What are the do’s and dont’s in hiring an investment broker?
Got Stronger asked:
Can someone give me a quick overview? I am a novice and want to talk to an investment banker on turning my $10K into great profits. I want more on my return and don’t want to make a mistake…I gues I’m trying to get rich fast or something like that so I wont have to work hard again
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Can someone give me a quick overview? I am a novice and want to talk to an investment banker on turning my $10K into great profits. I want more on my return and don’t want to make a mistake…I gues I’m trying to get rich fast or something like that so I wont have to work hard again
PLEASE DO NOT solicit me about your business offers, etc.
Thanks
July 24th, 2009 at 4:46 am
There are many, many types of brokers. If you don’t know which one you need, you probably are in no position to hire one. Save yourself the trouble and put the money in the bank for now. Then, get to work. You have a LOT of learning to do. I’d highly recommend taking a adult education course or Junior College course (both are free or cheap) in Personal investing. Join a local investment club. Find somebody in your town who knows a thing or two about REAL ESTATE (hint: you’ll never come close in gains in the markets to what you can make in real estate…anyone who tells you otherwise is lying to you)
If you are looking to get rich quickly, so as not to have to work, I wish you luck! And feel free to get in line, along with the other 50 million people in North America who are trying to do the same thing. It sounds easy. It isn’t. Otherwise, everyone would be retired and living the good life.
July 25th, 2009 at 4:23 pm
I would suggest that you do your own research and forget about an investment broker.
You are setting yourself up for substantial losses by going after the “get rich quick” investments.
An investment advisor, if he or she is worth the fee they charge, will try to get you to invest conservatively for a long period of time. They will give you common sense advice that you don’t really need to pay money to receive.
Your first option should be to fund fully a retirement account.
If you have done this, or you wish to wait on the retirement fund, then one of the best things you can do is open a DRIP Plan.
They are seldom talked about because brokers make very little money when they suggest them. Yet, they have proven to be one of the best, if not the best, long-term strategy on Wall Street.
The best part is you get solid annual returns from well-known, safe Blue Chip companies like: McDonalds, General Electric, Pfizer, Walmart, US Bancorp…….etc……..
They are inexpensive to start and maintain, and your dividends are reinvested for free.
They are perfect for small investors, as well as big investors. They are safe and allow you to not care about whether the market is going up or down.
This is good advice, but I have a feeling you have your mind made up.
Good Luck
July 27th, 2009 at 6:13 pm
Ask lots of questions…. What is his/her fees? Does the types of investments offered charge front load or back load fees to purchase that particular investment, and if so, why? Talk with friends or maybe some of their existing clients for feedback. Do they want to steer you towards a particular mutual fund or stock and if so, why? (That can be a dangerous investment if they can’t answer that to your satisfaction) But most important, don’t plan on getting rich. Plan on a long term strategy and risk management that you can live with that will grow over time where you can retire comfortably. Don’t let someone talk you into something you don’t feel good about. Read anything and everything you can about stocks, bonds, options, mutual funds et al. And, don’t invest with the first person you talk too.
This is your precious money you have worked hard for. That is what I consider the most important question…Who can I trust with my money?
July 30th, 2009 at 7:03 am
If the broker suggests a “variable annuity”…. run away as fast as you can.
Me…. I wouldn’t spend the $575 it would cost to invest $10,000. Read up on “asset allocation” and no-load funds then call one of these;
T. Rowe Price
Vanguard
Charles Schwab
Fidelity