Author Topic: How to Find an Investment Mentor?  (Read 3205 times)


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Re: How to Find an Investment Mentor?
« Reply #10 on: June 10, 2019, 10:53:09 AM »
I could be totally wrong but I think the probability of under performing the market (and probably dramatically) are significantly higher than outperforming (let alone by a large amount).

If you do decide to go down this road, I'd earmark a significant chunk to low cost index funds. If you outperform over, let's say 5 years, add more. If you under perform, it would probably be best to use your time doing something else. I would say no more than 5%-10% of your assets to manage in individual stocks on your own.

This game is a very hard game to play. Granted, these guys are managing billions but Buffett and his hand selected managers have underperformed the S&P 500.


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Re: How to Find an Investment Mentor?
« Reply #11 on: June 10, 2019, 10:59:26 AM »
I agree with SD especially regarding the working hobby aspect. Will be a better use of your time.

But I'd say take 5 or so % and play with that.
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Re: How to Find an Investment Mentor?
« Reply #12 on: June 10, 2019, 11:00:19 AM »
While someone who is in his late 50s may not have much to add for his wealth over time, maybe he wants to leave a bigger inheritance to his family and be able to pay for his grand kids' college education etc.  So there maybe other financial reasons over time.

Yes, but the other question is whether someone who is 59 and looking for an investment mentor is likely to compound money faster by investing in individual stocks or by investing passively. The base rate is very poor. According to Dalbar, the average fund investor earns about 5% per annum versus 10% for S&P 500. In the OP's case, keeping his current portfolio might be the optimal strategy (especially if he has capital gains in a taxable account).

The best general advice is just buy the S&P 500 and get a different hobby.


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Re: How to Find an Investment Mentor?
« Reply #13 on: June 10, 2019, 11:13:50 AM »
What KCLarkin said.  8)
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Re: How to Find an Investment Mentor?
« Reply #14 on: June 10, 2019, 11:36:59 AM »
Just to add to this ...

Almost all retirees will tell you that retirement is 3 stages; 'go-go' years, 'go-slow' years, and 'no-go' (god's waiting room) years.
Look up an actuarial table, determine when you're supposed to 'croak', and work back to today. 90 - maybe 3-5 'no-go' - maybe 5-8 'go-slow' - 65 (age at retirement); suggests 12-17 years of 'go go' retirement at best - that's it.  Your real investment 'capital' is that time, and it's to you to get the most out of it.

Lots of ways you can do this, but it really helps to have a 'plan' first.


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Re: How to Find an Investment Mentor?
« Reply #15 on: June 10, 2019, 02:00:01 PM »
In the absence of anyone else, I volunteer to mentor you. We can start....right now!

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Re: How to Find an Investment Mentor?
« Reply #16 on: June 10, 2019, 03:23:39 PM »
A few comments:

1. As several posters suggested above, I would first focus on self studying and learning by doing (with a small portfolio).  Without that background and experience you will most likely have trouble identifying who is a good mentor for you and who is not.  This is important because picking the wrong guy for this job could be disastrous for your finances.
2. The other posters are right that most people will not outperform the S&P over the long haul.  But I’m not sure if that means “put everything in VOO and forget about investing” is the right thing to do.  It might be, but my guess is that it is not.  If you’re retired your financial goals are probably more about minimizing the chances of running out of money while you withdraw $x per year as opposed to getting the highest possible CAGR over a 20 year horizon.  That probably means there’s a place for bond-like instruments in your portfolio.  But which instruments, exactly, and how much of your financial wealth should you allocate toward them given where interest rates, stock valuations, etc, currently stand?  You probably won’t have a good answer to these questions without actually studying and thinking about this stuff — which goes back to point 1.
« Last Edit: June 10, 2019, 04:06:02 PM by SHDL »


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Re: How to Find an Investment Mentor?
« Reply #17 on: June 10, 2019, 04:42:43 PM »
do you have friends who also share your interest?  if so start an investment club where you assign to each member a stock rec to be written up and present to the club at (say monthly) meetings.  each member can invest or not on own, but you can experience the lesson of writing down and presenting your analysis, and fielding questions and criticisms.  you can even cater the meetings and have the guy who was voted the best presentation at last meeting not pay for tab. something like this can incentivize members to try to up their analysis game.

you mentioned wanting a mentor, but maybe you just need feedback/pushback/encouragement from peers


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Re: How to Find an Investment Mentor?
« Reply #19 on: June 11, 2019, 07:41:47 AM »
It may be more efficient to start the conversation with the amount of assets you have first. The answer would be completely different if you have 20M vs 1M.  :)
BTW, never trust your broker! To be successful, you have to be completely independent and do all the research and call all shots by yourself. I have not seen one successful investor who made it by listening to his broker.
Therefore, the first step for you, if you really want to be in stocks right now, is to move brokerage to a discount broker to lower your cost. Fidelity is a good one because you can ask them to sweep your cash to their government obligation fund, which invests in 3 month treasury bills and pay 2% a year, and their commission per trade is low too.
If you have a bigger account, you may consider interactive brokers.

After you tell us the amount of money you have, I'll try to think of other advice for you.
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