How good or bad is this portfolio?

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ChinchillaWhiplash
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How good or bad is this portfolio?

Post by ChinchillaWhiplash » Mon Jan 22, 2018 10:49 pm

This seems a bit wacky, but maybe it's not. Is my current set up from FA. One reason for switching to self managed. What do you think?

DFEOX DFA US CORE EQTY 1 Port instl. 35.42%
DFIEX. DFA US CORE EQTY PORT INSTL. 20.83%
LSBDX. LOOMIS SAYLES BOND FUND. 5.83%
DFCEX. DFA EMERGING MKTS CORE EQTY PORT INSTL 5.78%
SWTSX. SCHWAB TOTAL STOCK MKT INDEX. 5.56%
DFGEX. DFA GLOBAL REAL ESTATE SECURITIES PORT 4.26%
MWTRX METROPOLITAN WEST TOTAL RETURN BOND M. 3.35%
DFAPX. DFA INVESTMENT GRADE PORT INSTL. 3.17%
MWTIX. METROPOLITAN WEST TOTAL RETURN BOND I. 2.38%
DCMSX. DFA COMMODITY STRATEGY PORT. 2.35%
SICNX. SCHWAB INTL CORE EQUITY 1.94%
ODMAX. OPPENHEIMER DEVELOPING MKTS FD CL A. 1.75%
DIPSX. DFA INFLATION PROTECTED SEC PORT INSTL. 1.61%
SWASX. SCHWAB GLOBAL REAL ESTATE FD. 1.53%
PCRDX. PIMCO COMMODITY REAL RETURN STRAT D. 1.51%
LSBRX. LOOMIS SAYLES BOND FUND RETAIL. 1.45%
SWRSX. SCWAB TREASURY INFLATION PROTECTED SECS INDEX FD. 0.67%

How's that for a portfolio and AA! Seems way too complicated with too much ER. He gets 1% of AUM.

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willthrill81
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Re: How good or bad is this portfolio?

Post by willthrill81 » Mon Jan 22, 2018 10:54 pm

IMHO, any fund that comprises less than 5% of a portfolio is not really doing anything worthwhile on its own.

I'm not necessarily a huge 3-fund portfolio fan, but I'd say that simplification is probably in order here, especially with all those bond funds.
Last edited by willthrill81 on Mon Jan 22, 2018 10:54 pm, edited 1 time in total.
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Danlin
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Re: How good or bad is this portfolio?

Post by Danlin » Mon Jan 22, 2018 10:54 pm

Is there any way you can get about a hundred more funds??

delamer
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Re: How good or bad is this portfolio?

Post by delamer » Mon Jan 22, 2018 11:01 pm

Way too many funds, some of which have such small amounts in them that they will not materially affect your return.

Read the wiki section on lazy portfolios and implement one of those on your own.

BTW, these kinds of complicated portfolios are standard stuff for advisor-managed portfolios so yours isn’t worse than most.

david1082b
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Re: How good or bad is this portfolio?

Post by david1082b » Mon Jan 22, 2018 11:25 pm

DFA funds but no small value, intriguing. DFSVX and DISVX would be two that some might want to be in.

However:
He gets 1% of AUM.
:oops: :greedy

This may defeat the point of having DFA options I guess.

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badbreath
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Re: How good or bad is this portfolio?

Post by badbreath » Tue Jan 23, 2018 12:07 am

The amount of funds are burning my eyes and have others said under 5% is not a investment.
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Philly_fan
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Re: How good or bad is this portfolio?

Post by Philly_fan » Tue Jan 23, 2018 12:15 am

Why would advisor with DFA accessibility offer things like oppenheimer?

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Dale_G
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Re: How good or bad is this portfolio?

Post by Dale_G » Tue Jan 23, 2018 12:27 am

It certainly is a hodgepodge designed to look like it was created by a brilliant strategist.

The question is: How do you simplify matters and get on the straight path.

The answers to a few questions will help get meaningful answers:

When did you get started with this advisor?
What type of account are these funds in? Taxable?

Dale
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Watty
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Re: How good or bad is this portfolio?

Post by Watty » Tue Jan 23, 2018 12:33 am

How good or bad is this portfolio?
On a scale of 1 to 10 I would give it a 3.

At least it does not have any high cost annuities or non-traded REITs in it.

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AtlasShrugged?
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Re: How good or bad is this portfolio?

Post by AtlasShrugged? » Tue Jan 23, 2018 7:19 am

chinchillawhiplash....Dramatically simplify. And then find a fee only advisor. That 1% fee is going to add up to serious dollars over time.
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Jack FFR1846
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Re: How good or bad is this portfolio?

Post by Jack FFR1846 » Tue Jan 23, 2018 7:37 am

0.67%? Really? Does your adviser think that this is going to skyrocket 1000% in a day and make any difference in your portfolio?

This is a traditional (Confuse the customer with a sea of random investments) strategy built for one reason and one reason only. To convince you that very complex things are being managed and only a super man could ever understand it.

Fire this clown.

You actually have one fund I like out of that sea of funds. I'm sure it was chosen by accident.
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livesoft
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Re: How good or bad is this portfolio?

Post by livesoft » Tue Jan 23, 2018 7:40 am

Philly_fan wrote:
Tue Jan 23, 2018 12:15 am
Why would advisor with DFA accessibility offer things like oppenheimer?
I suspect such funds are found in a 401(k) and thus while part of the portfolio, that part is not offered by the advisor. Instead, those funds are just necessary evils. For instance, the 2 different classes of the same Met West bond fund could be from two different 401(k) plans. Same goes for the Loomis Sayles bond funds. Maybe this is from His & her 401(k) plans?

The presentation of the portfolio makes it look worse than it really is. We are also left to try to figure out the AA, accounts, and tax-efficiency on our own. I would not want to pay 1% of AUM for this portfolio.

Nevertheless, the OP should clarify by posting more information and explain why those high expense ratio funds are in the portfolio.
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ChinchillaWhiplash
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Re: How good or bad is this portfolio?

Post by ChinchillaWhiplash » Tue Jan 23, 2018 8:41 am

It is a tax deferred individual 401k set up for my wife's S corp. She is sole proprietor. Have had him for about 13 years. We never had a say in where the money was put. Comes out 80/20 roughly in overall equity/bonds. We are taking the reigns and setting it up with 4 indexed funds. Way simpler and will probably give better returns in the long run. I just wanted to get some objective opinions on what he had to help justify our move. And, yes, the 1% is starting to hurt. Thanks for all the the replies.
And the only fund I'm keeping is SWTSX :sharebeer
Last edited by ChinchillaWhiplash on Tue Jan 23, 2018 8:48 am, edited 1 time in total.

livesoft
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Re: How good or bad is this portfolio?

Post by livesoft » Tue Jan 23, 2018 8:47 am

If the advisor set this up, then he is getting more than 1% AUM because of the kickbacks from many of the funds.
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BogleMelon
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Re: How good or bad is this portfolio?

Post by BogleMelon » Tue Jan 23, 2018 8:57 am

Deleted
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BolderBoy
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Re: How good or bad is this portfolio?

Post by BolderBoy » Tue Jan 23, 2018 12:04 pm

ChinchillaWhiplash wrote:
Mon Jan 22, 2018 10:49 pm
This seems a bit wacky, but maybe it's not. Is my current set up from FA. One reason for switching to self managed. What do you think?
I think 1) he is trying to show you how really complicated it is to do investing and 2) somehow he is trying to maximize his personal take from your portfolio.

Ditch him and do it yourself.
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bloom2708
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Re: How good or bad is this portfolio?

Post by bloom2708 » Tue Jan 23, 2018 12:11 pm

New fund family = new commission fees.

I would not be surprised if an advisor would get to 100 funds at some point if you let them. Mess.
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ChinchillaWhiplash
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Re: How good or bad is this portfolio?

Post by ChinchillaWhiplash » Tue Jan 23, 2018 2:42 pm

Did it! Took control today. Put sell orders in for all positions except SWTSX.
Will reallocate as follows:

SWTSX. 25%
VBR. 25%
SCHF. 40%
SCHZ. 10%

Unfortunately about half the funds are not commision free through Schwab. Oh well, a few hundred bucks to start saving thousands. Works for me :greedy

ChinchillaWhiplash
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Re: How good or bad is this portfolio?

Post by ChinchillaWhiplash » Tue Jan 23, 2018 3:32 pm

Or would be better to go full Vanguard Admiral shares of
VTSAX
VSIAX
VFWAX
VBTLX

Are these a safer investment over the Schwab ETFs?

TwstdSista
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Re: How good or bad is this portfolio?

Post by TwstdSista » Tue Jan 23, 2018 3:34 pm

Where are your funds held? Each institution has funds/ETFs which are free to trade.

ETA: Schwab! See: https://www.bogleheads.org/wiki/Three-fund_portfolio

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Re: How good or bad is this portfolio?

Post by LadyGeek » Tue Jan 23, 2018 4:05 pm

This thread is now in the Investing - Help with Personal Investments forum (portfolio help).
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ChinchillaWhiplash
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Re: How good or bad is this portfolio?

Post by ChinchillaWhiplash » Tue Jan 23, 2018 6:32 pm

TwstdSista wrote:
Tue Jan 23, 2018 3:34 pm
Where are your funds held? Each institution has funds/ETFs which are free to trade.

ETA: Schwab! See: https://www.bogleheads.org/wiki/Three-fund_portfolio
It is with Schwab. Think I will do a mix of both and just go with mutual funds for the ease of purchasing new funds each month.
SWTSX
VSIAX
VFWAX
SWAGX

Four fund portfolio. Will rebalance the Vanguard funds once a year to avoid paying transaction fees. Put the monthly into Schwab to keep as balanced as possible. If it gets too complicated, will just go all Schwab, but feel the Vanguard scv and world funds are a little better products.

ChinchillaWhiplash
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Re: How good or bad is this portfolio?

Post by ChinchillaWhiplash » Tue Jan 23, 2018 6:34 pm

LadyGeek wrote:
Tue Jan 23, 2018 4:05 pm
This thread is now in the Investing - Help with Personal Investments forum (portfolio help).
Thanks! Ended going from a general question to something else

TwstdSista
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Re: How good or bad is this portfolio?

Post by TwstdSista » Tue Jan 23, 2018 6:36 pm

Make sure to check and see what Schwab charges for purchasing \Vanguard funds. I'm at Fidelity and they charge $75, so I stick with the Fidelity funds.

livesoft
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Re: How good or bad is this portfolio?

Post by livesoft » Tue Jan 23, 2018 6:37 pm

I would like to know how much the purchase fees are at Schwab would be every month for those Vanguard funds. I think any fee over $0.00 would be more than I would want to pay.
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ChinchillaWhiplash
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Re: How good or bad is this portfolio?

Post by ChinchillaWhiplash » Tue Jan 23, 2018 6:52 pm

livesoft wrote:
Tue Jan 23, 2018 6:37 pm
I would like to know how much the purchase fees are at Schwab would be every month for those Vanguard funds. I think any fee over $0.00 would be more than I would want to pay.
It is $30 per transaction. That is why I'm buying a large amount to set up allocation all at once. Will rebalance 1 time a year. So no more than $60 a year once it is set up.

TwstdSista
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Re: How good or bad is this portfolio?

Post by TwstdSista » Tue Jan 23, 2018 7:01 pm

Eek. $30 is $30 too much for me. Consider ETFs maybe? At Fidelity those are only $4.95/trade.

ChinchillaWhiplash
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Re: How good or bad is this portfolio?

Post by ChinchillaWhiplash » Tue Jan 23, 2018 7:04 pm

TwstdSista wrote:
Tue Jan 23, 2018 7:01 pm
Eek. $30 is $30 too much for me. Consider ETFs maybe? At Fidelity those are only $4.95/trade.
That would be a better choice. Think Schwab's ETF trades are also $4.95. I will look up the equivalent ETFs. Thanks!
Well, looks like $12.95. Still better than $30.

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Re: How good or bad is this portfolio?

Post by bloom2708 » Tue Jan 23, 2018 7:23 pm

ChinchillaWhiplash wrote:
Tue Jan 23, 2018 7:04 pm
TwstdSista wrote:
Tue Jan 23, 2018 7:01 pm
Eek. $30 is $30 too much for me. Consider ETFs maybe? At Fidelity those are only $4.95/trade.
That would be a better choice. Think Schwab's ETF trades are also $4.95. I will look up the equivalent ETFs. Thanks!
Well, looks like $12.95. Still better than $30.
10 cents is too much. Don't pay for trades.
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ChinchillaWhiplash
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Re: How good or bad is this portfolio?

Post by ChinchillaWhiplash » Tue Jan 23, 2018 8:10 pm

bloom2708 wrote:
Tue Jan 23, 2018 7:23 pm
ChinchillaWhiplash wrote:
Tue Jan 23, 2018 7:04 pm
TwstdSista wrote:
Tue Jan 23, 2018 7:01 pm
Eek. $30 is $30 too much for me. Consider ETFs maybe? At Fidelity those are only $4.95/trade.
That would be a better choice. Think Schwab's ETF trades are also $4.95. I will look up the equivalent ETFs. Thanks!
Well, looks like $12.95. Still better than $30.
10 cents is too much. Don't pay for trades.
Unfortunately if I sub the Vanguard world fund with the free Schwab one, will not have Canadian, Emerging mkt, or small cap coverage. The funds are not the same. Hate to give that up

ChinchillaWhiplash
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Re: How good or bad is this portfolio?

Post by ChinchillaWhiplash » Tue Jan 23, 2018 10:51 pm

OK, think I will stick with the 3 core Schwab index funds for ease of AA and no fees. Will save the most $s too. Going to follow the KISS philosophy. Thanks for everyone's help and advice! :sharebeer

TwstdSista
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Re: How good or bad is this portfolio?

Post by TwstdSista » Wed Jan 24, 2018 5:29 am

I'm loving the KISS plan!

(It's a little expensive, but check out SFENX for emerging markets coverage? Maybe a small allocation down the road, if that works for you? Or just wait, eventually Schwab will introduce a Total International Fund, it took a while, but Fidelity finally did)

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