cwradio wrote:I have been with my adviser since December 2012. My portfolio is 40% equities (US, international, Global Real Estate and emerging market index funds) 56% fixed income( US, TIPS, and international) and the rest (4%)in commodity and gold mutual fund/ ETF (total of 14 Vanguard, ETFs and DFA funds).
I get a statement each month and it tells me how well I have done compared to 40/60 Balanced Strategy.
My portfolio is always below the benchmark fund. Compared to VSCGX Vanguard Life Strategy Conservative growth 1.71% YTD and VTENX Vanguard Target Retirement 2010 Fund 1.66% YTD, my portfolio is 0.67% YTD.
I have discussed the performance of my portfolio but my adviser said "stay the course"
My question: What do I do? Stay with my current adviser and stay the course or do something else? Thanks
If those two funds embody your objectives why don't you open up an account at Vanguard and buy one or the other? Has your advisor explained what he expects to accomplish with the fund investments you have that would be different from the baseline?
Homework question: How different do you think your investments might be compared to those baselines simply as a consequence of observing the natural variability of different investments over a very, very short period of time.
Obvious question: What are you paying your advisor and what are the funds costing you in management fees compared to the benchmarks and how much of the difference is accounted for by that?