Salient facts: we just sold my wife’s business and have a mind-blowing $15m sitting in our bank. We are young (she’s 40 and I am 42). We want to enjoy life with our four little kids and building up a legacy is not a big priority. We are the first in our families to graduate college and don’t know that much about money. That’s where you wonderful people come in.
Question: Do we need a financial advisor? I have heard people like Warren Buffett say to just put the money in a low cost global index fund, with some bonds to hedge risk. That of course is much cheaper than advisors; the two I met with charge about 1% of invested assets.
These guys have said we need an advisor because (1) stocks and bonds can’t give you the diversity you need, (2) they are a buffer for people like me who would want to run when the market stumbles, (3) they have access to opportunities like hedge funds, and (4) the last 10 years have been unrepresentatively lucrative for index funds and with the bottoming out of interest rates, that is likely to change.
This makes sense, but our focus on enjoying the money and not exponentially growing it, combined with the expense, makes me ask- do we need an advisor? Is the big amount such that an advisor is a given?
Thanks so much,
D
Question: Do we need a financial advisor? I have heard people like Warren Buffett say to just put the money in a low cost global index fund, with some bonds to hedge risk. That of course is much cheaper than advisors; the two I met with charge about 1% of invested assets.
These guys have said we need an advisor because (1) stocks and bonds can’t give you the diversity you need, (2) they are a buffer for people like me who would want to run when the market stumbles, (3) they have access to opportunities like hedge funds, and (4) the last 10 years have been unrepresentatively lucrative for index funds and with the bottoming out of interest rates, that is likely to change.
This makes sense, but our focus on enjoying the money and not exponentially growing it, combined with the expense, makes me ask- do we need an advisor? Is the big amount such that an advisor is a given?
Thanks so much,
D
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