Got a call the other day from a representative from 49 Financials. A random cold call, but the young lady was pleasant and professional and I listened to her pitch. 99% of the time I hang up 3 seconds into these calls but, ironically, I've actually been searching for a new financial advisor.

49 Financials seems to be legit and a fair number of Aggies seem to work there. Smaller outfit, but that's fine by me. Just leery of a random cold call - they got my information off Linkden.

I'm not the most financially savvy individual, and I don't mind paying a small fee for someone to manage my money and help provide a better road map for my retirement.

With all that said has anyone here worked with 49 Financial? Any thoughts or opinions? Thanks all!

I own/run a wealth management firm and think they are taking an interesting approach to developing young advisors.

However, I've discussed at some depth with a very high net worth client that uses them that the scope/depth of services is lacking. I haven't been in the room with them, so it could be on the client as much as the specific advisor for all I know.

Ultimately, if I was joining the industry straight out of college again, this would be an attractive option for some to earn battle scars and progress. However, they very much give off a tech/Wall Street vibe in seeking scale and gathering assets possibly at the expense of the client experience. Time will tell if balance can be achieved, like at any healthy company in the space.

I use them right now. They're fine for getting your will, life insurance, etc. all setup. They have a catch-all portfolio they manage where they put your retirement. The service is great.

Personally, I use them because I have a good friend from the Corps working there and I trust him quite a bit. I don't do any serious personal financial investment there, but do keep my and my wife's retirement with them as my most low-risk financial play.

Insurance based

For a firm I've never heard of they seem have a ton of folks working for them.
https://www.49financial.com/our-team/

Fiduciary, or nah?

Life insurance based, or nah?

Two really good places to start.

I'm sure this is wrong but I'd never hire a firm like that where every person, including the founder, is seemingly at least 10 years younger than me. Good for them though if they're doing good work.

I know people who work at 49 and not just low people on the totem pole. The posters you see below have already nailed it.

-They are essentially a front office that gets assets under management. This isn't any different than your normal morgan stanley set up though. Just smaller. Get client in door, show them brochure, put them in an generic investment portfolio that can't beat an S&P500 ETF, collect commission on it.
-They are big big big on overloading insurance and reducing tax obligations.
-They offer a lot of different financial services to help meet all your obligations. More of a one stop shop to get it all squared away instead of just taking over your IRA.
-They're going to try to win and keep you with them based upon their customer service. Everyone is personable. Its not a phd laden quant shop thats going to beat the market. They're going to get you into some tax reducing vehicle, buy some obvious choices, hold your hand, and keep you off the ledge when the market is down.

-If you want an aggie owned, heavily aggie staffed, all in one financial service outfit thats going to know your name, ask how your kids are doing, and tell you to stay the investment course, these guys are it and you'll pay handsomely for it.

If you want a financial outfit that is super sharp, and has found a way to smoke the market, give you outsized returns, and take an outsized cut over what the market performance is - these guys aren't it.

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If you want a financial outfit that is super sharp, and has found a way to smoke the market, give you outsized returns, and take an outsized cut over what the market performance is - these guys aren't it.

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Who is (except for maybe the outsized cut)?

MAS444 said:

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If you want a financial outfit that is super sharp, and has found a way to smoke the market, give you outsized returns, and take an outsized cut over what the market performance is - these guys aren't it.

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Who is (except for maybe the outsized cut)?

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There are private shops that will take your money, sign you up for outsized risk, and go hunt for the highest alpha. One of my friends used to data a guy who did it. Laughed at me when I asked if I could throw some money at him to manage. Apparently his company's minimum asset level needed another 0 or two above what I could offer at the time.

I've never seen an advertisement for a shop that can do it. Its all acquaintances of friends who are in the banking industry that know a guy. They required accredited investors.

Remember 80% of mutual funds can't beat the S&P500. But 20% do. That keeps them up at night working.

Thanks all. Confirmed what I was thinking after reviewing their website. A one stop shop. Possibly a good one but a place that holds one hand and guides them thru it all.

I feel comfortable with my will, life insurance and other one time buy items. I need an investment house / broker or whatever the term is that has a fiduciary responsibility to me and my money. I don't need it to kick the S&Ps butt (although that would be nice - but as another poster pointed out I'm probably a 0 or two short in 401k) but I do need them to consistently do well - mirror the Markets or better.

So is that asking too much? For a firm like theirs one another outfit to constantly match or exceed the market for a low level investor like me? As always, thanks all!

Guppy said:

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I don't need it to kick the S&Ps butt (although that would be nice - but as another poster pointed out I'm probably a 0 or two short in 401k) but I do need them to consistently do well - mirror the Markets or better.

So is that asking too much? For a firm like theirs one another outfit to constantly match or exceed the market for a low level investor like me? As always, thanks all!

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Sadly, it is. The individual broker that works tirelessly to make you more money is mostly a myth nowadays for the middlest of classes. All of those guys are working for high net worth focused groups or solely for an ultra net worth family. For you and me, its all front end guys trying to get assets under management, they don't know jack about the market, can't share any insight anyways, and then sell you prepackaged securities at high commission rates.

What you're looking for is probably going to be some small group that is just people's names and someone is a CFA charterholder. It'll be a commission based set up, but what you're looking for is A) The person across the table actually knows anything about the market and is willing to pick individual stocks. They're actually managing your portfolio instead of handing it off B) They aren't hauranging you for prepackaged vehicles that are no better than your 401k options through your job. I'd give you a name, but the group I'm most familiar with just got bought out by a big company and they're useless now.

Here's my take. If you want to perform equivalent to the market for the lowest cost, you're going to have to become your own advisor. Just buy an S&P500ETF like VOO or SPY and just let em rip for all your working days. Keep buying every two weeks with an auto purchase set up through fidelity or schwab. If you want an easy shot at beating the S&P500 you've got three options

-Just buy berkshire hathaway and keep buying it.
-Just buy defense companies exclusively. They've beaten the S&P500 handedly for like the last 30 years.
-Buy QQQ if you think software will continue to be the future

Position your portfolio with quarters of BRK, defense contractors, S&P500ETF's like VOO and SPY, and QQQ and let it go. This assumes you've got a long lead time before you need any money.

What else do you want? You don't need to pay more than a few bps to invest and match the market. You can even walk in and pay a commissioned advisor a1 time fee to put everything in sp index. But what other things are you hoping to get.. that's what you need to be asking about.

I guess I'm a bit naive. I was hoping to find an organization that can match or out preform the markets most years along with providing me a financial road map to and thru retirement. For that I'd be happy to pay a small commission every year (or even a large one if they are doing great against the markets).

All I really want I need is just someone to manage my money. I appreciate the previous poster pointing out key stocks / market sectors that I could invest in. That's helpful. But I assumed, and this goes back to I guess me being uneducated and naive, that there are firms out there that could do that and more for a small fee. If that's not the case, at least with what I can invest, then perhaps I should simply follow the previous posters advice and just invest in VOO, SPY and QQQ.

Guppy said:

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I guess I'm a bit naive. I was hoping to find an organization that can match or out preform the markets most years along with providing me a financial road map to and thru retirement. For that I'd be happy to pay a small commission every year (or even a large one if they are doing great against the markets).

All I really want I need is just someone to manage my money. I appreciate the previous poster pointing out key stocks / market sectors that I could invest in. That's helpful. But I assumed, and this goes back to I guess me being uneducated and naive, that there are firms out there that could do that and more for a small fee. If that's not the case, at least with what I can invest, then perhaps I should simply follow the previous posters advice and just invest in VOO, SPY and QQQ.

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There are a handful of advisors here that could absolutely help you with you're looking for. Where are ya located?

The odds of beating the market (assuming you mean the S&P 500 for this scenario) are very slim. Even lower odds if you want it done repeatedly over time. I think the best odds of beating the market occur over a long period with volatile conditions. The 70s and the 2000s are examples of this. The last 14 years have left people believing it is a fools errand. Are we at the beginning of such a period now?

You also have to ask if you are ok with full volatility. Peak to trough the SP lost over 50% in 2000-2002 and 2007-2009. Can you stay the course through that? What if you need some or all of the money during that decline? Point is, there are problems that can be brought on by volatility, and risk aversion/management is why most portfolio managers can't beat the market very often.

I'm in El Paso but comfortable never meeting an advisor face to face.

Guppy said:

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I'm in El Paso but comfortable never meeting an advisor face to face.

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Wayyyyy out west. If ya had stars, I'd PM you, but want to shoot me an email?

Thanks

one MEEN ag nailed it....

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Here's my take. If you want to perform equivalent to the market for the lowest cost, you're going to have to become your own advisor.

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That's what I did 15 years ago and it was the best financial move I ever made. Candidly, the small guy can beat the S&P, just need to invest in yourself and do not do some crazy stuff like gambling in penny stocks, meme stocks, etc.