Working as an advisor for the past 22 years, the worst (by return %) investors I've witnessed:
> day traders
> option traders (who don't heed to the rules)
> those who are too risk conservative (not buying ANYTHING but insisting on holding on to that "new idea that will change the world", however, it' still a penny stk 15 years later)
The best?
> Teachers/Educators/Govt bureaucrats (yeah who would've thought?)
> Those that placed their limit orders and "let the mkts come to them"
> Those who stepped up when the shit hits the fan (2001, 2009, 2020) Finally, those who profess to know the next big thing on a social media post, usually have been crushed themselves because they are one of those I listed on top. invest as early as you can, be greedy when everyone else is shitting their pants (Buffet quote), and if you get the gambling itch....take a few hundred and go to the track/casino/favorite provider and get it out of your system.
Just sharing an interesting article on financial planning for sex workers. NOT an endorsement or recommendation of any kind, just something to think about....
https://www.thinkadvisor.com/2022/02/14/why-working-with-strippers-makes-sense-for-financial-planners/?kw=Why%20Working%20With%20Strippers%20Makes%20Sense%20for%20Financial%20Planners&utm_source=email&utm_medium=enl&utm_campaign=financialplanninginsider&utm_content=20220216&utm_term=tadv
it seems a tad bit expensive to me for an average girl. Let's say a normal money manager charges on an average 1% of your assets, for $350 per month (equalling to $4200 per year) to be worth it, the client would need total assets of $420,000. I don't think most 20 some yr olds have that kind of money sitting around to be managed.
There is a ton of free knowledge out there. There are tools out there which allow you to create a household budget for free. You can even create a well diversified portfolio for little to no money. If you don't know how, either you can learn or pay someone a one time fee to do so. Roboinvesting has really taken off in past few years. That's where you just provide the investing software with information about your age, goals, risk tolerance, etc and the brokerage will buy securities on your behalf, and yes do automatic rebalancing of your portfolio as well.
Finding a good CPA is also not hard. Heck ! if you are in sex trade, just find a client who is smart.. There used to be couple of very qualified CPAs on TER..
Key in financial planning is discipline in saving and investing. There is an old adage that is so true when it comes to stock market. "Its the time in the market, not timing the market !" That's why a simple concept like DCA (Dollar Cost Averaging) has proven to be so effective over the long haul.
Common pitfalls to avoid are reckless spending usually stemming out of one confusing needs v/s wants, fear of investing, recklessly day trading, getting sucked into investments you don't understand, believing in snake oil salesman.. I could go on and on, but you get the point.
-- Modified on 2/18/2022 11:21:39 AM
I'm not sure why you would need to explain your source of income to a financial planner.
You don't; however, my investment recommendations for a hot-shot 30-year old programmer at Google will be entirely different than those for a 30-year old hooker who might be making the same amount of income.
One, there's clearly a section of the market for financial advice that may well be under served due to stigma but it has similar characteristics to markets like pro athletes. Seem like a reasonable business model to start with.
I agreed with a number of your points, it's not that complicated and more often than not providers will have someone that sees them that can provide a lot of good advice. However, that is a different relationship and not without it's own problematic aspects (think broadly in the who principle-agent and conflict of interest area).
I also wonder about the pricing concern. At 350/month a girl charging 350/hr would need to have something like 5 sessions a day, 5 days a week to make the fee about 1%. That doesn't seem too far off given I think most providers in that price range want that level of volume (though some will not get it I agree).
Looks like you are thinking more in terms of annual gross income. $420K/yr income. Income of that magnitude is not easy in any line of work. As long as there are assets (preferably liquid) totaling over $420K that would work. Now that's not very hard , but it may take a 20 yr old girl some time to get there.
-- Modified on 2/21/2022 9:14:23 AM
That's fair but fresh out of college just starting a career (or business) are not going to look for any on-going financial planning service either. Even a provider starting out -- well I would say one that has proven they can make money by lasting close to a year -- could benefit from hiring someone at 350/month for a few months to get informed about planning and have some structure to take for their own.
But I don't think a 350/month service is targeting the lower end, low volume ladies or those that are not yet there. And I took the article to be more from a perspective of financial planners targeting customers rather than really advice to every provider to get that service (though I do think they all should learn about personal financial management and basic money management).
for important for we mongers than for sex workers. After all, we are the source of their income, and I'm sure they all want to sleep well at night knowing that we are not going to run out money. The only two fears I have financially are that 1) I will run out of money while my dick still works, and 2) my dick will stop working and I still have money left. Proper planning can avoid both of these, but it takes work to tread the fine line of making your money last JUST LONG ENOUGH.
cue the MASH theme song.
lots of beer and whorehouses. 90% of what I've spent was on alcohol, women, and debauchery. The rest I squandered.
But seriously, I did not read the article but from the comments I see there is a fee for this planning. Rather than waste money on advisors, buy an online subscription to The Wall Street Journal and perhaps Fortune. Investing is easy, buy and hold as stated earlier. No load mutual funds based on an index always are a good start. Get funds from several different fund companies directly through their websites and bypass broker fees. After a decade or so, consolidate with the one company that you like best and some perks will soon become available. The most common perk for those with over $250K is a review of assets by a financial advisor bound by fiduciary requirements. As Jack Bogel once, "never fall in love with one fund but do fall in love with a fund family." Personally, I would never take financial advice from other than a self-made multi-millionaire, and they don't need to sell advice for a living.
He was a wise man.. I, therefore, like Vanguard mutual funds. No load and very low expense ratio. Charles Schwab Mutual funds are also pretty good.
Some fancy pants like ETFs as they allow all kinds of funny business like stop orders, limit orders, short selling, but I like simple Mutual Funds, something you can put on auto-pilot and buy every week or every other week, and over past 20 yrs or so, it has served me very well. Don't try to be the next hedge fund by trading day and night - most people lose their pants that way.
Robert Kiyosaki makes a very profound statement in his book, Rich Dad; Poor Dad that you pay yourself first then you pay your other bills.
-- Modified on 2/23/2022 11:39:37 AM
Working as an advisor for the past 22 years, the worst (by return %) investors I've witnessed:
> day traders
> option traders (who don't heed to the rules)
> those who are too risk conservative (not buying ANYTHING but insisting on holding on to that "new idea that will change the world", however, it' still a penny stk 15 years later)
The best?
> Teachers/Educators/Govt bureaucrats (yeah who would've thought?)
> Those that placed their limit orders and "let the mkts come to them"
> Those who stepped up when the shit hits the fan (2001, 2009, 2020)
Finally, those who profess to know the next big thing on a social media post, usually have been crushed themselves because they are one of those I listed on top.
invest as early as you can, be greedy when everyone else is shitting their pants (Buffet quote), and if you get the gambling itch....take a few hundred and go to the track/casino/favorite provider and get it out of your system.
Any of these girls would be just fine with the classic three fund portfolio of Vanguard Index Funds. On a side note
Jack Bogle would roll over in his grave if he knew how Vanguard was being run today.
First of all, Why even get a financial planner involved in your finances when you are an Adult Entertainer & Etc. The Whole purpose of being an Escort/Dancer/Sugar Baby & Etc. is for the easy tax free $$$$CASH$$$$. You as the Adult Entertainer should be able to do your own financial planning.
The fact that escorting is a cash business has zero to do with whether or not you need financial planning advice. Most girls don't know anything about it and desperately need advice. You can't really hock your Loubies when you retire.
Now you know why we don't get married, although I love you to death..
Sometimes you just don't act like a smart person.. That was not a good post..