Recommendations from financial advisor

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jsh84
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Recommendations from financial advisor

Post by jsh84 »

This is the recommendation from a relatives financial advisor. Thoughts?

From Advisor:
I have been designing your investment strategy for the (large amount of cash brought over recently) and this is how I’d like to implement the strategy. Yes, I wish this could have been done a month ago as some of the small cap and value areas I am suggesting have made an impressive comeback. Since you still have some cash on hand at (a) Bank, cash proceeds at Life Ins co, and cash through inheritance. I am recommending equities for this full amount.

Investment strategies-

Managed Accounts-
25% to Alger Small cap focused equity managed account NEW

3.5% added to Clearbridge Small Cap managed account

ETF’s
6% to RDVY
6% to DGRO- iShares Dividend Growers
6% to SDY- SPDR Dividends
9% to ARKK- Ark Innovation ETF (This will be your most aggressive ETF)
9% to REGL- ProShares S&P MidCap 400 Dividend Aristocrats
9% to SMDV- ProShares Russell 2000 Dividend Growers
6% to VTV- Vanguard Large Cap Value
6% to VUG- Vanguard Large Cap Growth
4.25% to VOE- Vanguard Mid-Cap Value
4.25% to VOT- Vanguard Mid-Cap Growth
3% to VBR- Vanguard Small Cap Value
3% to VBK- Vanguard Small Cap Growth

This totals roughly XXX from your deposit and the Other transfer (those investments would be liquidated for minimal tax consequences). The portfolio will be managed in a very tax efficient manner using high quality strategies paying dividends to smooth out the market fluctuations over time.
Nummerkins
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Re: Recommendations from financial advisor

Post by Nummerkins »

Looks way over-complicated, possibly on purpose. All those tiny allocations do nothing to move the needle and add unneeded complexity.
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livesoft
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Re: Recommendations from financial advisor

Post by livesoft »

The portfolio represents wishful thinking about the future and will very likely perform no better nor worse than the same amount of money invested directly in VTI which is the Vanguard Total Stock Market Index Fund ETF. But VTI will not stroke the ego of the financial advisor nor make it look like they were helpful nor astute. Furthermore, owning a single ETF will mean there is nothing to screw up or manage which would make the financial advisor feel even more worthless.
Last edited by livesoft on Mon Nov 23, 2020 6:39 pm, edited 1 time in total.
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Topic Author
jsh84
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Re: Recommendations from financial advisor

Post by jsh84 »

Yeah that is (both replies) my thoughts as well. I’m going to tell them (as they asked my advice) to just put it in VTI on their own and avoid thousands in fees and commissions. I don’t know the amount, but I’d guess this is upwards of 500k
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Kintora
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Re: Recommendations from financial advisor

Post by Kintora »

The phrase "high quality strategies" alone would have me running for the hills.

VTI or VTI/VXUS with some fixed income if appropriate for your relative's situation and goals.
000
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Re: Recommendations from financial advisor

Post by 000 »

I agree with previous responses.

Anyway, thanks for posting. The fact that financial advisors are pitching ARKK is a bit scary, no?
runninginvestor
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Re: Recommendations from financial advisor

Post by runninginvestor »

I do not currently own ARKK (have previously, did get a profit when sold, but wanted a more simplified portfolio). But if a FA went to pitch this selection to me, I would run. Especially if they threw in a dozen other funds ... This seems overcomplicated. The number of and selection of funds funds reinforce my belief they are a) going to performance chase and b) be inclined to tinker .

For example, it'll be easy for them to point to your small cap growth fund after a 10% gain while one of the other dozen suffers a similar loss. With a pat on their back for diversification, when they could have a single diversified fund. (Their comment about the sm cap recent performance alludes to this potential behavior)
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Sandtrap
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Re: Recommendations from financial advisor

Post by Sandtrap »

Advisor not needed.
3-4 low cost index funds is enough. Or less.

Search forum archives/posts for "simplicty"

Begin here:
GETTING STARTED
https://www.bogleheads.org/wiki/Getting_started

j :D
Last edited by Sandtrap on Tue Nov 24, 2020 8:04 am, edited 1 time in total.
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Carguy85
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Re: Recommendations from financial advisor

Post by Carguy85 »

Heard on the radio the other day how an advisor said it’s really actually pretty easy to set up a portfolio...thought hmm that’s not what he should probably say. He went on to say that the advisor doesn’t need to know the whole market, they just need to be very well versed in 40-60 companies and where they stand daily...LOL. I woulda totally bought into the total BS 2 years ago before I found bogleheads. It’s almost criminal the financial BS that is permissible on the talk radio station.. Money is money when it comes to advertising revenue I suppose. I’m missing out BIG TIME owning only sp500 and total bonds...I’m ok with that though
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Re: Recommendations from financial advisor

Post by delamer »

Give your relative this 16-page article to read and suggest that s/he invest according to its recommendations: https://www.etf.com/docs/IfYouCan.pdf

Your relative can jump to page 14 if s he has a short attention span. And if s/he wants to be more or less aggressive, s/he can change the weights of the 3 components.
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jsh84
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Re: Recommendations from financial advisor

Post by jsh84 »

delamer wrote: Mon Nov 23, 2020 7:14 pm Give your relative this 16-page article to read and suggest that s/he invest according to its recommendations: https://www.etf.com/docs/IfYouCan.pdf

Your relative can jump to page 14 if s he has a short attention span. And if s/he wants to be more or less aggressive, s/he can change the weights of the 3 components.
I love that article and have shared it many times over the years, probably with this person as well. Ultimately, they are not inclined to read or learn much, I've learned that. I'll tell them that these funds are overly complex, redundant, and probably expensive. Up to them what they do after that.
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Duckie
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Re: Recommendations from financial advisor

Post by Duckie »

jsh84 wrote:This is the recommendation from a relatives financial advisor. Thoughts?

From Advisor:
I have been designing your investment strategy for the (large amount of cash brought over recently) and this is how I’d like to implement the strategy.
This is bad. Can you get your relative away from that advisor? The advisor is probably going to charge AUM (Assets Under Management) fees even if not doing anything.
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jsh84
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Re: Recommendations from financial advisor

Post by jsh84 »

Duckie wrote: Mon Nov 23, 2020 7:23 pm
jsh84 wrote:This is the recommendation from a relatives financial advisor. Thoughts?

From Advisor:
I have been designing your investment strategy for the (large amount of cash brought over recently) and this is how I’d like to implement the strategy.
This is bad. Can you get your relative away from that advisor? The advisor is probably going to charge AUM (Assets Under Management) fees even if not doing anything.
Yes, its an AUM advisor they've been with for many many years, decades probably. This is just "new" advice for a chunk of cash. Thought i'd let the community see what they had to say. I know in the past they've been with Merrill Lynch, not sure now. Independent i think.
wandering_aimlessly
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Re: Recommendations from financial advisor

Post by wandering_aimlessly »

Confusing complexity with diversity. A diverse portfolio doesn't need to be complex, but if you make it complex it will earn an FA a whole lot more (and make them appear indispensable)....
Impatience
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Re: Recommendations from financial advisor

Post by Impatience »

There’s nothing particularly bad about it. It cuts against our cherished principles of simplicity and avoiding AUM managers but your principal will be fairly safely spread across reasonably low-fee investments.

If you’re ok with 100% equities and continuing to pay your management fee then you should be ok with it. If you want to make some more money, yank it all away from these guys and stick it in an S&P or total market ETF.
Last edited by Impatience on Mon Nov 23, 2020 8:21 pm, edited 1 time in total.
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jsh84
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Re: Recommendations from financial advisor

Post by jsh84 »

Impatience wrote: Mon Nov 23, 2020 8:17 pm There’s nothing particularly bad about it. It cuts against our cherished principles of simplicity and avoiding AUM managers but your principal will be fairly safely spread across reasonably low-fee investments.

At my random guess this asset allocation would track pretty close to a total market fund except probably lag behind a bit but also have less volatility. If you’re ok with 100% equities and continuing to pay your management fee then you should be ok with it. If you want to make the most possible money, yank it all away from these guys and stick it in an S&P or total market ETF.
AOFAX at 25% of it is 1.2% expense ratio....
alex_686
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Re: Recommendations from financial advisor

Post by alex_686 »

I will modestly take the other side - and say that we can't tell.

What is your relatives goals, risk tolerance, and market expectations?
Why so many funds? Maybe to increase the chance to generate tax alpha?
Why the 2 funds, Alger Small Cap and Clearbridge Small Cap?

AOFAX's 1.2% expense ratio does not automatically disqualify it. Small cap is an area that a skilled manager can earn that fee. Now, evaluating that manager is darn hard...

In short, we have just got the results. We don't know what went into it. I am skeptical, but we really just don't know.
Former brokerage operations & mutual fund accountant. I hate risk, which is why I study and embrace it.
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Re: Recommendations from financial advisor

Post by Wanderingwheelz »

000 wrote: Mon Nov 23, 2020 6:44 pm I agree with previous responses.

Anyway, thanks for posting. The fact that financial advisors are pitching ARKK is a bit scary, no?
Apparently he thinks it’s a taxed managed ETF, too. I admit to having no idea what the cap gains history of ARKK is, but my guess it’s substantially more than VTI.
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Re: Recommendations from financial advisor

Post by 000 »

Wanderingwheelz wrote: Mon Nov 23, 2020 8:56 pm
000 wrote: Mon Nov 23, 2020 6:44 pm I agree with previous responses.

Anyway, thanks for posting. The fact that financial advisors are pitching ARKK is a bit scary, no?
Apparently he thinks it’s a taxed managed ETF, too. I admit to having no idea what the cap gains history of ARKK is, but my guess it’s substantially more than VTI.
I'm sure it's very low dividend, but I wonder if it can avoid cap gains distributions due to its ETF structure? Or maybe if they ever trim their highly appreciated positions, there will be some gains?
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Re: Recommendations from financial advisor

Post by alex_686 »

000 wrote: Mon Nov 23, 2020 9:01 pm but I wonder if it can avoid cap gains distributions due to its ETF structure?
Yes they can.
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000
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Re: Recommendations from financial advisor

Post by 000 »

alex_686 wrote: Mon Nov 23, 2020 9:10 pm
000 wrote: Mon Nov 23, 2020 9:01 pm but I wonder if it can avoid cap gains distributions due to its ETF structure?
Yes they can.
Is it possible for cap gains to exceed the amount that can be deferred through the creation/redemption process? Is there some limit?
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Re: Recommendations from financial advisor

Post by retired@50 »

jsh84 wrote: Mon Nov 23, 2020 7:20 pm
delamer wrote: Mon Nov 23, 2020 7:14 pm Give your relative this 16-page article to read and suggest that s/he invest according to its recommendations: https://www.etf.com/docs/IfYouCan.pdf

Your relative can jump to page 14 if s he has a short attention span. And if s/he wants to be more or less aggressive, s/he can change the weights of the 3 components.
I love that article and have shared it many times over the years, probably with this person as well. Ultimately, they are not inclined to read or learn much, I've learned that. I'll tell them that these funds are overly complex, redundant, and probably expensive. Up to them what they do after that.
This is the real issue here... (Red statement above). If you insert yourself into the briar patch of "family / finances / hurt feelings / unmet expectations" be ready to take it on the chin every Thanksgiving for the rest of your life.

I'd get the relative a library card or something along those lines for Christmas. :happy

Regards,
This is one person's opinion. Nothing more.
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Re: Recommendations from financial advisor

Post by dru808 »

Seems needlessly complex.
sptm
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Re: Recommendations from financial advisor

Post by alex_686 »

000 wrote: Mon Nov 23, 2020 9:12 pm
alex_686 wrote: Mon Nov 23, 2020 9:10 pm
000 wrote: Mon Nov 23, 2020 9:01 pm but I wonder if it can avoid cap gains distributions due to its ETF structure?
Yes they can.
Is it possible for cap gains to exceed the amount that can be deferred through the creation/redemption process? Is there some limit?
Nope.

There are situations where the creation / redemption process breaks down. This can happen when the underlying assets are illiquid and there are heavy “withdrawals” (large spreads between market price and NAV). The manager of the fund will then have to sell the most liquid assets just like a mutual fund. Trivia fact of the day, mutual funds can do the creation / redemption trick as well.

Some smaller funds blew up in 2008 like this.
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Re: Recommendations from financial advisor

Post by unclescrooge »

Vanguard uses a very simple methodology of deciding between value and growth. It basically splits the entire index in two.

Half is growth, and the other half is value.

Combining both in a portfolio gives you the entire index.

And intuitively, worse performance as frequent rebalancing means you are constantly selling the leading factor and buying the lagging factor. Whereas with the entire index, the leading factor just becomes bigger and bigger. This provides better returns and is significantly more tax efficient.

There are many ways to slice and dice a portfolio. This doesn't appear to be a good way of doing it.
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Re: Recommendations from financial advisor

Post by retiringwhen »

There is one legitimate reason to break out VTI into its 6 underlying funds like the FA did.

That is to allow for easy TLH as well as donating winners to charity (usually via a Donor advised fund) to maximize charitable giving.

I did this less aggressively a couple years ago trading VTI for VUG/VTV and VB at the bottom in 2018.

I have done 100% of my charitable giving out of VUG since then and have permanently avoided significant taxes. If this is done for tax reasons, it is a good idea.
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Re: Recommendations from financial advisor

Post by 123 »

If the desire is to go 100% in US equities just buy VTI and be done with it.
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jsh84
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Re: Recommendations from financial advisor

Post by jsh84 »

The individual with the money to invest is retired. They shouldn't be 100% equities at all, but i'm not sure they nor the advisor know their true allocation. It's something i am (and have) advised finding out.

I am willing to be there is no TLH happening either. Take a look at the 5.25% load on that AOFAX fund. That is par for the course for this FA.
HappyJack
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Re: Recommendations from financial advisor

Post by HappyJack »

Saw this once on the forum.
“Some advisers turn your money and their experience into their money and your experience.”
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Re: Recommendations from financial advisor

Post by Exchme »

I made the mistake a few years ago of letting DW talk me into financial advisor "friend". The FA could show me impressive charts proving that their recipe outperformed the market without taking extra risk by owning a bunch of slivers of things that didn't represent the market as a whole. This recipe isn't that one, but the complexity reminds of the same alchemy.

Even after four years of futility, DW didn't want to give up on the FA. Finally was able to use the fees as the argument that won the day. When I stopped talking about the fees as a percentage and started talking about the total $ for the advisor fees, plus the fund fees, plus the fees they paid to other funds, it was easier for her to visualize that it was a lot of money for nothing.
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jsh84
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Re: Recommendations from financial advisor

Post by jsh84 »

just learned that this FA is quoting "fees for new money of .65% AUM". I assume thats in addition to the fees attached to the funds themselves.
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Re: Recommendations from financial advisor

Post by Fallible »

jsh84 wrote: Mon Nov 23, 2020 7:20 pm ... Ultimately, they are not inclined to read or learn much, I've learned that. I'll tell them that these funds are overly complex, redundant, and probably expensive. Up to them what they do after that.
And, sadly, this sums it up. At least you've tried.
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Re: Recommendations from financial advisor

Post by alex_686 »

jsh84 wrote: Mon Nov 23, 2020 9:59 pm just learned that this FA is quoting "fees for new money of .65% AUM". I assume thats in addition to the fees attached to the funds themselves.
If that is true, they can’t charge a 5.25% load on AOFAX. You can either charge a fee on AUM or charge a commission, but you can’t double dip.
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Re: Recommendations from financial advisor

Post by cheese_breath »

jsh84 wrote: Mon Nov 23, 2020 6:33 pm ... Yes, I wish this could have been done a month ago as some of the small cap and value areas I am suggesting have made an impressive comeback...
(Meant to impress you) See how smart this guy is? If you'd only signed up with him a month ago, just think...
The surest way to know the future is when it becomes the past.
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Re: Recommendations from financial advisor

Post by dru808 »

alex_686 wrote: Mon Nov 23, 2020 10:10 pm
jsh84 wrote: Mon Nov 23, 2020 9:59 pm just learned that this FA is quoting "fees for new money of .65% AUM". I assume thats in addition to the fees attached to the funds themselves.
If that is true, they can’t charge a 5.25% load on AOFAX. You can either charge a fee on AUM or charge a commission, but you can’t double dip.
Can he charge aum on everything but aofax?
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BL
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Re: Recommendations from financial advisor

Post by BL »

If they need an advisor, I suggest Vanguard PAS at 0.3% AUM and average Expense Ratio under 0.1% for a total all-in cost of <0.4%/yr. Some people just want to have someone to talk things out to even though most of us here do not. As I understand, they will tell you what they suggest (perhaps 4-6 ETFs) and give you the choice of whether to go with them or not. They can be trusted to not come up with expensive or complicated investments.

Jane Bryant Quinn has a good easy reference book, How to Make Your Money Last, for retirees.
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Re: Recommendations from financial advisor

Post by alex_686 »

dru808 wrote: Tue Nov 24, 2020 12:06 am
alex_686 wrote: Mon Nov 23, 2020 10:10 pm
jsh84 wrote: Mon Nov 23, 2020 9:59 pm just learned that this FA is quoting "fees for new money of .65% AUM". I assume thats in addition to the fees attached to the funds themselves.
If that is true, they can’t charge a 5.25% load on AOFAX. You can either charge a fee on AUM or charge a commission, but you can’t double dip.
Can he charge aum on everything but aofax?
It has been a while since I did compliance in this space.

Technically the advisor could, but the fund would have to be in a separate portfolio. i.e., with its own separate goals, risk tolerance, etc. The decision making process between the 2 portfolios would have to be independent.

I would be hard pressed to think of situations were a ethical advisor or competent oversight would allow this. It looks horrible on paper.
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Re: Recommendations from financial advisor

Post by Tdubs »

Further proof that there is a 12-fund advisor cheat sheet they all use. They always recommend 12 funds. It looks impressive, as if they have done homework for you. And it's too complicated for an average investor to understand or ever think about going DIY.
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Re: Recommendations from financial advisor

Post by dogagility »

Tdubs wrote: Tue Nov 24, 2020 5:30 am Further proof that there is a 12-fund advisor cheat sheet they all use. They always recommend 12 funds. It looks impressive, as if they have done homework for you. And it's too complicated for an average investor to understand or ever think about going DIY.
Gives the FA 12 "shots on goal" to "beat the market". Then, rearrange the deck chairs for year 2. Rinse, repeat, and rake in the :moneybag
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Re: Recommendations from financial advisor

Post by markjk »

jsh84 wrote: Mon Nov 23, 2020 9:59 pm just learned that this FA is quoting "fees for new money of .65% AUM". I assume thats in addition to the fees attached to the funds themselves.
jsh84 - This all seems way too complicated and a bit expensive. Research has shown overwhelmingly you can do very well with a simple portfolio that is self managed thanks to low cost index funds. There is no reason at all for most of us to hold multiple funds like suggested in this breakdown. It provides no value, adds complexity and most likely adds cost. I would recommend looking at simpler options.
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Re: Recommendations from financial advisor

Post by Stinky »

I'd drop this advisor.

You'll get better (and cheaper) advice from the folks on this board. Way better. Way cheaper.
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Re: Recommendations from financial advisor

Post by FRANK2009 »

Skip the advisor fees and needless complication. 90% VTI/10% ARKK.
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Re: Recommendations from financial advisor

Post by Jack FFR1846 »

Pick any fund with a reasonable ER. I started looking at the recommended funds (which appear to be chosen for no reason) and they are cash cows for the advisor with 12b-1 fees coming out in addition to the fees going in and the AUM fees. Honestly, with all the fees, put your money into an Ally 0.6% savings account, where net fees you're going to beat this clown's portfolio.

Where have these so called "advisors" come from anyways? Was he a car salesman, who insisted that the ADMU on the second window sticker was required by the government? (ADMU = additional dealer mark up, which is pure profit added to high demand vehicles)
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alex_686
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Re: Recommendations from financial advisor

Post by alex_686 »

Jack FFR1846 wrote: Tue Nov 24, 2020 8:06 amI started looking at the recommended funds (which appear to be chosen for no reason) and they are cash cows for the advisor with 12b-1 fees coming out in addition to the fees going in and the AUM fees.
If a advisor charges a AUM they can't receive a 12b-1 fee. If they do, the broker has to turn over the 12b-1 fee to the client. You are not allowed to double dip.

To expand a bit on this and my prior post, you have to chose one of 2 roles.

The first, and classic, is being a broker. You get paid for doing transactions. You charge a commission or receive 12-b from the fund. As such you sit on the opposite side of the table as the client. Any advice you offer is incidental. You don't have a obligation to look after the best interest of the clients. Think car salesperson.

The second is being a advisor. You get paid by the client, either a percentage of AUM or a flat fee. As such you sit on the same side of the table as the client. You are primarily offering advice, transactions are incidental. You have a obligation to look after the best interest of the client. Not a fiduciary duty - that is a similar but higher standard. Think about a real estate agent representing you.

You have to chose to be on one side of the desk or the other. You can't represent the client and the represent yourself when it is coinvent.
Last edited by alex_686 on Tue Nov 24, 2020 8:56 am, edited 2 times in total.
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jsh84
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Re: Recommendations from financial advisor

Post by jsh84 »

good comments guys. I wasn't aware the FA has to choose either the AUM or the 12b-1 fees. I suspect the AUM will be substantially more lucrative (as the larger portfolio is also his).
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Re: Recommendations from financial advisor

Post by checkyourmath »

You can test this out via Personal Capital. It would probably take you 25 minutes to setup. You can manually enter all the amounts then click on the AA to look into what they are really intending. I also think in about 15 seconds someone should be able to tell you the total fees for a portfolio, which you can also look up. Personal Capital used to allow negative shares which was awesome because I liked playing around with AA. The financial advisor is definitely a waste.
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Re: Recommendations from financial advisor

Post by tibbitts »

First, I think the OP has provided grossly insufficient information for anyone to comment. Mostly all we're seeing here are the usual knee-jerk "you don't need an adviser" and "more than three funds are unnecessary" replies. The adviser makes a good point about what was this money doing out of the market in the first place? Where did it come from? How was this adviser selected and why does his firm have this money now?
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jsh84
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Re: Recommendations from financial advisor

Post by jsh84 »

tibbitts wrote: Tue Nov 24, 2020 9:29 am First, I think the OP has provided grossly insufficient information for anyone to comment. Mostly all we're seeing here are the usual knee-jerk "you don't need an adviser" and "more than three funds are unnecessary" replies. The adviser makes a good point about what was this money doing out of the market in the first place? Where did it come from? How was this adviser selected and why does his firm have this money now?
The advisor knows why the money was out of the market and where it came from. They have been the individual's FA for decades. This is the recommendation for moving some cash into the market.
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jsh84
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Re: Recommendations from financial advisor

Post by jsh84 »

checkyourmath wrote: Tue Nov 24, 2020 9:15 am You can test this out via Personal Capital. It would probably take you 25 minutes to setup. You can manually enter all the amounts then click on the AA to look into what they are really intending. I also think in about 15 seconds someone should be able to tell you the total fees for a portfolio, which you can also look up. Personal Capital used to allow negative shares which was awesome because I liked playing around with AA. The financial advisor is definitely a waste.
How do you manually do it in PC without it being actually part of your portfolio?
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nedsaid
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Re: Recommendations from financial advisor

Post by nedsaid »

jsh84 wrote: Mon Nov 23, 2020 6:33 pm This is the recommendation from a relatives financial advisor. Thoughts?

From Advisor:
I have been designing your investment strategy for the (large amount of cash brought over recently) and this is how I’d like to implement the strategy. Yes, I wish this could have been done a month ago as some of the small cap and value areas I am suggesting have made an impressive comeback. Since you still have some cash on hand at (a) Bank, cash proceeds at Life Ins co, and cash through inheritance. I am recommending equities for this full amount.

Investment strategies-

Managed Accounts-
25% to Alger Small cap focused equity managed account NEW

3.5% added to Clearbridge Small Cap managed account

ETF’s
6% to RDVY
6% to DGRO- iShares Dividend Growers
6% to SDY- SPDR Dividends
9% to ARKK- Ark Innovation ETF (This will be your most aggressive ETF)
9% to REGL- ProShares S&P MidCap 400 Dividend Aristocrats
9% to SMDV- ProShares Russell 2000 Dividend Growers
6% to VTV- Vanguard Large Cap Value
6% to VUG- Vanguard Large Cap Growth
4.25% to VOE- Vanguard Mid-Cap Value
4.25% to VOT- Vanguard Mid-Cap Growth
3% to VBR- Vanguard Small Cap Value
3% to VBK- Vanguard Small Cap Growth

This totals roughly XXX from your deposit and the Other transfer (those investments would be liquidated for minimal tax consequences). The portfolio will be managed in a very tax efficient manner using high quality strategies paying dividends to smooth out the market fluctuations over time.
Pairing Value and Growth indexes together just cancel each other out, if you want a Value premium a Large Cap Value Index should be paired with the S&P 500, a Mid-Cap Value Index should be paired with a Mid-Cap Index like the S&P 400 Mid-Cap Index, a Small-Cap Value Index should be paired with a Small-Cap Index like the S&P 600 Small-Cap Index. In other words, pair Value and Core together and not Value and Growth. Otherwise, you might as well be done with all of that and invest in a US Total Stock Market Index fund.

This isn't a bad portfolio but it is an all United States portfolio, I believe that all stock portfolios should have anywhere between 20% to 50% International Stocks with probably the sweet spot at 30%.
Any bonds at all in your investments?
A fool and his money are good for business.
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