FIRE your worthless Financial Advisor...they all stink
So, I hired a Financial Advisor for the purposes of:
A) Learning about investment strategies in the equities market such as Options trading.
B) Learning about other asset classes and best times to buy, hold, sell them.
C) ROTH IRAs versus Traditional IRAs and what they recommended I invest in to diversify my portfolio.
D) Other various topics.
Instead... What I get is
A) A recommendation to change my Car Insurance company to "Citizens Insurance." ???? I never heard of Citizen's insurance and the company I have (AAA) is far more reputable. I went and did the homework before agreeing to switch and discovered Citizen's to be an absolute RIP OFF!!!
AAA was charging me at such a low, low, rate...it amounted to a savings of more than $300 versus Citizen's Car Insurance.
B) The investment guy said he does investment advice....but I've yet to get any real advice out of him or anyone for that matter even after handing in my list of topics I was eager to learn something about.
C) I'm given some mutual funds out of 1 Fund Family and told "This is the Newest, Greatest, Thing, Since Sliced Bread." Didn't take long before discovering how much of an abject disaster putting my money into those Mutual Funds would cause me.... They were all invested in various percentages of Everything.
And I voiced my concerns that the mutual funds have absolutely no real focus. No real strategy. The Percentages never fluctuate during times when any of the asset classes are over inflated or under inflated. Instead you are stuck....
What do I get? Some quick, slick, lecture about Harry Markowitz.....
So? I go and do some quick research on this Harry R. Markowitz fella and it basically confirms my fears are justified with these mutual funds.
Harry is a Nobel Prize Winning Mathematician / Scientist who discovered that there is a point at which one's portfolio can not be any more efficient..... This point is where if you increase your diversification, you do not lower your risk/reward ratio.... If you decrease your diversification, you are increasing your risk.
The idea was to find that healthy balance.... And you can't find that healthy balance in a Mutual Fund that invests in chunks Everything.
In Short.... Financial Advisory Companys are absolute Waste of Money and I am definitely NOT renewing my contract.
I'd pay TWICE the price easily that I paid for the service if I actually had a Financial Advisory company that actually advised. But, apparently.... They don't exist. So....Don't bother looking!
The Moral of the story.. is the best Financial Advisor you can find around... is yourself!