Should I let USAA handle my financial investments?
Now before you say, "You can do it yourself," or "Don't go with USAA." Keep in mind that I haven't the first clue about investments, and making bad investment moves can hurt you quickly. If you don't think that I should go with USAA then could you give me someoone else that could help me with my investments. Thank you.
Everyone is telling me I can do it myself, and a CD...? Are you kidding me? An interest rate of 1.00 why the heck would I waste my time doing that?
Well where can I start, or get advice?
- 9 years agoFavorite Answer
It depends on what you mean by letting them "handle" your investments. Unless you have over $250,000, they're likely to set up an account for you that is "self-directed", that is, you will make the investment decisions from among the choices they offer.
Investment accounts where a professional makes all the decisions for you are generally pretty expensive, around 2% annually of the assets being managed, and unless the amount of Assets Under Management is significant, most firms won't do business that way, because it isn't efficient (profitable) for them to do so.
Being eligible for USAA membership, you must have some relation to the military. A good source of unbiased information for you is Save and Invest.
Randy Wall, MBA, CFP®
Penn Cove Financial
- exactdukeLv 79 years ago
Where can you start??? How about a savings account at the bank? Then read a book (or maybe even 2 or 3). Investing for Dummies by Eric Tyson is a good start. Investing is not exactly rocket science. A little research & almost anyone can figure it out.
No one starts out being a genius at investing. Most learn via the 'school of hard knocks'.
1) Open a savings account at the bank. Keep 3 - 6 mo of living expenses in it.
2) Start a 401k plan at work.
3) Start an IRA - with a target date retirement fund
4) Got money left over - open a brokerage account. VTSMX - Total Stock Market mutual fund.
Nothing wrong with USAA. But there are other companies - Vanguard, Fidelity & TRowe Price. Low costs, and great investment funds.
- Anonymous9 years ago
You're gonna hate this, but you CAN do it yourself. You need to exert the effort to educate yourself on the basics on investing. It's not rocket science and you don't need to be an investment banker. Just spend a few bucks on a simple book like "Investing For Dummies." It's in YOUR best interest to become investing-literate.
- pegasusaigLv 69 years ago
I would send you to a good one, except I've never found one. My last broker house, was Smith-Barney. They did so poorly I figured I couldn't do worse and took it over myself. I studied and learned. In February 09 My mother cashed in a $16,000 CD, and I invested that for her. Today, it's worth $91,500. Everybody starts without experience, but it might be worth your while to learn..
- How do you think about the answers? You can sign in to vote the answer.
- Grandpa SharkLv 69 years ago
Ha Ha Ha good luck on a financial advisor and there flavor of the month picks
- RogueLv 69 years ago
I think Vanguard has the lowest expense for funds...
And 1% is not cheap, it is the average cost.
Some index funds have expenses as low as 0.10.