Ex-investment industry guy willing to take questions

Native Floridian

Bronze Member
Mar 12, 2012
1,211
486
Ft Myers, Florida
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Just an example of how making a mistake can hurt.

A guys calls me to meet to talk about his 401k. he is retiring and has just over $600k in the 401k. he wants to roll it to an IRA once he retires. We go through the entire process of meeting and discussing. I come up with a plan that satisfies all his needs and will meet his goals.

Throughout the process his wife has been very quiet. I can see she is not on board. Throughout the process i try to engage her but she is closed off. When decision time comes the wife finally speaks. The costs are too high! She makes a new revelation that she belongs to an investment club and that she wants to run my plan by them. I know i'm dead in the water, just wasted the better part of 10 hours.

Sure enough the investment club shoots down my plan. The wife makes sure she twists the knife by telling me the president of the club laughed at the plan. OK, not gonna close this one!!! I move on.

Fast forward about 14 to 18 months, the hubby calls me and asks if he can meet with me. I reluctantly agree. We meet. i am horrified to learn that the $600,000 401k is now an IRA worth just over $450,000. This in an up market. Turns out the Investment club prez made a few wrong calls and cost this guy $150,000. The guy is depressed and dejected. A beaten man. He is rightfully worried about his future. he asks if we can still do the plan. i tell him yes. i give him several fee options. I show him where would have been had he gone with the plan from the outset. he got upset. Not at me, but himself. The plan was up from the original investment point. Not a ton, as memory serves, but enough. Still, none of this works for the wife who again says no. Apparently, Jeff Foxworthy has it right, there's no fixin stupid!

I reason with the guy. My fee to do the original plan was $6000 and you balked. Doing it yourself cost you $150,000. I asked which is less $6000 or $150,000? Do you have another $150,000 to risk?

This is an example of the wrongheadedness of putting fees before expertise. Admittedly it is an extreme example. However, it shows clearly, that costs are only one part of the puzzle.
 
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Native Floridian

Bronze Member
Mar 12, 2012
1,211
486
Ft Myers, Florida
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Excal, Sov GT
Primary Interest:
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I have a simple question which is difficult for me to answer. How do you start up a company or corporation and how do you make stocks and bonds for investors to invest in your company or corporation? How can you get investors without everyone saying you are a scam artist?

Consult with an attorney who speicalizes in corporate start ups. Incorporation takes place thru your state. All corporations are issued ownership shares. The lawyer can advise on all the details as well as what type of corporate structure works best for the situation.

Getting investors, that's a harder question. Most small scale start ups begin with the owner's putting in capital along with friends, and relatives. It is a good idea to have a business plan to present to potential investors.

Getting strangers to invest in a small scale company could be very difficult. Without a track record getting them over the wall of trust is not easy. Other options include getting loans thru the SBA. Once a track record is established finding investors could be easier.

Larger scale start ups pitch their ideas to VCs. Venture capitalist. Again, usually first round of financing is same for all. Your own money and that of people close to you. Second round is VC. if a VC buys into the company their goal is to get the company to an IPO, Intial public offering.
 
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TheCoinKid

Hero Member
Apr 16, 2013
579
381
Texas
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Any guesses on the stock market for the remainder of the year? To me, it looks intent on rising, a stray bullet not withstanding.

TCK
 

TheCoinKid

Hero Member
Apr 16, 2013
579
381
Texas
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Forum members should take heed at my words. I know many a person that's made a bundle following the tried and true CTCK approach, which was named exclusively after me. CTCK = Contra-TCK. They take note of my sage advice and do the exact opposite.

TCK
 

Peyton Manning

Gold Member
Dec 19, 2012
13,523
15,071
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MXT-PRO
Sandshark
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ook, when picker isn't on I take his questions. the market will end the year in the neighborhood of 18.5 this year, so act accordingly
 

Peyton Manning

Gold Member
Dec 19, 2012
13,523
15,071
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MXT-PRO
Sandshark
Primary Interest:
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anyone besides me noting the great returns in healthcare mutual funds?
 

TheRingFinder

Bronze Member
May 22, 2013
2,225
1,986
Minnesota
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Just an example of how making a mistake can hurt.

A guys calls me to meet to talk about his 401k. he is retiring and has just over $600k in the 401k. he wants to roll it to an IRA once he retires. We go through the entire process of meeting and discussing. I come up with a plan that satisfies all his needs and will meet his goals.

Throughout the process his wife has been very quiet. I can see she is not on board. Throughout the process i try to engage her but she is closed off. When decision time comes the wife finally speaks. The costs are too high! She makes a new revelation that she belongs to an investment club and that she wants to run my plan by them. I know i'm dead in the water, just wasted the better part of 10 hours.

Sure enough the investment club shoots down my plan. The wife makes sure she twists the knife by telling me the president of the club laughed at the plan. OK, not gonna close this one!!! I move on.

Fast forward about 14 to 18 months, the hubby calls me and asks if he can meet with me. I reluctantly agree. We meet. i am horrified to learn that the $600,000 401k is now an IRA worth just over $450,000. This in an up market. Turns out the Investment club prez made a few wrong calls and cost this guy $150,000. The guy is depressed and dejected. A beaten man. He is rightfully worried about his future. he asks if we can still do the plan. i tell him yes. i give him several fee options. I show him where would have been had he gone with the plan from the outset. he got upset. Not at me, but himself. The plan was up from the original investment point. Not a ton, as memory serves, but enough. Still, none of this works for the wife who again says no. Apparently, Jeff Foxworthy has it right, there's no fixin stupid!

I reason with the guy. My fee to do the original plan was $6000 and you balked. Doing it yourself cost you $150,000. I asked which is less $6000 or $150,000? Do you have another $150,000 to risk?

This is an example of the wrongheadedness of putting fees before expertise. Admittedly it is an extreme example. However, it shows clearly, that costs are only one part of the puzzle.

Though everyone MUST remember - With you or anyone else, ITS ALWAYS A RISK.
 

TheRingFinder

Bronze Member
May 22, 2013
2,225
1,986
Minnesota
🏆 Honorable Mentions:
3
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I am the only one qualified on TNET to talk about such matters as the Stock market, Gold, Silver ETC.
As I am a nice guy, my advice is FREE to all - - -

Gold, Silver and the stock market - Will either stay the same, rise or fall......period. No one knows anymore or less!!!

Now go roll the dice .....................................................................
 

picklepete

Jr. Member
Nov 22, 2012
56
35
americas heartland
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Quest 20, Simplex+ on order, detecting on and off since the 1970's.
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Mr ringfinder, there are a lot of pros out there that study the market, trends, economy etc, and they are quite accurate where all this stuff is headed. I subscribe to the james dines newsletters, he has one of the best track records going back decades. Currently , he says in the metals , SILVER is the number one metal to own. WAY under valued.
Load up and hang onto it for a few years. Currently $18 an oz, he feels it hits $300 an oz when the mania sets in. The gold and silver mining stocks are starting a wave 3 up move which will be a good one. Many stocks are already up 50-100% since mid Dec, with much more to come. He is also recommending uranium and rare earth stocks. They have been beaten down badly in the last few years, and are starting to wake up. Buy lo, sell hi.
 

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