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Nuggetmunch's avatar

Should you hire a financial manager for your personal investments/savings?

Asked by Nuggetmunch (500points) February 13th, 2020

My dad lost a lot of money (a couple million USD in today’s money at least) when he sold his personal investments. He didn’t hire anyone who understands inflation or the real estate market, or stocks. He just sold his investments whenever he found buyers. Finance or business isn’t even remotely his subject either. Should one have a personal financial manager? Or is that too extra? And what would be an “appropriate time” to hire?

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9 Answers

gorillapaws's avatar

I think everyone should do 1 of 2 things:

A. Learn about finance and make smart decisions.

B. Hire a competent financial agent and learn enough about finance to hold them accountable.

janbb's avatar

It’s a very good idea unless you have a lot of confidence in your own ability. I have been happy having one.

elbanditoroso's avatar

I used one for about three years, and I found that with a little bit of effort on my part – mostly reading and research – I could do everything he did but without his service charge.

chyna's avatar

@gorilapaws has a very good answer. I have read too many times where actors, bands, athletes etc, have lost all their money by hiring a financial manager and never checked to see what was happening to their money.

janbb's avatar

@chyna and @gorillapaws are right of course. My financial planner never makes a change or investment without talking to me and I get monthly reports of where my investments are. We also have meetings a few times a year. if you are in the States at least, you should look for a planner who says s/he is a fiduciary – which means they are bound to act in their clients best interest.

Some of it does depend on how much capital you are talking about investing too.

Caravanfan's avatar

Agree completely with @gorillapaws

Anna502's avatar

Don’t try anything in an area you don’t understand. You first need to spend time to learn financial management.

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