Among Friends

[sarahpanda]

What do you know about investing in stocks and bonds? Any pros/cons or tips? Through your own personal bank - or with a firm? Any recommendations?  

[Ainhisg]

I have used a local firm for 24 years.  It was recommended to me by a colleague. I would not advise using bank advisors.  From my experience with just basic annuities and CDs, they do not have the acumen to advise wisely.

If you belong to a community Facebook group or to Nextdoor, you could reach out for recommendations there.  Or perhaps you have some local friends or family who could recommend a firm.

[Mom2Dogs]

@sarahpanda    We leave that up to our Financial Advisor.  Personally I would not go to a bank.  Our advisor...he is listed as one of the top 5 advisors in our state.  I do know that the firm we used prior to our current firm was not that great. Once we changed advisors our accounts were handled differently..in a good way.

Another thing I like about our current firm is that one of our yearly meetings  we go over our budget.  Previous to the meeting we have filled out a form on how we spend our money, our insurance costs, outstanding or new debt....everything you can imagine.  

They take that information and that is how they figure out how much money we need in retirement and how long that money will last....of course ANYTHING can happen to change that plan but it is helpful to us.  

We know how much money, if any will be left when we pass or if we need to curtail spending in certain area to keep our lifestyle where we want it when we retire.

My dh and I are past retirement BUT still working.  We are self employed and are not ready to quit working...I have never asked if we continue the yearly budget meeting after we retire.

Currently they are running numbers to see if it makes sense for us to move to a smaller/one level home, or just age in place.  For us we  find the budget meetings very helpful.

They also make sure wills, POA etc are all up to date.

[4kitties]

@sarahpanda 

Please be very careful.  Investments depend on many factors, age, financial goals, one's health, etc.  Those of us who are older need safe investments while younger people will want to grow their investments.

Do you have family or a trusted friend to help you choose?  Please make sure you completely understand any investment before entering into it.  

[CalminHeart]

I was a registered principal and representative with a securities firm for most of my career.  I had to review or deny applications to buy all kinds of securities including stocks and bonds.

A few things....

• How much risk are you willing to accept?
• Can you afford itl? You'll have to prove it to the stock/bond company if they are reputable.
• How will you feel if you lose it all?
• Can you afford to lose it all? 
• How will you find stocks and bonds that are in your best interest?
• What are the fees?
• What are your debt to income and debt to assets ratios?
• There are several ways to invest in stocks and bonds, such as mutual funds. Would another type of investing be more appropriate?  
• There aren't any guarantees.

[CalminHeart]

---

@CalminHeart wrote:

I was a registered principal and representative with a securities firm for most of my career.  I had to review or deny applications to buy all kinds of securities including stocks and bonds.

A few things....

• How much risk are you willing to accept?
• Can you afford itl? You'll have to prove it to the stock/bond company if they are reputable.
• How will you feel if you lose it all?
• Can you afford to lose it all? 
• How will you find stocks and bonds that are in your best interest?
• What are the fees?
• What are your debt to income and debt to assets ratios?
• There are several ways to invest in stocks and bonds, such as mutual funds. Would another type of investing be more appropriate?  
• There aren't any guarantees.

---

I strongly advise people to get a reputable securities rep/financial planner who has all the needed credentials. 

[Meowingkitty]

Make sure whomever you choose is a fiduciary. A fiduciary works for your best interest and not solely for profit like someone at a bank whose sole mission is to sell you the product that will generate the highest profit margin for the bank.

[katie1859]

Go with a firm.

Merrill Lynch

Fidelity

There are many to choose from

Open a 401 and or ROTH depending on your age

You choose a diversified portfolio with a mix of stocks, bonds or what level of risk you are willing to invest.

[Jaspersmom]

First thing is to find a reputable certified and licensed financial planner.  I would ask someone you know well and trust for a recommendation.  Then I would meet with the CFP to find out how comfortable you are with him or her.  If something doesn't feel right, move on to another person.  My first person was the husband of a friend who I thought was smart and could be trusted.  I won't go into detail, but let's just say, it turned out to be a very poor decision that had a negative impact.  I made a new choice and have been working with that person for over twenty years.  We meet whenever I want to discuss my accounts, but at the very least, we meet  annually to review my investments.  We always discuss my comfort level with certain types of investments, my age, any and all associated risk with certain investments, tax implications, and quite important, future needs.  One of my banks always pushes their financial advisor, so once I gave in to hear the spiel.  It was all about annuities.  I took all the info back to my CFP who advised me not to even consider them and gave me all the reasons why.  By the way, my accountant also figures into my investment strategies, but again, I take the info back to my CFP and together we decide on what my portfolio should look like. 

[Imaoldhippie]

Im guessing you dont have any experience or very little with stocks and bonds.  You really need to look for a stockbroker or a company.  A person can lose their shirt not knowing and understanding the complications of stocks and bonds.

@sarahpanda