Should I use an advisory service?

Question

I have about $55,000 in a portfolia managed by advisory services for mutual funds. I am retired and only reinvest the dividends and interest. I use this money for emergencies or extras only. Should I use an advisory service or stop paying these high frees. How could I invest in another service or what could I invest in? I don't have very much knowledge in investing, as you probably can tell.

Answer 1

Any one who has a financial advisor to manage MF investments is bleeding to slow death.

A typical MF will have a front load of 3% and total expense ratio of 1.5%. In addition, your advisor probably charges another 1% for doing very little. These charges after,say, 40 years, will take 60% of your fund value. Yes, correct, 60%. Further more the income yield is tiny.

I recommend you ask your advisor to sell half the units of each fund and invest the proceeds in high yield ordinary shares of 8 blue chip companies in different market sectors. Then put all holdings in your name and you say thank you and good bye to him. Your income will take a jump and your wealth will improve no end.

Use any surplus income to buy more. Do not buy and sell like many fools do. Buy and hold, like Warren Buffet. Repeated academic studies have shown this is the best policy.

Answer 2

So..
Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share. They are notoriously risky but if you follow a special method I've learned you can earn good money at almost no risk. This is the site I use: http://pennystocks.toptips.org

I definitely recommend subscribing to this site in particular. Very good research, quality stocks. I was a bit weary of penny stocks from all the bad hype they receive but this guy is pretty legit. He's put my mind at ease with a lot of the fears I've had. I especially like that he doesn't send out announcements left and right. I've signed up for other websites that fill my in-box with one company after the other. I don't know where to even start with so many choices in front of me! Nathan sends me one idea a week and that's all I need. Working so many hours during the week leaves me with very little time when I get home to start doing tons of penny stock research. I'm always eager to see what Nathan's next suggestion is each Friday and I love having time on the weekend to do my research.

As said above if you want to make money with penny stocks you have to follow some proven methods. This one in my opinion is the best: http://pennystocks.toptips.org
Have a nice day

Answer 3

depends...
do you ever use their advice? do they make suggestions or balance your portfolio to ensure your needs are met? do they answer the phone and hold your hand when you are worried about the market or need advice>??

you never said how much they charge so i cannot say if they are fairly priced.... but since you freely admit you're not market savy i doubt you want to do this entirely on your own..

so the answer falls back to you... do you feel they have value for what you spend? ... if yes then they are worth it... if not... talk to a vanguard representative then go to a fidelity representative and compare services and fees...

don't follow stock picks/ mutual fund picks from people on Yahoo answers... just spend some time and shop you options if you dont think you are getting a good value.

Answer 4

VRTB is paying out great dividends. Look for your self for stocks that are paying good dividends and read some books about investing and if you feel confident then trade them your self online for alot less money and you have controll over it.

Answer 5

Go to daveramsey.com. His website has much information on who to contact that is trustworthy.

Answer 6

You can get free advice at your bank. But you do not have to use them.