Had some lunch with a friend of mine that is an money manager at ML. We're the same age (33) and he manages high wealth clients. I was explaining that I was switching to a low cost index fund portfolio from my current FA. He totally understood the perspective but was trying to give me food for thought (sales pitch):
- He suggested investing in the weighted stocks in the equity indices themselves (cut out the laggards, no exp)
-He proposed a 1% AUM of course
-More hands on wealth and tax planning
-Suggested all equities until I'm ~40 being I have many earning years left, I do okay as a software sales guy (take advantage of income now)
-He went on about 'investment grade bonds' in the taxable account, they're tax free or something like that, let equities grow in -pre-tax accounts
- TLH benefit
It sounds good, but it's probably a case of a small sample size where active trading has beaten the market in YTD.
1) Does anyone ever consider a large cap growth VG fund rather than a total market fund to try and capture more upside with less funds, more weight given to the big blue chips?
2) any other thoughts about the above?