You Won 50 Million Playing PowerBall Decided to Become an Investor. Is Your Adviser Honest?Prev TopicNext Topic

• RickHunter

  

  Atlantis
  United States
  Member #200,331
  August 18, 2019
  88 Posts
  Offline
  Aug 31, 2020, 7:27 pm

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  Not getting lucky lately, maybe my season hasn't come yet. When lucky season comes that's when I play. 

  To all those lotto players wish you best luck when you feel the vibes.

  Believe, make correction, or else.......
• GiveFive

  

  Florida - West Coast
  United States
  Member #92,605
  June 10, 2010
  6,582 Posts
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  Sep 1, 2020, 8:48 am

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  In response to Stack47

  Quote: Originally posted by Stack47 on Aug 31, 2020

  It happened a few years ago and the guy should have asked his supervisor but didn't. I called again before and after the warrants expired and was told because my account didn't allow me to have warrants, I was out of luck. I went to my lawyer and in less than a year I got a check for almost double what warrants were worth the day I tried to sell them. And they were ordered to pay all my legal costs too.

  Don't know if it applies to all 401k accounts but mine prohibited trading stock options and warrants. The first broker wrongly assumed I wanted trade warrants when I just wanted to sell the warrants I was given. The second broker said the warrants were useless after they expired which wasn't true. My guess if my lawyer hadn't got on it quickly, that broker would taken the money. 

  The moral of the story is even reputable financial firms make mistakes whether honest or dishonest. And why a cringe every time I read "the first thing I'll do is hire a financial adviser" especially when they never had one before. I'll hire one too, but only after doing my homework 

  Unless I need one to give me directions to lottery headquarters.

  "The first thing I'll do is hire a financial adviser."  A very cringe-worthy statement if I ever heard one! 

  On the surface of it, that sounds like a smart thing to do.  The problem with people saying that is they don't possess the knowledge to determine if the guy they've been hooked up with is any good or not. (Not to mention if he's got a shady past)  So your brother in law recommended to you some guy that he was told is "good".  What does your brother in law know?  Who told him the guy was "good"?  Does the guy who gave your brother in law a name know anything about managing millions of dollars?  The problem is this; I'm not a financial professional. Therefore I cant tell if the guy I'm interested in hiring to manage my 50 million dollars is any good or not. 

  It's kind of like this: What do they call the guy who graduated last in his class in Medical School?  Answer - DOCTOR!!!  Doctors know which doctors they'd let diagnose and treat them, and which doctors they'd never go to.  I can only wish I had the knowledge to do that. 

  I also wish I had an answer to this thorny problem because if I did, I'd post it here. Unfortunately I don't.G5

  Play Smart!
• CDanaT

  

  Central TN
  United States
  Member #121,187
  January 4, 2012
  7,771 Posts
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  Sep 3, 2020, 6:50 am

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  Well G5, you could figure you are going to live to the age of 90...plan on spending $200K a year until you reach that age. Keep that total amount in a money market acct. Also take a few Mill for house kids/grand-kids education(if you have them), cars, toys and trips. Take rest for investment portfolio and put it with 3 of the big money managing firms to see what representative gives you the best bang for your buck.

  Si vis pacem, para bellum.
• GiveFive

  

  Florida - West Coast
  United States
  Member #92,605
  June 10, 2010
  6,582 Posts
  Offline
  Sep 12, 2020, 9:16 am

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  Just to beat this dead horse a little more...

  One thing you can do is ask your newly found financial adviser if they're a Registered Investment Adviser. (A "RIA")

  RIA's have passed a Series 66 exam that's given by FINRA.  A RIA is a Fiduciary and MUST put his or her clients best interest ahead of their own. Being a RIA doesn't guarantee that they're completely honest, but I would expect that 99.9999% of all RIA's are completely and totally honest.

  Of course, it'll cost you more to have your money managed by a RIA. Usually they charge a flat fee, but they could charge a percentage of Assets Under Management too. (AUM)

  Play Smart!