Unless you are ultra-wealthy, the idea that you or anyone needs a financial advisor is completely obsolete. It is so Twentieth Century.
Online banks make both equity and debt markets complete accessible, usually enabling you to trade for free. And, if you do not want to trade individual issues, the last thirty years have brought a proliferation of ultra low cost exchange traded funds (ETFs) and bond funds. Everybody with a high school education can now determine their own risk tolerance and control their own financial situation with minimal costs. And, you can always just put the cash that you cannot afford to risk in a high yielding online savings account or online CD. It is so easy.
Yet, I look out my window, and all the sudden I see some large financial websites (such as Bankrate and Investopedia) transitioning to offer a service where they find you a financial advisor. This is just bananas. Why is there even a market for this?
My only explanation is that millions of people are watching the magnificent seven or eight stocks go spiraling higher and experiencing FOMO, panicking and thinking that they must hire someone to make it right.
My word to these people is that you've already missed out and hiring someone to try and fix your situation will result in further heartache and despair. To boot, it will significantly impact your investment returns. Go open an account with Schwab, ETrade or Vanguard and buy a little Nvidia or Novo Nordisk if you must, but keep most of your equity allocation in SPY. If you must hire someone to be your friend, choose someone in another industry who can add value or make you feel good.
Full disclosure: Author is long Nvidia and Novo Nordisk but would not be adding to positions in either at current prices. Nothing in this article should be construed as an recommendation to buy equity indicies at current levels.
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