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Q I would like to learn how to build an investment portfolio and generate an asset column. My concern is that many people have told me to not waste my time, because financial planners and brokers won't be interested in someone with such low income and capital start-up. Is this true? I'm in marketing/sales/advertising, and interested in building enough to become rich and secure. I also want to be more financially literate.
TIM
A It's easy to hook up with a broker at any securities firm. But they're not financial planners. Their business is buying and selling investment products, such as stocks and mutual funds. The kind of knowledgeable broad-based personal financial planner you'd like to work with, such as a Certified Financial Planner (CFP), isn't really interested in spending time on middle-class balance sheets. It isn't worth their while financially.
There are efforts in the financial planning industry to lower fees by breaking up sessions. For instance, you might talk with a planner about buying a home, then you'd come back another time to look over retirement savings. It can work in some cases.
But for most people building income and wealth at that stage of their lives, it pays to spend time learning about financial planning on your own. That's become a lot easier in the Internet age. One of the biggest mistakes people make when it comes to financial planning is simply turning their money over to a professional and assuming they'll do all the hard work. That's a recipe for trouble.
A good place for anyone to start their financial education is Burton Malkiel's "The Random Walk Guide to Investing: Ten Rules for Financial Success," or Jane Bryant Quinn's "Smart and Simple Financial Strategies for Busy People."
Chris Farrell is economics editor for American Public Media's weekly "Marketplace Money" program on public radio. He lives in St. Paul. Send questions to: cfarrell@mpr.org, or to kaching@startribune.com. Put "Your Money" in the subject line.
