Why don't rich people manage their own money?

D

Debaser82

Apparantly from the moment you own 500k or 1 million you get promoted at your bank and you get the honour of letting your money and capital being handled by some paper shuffler who is suposed to be in the know and capable of offering high returns.

One would think those achieving some kind of financial wealth have the life knowledge to take their destiny into their own hands for better or for worse.

Or you can ofcource decide to trust your money to some independent wealth management advisor....who drives a top class car.... simply earned on the fees of managing other people's money.

I think a lot of the money these entities are alowed to manage is due to peer pressure amongst 'the rich' (not talking ultra rich here).

You need to drive a fancy car, own a nice house and have your money handled by a top of the line house of finance.

Sad really, cause these advisors obviously have as much of a clue then the next guy and if they did have quality advise available you'd obviously have to be a gigantic whale to be allowed into the inner circles.

Any thoughts?:)
 
One would think those achieving some kind of financial wealth have the life knowledge to take their destiny into their own hands for better or for worse.
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Not if they made their money in the insurance business.
 
No way in hell am I going to give my money to some financial advisors who will invest it in stocks or forex and end up losing it all because of the recession if I make a lot of money.

Accountants seem like a good idea though to keep taxes all in order etc.
 
Quote from number22:
fool and his money will soon be apart.
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I thought it was: A fool and his money will soon be a-partying.
 
maybe a lot of wealthy people feel their time is better spent on whatever it is that made them wealthy. (or enjoying the wealth that they have accrued).

Plus of course, everyone at the bank will be tripping all over themselves, trying to sell a lot of services that can get them a piece of the action, so it's probably an ego-boost to have these people grovel and give all this extra attention.
 
I don't care if Buffet recommends it...it simply doesn't work. I never lost money in it...simply because after months and years of tests via computer programms I've written, reading studies from Harvard, MIT and etc - my conclusion is final: Nor technical analysis, nor fundamental analysis does work.

It's the null hypothesis...

My advice?

Arbitrage, but classical arbitrage and NOT statiscial arbitrage.
 
They live too far from vegas, so they settle for the next closest thing. Unfortunately, they should have went to vegas.
 
Quote from krazykarl:

not all wealthy people got that way by investing - in fact most are experts in something unrelated.
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+1

Anybody know what bank trust departments have averaged the last twenty years.
They must have done better than a lot of high income non financial people i see.
 
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