasoned Harvard grad at GS PWM.
I agreed with you at first. But then you said GS PWM.
Don't go bulge bracket for your money management. Find a specialist with a perspective you agree with and a long history. Ideally with a privately held company, or at least something not so huge. We're talking BBH here, guys.
Also - go with Fidelity if you want a discount broker. Great people - they'll pick up the phone even though you're not worth their time, because they're focused on a lifelong relationship,
i highly recommend Fidelity.
Fidelity or Vanguard are the only ways to go.
Fidelity->SPY or Lending Club
I'm just starting out too, but it seems like Vanguard has some pretty awesome life-cycle funds with extremely low fees. I'm beginning with the Roth IRA from them.
Does Fidelity have a minimum investment requirement?
For a basic account, no.
Also, as a note to everyone: if you're thinking about investing your own money for the first time, I highly encourage you to allot at least a portion of it to yourself. It is important to anyone to learn the (hard) lessons of having a direct personal stake in the marketplace. This is especially key if you're going to, or thinking about going to work at a bank.
Think about it. An old timer mentor of mine refers to investment banks as being in the "investments business." This makes a lot of sense. An i-bank is basically business of working with clients to arrange financing on one side, and producing investment products on the other. If you want to be a part of this in any capacity, even on the corporate finance-side; it's a good idea to develop at least a basic feel for what is ultimately your end product.
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