best use of 50K?

[terryw00]

hi all - I've got 50K that I won't need for 5-7 years, better to 1. put it with a financial advisor that charges 1% annually and wants to sell me 12b1 mutual funds or 2. buy into telecommunication stocks I already own that give me a 4-5% dividend? My wife is pressuring me to take the financial advisor route - he's managing her family's business, but the fees associated are a little disturbing (the funds are charging about 1% annually)....thanks in advance, glad I found this place!!!

[snafu]

How will the advisor the earn his 1%? Can he do better than the 1 yr or 3 yr performance than the 'sleep at night' portfolio of Index Funds from Vanguard? How did he protect his clients when the market crashed in '08?

What is the point of paying advisors who use MF salesmen to promote funds that don't consistently outperform the Index?

[jpham540]

I will have to agree with the above posters, just stick it in an index funds. I recommend vanguard for their low cost fee and also check out Boglehead and research about the 3 fund portfolio. I would also run from the financial adviser.

[Retired To Win]

Avoid the Financial Advisor

I have interviewed over the years 8 to 10 different financial advisors, both fee-based and otherwise. Not one of them ever understood where I was coming from financially. They just did not try. Their recommendations never made any sense to me, considering where I was coming from financially. (Duh!!)

I very much doubt your situation would be very different. Avoid the financial advisor.

BUT you must also not put all your money into a single industry, like you seem to want to do. You need to diversify some more. (Please!)

[feh]

Money you'll need in 5-7 years shouldn't be in equities. I'd instead look at short-term municipal bond fund, CDs or I Bonds.

[YolandoAmaya]

I will suggest you to invest it on frequently trade individual stocks, real state is a best option to invest money for some long time.Investing long term is more profitable because of compound gains.