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Stock question

A

absolu7

Senior member
so my boss is rich enough to get a financial planner and shell out for 900$ advice.(out of the question for me)

one of the things the planner told him was to sell all mutual funds/stocks in the ira account and keep just cash in there for the time being.


thoughts, comments? what to put it into..


 

Unless his fund choices were absolutly horrible, bad advice IMHO. He might be looking to churn is portfolio for some commissions.
 
WTF. 😕

Financial planners should be emphasizing diversification, not market timing. Considering they are mutual funds which already have some diversification, there should be almost no reason to go 100% cash right now. Its also a retirement account, which absolutely should include long term market investments.
 
Here's why we can't possibly pass judgment on what the planner told him: we have no clue what other assets your boss has besides his IRA, or what your boss' goals are for his investments.
 
Originally posted by: xochi

Unless his fund choices were absolutly horrible, bad advice IMHO. He might be looking to churn is portfolio for some commissions.
Click to expand...

Yeah, get rid of this financial planner ASAP!!!!! What happens next is that the FP will come back and say that he found a few GREAT investment options that you can place your money into. These investment options only come with one guarantee, that the financial planner will get paid.


As for your situation, there are many financial planners that will meet with you for much less money, some for even free. Its a good way to get your foot in the door for a successful financial future.
 
Originally posted by: kranky
Here's why we can't possibly pass judgment on what the planner told him: we have no clue what other assets your boss has besides his IRA, or what your boss' goals are for his investments.
Click to expand...

lets say he had some bad investments and wasn't diversified, then moving all the money into a total stock market fund or a target retirment fund is the way to go. Converting everything to cash is not the way to go.
 
Interest rates and money market returns are likely to drop soon instead of go up.

Moving some (not all) money into international index funds would make sense if the Boss' funds were 100% US. Moving it all to cash sounds like either poor planning or like austin316 said a scam to sell something the planner gets a commission on.
 
I was imagining a scenario where the boss wanted to reduce his overall exposure to the markets and move some assets out of the market into cash, and the planner recommended doing that in his IRA to protect him from taxable selling events.
 
I have told my brother similar things, over the next 12-18mo I am pretty bearish on the market so I don't see anything horrible. You can maximize returns by doing this rather than just buy and hold. Even international funds will head down since the US will not be driving the economies of the other countries.
 
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