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Rick ferri portfolio solutions

Postby Micciche57 » Thu Apr 04, 2013 10:16 pm

I'm new at this so please excuse me if I ask a question that may seem novice. I was wondering if Rick ferri from portfolio solutions is the real deal. I know he talks the talk, but does he walk the walk?
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Re: Rick ferri portfolio solutions

Postby robertalpert » Thu Apr 04, 2013 10:39 pm

You might read through one of his books, eg The Power of Passive Investing Richard Ferri 2011

Then (for comparison) perhaps read another forum participant author The Quest for Alpha Larry Swedroe 2011

That would give you a good flavor of who they are and you can decide for yourself if they are the real deal.

Each have areas of agreement and areas of difference. Both have done a good job of researching the investment issues. We have the luxury of having both on the forum.



Bob
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Re: Rick ferri portfolio solutions

Postby jbdiver » Thu Apr 04, 2013 10:47 pm

Answer = yes.
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Re: Rick ferri portfolio solutions

Postby JamesSFO » Thu Apr 04, 2013 10:49 pm

I had the opportunity meet Rick in person in San Francisco recently, I found him to be clearly extremely knowledgeable, overall quite modest, and clearly of a general mindset of how to do right by his customers. That said, YMMV based on your needs, portfolio size, etc.

Rick will be the first to tell you that he cannot (cost) effectively serve certain smaller portfolios for example.
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Re: Rick ferri portfolio solutions

Postby LadyGeek » Thu Apr 04, 2013 10:51 pm

Welcome! Rick Ferri is a regular member here, so don't be surprised if he responds. He's also in our wiki: Rick Ferri

Have you considered trying to do this yourself, but feel it's too difficult? That's a perfectly fine reason to ask for help. Be sure to give this a read first, though: Getting Started

Are you looking for someone to help with your investments (Investment adviser) or overall personal finances (Financial planner)?
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Re: Rick ferri portfolio solutions

Postby twist101 » Fri Apr 05, 2013 4:00 am

Here's a thread about Rick's portfolio:
viewtopic.php?t=58709

Are you considering becoming a client of Portfolio Solutions?
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Re: Rick ferri portfolio solutions

Postby Rick Ferri » Fri Apr 05, 2013 9:18 am

I hope my wife doesn't read this conversation. She'd make me to go out and shovel cow manure for a while to put me back in place.

:happy



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Re: Rick ferri portfolio solutions

Postby Swampy » Fri Apr 05, 2013 9:24 am

Rick said:

She'd make me to go out and shovel cow manure for a while to put me back in place.


ROFLMAO
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Re: Rick ferri portfolio solutions

Postby lwfitzge » Fri Apr 05, 2013 9:25 am

Micciche57 wrote:I'm new at this so please excuse me if I ask a question that may seem novice. I was wondering if Rick ferri from portfolio solutions is the real deal. I know he talks the talk, but does he walk the walk?



I adopt a lot of his investing and asset allocation philosophies. In fact, my will/estate planning instructions to my wife (who knows absolutely nothing about investing) if I get hit by a bus is to contact a Vanguard CFP and/or Rick Ferri's firm.
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Re: Rick ferri portfolio solutions

Postby Rick Ferri » Fri Apr 05, 2013 9:36 am

JamesSFO wrote:Rick will be the first to tell you that he cannot (cost) effectively serve certain smaller portfolios for example.


That is true at this time. I'm working hard to find a technology solution that will offer very low cost portfolio management services to clients who have any size account. Unfortunately, there would be no one-on-one discussions or personal financial advice offered in this program. It would be an on-line service where clients select from a list of portfolios based on their self-diagnosed need using questionnaires.

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Re: Rick ferri portfolio solutions

Postby Chan_va » Fri Apr 05, 2013 10:11 am

Rick Ferri wrote:
JamesSFO wrote:Rick will be the first to tell you that he cannot (cost) effectively serve certain smaller portfolios for example.


That is true at this time. I'm working hard to find a technology solution that will offer very low cost portfolio management services to clients who have any size account. Unfortunately, there would be no one-on-one discussions or personal financial advice offered in this program. It would be an on-line service where clients select from a list of portfolios based on their self-diagnosed need using questionnaires.

Rick Ferri


Rick - I have the utmost respect for you and you obviously know your business much better than I, but I have a hard time understanding how it would make business sense for you to get into the high volume, low margin game at the lower end. Vanguard has cornered that market and has ruthlessly driven prices down.
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Re: Rick ferri portfolio solutions

Postby KyleAAA » Fri Apr 05, 2013 10:15 am

Chan_va wrote:
Rick Ferri wrote:
JamesSFO wrote:Rick will be the first to tell you that he cannot (cost) effectively serve certain smaller portfolios for example.


That is true at this time. I'm working hard to find a technology solution that will offer very low cost portfolio management services to clients who have any size account. Unfortunately, there would be no one-on-one discussions or personal financial advice offered in this program. It would be an on-line service where clients select from a list of portfolios based on their self-diagnosed need using questionnaires.

Rick Ferri


Rick - I have the utmost respect for you and you obviously know your business much better than I, but I have a hard time understanding how it would make business sense for you to get into the high volume, low margin game at the lower end. Vanguard has cornered that market and has ruthlessly driven prices down.


That's a different market, though. DIY'ers are attracted to Vanguard, but there's also a huge and growing market for low-cost online advice. Look at services like Betterment and Wealthfront, for example. There's no reason margins would have to be low, either.
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Re: Rick ferri portfolio solutions

Postby Rick Ferri » Fri Apr 05, 2013 10:29 am

There are many benefits to offering a solution for smaller and younger clients.

First, I believe we can earn something on the business if it's done properly. This means that we provide the intellectual property (portfolios and fund selection) and another firm does the back office administrative work, trading, and reporting. There are platforms already built that could provide these services at a very low cost as mentioned.

Second, smaller clients become bigger clients over time, and at some point, they may wish to transition over to our full service model were they would have a one-on-one professional relationship with an investment specialist.

Third, it's what I want to do. I think it's important.

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Re: Rick ferri portfolio solutions

Postby Scooter57 » Fri Apr 05, 2013 10:49 am

I think it is safe to say that given the high profiles of several professional advisors on this board, you are unlikely to get an objective appraisal of their abilities here. People are not going to say something negative in this kind of setting.

You'd have to talk to clients and ex-clients to get an accurate picture.

Writing books and articles isn't a plus or minus. It's a standard technique for self-promotion in the business world.

Rick is generous with his advice and comments here, as are others, but this is a great location for attracting clients at no cost. So take that into account when judging any paid advisor active in any media or online venue.
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Re: Rick ferri portfolio solutions

Postby Rick Ferri » Fri Apr 05, 2013 11:04 am

Scooter57 wrote:Writing books and articles isn't a plus or minus. It's a standard technique for self-promotion in the business world.


At least with published books and articles people know that the author has done the work and is willing to be judged on the quality of their work. Many advisers do little to no original research. They take other people's work and adopt it. There's nothing wrong with that, however doing original research uncovers many unique things and often leads to non-standard conclusions. It's what forms a gap between knowledge and understanding. Most advisers have knowledge, few take the time to truly understand. I have always tried to be in the latter category.

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Re: Rick ferri portfolio solutions

Postby Hondo » Fri Apr 05, 2013 11:23 am

To the OP: Rick is the real deal.

Rick Ferri wrote:There are many benefits to offering a solution for smaller and younger clients.
. . .
Third, it's what I want to do. I think it's important. Rick Ferri
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Re: Rick ferri portfolio solutions

Postby Scooter57 » Fri Apr 05, 2013 11:42 am

Rick,

Plenty of authors take other people's work and slap their names on it, too. That's a fact of life in business publishing. I'm not suggesting you do that, nor do I have any opinion as to your suitability for managing some stranger's money. I'm just pointing out that the OP is not going to get an unbiased view in a venue where you are a major thought leader with fans.

I've been active on business-oriented forums since the '80s and have seen several very likeable, convincing forum favorites turn out to be a)insane, 2) fantasists, 3) not who they say they are. In some cases it's led to $$$ lawsuits. So it's important to always check people out independent of forums.
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Re: Rick ferri portfolio solutions

Postby Rick Ferri » Fri Apr 05, 2013 11:45 am

My kids think I'm insane, or at least they did when they were teenagers and knew everything. I hope that doesn't count. :D

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Re: Rick ferri portfolio solutions

Postby Peter Foley » Fri Apr 05, 2013 11:52 am

Yes there may a positive bias toward Rick (and larry Swedroe) on this forum. This does not come from their self promotion, it comes from the fact that they espouse the same principles in their approach to investing as does Mr. Bogle and a lot of folks who follow this blog. Keep costs low, stay well diversivied, don't try to time the market, etc. While I have not dealt with his company, I believe him to be the real deal.
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Re: Rick ferri portfolio solutions

Postby Grt2bOutdoors » Fri Apr 05, 2013 12:20 pm

Rick Ferri wrote:There are many benefits to offering a solution for smaller and younger clients.

First, I believe we can earn something on the business if it's done properly. This means that we provide the intellectual property (portfolios and fund selection) and another firm does the back office administrative work, trading, and reporting. There are platforms already built that could provide these services at a very low cost as mentioned.

Second, smaller clients become bigger clients over time, and at some point, they may wish to transition over to our full service model were they would have a one-on-one professional relationship with an investment specialist.

Third, it's what I want to do. I think it's important.

Rick Ferri


Rick - Big business could learn alot from you, especially on points 2 and 3. Especially when they don't listen to their own employees and wonder why revenue is not growing. :oops:
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Re: Rick ferri portfolio solutions

Postby Grt2bOutdoors » Fri Apr 05, 2013 12:23 pm

Scooter57 wrote:Rick,

Plenty of authors take other people's work and slap their names on it, too. That's a fact of life in business publishing. I'm not suggesting you do that, nor do I have any opinion as to your suitability for managing some stranger's money. I'm just pointing out that the OP is not going to get an unbiased view in a venue where you are a major thought leader with fans.

I've been active on business-oriented forums since the '80s and have seen several very likeable, convincing forum favorites turn out to be a)insane, 2) fantasists, 3) not who they say they are. In some cases it's led to $$$ lawsuits. So it's important to always check people out independent of forums.


By all means - check Rick out. Not only is he a favorite here, but he's a favorite of his clients, the media and I'm sure his family.
I would not say Rick is a thought-leader, more of a thought-provoker as is Larry Swedroe. Haven't you read the replies back to his initial postings?, more than half are in dis-agreement.
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Re: Rick ferri portfolio solutions

Postby rocket » Fri Apr 05, 2013 12:36 pm

This advertising should be removed from the discussion board.
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Re: Rick ferri portfolio solutions

Postby Grt2bOutdoors » Fri Apr 05, 2013 12:47 pm

rocket wrote:This advertising should be removed from the discussion board.


How is it advertising? The OP is the one inquiring, Rick isn't selling his services nor making any inquiries of the OP.
Is it any different if I was asking about a Toro lawn mower - isn't the name "free advertising"?
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Re: Rick ferri portfolio solutions

Postby patriciamgr2 » Fri Apr 05, 2013 12:47 pm

I don't think this thread is advertising - it's not self-promotion at all.

I do have questions for Rick about his recent Index Universe interview. You suggested that, given the low rate environment for bonds which you expect to continue, retirees may need to keep more of assets in stocks. 1. What is your firm's current outlook for returns on bonds (vs. expected interest rates). 2. I noticed that you were advocating a 60:20:20 (agg/TIPS/high yield) allocation--do you discuss which funds you use for that (ie is it Vanguard's relatively mild high yield?). 3. Have you changed your model portfolios to incorporate higher levels of stocks in response to low interest rates (or only for retirees who have a high withdrawal rate).

As always, i welcome your thoughts. i have always been sincerely grateful for your willingness to share your expertise here on the Forum.

regards, patricia
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Re: Rick ferri portfolio solutions

Postby wolf433 » Fri Apr 05, 2013 12:51 pm

Rick Ferri wrote:I hope my wife doesn't read this conversation. She'd make me to go out and shovel cow manure for a while to put me back in place.

:happy

You have cows? I think of you as a big hat no cattle kind of guy! A fighter pilot with cows-oh my.

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Re: Rick ferri portfolio solutions

Postby rustymutt » Fri Apr 05, 2013 1:34 pm

Rick, you want answer that? He's the real deal in my book. I like him.
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Re: Rick ferri portfolio solutions

Postby rustymutt » Fri Apr 05, 2013 1:36 pm

Rick Ferri wrote:I hope my wife doesn't read this conversation. She'd make me to go out and shovel cow manure for a while to put me back in place.

:happy



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Rick, was this post by your wife when she was mad at you? LOL
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Re: Rick ferri portfolio solutions

Postby Taylor Larimore » Fri Apr 05, 2013 1:41 pm

Micciche57 wrote:I'm new at this so please excuse me if I ask a question that may seem novice. I was wondering if Rick ferri from portfolio solutions is the real deal. I know he talks the talk, but does he walk the walk?

Micciche57:

Welcome to the Bogleheads Forum!

Yes, Rick is "the real deal."

Best wishes.
Taylor
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Re: Rick ferri portfolio solutions

Postby midareff » Fri Apr 05, 2013 1:44 pm

+1 Rick is the real deal.
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Re: Rick ferri portfolio solutions

Postby LadyGeek » Fri Apr 05, 2013 5:02 pm

The only bias in this forum is that we support those who follow "Investing Advice Inspired by Jack Bogle." There are certainly other investment advisers out there. Here are a few more recommendations:

I should point out that Allan Roth holds the CFP® certification. While designations should be viewed with a grain of salt, it shows that he also has expertise as a financial planner.
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Re: Rick ferri portfolio solutions

Postby CABob » Fri Apr 05, 2013 5:43 pm

Rick Ferri wrote:I hope my wife doesn't read this conversation. She'd make me to go out and shovel cow manure for a while to put me back in place.

:happy

Rick Ferri

My apology for taking this off topic, but, your comment reminded me of a story told about Harry Truman.
Manure story
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Re: Rick ferri portfolio solutions

Postby Bradley » Fri Apr 05, 2013 6:01 pm

LadyGeek wrote:
I should point out that Allan Roth holds the CFP® certification.



Rick is a CFA Chartholder, which is really the gold medal when it comes to real-world investment analysis and portfolio management. The CFA Program focuses specifically on investment knowledge. IMO, his analysis/research should be afforded more credibility when it comes to portfolio analysis/management than those who have not completed the rigors of the CFA program.
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Re: Rick ferri portfolio solutions

Postby bill1958 » Fri Apr 05, 2013 6:18 pm

Be aware that Portfolio Solutions only offers asset management services- they are not a full fledged financial advisory firm. This is why PS fees are relatively low (though increased recently I believe). Rick is a regular poster here, and freely offers his advice/opinions, which are generally well thought out and considered. I don't mean this in a negative way, but some could construe this as a way to gain trust to gain additional clients.
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Re: Rick ferri portfolio solutions

Postby Micciche57 » Wed Apr 10, 2013 8:41 pm

Thank you to everyone for your responses. Wow
You folks are really knowledgeable. Rick sounds
Like a solid guy and I look forward to talking to
A representative from his company.
The fact that he makes a living giving
Good sound advice on clients investments is ok
With me. I still have to learn the difference
Between an advisor and a financial planner. And
Whether I need both or not. Ill keep reading
Everyone's posts and again thank you all very much
For your posts.
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