In a half an hour ill be having a phonecall with my edward jones guy and we are going to talk about the best option to...

In a half an hour ill be having a phonecall with my edward jones guy and we are going to talk about the best option to do with the 20 grand I have in my checking account. I want it to grow somehow and we are gonna discuss ways to make that happen. I am 23 with like 20,000 in my checking account and I trust the guy to help lead me into the right decisions. What questions should I be asking him?

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He's gonna tell you to go all in on bitbean if he knows what's good for you

20k on signatum. Their lead dev just showed cryptopia who is boss with an angry twitter rant threatening lawsuits.

Should have bought Bitcoin on the dip.

buy chancoin screw edward jones

lel, link?

First, make sure he knows he now has a fiduciary responsibility to you. That means what ever he does has to be in your best interests, in good faith. He should ask you about your risk tolerance. It should be fairly high because you are so young. He should put together an investment plan broken down by the type of securities after talking with you.

I'm sure he'll have your best interests in mind, and not his.

Hmm

if he is preoccupied and emotional about any finance segment (be it crypto, forex, stocks, metals, wthatever)
i would be very careful about the advice he gives

imo any expert who gives advice even if he f.e. hates crypto should still be able to give good advice for when you want to go into crypto and not FUD you so long that you are not interested anymore.

f.e. i would expect something like "ok if you want to go into crypto those are the facts, this and that could happen, best start here, those are the risks, etc

also i think its very important that he gets you to precisely think about how much you want to risk, how much you can risk and all that stuff because many people dont make out their limits before they get into something. i believe its one of the most important things in finance to have set your boundaries for both loss and profit

you guys who have "financial advisors" at Edward Jones, are clueless. Actually, any advisor anywhere for 99% of cases, you should educate yourself and do your own stuff. I was an advisor/broker for 5 years at many different institutions and i can tell you confidently he is only thinking about 1) how to get you to never withdraw the funds you already invested 2) how to get you to invest more or buy some kind of insurance 3) to never let you realize you are being scammed by MER's and DSC fees

where are you from or in which country did you work for a broker?

just interested

Yes and no. All the big guys make 1%. Period. If you're lucky, you can get a referral to a family friend or something and get .5%. They'll make you money, but it'll be slow, steady, mostly safe money. Depending on the market, you can double it every 6-10 years. Don't expect to drive a lambo, but you'll have a nice egg in 30-40 years

Careful OP.
He could push you into one of their funds.

financial advisors don't know anything about crypto.

OP here, we talked and are scheduling a video chat meeting on friday. We decided that I would invest in either stocks or mutual funds for a short term investment (3-5 years) because thats when ill be out of school and maybe looking to buy a house. So ill be investing 18k into the market and seeying what I can do. Hopefully this isnt a bad choice, i know long term investing is better but you never know what may happen, especially when reelection cycle comes back. Also we talked about possibly setting up a roth IRA at some point. Not sure what many of this stuff means but im gonna go with it

Canada, Investors Group then private independent broker for basically all big banks/insurers

It's yes and yes. All my clients' were in deferre sales charge funds unless you're gonna invest over 1 MM. What does that mean? Means I get 5% up front commission on everything you invest PLUS half a percent annually on the balance as a trailer. they will talk you in to long term DSC funds as I did every single time

exactly as I said, he talked you into locking your money away for 3-5 yrs, perfect timing for him to get his DSC compensation. good luck making 5% annaully on your mutual funds lmao

Wait can you explain what you mean? I dont understand this all that much, im sorry.

bump

A lot of truth to this.

Honestly OP, if you were to spend a couple of hours researching, you would find that you don't need an FA. I was on a Financial advisor forum for years and they were always arguments about a ''boglehead portfolio vs having an advisor", no one could argue the latter convincingly.

Yeah the guy I talked to wants to start up a portfolio for me. I am just nervous and skeptical now that I have talked to you guys a bit.

Mutual funds have high MER's and study after study shows that mutual fund managers cant beat the index, over the long term(10-15 yrs). The latest study I read was 80% of fund managers do not beat the index

>3-5 DSC
DSC is a Deferred Sales Charge. It is what the advisor gets as compensation for managing your money. Starts at 5.5% yr1, 4.0% yr 2, etc.

Well my guy has been doing it for 30 years or so.

So what? Who recommended him? I think you are missing my point. Your Edwards Jones(EJ) guy is middleman, he does not DIRECTLY manage your money. He sells you the stocks/mutual funds. Mutual funds have their own manager.

Well he did really well for my grandma and my mom, and i figured he would do the same for me. They are both dead so I cant really ask them. And oh he wont be managing my mutual funds?

This thread reeks of boomer nonsense. This would have been derided horribly on old Veeky Forums. I don't know what this place has become.

what?

nope. Look up 3 fund portfolio and spend some time on bogleheads.org/forum/index.php

Most people can't help themselves but check their portfolio daily/weekly if they manage money themselves. If you do chose not to work with EDJ guy, just check it semi annually/annually

His advice will be to buy some stocks or bonds. That would be extremely stupid, both markets are massively over priced right now. You'd be better of buying crypto, or precious metals, or buying a second home/apartment to rent out.

As for questions, ask how the funds he recommends compare to the stock indexes, and ask about fees.

even mutual funds would be a bad idea? Like they would make me no money?

Guy offers to buy my house. Pre approved for FHA loan 3.5% down. Didn't have the 3.5% for down payment, deal dead. Yesterday I see some navy credit union 0% down home loan advertised. Yea you know where this is going real soon.

Brokers take 80% of your returns in fees. not joking, its 80%

You know these companies are making 80 million a day right?

>investing in anything other than crypto
lmao who tf does this? also why would you have a "trading advisor" when you can just research everything you want to invest in yourself with the internet now?

same reason these people have mutual fund advisors. Not everyone wants to browse Veeky Forums all day, I'm meeting my lawyer today to look at opening a hedge fund to start advising clients on Crypto

Where is it going? Sorry wasn't following

Fuck you cryptocuck. You're no better than a broker piece of shit

People from Edward Jones give a fuck about people with $20k in a checking account?

no, OP is a family relative who got referred.