Fired Investment Advisor -- Need Help!

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MatthewNYC
Posts: 6
Joined: Sat Jun 15, 2019 2:02 pm

Fired Investment Advisor -- Need Help!

Post by MatthewNYC » Mon Aug 05, 2019 12:52 pm

Hi Bogleheads,

I had a 401(k) with an investment advisor that I recently merged with another part of my 401(k) that I have at a discount brokerage (that is managed by me).

The problem is I now have 18 ETFs which makes my portfolio harder to manage.

I am looking for ideas and suggestion how to tackle this situation.

Here are my current positions:

VNQ.....VANGUARD IX FUN/RL EST IX FD ETF.....Alternatives.....Real Estate.....US Real Estate
AGG.....iShares Barclays Aggregate Bond Fund.....Bonds.....US Bonds.....Blend
FLRN....SPDR S TR/BLOOMBERG BARCLAYS.....Bonds.....US Bonds.....Floating Rate
ISTB.....ISHARES TR/CORE 1-5 YR USD BD.....Bonds.....US Bonds.....Short Term Blend
SPIB.....SPDR S TR/BLOOMBERG BARCLAYS.....Bonds.....US Bonds.....Corporate Debt
EFA.....-iShares MSCI EAFE Index Fund.....Equities.....Intl Stocks (D).....Large Cap
FGD.....1ST TR EXCHANGE/1ST TR DOW JONES GL.....Equities.....Intl Stocks (D).....Large Cap
IEFA.....ISHARES TR/CORE MSCI EAFE ETF.....Equities.....Intl Stocks (D).....All Cap
IEMG....ISHARES INC/CORE MSCI EMERGING.....Equities.....Intl Stocks (E).....All Cap
FXH.....1st Tr EXCHANGE/HEALTH CARE ALPHADE.....Equities.....US Stocks.....Large Cap
IWM.....iShares Russell 2000 Index.....Equities.....US Stocks.....Small Cap
MDY.....SPDR S&P MidCap 400 ETF.....Equities.....US Stocks.....Mid Cap
RSP.....-Guggenheim S&P 500 Equal Weight ETF.....Equities.....US Stocks.....Large Cap
SPY.....-SPDR S&P 500 ETF Trust.....Equities.....US Stocks.....Large Cap
VOO.....VANGUARD IX FUN/S&P 500 ETF SHS NEW.....Equities.....US Stocks.....Large Cap
IJH.....-iShares Core S&P Mid Cap ETF.....Equities.....US Stocks.....Mid Cap
IJR.....-iShares S&P SmallCap 600 Index.....Equities.....US Stocks.....Small Cap
SDY.....SPDR S&P Dividend.....Equities.....US Stocks.....Large Cap

As opposed to target ETFs where you have no control over the allocation, I prefer specific ETFs so I have more control over the allocated percentage (e.g. more control over small, mid, large cap, and domestic versus international, etc).

My first thought is to identify which ETFs are duplicates (or near duplicates) and to move the money from one ETF to the other to consolidate the position into one ETF.

Some duplicates that stand out to me are:

SPY, VOO, RSP, SDY
MDY and IJH
IWM and IJR

I'm curious to know which ETF you consider better to keep and which to get rid of (and what your reasoning is).

Even if I consolidated the above ETFs I would only reduce the number of ETFs by 5 (bringing the total from 18 down to 13).

And even 13 seems like too many. I would be more comfortable with 10 or less.

What else do you spot that can help me get this portfolio under control?

Thanks,

Matthew

Jack FFR1846
Posts: 9891
Joined: Tue Dec 31, 2013 7:05 am

Re: Fired Investment Advisor -- Need Help!

Post by Jack FFR1846 » Mon Aug 05, 2019 12:57 pm

Sell everything.

BUY:
VTI
BND

Have a nice day.
Bogle: Smart Beta is stupid

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Wiggums
Posts: 1345
Joined: Thu Jan 31, 2019 8:02 am

Re: Fired Investment Advisor -- Need Help!

Post by Wiggums » Mon Aug 05, 2019 1:01 pm

Jack FFR1846 wrote:
Mon Aug 05, 2019 12:57 pm
Sell everything.

BUY:
VTI
BND

Have a nice day.
I agree. Why would you want even 10 ETFs?

mhalley
Posts: 7357
Joined: Tue Nov 20, 2007 6:02 am

Re: Fired Investment Advisor -- Need Help!

Post by mhalley » Mon Aug 05, 2019 1:08 pm

You probably want a maximum of 5. You might consider tilting to small value and using reit, but otherwise it gets too complicated with only ? increased performance. and only use one total bond fund.
AS WCI says, the main thing is to pick a portfolio and stick with it.
https://www.whitecoatinvestor.com/150-p ... han-yours/
I like Rick Ferris core 4, he has several to choose from.
https://core-4.com/portfolios/

Alchemist
Posts: 323
Joined: Sat Aug 30, 2014 6:35 am
Location: Florida

Re: Fired Investment Advisor -- Need Help!

Post by Alchemist » Mon Aug 05, 2019 1:51 pm

Jack FFR1846 wrote:
Mon Aug 05, 2019 12:57 pm
Sell everything.

BUY:
VTI
BND

Have a nice day.
I second that. But if Vanguard ETF's are not free to trade at the new brokerage, iShares probably are. In that case:

BUY:

ITOT (equivalent of VTI)
AGG (equivalent of BND).

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Sandtrap
Posts: 8288
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii No Ka Oi , N. Arizona

Re: Fired Investment Advisor -- Need Help!

Post by Sandtrap » Mon Aug 05, 2019 1:54 pm

Welcome.
For more comprehensive responses we need more data in the proper format.
You can edit your original post (use the pencil icon) like this:
Portfolio Review Request
https://www.bogleheads.org/forum/viewt ... =1&t=6212

Please be sure to put the % of total for each fund as well as ER's.

Otherwise, yes. Minimize overlap, redundancy, and consolidate to low expense funds. Valuations at 5% of total or less should be consolidated. You can do this with a small handful of funds. 2-5.

j :happy
Wiki Bogleheads Wiki: Everything You Need to Know

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FelixTheCat
Posts: 1642
Joined: Sat Sep 24, 2011 12:39 am

Re: Fired Investment Advisor -- Need Help!

Post by FelixTheCat » Mon Aug 05, 2019 2:15 pm

MatthewNYC wrote:
Mon Aug 05, 2019 12:52 pm
Here are my current positions:

VNQ.....VANGUARD IX FUN/RL EST IX FD ETF.....Alternatives.....Real Estate.....US Real Estate
AGG.....iShares Barclays Aggregate Bond Fund.....Bonds.....US Bonds.....Blend
FLRN....SPDR S TR/BLOOMBERG BARCLAYS.....Bonds.....US Bonds.....Floating Rate
ISTB.....ISHARES TR/CORE 1-5 YR USD BD.....Bonds.....US Bonds.....Short Term Blend
SPIB.....SPDR S TR/BLOOMBERG BARCLAYS.....Bonds.....US Bonds.....Corporate Debt
EFA.....-iShares MSCI EAFE Index Fund.....Equities.....Intl Stocks (D).....Large Cap
FGD.....1ST TR EXCHANGE/1ST TR DOW JONES GL.....Equities.....Intl Stocks (D).....Large Cap
IEFA.....ISHARES TR/CORE MSCI EAFE ETF.....Equities.....Intl Stocks (D).....All Cap
IEMG....ISHARES INC/CORE MSCI EMERGING.....Equities.....Intl Stocks (E).....All Cap
FXH.....1st Tr EXCHANGE/HEALTH CARE ALPHADE.....Equities.....US Stocks.....Large Cap
IWM.....iShares Russell 2000 Index.....Equities.....US Stocks.....Small Cap
MDY.....SPDR S&P MidCap 400 ETF.....Equities.....US Stocks.....Mid Cap
RSP.....-Guggenheim S&P 500 Equal Weight ETF.....Equities.....US Stocks.....Large Cap
SPY.....-SPDR S&P 500 ETF Trust.....Equities.....US Stocks.....Large Cap
VOO.....VANGUARD IX FUN/S&P 500 ETF SHS NEW.....Equities.....US Stocks.....Large Cap
IJH.....-iShares Core S&P Mid Cap ETF.....Equities.....US Stocks.....Mid Cap
IJR.....-iShares S&P SmallCap 600 Index.....Equities.....US Stocks.....Small Cap
SDY.....SPDR S&P Dividend.....Equities.....US Stocks.....Large Cap
Why do financial advisors make up a portfolio like this one? Is it commission based? Do they overly complicate things and try to make you think they're smart?


+1 on VTI and BND

VTI in a taxable account
BND in a tax deferred account
Felix is a wonderful, wonderful cat.

sawhorse
Posts: 3401
Joined: Sun Mar 01, 2015 7:05 pm

Re: Fired Investment Advisor -- Need Help!

Post by sawhorse » Mon Aug 05, 2019 11:37 pm

FelixTheCat wrote:
Mon Aug 05, 2019 2:15 pm
Why do financial advisors make up a portfolio like this one? Is it commission based? Do they overly complicate things and try to make you think they're smart?
I'm actually pretty impressed that this advisor put them mostly in index ETFs rather than high load commission active funds.

In this case it's probably the second reason you mentioned. They make things overly complicated to send you the message that it's too difficult for you to manage yourself, you need an "expert" who knows more than you do.

Vanguard Fan 1367
Posts: 1074
Joined: Wed Feb 08, 2017 3:09 pm

Re: Fired Investment Advisor -- Need Help!

Post by Vanguard Fan 1367 » Tue Aug 06, 2019 9:55 am

Jack FFR1846 wrote:
Mon Aug 05, 2019 12:57 pm
Sell everything.

BUY:
VTI
BND

Have a nice day.
I like that advice also with a split of the stocks, bonds which makes you comfortable. I would not go lower than 30 percent stocks or 30 percent bonds.

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