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By Hakeer
#15326432
SpecialOlympian wrote:We've gone over this before. Some people need their excess earnings to generate income. Some need it to grow for a future retirement timeline.

And why should it beat inflation? You are taking your money as income, now. Money now. It's not a radical concept. I'm also not a CFA I don't make investment choices and frankly I find those creeps gross. I just posted about a CFA who almost got into a fight with a wall mounted television.

Dividends and interest payments literally reduce the value of a security. More payents = less value. For a person who needs their retirement savings to function as a source of income, growth isn't important. Starving to death on top of a pile of money doesn't benefit you. You can't spend growth.

Also I'm a CFP not a CFA. I don't pick stocks. I can't imagine a more nightmarish career than sitting behind a Bloomberg terminal. I actually talk to people instead of looking at 80's Aliens movies style representations of financial readouts. No joke, they haven't updated the Bloomberg terminal interface in decades and it still runs in fucking DOS.


This is not an either/or choice. I have always had just enough dividend stocks to meet my cash flow needs. Everything else in high quality growth stocks. But if you are buying low-yielding crap (read bonds, most mutual funds) you are diverting more capital toward income than necessary and consequently less toward growth than optimal. How many “financial advisors” preach this to their clients? Almost none. Every one I’ve ever talked to preaches the same advice about “diversified portfolio” (stocks, bonds, index funds, gold, etc.). My strategy beats that consistently for 44 years.
#15326433
I have told you: I am a CFP, not a CFA. I do not make investment choices. And I could care less because I trust the people I work with. Even if I think they're weirdos.

I tell people they should title their homes under a revocable trust because they own homes in two different states and probate is a bitch.

Also money managers do not sell themselves by selling slightly above the risk free rate of return portfolios. If they are, they are specializing in large bond markets where income is tax free like New York and California. Which, again, is turning your money into an income generation product rather than growth.

I could care less about your strategy. I am happy for you, but I don't care. Nothing you say changes my general advice. Which is only general because we are not friends yet, and I'd love to get to know you. I am glad you have done well for yourself, but you can't replicate that without a time machine.
#15326434
It would literally be against my fiduciary duties to tell people, "Buy individual stocks of growth technology sector companies." I would be giving bad advisement to clients and performing a service I do not do, which is investment management.

Edit: Growth and Technology are kind of redundant. They have sky high, unnatainable dreams so of course they're growth. Like lmao GrubHub is a growth company.
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By Hakeer
#15326435
SpecialOlympian wrote:I have told you: I am a CFP, not a CFA. I do not make investment choices. And I could care less because I trust the people I work with. Even if I think they're weirdos.

I tell people they should title their homes under a revocable trust because they own homes in two different states and probate is a bitch.

Also money managers do not sell themselves by selling slightly above the risk free rate of return portfolios. If they are, they are specializing in large bond markets where income is tax free like New York and California. Which, again, is turning your money into an income generation product rather than growth.

I could care less about your strategy. I am happy for you, but I don't care. Nothing you say changes my general advice. Which is only general because we are not friends yet, and I'd love to get to know you. I am glad you have done well for yourself, but you can't replicate that without a time machine.


Is it legal for a CFP to alert a client that his investment portfolio is full bonds and low-growth stocks that don’t have a chance in hell of achieving his retirement goals?
#15326436
Why are you so angry about this? I'm glad you've done well with your stock picks.

What does the client want? Income or growth? How old are they? What do they want their money to do? So many questions.
#15326437
Why in the fuck would I call a client to "alert" them that their bond portfolio is stall all bonds? They would rightfully assume I'm a moron for telling them, "Everything is as it should be!!! Be scared!!!" Why would I do that?

Doest this help you? Imagine a stock where the price does not change, and you receive dividends for several years and you receive your purchase price back at the end. Does that help a bond make sense to you, and why someone nearing death might buy one when they literallly do not have the time to gamble on the long term movements of the market? You don't have to like it. It is literally just a securities product nobody is forcing to buy.
Last edited by SpecialOlympian on 05 Oct 2024 06:01, edited 1 time in total.
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By Hakeer
#15326438
SpecialOlympian wrote:Why are you so angry about this? I'm glad you've done well with your stock picks.

What does the client want? Income or growth? How old are they? What do they want their money to do? So many questions.


Assume they answered all the questions and the goal is to retire at age “X” with their investment portfolio value “Y”. Would you alert them that they have way too much low-yield stuff to achieve that goal and need to reallocate more into growth stocks?

BTW, I sure wouldn’t tell them to put it all in tech stocks.

I have a lot in tech but also good growth stocks in energy, retail, and healthcare. That is MY idea of a diversified portfolio.
#15326439
I wouldn't give them any advice because that's so vague as to be useless. But if you are going to work another 20 years and your income covers your costs then yes, invest in the stock market. The reason a business exists is to take on risks and earn faster than the risk free rate of return.

What do you want me to prove to you? Do you want me to go over Medigap insurance? Lecture you on when you should or have should not have started withdrawing from Social Security? It sounds like you have a Financial Advisor, and I am giving you free advice to shout at him during your semiannual meetings. Stop being a cheapskate and listen, and ask questions. People who work in finance love explaining things.
User avatar
By Potemkin
#15326442
Some Certified Financial Planners attempt to give @Hakeer advice….

#15326443
That's pretty much how clients like to be treated. You don't pay me to be treated gently, a nice gut punch is what you want.

Only an idiot pays to hear, "You're doing everything right, no notes! Great job" No, of course you critize them. And make them feel small and stupid. What are they paying for? It's part of the ride. Get an umbrella insurance policy, moron. You're retired and not entering the workforce again. You're practically dead.

You're slumping on the floor of my office pretending to be dead. You're pathetic, and you're not geting your Universal Life Insurance Policy payout I would have told you not buy it if you'd hired me 20 years ago ULP! More like LMAO! How the fuck have you paid an insurance company so much money they will loan you $200,000 you absolute moron? Of your own money, that you paid them. Do you realize the present value of a future dollar? They were laughing at you in 1980.
User avatar
By JohnRawls
#15326447
SpecialOlympian wrote:That's pretty much how clients like to be treated. You don't pay me to be treated gently, a nice gut punch is what you want.

Only an idiot pays to hear, "You're doing everything right, no notes! Great job" No, of course you critize them. And make them feel small and stupid. What are they paying for? It's part of the ride. Get an umbrella insurance policy, moron. You're retired and not entering the workforce again. You're practically dead.

You're slumping on the floor of my office pretending to be dead. You're pathetic, and you're not geting your Universal Life Insurance Policy payout I would have told you not buy it if you'd hired me 20 years ago ULP! More like LMAO! How the fuck have you paid an insurance company so much money they will loan you $200,000 you absolute moron? Of your own money, that you paid them. Do you realize the present value of a future dollar? They were laughing at you in 1980.


SO picture from work in his professional attire:

Image
#15326449
It's gentler than that. We are talking about rich babies after all. Soft people handled by soft hands who have never come into contact with a hard surface

Talking to rich babies is kind of my job. What's annoying on the radio? Oh, that's really nice. Give me $5,000 to the business I work for.
User avatar
By Hakeer
#15326451
Potemkin wrote:Some Certified Financial Planners attempt to give @Hakeer advice….



Yeah, I did that to my M-L financial advisors about 40 years ago when they told me I need a "diversified portfolio" with bonds. Haven't talked to them about investing since then. We live in different worlds. I do have a tax guy and a lawyer to advise me on estate planning, taxes.

Whole life insurance is as bad as buying bonds. I never would have considered that, either. So are annuities. All this crap is for suckers.
User avatar
By Hakeer
#15326469
Deutschmania wrote:Or this might even be the result .




We haven’t even gotten to “savings account” interest rates. If you are a Bank of America “Preferred Rewards” customer, you can get their top rate of 0.04%. Every now and then they credit my account with 39 cents.
User avatar
By Potemkin
#15326478
Hakeer wrote:We haven’t even gotten to “savings account” interest rates. If you are a Bank of America “Preferred Rewards” customer, you can get their top rate of 0.04%. Every now and then they credit my account with 39 cents.

“What is robbing a bank, compared to founding one?” - Bertolt Brecht.
User avatar
By Hakeer
#15326479
Potemkin wrote:“What is robbing a bank, compared to founding one?” - Berthold Brecht.


True, that’s why I deal with BOA as little as possible. Unfortunately, they know we need a checking account, so do not have to pay interest on the account. We only have a choice of which bank will rob us.
#15326480
Hakeer wrote:Whole life insurance is as bad as buying bonds. I never would have considered that, either. So are annuities. All this crap is for suckers.


I love explaining the downsides of Whole and Universal life insurance policies to people.

"So you give them money, and they graciously allow you to borrow it back?" Plus the purpose of life insurance is to either get money out of your estate if you're exceptionally wealthy or replace a spouse's income. Universal or Whole means you pay insurance premiums in your 90's. Why? You are retired.

Can I ask what allocation they wanted in bonds? Because during market downturns people panic and sell stocks to buy bonds. A small allocation allows you to sell bonds when they are overpiced and buy stucks when they are on sale.
Last edited by SpecialOlympian on 05 Oct 2024 23:58, edited 1 time in total.
User avatar
By Potemkin
#15326481
Hakeer wrote:We only have a choice of which bank will rob us.

The capitalist system, summed up in one sentence. :)
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