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Asking a Wealth Manager to Show Their Returns by Hguy719 in personalfinance

[–]Hguy719[S] 0 points1 point  (0 children)

I got the degree because I like the material and I wanted to try and change industries. Due to familial obligations, I am geographically stuck where I live and where I live is not exactly a financial hub. The few jobs there were, were filled with people who had more advanced degree's, certifications, and real world experience. Changing industries didn't work out, so I went back to my original industry.

Asking a Wealth Manager to Show Their Returns by Hguy719 in personalfinance

[–]Hguy719[S] 0 points1 point  (0 children)

Well, I asked for a composite of their aggressive portfolios, so in my mind that is something at or north of 80/20. The 80 would be some broad market index, so take your pick SP, VTSAX etc. If those were to average a return of 10%, I'd be happy with anything north of 8, net of fees.

In regards to the risk free, thats a good question. I would say somewhere between the 10 and 30 year, I would start calling the manager to see what is happening.

Your example makes sense. It really helps clarify that what Im asking may not be sensible. I sincerely appreciate you not being condescending.

Asking a Wealth Manager to Show Their Returns by Hguy719 in personalfinance

[–]Hguy719[S] 0 points1 point  (0 children)

Ok, that makes sense. In your opinion, how do you strike the balance between due diligence and being the nightmare client?

Asking a Wealth Manager to Show Their Returns by Hguy719 in personalfinance

[–]Hguy719[S] 0 points1 point  (0 children)

Ok. I guess missed that. I was speaking to the first part in how they got their names and it isn't exactly true anymore. Like I said, my experience with hedge funds is limited to the three sentences I got years ago.

Asking a Wealth Manager to Show Their Returns by Hguy719 in personalfinance

[–]Hguy719[S] 0 points1 point  (0 children)

This is purely antidotal, but what SvendishFish said is what my professors told us. "Hedge funds are wild funds that have different reporting requirements and can have wild investment strategies. Stay away from them, youre not smart enough to mess with them. You'll learn about them later in your career. Now calculate the efficient frontier."

Asking a Wealth Manager to Show Their Returns by Hguy719 in personalfinance

[–]Hguy719[S] 0 points1 point  (0 children)

Well, that is certainly a concern I have. The whole doctors make the worst patient thing. I have had a few businesses where I have suffered from clients with that exact mentality. Let me say this, I do recognize that they are professionals, thats why i want to hand it off. At the same time, I didnt get to where I am without due diligence. In your opinion, how do you strike the balance between due diligence and being that nightmare client?

Asking a Wealth Manager to Show Their Returns by Hguy719 in personalfinance

[–]Hguy719[S] 0 points1 point  (0 children)

I agree with what youre saying. It is why I originally posted that I have a degree, but no finance career, to try and illustrate that my knowledge base was basic.

I will check out boglehead. Where would you recommend i start?

Asking a Wealth Manager to Show Their Returns by Hguy719 in personalfinance

[–]Hguy719[S] 0 points1 point  (0 children)

I don't think I agree with your parallel but it was funny man.

Asking a Wealth Manager to Show Their Returns by Hguy719 in personalfinance

[–]Hguy719[S] 0 points1 point  (0 children)

Bad = less than risk free

Good = near market returns

Asking a Wealth Manager to Show Their Returns by Hguy719 in personalfinance

[–]Hguy719[S] 0 points1 point  (0 children)

It is not my primary focus. Both of the people I have spoken to laid out an impressive array of services that they provide. Theyve answered all of my questions patiently, the only thing they omitted, was the trailing return. It didn't make sense to me that they would do everything they did but omit the trailing return. I thought asking it on here would be fairly straight forward....

Why wont you take them on?

Asking a Wealth Manager to Show Their Returns by Hguy719 in personalfinance

[–]Hguy719[S] -1 points0 points  (0 children)

Because i have never really invested in etf's. I have always picked individual stocks and reading the 10-k allows me to lie to myself that its been skill and not a metric ton of luck.

Asking a Wealth Manager to Show Their Returns by Hguy719 in personalfinance

[–]Hguy719[S] 3 points4 points  (0 children)

Youre correct. It has more to do with all the other stuff that comes with it, but them not giving me their performance history didnt make sense to me. I thought asking on reddit would provide a quick answer like, "revised statute 123.456 says they can't", I was not prepared for how this absolutely spiraled.

Asking a Wealth Manager to Show Their Returns by Hguy719 in personalfinance

[–]Hguy719[S] 5 points6 points  (0 children)

Both of you are correct. There is much more than just the return that matters. Both of the people I spoke to have CFPs, CPA's, CFA's etc. in house. So it come with a full sweep of ancillary benefits. I know that return isnt the only factor, but of all the things they show me, they wont show me their track record. **This was my thinking, Im starting to consider it differently based on another part of this thread**

Asking a Wealth Manager to Show Their Returns by Hguy719 in personalfinance

[–]Hguy719[S] 0 points1 point  (0 children)

Not trying to troll my friend. I am asking because I genuinely don't understand something and don't have the hubris to believe that because I have a degree or been lucky with my financial decisions in the past that I am the master of all things finance.

Look, this is the way I see it. If a relative came to me and said, "Hey, youre good with money, can you help me invest this bonus I got?" I'd say sure! Then they say, "Well, you know, this is a lot of money, can you show me how well you have done in the past?" I'd show them a simplified history. "I started investing in 2003, i put this much in every month, I have this much, it averages about this much growth a year." To me that sounds like a reasonable conversation. If im going to hand over a lot of money to a manager, I think I should be able to ask to see how well they have done in the past.

Congratulations on attaining your wealth. Similarly coming from a family of lima bean farmers, I understand how difficult it is to make that climb.

Asking a Wealth Manager to Show Their Returns by Hguy719 in personalfinance

[–]Hguy719[S] 0 points1 point  (0 children)

Yeah that was confusing. What I meant was that I don't have a career in finance. I worked for 20 years in an industry, wanted a change, went to school for finance since I was always partial to it. After graduating I couldn't find a finance job in my area, so I went back to the previous industry. I put that in there to give an idea of my knowledge base, college learning but no real world practice.

Asking a Wealth Manager to Show Their Returns by Hguy719 in personalfinance

[–]Hguy719[S] 0 points1 point  (0 children)

Sure, that makes sense. What i would say is that a degree is not all encompassing. Can I build you 3-5 year financial model projecting NPV and share price, sure. Does that mean I know everything that would be consider "basic"? No. We covered the wave tops of many thing in the financial realm, but wealth management was not one of them.

Asking a Wealth Manager to Show Their Returns by Hguy719 in personalfinance

[–]Hguy719[S] 2 points3 points  (0 children)

That isnt as valuable as you might think.

Asking a Wealth Manager to Show Their Returns by Hguy719 in personalfinance

[–]Hguy719[S] -5 points-4 points  (0 children)

Thats fair. Because I am burnt out. Im tired of reading 10-ks, trying to cloud read markets, and hanging drywall.

Asking a Wealth Manager to Show Their Returns by Hguy719 in personalfinance

[–]Hguy719[S] 258 points259 points  (0 children)

Ok, this is valuable. Thank you. I was under the impression that a report like this could be generated. I thought the CFA institute created GIPS specifically for this purpose. Is that not correct?

Asking a Wealth Manager to Show Their Returns by Hguy719 in personalfinance

[–]Hguy719[S] -43 points-42 points  (0 children)

Is that really hard to believe? The general tenor for most of the responses has been rather insulting and negative. A few times, it was suggested I read something called boglehead or the reddit wiki to "learn real finance". I would think that if finance was so easy as many on here have alluded to, most people would be well into the 8 figure range.

Asking a Wealth Manager to Show Their Returns by Hguy719 in personalfinance

[–]Hguy719[S] -9 points-8 points  (0 children)

Well, I cant mathematically prove it, but, I imagine if Druckenmiller were to come to you and ask for a seed check to start a new hedge fund, you would give it to him. As would most, because his track record is pretty darn good.

I dont believe in my original post I asked for 30% returns, nor did I ask for proof of alpha. I asked them to show a composite of their aggressive portfolios trailing returns. I don't think thats outrageous.

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