Date: Mon, 5 Jan 2004 18:02:09 CST
From: "Brent D. Gardner, ChFC" 
Newsgroups: misc.invest.financial-plan
References:  <237a8ae7.0401051322.6c48e5eb@posting.google.com>
Subject: Re:  Value of professional money manager
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	=8nUc

"Michael Grinnell"  wrote in message
news:237a8ae7.0401051322.6c48e5eb@posting.google.com...
> List,
>
> My father has always used a professional money manager to handle his
> investments.  So far I have done everything myself but am perhaps
> feeling a little insecure.  What, in the the view of the list, are the
> pros and cons of having a professional money manager and is there some
> time at which the consideration of having such a manager becomes
> essential or at least much more important?

Mike,

There really isn't any rule for this, everything is going to be based on
opinion, although some of us, by observation, have perhaps opinions based on
OJT that others might not have.

Taxes are getting more complicated, not less. I work with CPAs and tax
layers all day, and they can't remember everything, much less know
everything, about every code.

Investments, and the risks associated with them, is more complex than most
thought, as the mutual fund scandals have shown.

Even relatively boring things like a fixed annuity or general account life
insurance policy (whole life, universal life), is fairly complex. Variable
Universal Life (VUL)? VERY complicated, and experts on them are relatively
rare, even though plenty gets sold.

A lot of people make financial decisons based on erroneous information,
including urban legend and mythology. Some of the misinformation comes from
some allegedly reliable sources.

I work with a fairly diverse clientele. While some are very young, and some
are very old, some super wealthy, and some just getting by, the majority are
what I call "delegators" -- people who could probably do what I do, without
much difficulty, but they don't have the time, or have other things they'd
rather do. Some are pretty active in their planning, others just want the
bottom line every so often, with a heads up if they need to make a change.
Everyone is different.

One of my favorite quotes fits this discussion:

"Building a deck is NOT as hard as you think!  I've watched TV personality
Bob Vila do it many times, and he is a regular 'do-it-yourselfer' just like
you, except that he has knowledge, skill, an unlimited budget and a large
staff of experts." - Dave Barry

Having someone do something for you is going to have a cost, although the
cost may be offset by tax savings, or premium savings, or potentialy higher
returns. I've examined more finacial situations that most of my peers, by
virtue of being second generation in this business, and having a large
client base. I haven't found ANYONE that had everything in order. In fact,
most of my clients don't. Financial planning, estate planning, business
continuation/succession planning, etc. are all a work in progress.

Brent D. Gardner, ChFC
Chartered Financial Consultant
http://members.cox.net/brentdgardner1378/

"Be ever questioning. Ignorance is not bliss. It is oblivion. You don't go
to heaven if you die dumb. Become better informed. Learn from other's
mistakes. You could not live long enough to make them all yourself." - Hyman
George Rickover (1900-86), Admiral, US Navy, advocated development of
nuclear subs & ships

The Chartered Life Underwriter (CLU) and Chartered Financial Consultant
(ChFC), designations owned and exclusively offered by The American College,
signify the highest standards of academic study and professional excellence
in the financial services industry.