Personal Banker?

[Anonymous]

At what point does one need a personal banker vs. DIY?

[Anonymous]

imo you should always have one to keep you posted on bank products and rates and such unless you have a knack for that yourself!

[iced]

Are you asking in context of traditional banking products or in the context of a financial advisor for assets such as retirement savings and investments?

[Anonymous]

I do everything myself, banking and investing. I'd rather read everything myself than pay somebody else to read it for me, but it depends on your financial profile and whether or not you're interested to take time to research.

[wasCB14]

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@Anonymous wrote:
imo you should always have one to keep you posted on bank products and rates and such unless you have a knack for that yourself!

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Bankers work for banks. Don't expect one to tell you when a competitor offers a better deal.

Also don't expect one to be able to give tax or legal advice.

Taking that into account, I think it would take some special circumstances to actually need one. Maybe if you have a small business that need a loan.

In my and my family's moderate experience, the supposed in-house "specialists" at premium branches who deal with things like international wires and trust accounts are often incompetent or lazy. Putting up with low interest rates on savings is no guarantee of getting competent help when you actually need it.

[Anonymous]

I’m a banker/manager and it seems you have had some unfortunate experiences and I’m sorry for that.

[Anonymous]

More on the assets/investment side of the house. I was just curious if most folks dive right into a relationships with a PB or diy..

[wasCB14]

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@Anonymous wrote:
More on the assets/investment side of the house. I was just curious if most folks dive right into a relationships with a PB or diy..

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You might also consider index ETFs. Bogleheads is a good place to research that approach. Accounts have to be pretty big before active management is worthwhile (adjusting for time spend on research, tax inefficiencies, etc).

I'm a DIYer, but not a terribly active one. Most of my net worth is in Berkshire, so while I dabble in some more speculative investments, Warren Buffett and team are managing the bulk of it. They may trail the market now and then, but they have a great record of not being stupid. I also have a few tax and securities designations, so I'm not helpless on planning and research.

There is a lot of wealth in securities markets. Good advisers often have a 7 or 8 figure family minimum. If you seek an adviser with 5 or 6 figures, there are some good ones but incentives are set against you. Consider what it might mean when an adviser accepts a smaller account:

1. The adviser is experienced but not talented enough to have attracted bigger customers.

2. The adviser is somewhat new. If very talented, he or she may soon farm you out to a less-brilliant subordinate while moving on to bigger customers.

3. The adviser is interested in selling you something with a really big commission you should avoid.

4.The adviser wants to start generating fees and/or commissions from the account but won't make you a high priority for customer service.

5. The adviser is satisfied with her or her present income and wants to help people who need it.

Possibility #5 is not very common.

[SouthJamaica]

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@Anonymous wrote:

At what point does one need a personal banker vs. DIY?

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Who wants some "personal banker" getting into your business, and trying to sell you things? Not me.

My answer to the question is: never.

[Anonymous]

Wow dang! Thanks for the feedback SJ.