Honestly, I used to think that the RIAs are those who study stocks fundamentally, and manage my portfolio or ask me to enter or exit stocks during the engagement period, with the aim to make my portfolio a profit powerhouse!
Turns out, I’m looking for flat fee-only RIAs, and they don’t advice on direct stocks, instead they help me achieve my financial goals using equity mutual funds or other debt investments, aiming a conservative return (9-10% after tax), considering any return above that as a pleasant surprise, without striving for beating the index in the long-term. I’m only 26, up for some risk, wanna beat the index and make some good money (like most folks!)
I started looking for RIAs because I wanted equity investments but I already wasted enough time on learning fundamental analysis myself (without actually learning anything due to my schedules), keeping my savings dead in my bank account. Obviously, the working model of these RIAs ain’t what I want in the long run. So, currently I’m planning to hire a fee-only RIA for just one year, get a tailored financial plan for both long-term (30+ years) and short term (2 years) goals, start investing as per their advice, and renew only if it is really needed.
This way I can take as much time as I want, to learn stuff and prepare myself for deciding and managing what to do for long term equity investments. My savings won’t be dead money in the meantime, and by the time I’m ready, I’ll already have a portfolio beside. Also, even with the RIA, I’ve to manage my portfolio myself, so I can consider it as a reference too. Just, as I mentioned already, all those plans would be aiming for a very conservative return, eventhough I’m ok to take risk (trusting the principle of “high risk, high return”).
I’m seeking advice, especially from those experienced with or currently working with RIAs—am I on the right track with this plan, or are there any potential pitfalls?
View on r/IndianStreetBets by alifashf