Post #3211614

Yes, you want to avoid conflicts of interest like an advisor employed by a bank selling that bank's financial products. A financial advisor or financial planner can add value in areas like: - set you up making monthly contributions to something broadly reasonable - helping you figure out what types of insurance you need - keeping you from putting all your money in stocks that are booming, then selling them all when they crash and staying uninvested for years - help you decide whether to keep your emergency fund in a high-interest savings account, a money-market fund, or a regular bank account - avoid paying too many taxes on your investments But many are collecting 1%+ a year to decide whether to buy Honda stock or BMW stock, and there is very strong evidence that this adds no value. (eg. my current employer's pension fund charges 2% a year). For everyone managing $100 million who does 1% better than average, someone managing $100 million has to do 1% worse, and how can you pick the right one in advance? Even if you do, what happens if they have a stroke and their risk-taking assistant takes over the fund?