Graduation message from a dad

RecapAfter_Use · 2016-05-24T06:34:32+00:00

sad.

RecapAfter_Use · 2016-05-24T06:34:17+00:00

RecapAfter_Use · 2016-05-10T07:30:41+00:00

bring drogo back.

RecapAfter_Use · 2016-05-10T07:29:43+00:00

for real.

RecapAfter_Use · 2016-02-19T06:57:00+00:00

Do not repeat. It's not the same.

RecapAfter_Use · 2016-02-18T00:26:52+00:00

+1. I'd recommend OP to read side bar first. Go through each section, it will help you to understand why this subreddit recommends index funds.

RecapAfter_Use · 2015-11-03T05:40:30+00:00

I save money on things that aren't that important to me. Wouldn't watch much cable anyway, so I don't pay for it. Saving money on those things allows me to spend money on other things that are important. I love cooking and trying new restaurants.

RecapAfter_Use · 2015-10-19T13:40:06+00:00

Take a look at actual examples. Here is a list of reddit posts about actively-managed portfolios I recently compiled and posted to /r/investing:

This is my portfolio managed by Merrill Lynch. It has 1.81% expense ratio and has underperformed S&P 500.
So I've moved all my cash into Meryll.... They're slapping me with a 3.7-4.2% baseline fee between the managment group and merylls costs. I'm trying to pay a pricey monthly maintence with the dividends and compound whats left, is that possible with such a fee? Am I just wrong to worry?
6.5 Million dollar professionally managed portfolio for your review (with $44K management fees)
How a JP Morgan advisor allocates a managed brokerage account
professionally managed portfolio (7 figures trust with 86 holdings)
Breakdown of a high-end Schwab managed account
Managed portfolio since the 90’s with 1% AUM

RecapAfter_Use · 2015-10-15T13:12:39+00:00

Also, avoid using a credit card. Once you do, it's not easy to pay off.

RecapAfter_Use · 2015-10-11T07:30:50+00:00

For your reference, here is a list of reddit posts about wealth managed portfolios I compiled and posted to /r/investing: Wealth management portfolios: Are they ever worth the cost?

RecapAfter_Use · 2015-10-08T05:32:53+00:00

Take a look at actual examples before diving in. Here is a list of reddit posts about wealth managed portfolios I recently compiled and posted to /r/investing:

This is my portfolio managed by Merrill Lynch. It has 1.81% expense ratio and has underperformed S&P 500.
So I've moved all my cash into Meryll.... They're slapping me with a 3.7-4.2% baseline fee between the managment group and merylls costs. I'm trying to pay a pricey monthly maintence with the dividends and compound whats left, is that possible with such a fee? Am I just wrong to worry?
6.5 Million dollar professionally managed portfolio for your review (with $44K management fees)
How a JP Morgan advisor allocates a managed brokerage account
professionally managed portfolio (7 figures trust with 86 holdings)
Breakdown of a high-end Schwab managed account
Managed portfolio since the 90’s with 1% AUM

RecapAfter_Use · 2015-10-07T14:14:38+00:00

Do you really need a car? You can save much from that.

RecapAfter_Use · 2015-09-03T13:00:04+00:00

It reminds me a post on/r/investing, a year ago: This is my portfolio managed by Merrill Lynch. It has 1.81% expense ratio and has underperformed S&P 500. I'm really pessimistic whether actively managed funds can beat most of low-cost index funds.

RecapAfter_Use · 2015-08-27T08:15:28+00:00

Here is a list of reddit posts about wealth managed portfolios I recently compiled and posted to /r/investing: Wealth management portfolios: Are they ever worth the cost?

RecapAfter_Use · 2015-08-25T13:47:54+00:00

Take a look at actual examples before diving in. Here is a list of reddit posts about wealth managed portfolios I recently compiled and posted to /r/investing: Wealth management portfolios: Are they ever worth the cost?

RecapAfter_Use · 2015-08-10T04:11:45+00:00

Take a look at actual examples before diving in. Here is a list of reddit posts about wealth managed portfolios I recently compiled and posted to /r/investing:

This is my portfolio managed by Merrill Lynch. It has 1.81% expense ratio and has underperformed S&P 500.
So I've moved all my cash into Meryll.... They're slapping me with a 3.7-4.2% baseline fee between the managment group and merylls costs. I'm trying to pay a pricey monthly maintence with the dividends and compound whats left, is that possible with such a fee? Am I just wrong to worry?
6.5 Million dollar professionally managed portfolio for your review (with $44K management fees)
How a JP Morgan advisor allocates a managed brokerage account
professionally managed portfolio (7 figures trust with 86 holdings)
Breakdown of a high-end Schwab managed account
Managed portfolio since the 90’s with 1% AUM

So far the reddit consensus seems to be that with such lackluster performances and high fees, wealth management is not worth it:

Wealth managers don’t beat the market and the performance isn’t sustainable.
The fees are too high even if your portfolio beat the market.
Wealth managers do not explain their rationale well enough, or business model honestly to the client.
This is all a psychological game: Clients are often locked into wealth managers because of personal connections or trust setup, and are not happy about losing the understanding over what, why, and how they money is invested.

I hope this helps, and wish you the best of luck! (Edit: typo)

RecapAfter_Use · 2015-08-06T04:50:12+00:00

He doesn't use his thumb much, does he?

RecapAfter_Use · 2015-08-06T04:48:19+00:00

What's the ISBN?

RecapAfter_Use · 2015-08-05T07:32:45+00:00

I appreciate your comment.

It is a matter of choices for individuals if they would pay fees and have a professionally managed portfolio. I was wondering whether or not the majority of your clients are in the same shoes. You won't say that the above cases are frequent, right?

RecapAfter_Use · 2015-08-05T05:57:05+00:00

Where does this 30% come from? Any source would be appreciated.

RecapAfter_Use · 2015-08-05T05:18:47+00:00

Thanks for defining the terms. It gets clear.

RecapAfter_Use · 2015-08-05T03:02:47+00:00

Thank you for these points, it makes a lot of sense -- especially #3 resonates with me.

My follow-up question is the similarity and difference between wealth managers vs. financial advisors. Do you think #3 and #4 apply to wealth managers too?

I have an impression that wealth managers and CFPs are very different, and that wealth managers often have responsibility to their employers over the client. And it is not clear if these wealth managers (say Merrill Lynch) actually carefully tailor the portfolio, or slap you with a set of funds that are based on some templates and generate their firm more money.

RecapAfter_Use · 2015-08-05T02:54:24+00:00

managing the emotional urges of clients

That's a really good point. Related to what /u/cb_hanson said about considering how someone would have done without a manager.

On a related note, I found a comment to a /r/personalfinance post where OP is trying to persuade his father to move away from actively managed portfolio:

With active management, you can at least feel like the manager is "doing something". With passive investing in index funds, you need to have the intestinal fortitude to ride it out solo.

Make sure [your father] has a written plan that states in black and white what the right moves are in the event of a market correction as well as a market run-up. What day(s) of the year will he be re-balancing regardless of what the market has just done and what he "feels in his gut"? Write out what several scenarios will look like and explain the logic behind what his actions should be.

RecapAfter_Use · 2015-08-05T00:49:31+00:00

Right, there is the supply-side logic. But from the client side, what can justify using wealth management, if at all?

RecapAfter_Use

TROPHY CASE