On Apr 9, 11:25 am, "mscsrrr.com" <m...[at]maximumedge.com> wrote:
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1) Get a couple of books on investing at the bookstore or the library.

2) Think about how "risk tolerant" you are. Do you have the stamina
to deal with the ups and downs of the market? If you are unsure, you
need to favor bonds over stocks.

3) Decide what your goals are with this money? Retire young? Blow
$100k in Vegas? Avoid taxes?

4) Talk to several financial planners. You have two ways to pay them:
a fee directly to them or via commissions on transactions. Which way
is better for you?

5) Consider doing it yourself.

Frank

I would fully fund my Roth IRA and put the rest in index funds and then
start reading about investing. Then you will be better able to see how the
financial planner is probably screwing you. I would look very hard at
anything he wants you to buy where he is getting a commission. If you don't
fully understand the product he wants you to purchase don't buy it.

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On Apr 9, 9:25 am, "mscsrrr.com" <m...[at]maximumedge.com> wrote:

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Don't spend all your money at once. Let it sit around for 6 months or
a year to get used to the idea of having it. You can blow hot and
cool about a dozen different investments in this time. They say you
only appreciate a change in your lifestyle for about two weeks. No
need to rush into things.

It's rather interesting that you didn't mention retirement. Most
financial planning involves retirerment planning. If your needs are
for current and immediate future income, that changes things.
Retirement and other accounts can be taxable, tax free, tax deferred,
ordinary income tax rates or long term capital gains tax rate. So
don't put stocks with long term capital gains into an IRA taxed at
ordinary income rates (unless you are in a really low bracket). You
don't mention the state you are in, but the differences in state tax
laws are important.

Don't be bashful about asking the fees associated with each investment
type. This includes fees to your advisor and the institution selling
the product. Fees can be one time or recurring. Ask for the fees in
writing. If they say it's included in the documentation, ask them to
yellow highlight it. I personally wouldn't pay 1% a year to invest
in bonds, but that's just me. Be sure to ask about term and surrender
charges. Most people will recognize this as a typical annuity
question. I was pitched to put the money I had in 3 - 4 month CDs
into a 7% annuity. They actually wanted me to say yes with that
description. Oh, it's turns out that that was just for the first
year. Only guaranteed to be 3% after the first year. Oh, and it had
a 10 year term with a 7% surrender charge. Don't worry that would
have been in the small print in the document they had me sign. Just a
little parable to say really understand the investments you make.

There really are no secret investments with high returns and absolute
guarantees. There are plenty of stupid investments, so your advisor
should eliminate these from your portfolio.

"mscsrrr.com" <mscs[at]maximumedge.com> wrote
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I think you can avoid some pitfalls by preparing carefully
for your meeting/interview of the potential advisor. Know
something about asset allocation; e.g. try the online links
to quick and free asset allocation tools listed at
http://home.earthlink.net/~elle_navorski/id8.html . Know
something about the historical returns of the stock market,
short (very risky!) and long (historically speaking, not
risky); know what it means to own a stock. Always understand
that the only stupid question is an unasked one (assuming
you put a little effort into answering the question yourself
first via tools like google). Stow this money in a money
market account yielding upwards of 4.5% right now. Then lurk
here for six months.

Hello:

I have a large sum of money coming my way which I plan to use to
invest in different securities and industries.

I believe I will need a financial planner or advisor to help me.

What are the pitfalls to avoid in chosing one?

Your helpful tips will be appreciated.

Thanks.

mscsrrr.com