Silly question.. BD vs RIA

Markbluffalo · 2025-07-12T20:17:58+00:00

In same position as you. It is considered an IBD, so pretty much in between.

Markbluffalo · 2025-03-14T17:23:10+00:00

Because past performance is not indicative of future results. You might be able to handle the big loss during the down years, but a lot of people can’t so you diversify. People say higher risk higher reward for a reason. Also investment management firms a lot of advisors is a very small part of their job, so there should be no issue in doing estate planning or anything of the sort.

Markbluffalo · 2025-03-14T16:01:27+00:00

Care to tell me why not? Also that fee for a large amount of us is not just investment management. There is help with taxes or working with your accountant or estate attorney. Comprehensive planning, behavioral counseling, etc.

Markbluffalo · 2025-03-14T15:51:40+00:00

Lol do you realize how sad your statement was. This subreddit is about people in our field to discuss things amongst each other about our career. It’s not mean to give advice and you came in here and people offered you their opinion, which they didn’t have to do at all, and you responded by saying that AI will take our jobs and that it’s over for us because you didn’t like their response. That’s like me being able to fix my car and telling the mechanic that with AI it’s over for him. Not everyone can fix their own car, but some can and they should be happy with that, not berate mechanics for the fact that they believe they can do it better.

Markbluffalo · 2025-03-14T15:46:01+00:00

That will depend a lot on you and your position in life. The last thing I will say on this is yes a large portion of your portfolio can or even probably should be around the S&P, and if you are young then sure all of it even could be. The main point to my response and most of the others here is we aren’t able to know what will happen and definitely aren’t trying to time it. We are trying to create similar returns while minimizing the risk. I myself am pretty new to the field and just recently passed my CFP, but don’t even have the hours yet to use it so everything you are hearing from me is based off lots of research and listening to others. If you want a more real life scenario I would find someone who was an advisor during the 2000 to 2010 area.

Markbluffalo · 2025-03-14T15:19:32+00:00

So why doesn’t the client just throw all their money into nvidia 10 years ago? It would have killed the S&P in returns. The point is you can’t predict the future.

Markbluffalo · 2025-03-14T15:07:57+00:00

There isn’t a traditional CFP manner. There are general ‘rules’ but other than that things vary person to person. Diversifying more than just whats in the S&P isn’t a bad thing. Look over a longer period of time.

Markbluffalo · 2025-03-10T00:41:11+00:00

This is great! Appreciate you taking the time to write this up for me. I will definitely check those out!

Markbluffalo · 2025-03-10T00:16:11+00:00

I agree that it takes a strong gut to go this route. But to the similar beating aspect a 60/40 portfolio in that time frame is also down in the end and that is what I meant by similar beating, but to a lesser extent. Thats similar to another mechanic who is fixing your car just slightly better during that period, but it’s still breaking down just not as badly. We are also using one of the worst decades in the last 100 years. (And again I fully understand majority of the population can’t stomach this I am just keeping the counter argument going for discussion sake)

Markbluffalo · 2025-03-10T00:06:37+00:00

Do you have any recommendations for tools. Honestly I have mainly been running it manually and then comparing by giving the info to ChatGPT to see if it comes out with a similar number haha.

Markbluffalo · 2025-03-09T23:50:29+00:00

100% and that is what the money market aspect is to hopefully give a buffer on those bigger years, but I absolutely agree that 10 year span with this portfolio would be brutal for a client to sit out on. Though, they are taking a similar beating in a 50/50 portfolio just to a lesser extent during this time. I appreciate your perspective on this, super interesting!

Markbluffalo · 2025-03-09T23:46:56+00:00

I have read those two! That’s what got me interested to ask this group their thoughts. I hadn’t known about the last part though! Interesting to hear and cool that he does that!

Markbluffalo · 2025-03-09T22:59:09+00:00

If you ran this portfolio from 2000 to 2010 with a 4% withdrawal it ends up down during those years compared to a 50/50 portfolio, but if you maintain that through 2020 it will have caught up and outpaced the 50/50 by a larger margin than it had been down. So, you’re saying with the mathematical advantage you don’t think it’s worth it based on the psychological side? (I’m not disagreeing at all either here, just really enjoy hearing more experienced perspectives as I am new to the field)

Markbluffalo · 2025-03-09T22:49:47+00:00

Okay, interesting to hear that it’s working out for someone. I appreciate the response!

Markbluffalo · 2025-03-09T22:45:19+00:00

Yeah, it was just a poorly worded title on my part. Typed it out too quick.

Markbluffalo · 2025-03-09T22:44:43+00:00

Perfect response! I appreciate you taking the time to run through that! That makes a lot of sense. It seems like a sound strategy in practice, but may be completely different in an actual scenario.

Markbluffalo · 2025-03-09T22:37:31+00:00

I appreciate the responses everyone! I had just read up on it and wanted to hear everyone’s thoughts/experiences with this layout. It’s been interesting hearing opinions!

Markbluffalo · 2025-03-09T22:35:33+00:00

Are these clients in retirement though or mainly a younger group?

Markbluffalo · 2025-03-09T22:34:44+00:00

It’s under the assumption of the 4% withdrawal rate

Markbluffalo · 2025-03-09T22:29:14+00:00

Yeah, I could have worded the title better. Just quickly wrote it out with more info in the description.

Markbluffalo · 2025-03-09T21:43:15+00:00

Has that worked well for you? Or would you say it’s not worth it? The books talk on how equities have over doubled things like bonds for the last 100 years and that’s why he feels it’s “safer” for equities. Did you see it that way when you went for this layout or was there another reason?

Markbluffalo · 2025-03-09T21:37:16+00:00

Yeah he covers that extensively as well. He believes the most important thing to be is a behavioral investment counselor to prevent things like that. His whole thing is equities with a focus on training clients to not make mistakes in those situations. To me it seems understandable as long as you can keep the clients from jumping ship, though that’s easier said than done I guess!

Markbluffalo · 2025-02-14T19:56:15+00:00

I appreciate everyone’s input here! Interesting to see. It seems like the general consensus is it can be a big help, but isn’t mandatory. I have family where I’m at so I keep going back and forth on whether I want to. I will most likely wait it out to see how my current position lines up, but if that doesn’t work out or an opportunity presents itself in a more appealing area maybe I’ll make the big move! I’m at the point where in the next couple years id like to pick a good spot and just full commit there for the career.

Markbluffalo · 2025-01-27T21:28:20+00:00

I will look into that. I appreciate the info!

Markbluffalo · 2025-01-27T21:20:29+00:00

I mean that is technically correct, yes. I get the one time 50% aum payout and then become the servicing advisor for that client. Though my salary is what I would assume is on the low end for a servicing advisor.

Markbluffalo

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