I use an adviser who also provides holistic wealth management services for some of my investments (financial planning - insurance, college savings, retirement planning, wills, budgeting etc). I am invested 60/40 in equities/debt in mutual funds that have had an annualized net return of 6% per year since 2010. I maintain a separate investment account for a work plan (something similar to a 401K plan in Canada).
While I like that he has a thorough approach to goals/planning and he does move me into some better performing funds from time to time, I sometimes question whether I would not be better off parking these funds in a robo adviser/low cost brokerage account and invest in a mix of major index tracking stock and bond ETFs that are much cheaper and rebalance a couple of times per year. I am paying more in management expenses for the mutual funds and commissions for his brokerage than I would for a self-directed or robo-advisory strategy.
Do you invest by yourself with ETFs or do you use an adviser? I know there are also fee-based financial planners that you can use while also self-directing investments, which I'm thinking may be the better compromise.
My portfolio went from 6.4% yearly gain that i was really happy with to 12.62 with a hired gun,
My portfolio went from 6.4% yearly gain that i was really happy with to 12.62 with a hired gun,
I don't necessarily disagree, but post 2008/9 most portfolios look strong. What year did you start using a paid advisor?
I asked my buddies in finance about actively managed funds and they argue that there can be superiority there but it didn't convince me.
I use an FP only because I don't know how to rebalance.
Of course, my money is long term (>5 years), so I can ride out corrections and don't need to get too fancy about asset allocation. One might require a strategy about moving things into diversified assets as bills such as tuition, or retirement, gradually loom.
I am one of those "random walk down wall street" (useful read) people. With fees, the average broker must by definition exceed the S&P 500 by 2% or so to keep up with indexed funds. I am sure there is a minority of "hired guns" who have expertise over the long term, but you need to find them, recognizing that past performance does not guarantee future returns.
Right now, my computer takes money out of my paycheck and distributes it to investments and IRAs every month. Thus I buy fewer shares at high prices, more at low, and am always in the market on the small subset of days when the most rises occur. Dividends are reinvested. I hardly need to look at it and get returns right at the S&P 500 after expenses.
I also recommended a few people to him and they have been very satisfied with him.
He is with Edward Jones in the DMV area. Any interest I can give you his name offline
Didn’t you use to live in NJ? I sort of remember you using Accurate Auto in Garwood.
Right now I have about 2/3 net worth in my home equity and 1/3 in stocks (Roth IRAs). About .01% in crpto. Starting a new job with pension and 401k. I am fine with Vanguard index funds for the stocks. Next I want to look at rental property for passive income.
The only place I see a finance guy adding value is in picking stocks or funds. But I have never felt confident that I've met one who can do it consistently better than the market. Would a true expert investor really need a salary job anyway?
Things will always be cheaper if you do it yourself versus hiring a professional. The big question is whether you've got the skills, time and temperament to deliver the same results as the professional. Also, what's the outcome of getting it wrong. I'll do some of my own electrical work at home but I won't touch plumbing. Why - because if I screw up wiring, my basement doesn't fill up with electricity. It often hard to see financial mistakes until they're too late to fix.
You get what you pay for, like anywhere else. I am confident my clients value my advice and experience.
The scope of a good financial advisor/ planner goes way beyond investments.
Didn’t you use to live in NJ? I sort of remember you using Accurate Auto in Garwood.
wow good memory yes i did, getting out of jersey has been an epiphany.
Essex financial will charge you based on the size of your portfolio the larger it is the less u pay. Google Kevin Looby, there is a subsidary of Essex with the top brokers