PPR 259 Just Say No to Wall Street

AT THE END OF A RECENT CALL WITH ONE OF MY CLIENTS, I ASKED IF THERE WAS ANYTHING ON THEIR MIND. THEY SAID, "FUNNY YOU SHOULD ASK, WE WERE WONDERING IF YOU WOULD BE WILLING TO WORK WITH OUR SON"

FULL DETAILS ARE IMPORTANT.

THEIR SON HAD DONE A GREAT JOB AND SAVED UP OVER $250,000 BY AGE 30.  HE HAS A GREAT JOB BUT HIS BIGGEST DESIRE IS TO GET INTO THE REAL ESTATE FLIPPING GAME.

MY CLIENTS ARE RETIRED AND AFTER SELLING THEIR VERY SUCCESSFUL BUSINESS IN CALIFORNIA, THEY PROMPTY MOVED OUT OF CALIFORNIA TO A LOWER COST OF LIVING IN IDAHO.

THEIR SON LIVES IN NEVADA AND WOUD LIKE TO START FLIPPING HOUSES BEFORE HE JUMPS OFF THE 9 TO 5 WORK SHIP.

MY SUGGESTION FOR THEIR SON WAS NOT TO WORK WITH ANY FINANCIAL ADVISOR AT THIS POINT. SOME OF THE REASONS INCLUDE:

• RELATIVE TO HIS TOTAL INVESTABLE ASSETS, INVESTEMENT FIRM MINIUMUMS WOULD REQUIRE TOO LARGE A PERCENTAGE TO MANAGE THINGS.
• 250K IS A LARGE NUMBER BUT NOT LARGE ENOUGH TO GET A MONEY MANAGER AND HIGHER LEVEL SERVICE.
• WITH 250K, HE MAY END UP HEARING ABOUT CERTAIN TYPES OF LIFE INSURANCE OR NON GUARANTEED INSURANCE COMPANY PRODUCTS THAT YEILD A HEALTH COMMISSON INSTEAD OF LONG TERM LOW COST ASSETS UNDER MANAGEMENT.
• THE BIGGEST REASON I SUGGESTED HE AVOID WORKING WITH AN INVESTMENT ADVISOR IS THE FACT THAT HE WANTS TO INVEST IN REAL ESTATE.
• IF HE WORKS WITH A MONEY MANAGER, HIS MONEY COULD BE TIED UP ON WALL STREET WHEN A REAL ESTATE DEAL ON MAIN STREET COMES UP.
• HE NEEDS TO KEEP HIS POWDER (CASH) DRY SO HE CAN BE READY FOR REAL ESTATE OPPORTUNITIES.
• I ALSO SUGGESTED THAT HE STARTS FOCUSSING HIS RESEARCH AND EDUCATION ON HIS LOCAL MARKETS SO HE CAN BE READY TO FIND THE CRAZY GOOD DEAL.
• LUCK IS WHEN PREPARATION MEETS OPPORTUNITY!