Re: What would you with $20K?
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East,
Mutual funds managers dont dispense personal financial advice, they just do a job managing a portfolio in accordance with the mutual fund's stated profile and objectives.
CFPs provide a more personal service that includes a considerable amount of advice about handling net worth through all stages of life. This advice includes aspects of estate planning, handling windfalls and inheritance, financial effects of life milestones (death of parents or spouse, marriage, divorce etc).
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You made a general statement: "Smart people rely on expert advice." I applied your generality to show that it isn't "as simple as that" in general. I don't need any "experts" to tell me that I should save my money, diversify, and invest to match my desired balance of risk and return, just as I don't need any "experts" to manage my investment portfolio in a mutual fund, when their value added is demonstrably nil.
I think the point here is that financial advice for the vast majority of people isn't rocket science. I have had many people tell me what their "financial advisors" have done for them and I tell them they could have come out ahead by buying a $30 personal finance book and reading it in a couple of evenings.
Smart people don't pay premiums for "expert advice" on subjects which aren't all that complicated.
eastbay
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