If someone receives a large sum of money and they wish to seek reputable financial assistance who and why should they call?

Answer 1

FINANCIAL ADVISORSIf the amount is truly large, you should start looking for a financial advisor (preferably a Certified Financial Planner). If the large sum is received as the result of an inheritance, the estate attorney should be able to recommend someone. For a fee, the financial planner will set up a plan that meets your needs (risk tolerance, return requirements, expected cash outlays, etc.). Meet with more than one before you make a decision. The financial planner should (1) hold relevant certifications (e.g., CFP), (2) be affiliated with a reputable firm, (3) have many years of experience in the industry, preferably at the same firm, (4) not have compensation related to the sale of certain types of financial products (e.g., life insurance, stock trades), and most importantly (5) have no "black marks" on his or her record (check NASD/FINRA/SEC). Be skeptical if the financial planner suggests or tries to sell financial products that are difficult to understand and/or have high fees to enter and exit, or if he or she promises a "too-good-to-be-true" return (if it sounds too good to be true, it probably is - just ask any of the Madoff investors).

Some things to consider for yourself, even before contacting a Planner:

• Your tolerance for investment risk (Conservative, adventurous, etc).

Knowing your own nature is important, because the planner can design investments to best suit you. More conservative types tend to be more comfortable with very low risk/low return investments, such as CDs, saving accounts, etc, while people with a higher risk tolerance and/or a longer time horizons will put a greater percentage in the stock market.

• Your overall financial status without that large amount of money.

(Do you owe a mortage or large bills you can handle without touching the new money? Do you want to 'spread it around' to friends/relatives? Do you want to 'sock it away' for retirement?

Only you can best answer those questions. Whoever you choose to assist and plan for you, it's your money, so don't let them talk you into anything you don't want or don't understand.

As an alternative to finding a traditional advisor, you might set up a money market account with a large brokerage firm (such as Vanguard or Fidelity). If you have over 500K they will help you with a plan for free. They act as a broker, as do others, lie Fidelity and TRowe Price, so you are not limited to their products. You may consider a do-it-yourself approach utilizing index funds and exchange traded funds as well. However, if you do try a do-it-yourself approach, do not try to "beat the market," for you will always be at an informational and technological disadvantage, relative to professional investment managers (hedge funds, mutual funds, proprietary trading firms, etc.). Your goal is to choose the optimal asset allocation among money market accounts, short-term, intermediate-term, and long-term bonds, domestic and international equities, large-cap and small-cap equities, etc. Thus, you likely want to stick to money market accounts, large and well-managed mutual funds, and index ETFs (ETF = exchange traded fund, similar to a mutual fund but designed to closely match a specific index). Here are three things you should avoid: (1) trying to actively trade your investment account (market timing, technical analysis, day trading, etc.), (2) trading on investment "tips" (from friends, email, newsletters, stock promoters, etc.), and (3) trading in illiquid securities (bulletin board and pink sheet stocks) and most derivatives (options, futures, etc).

- Opinions -

One contributor user recommends two books and offers an opinion:

• "A Random Walk Guide to Investing" by Burton Malkiel
• "The Only Investment Guide You'll Ever Need" by Andrew Tobias

By reading these books, you'll know more about personal financial management than many so called financial planners if you read and internalize the information in these two books.

A good place to start with your plan would be the Malkiel book, it is simply written and very informative (he has two popular books).

:If you want to receive qualified financial assistance, it's best to consult professional investment and financial advisors. I would advise you to get in touch with GEPL, a decade-old stock broking company. It offers comprehensive wealth management services to high net worth individuals. The investment advisors at GEPL have the required expertise to offer you customized financial planning solutions that cater to your specific needs and risk appetite.