My boss asked me to build a portfolio

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MoneyMike82
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Joined: Mon May 18, 2015 8:11 pm

My boss asked me to build a portfolio

Post by MoneyMike82 »

I'm currently a para planner at a small wealth management firm and I love the work and my boss is the nicest person I've ever met...

I'm currently studying for the 65 and she recently asked me to work with her on putting together a new model. This will be our "dividend fund". She and I have VERY different investment philosophies. I believe in indexing and she doesn't, but she also places a great deal of emphasis on short term (2 or 3 months) performance. Because I know that there's no real skill in picking stocks, I'm perfectly fine to throw darts at a list of dividend stocks, but I'd still have to give a reason to my boss as to why I'm picking them, even though I don't think it matters. Also, I'm not super thrilled with the idea that my picks may not do so well and then my boss will think less of me even though I know it's just random.

I'd love any advice or input other than "go work somewhere else." I've never had a job I really loved until now and it pays great with great benefits.
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Cam894
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Re: My boss asked me to build a portfolio

Post by Cam894 »

MoneyMike82 wrote: Tue Sep 08, 2020 7:02 pm I'm currently a para planner at a small wealth management firm and I love the work and my boss is the nicest person I've ever met...

I'm currently studying for the 65 and she recently asked me to work with her on putting together a new model. This will be our "dividend fund". She and I have VERY different investment philosophies. I believe in indexing and she doesn't, but she also places a great deal of emphasis on short term (2 or 3 months) performance. Because I know that there's no real skill in picking stocks, I'm perfectly fine to throw darts at a list of dividend stocks, but I'd still have to give a reason to my boss as to why I'm picking them, even though I don't think it matters. Also, I'm not super thrilled with the idea that my picks may not do so well and then my boss will think less of me even though I know it's just random.

I'd love any advice or input other than "go work somewhere else." I've never had a job I really loved until now and it pays great with great benefits.
You work at a wealth management firm. Not only did you decide you needed the Internets advice. You came here of all places.

This can't be real.
whereskyle
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Joined: Wed Jan 29, 2020 10:29 am

Re: My boss asked me to build a portfolio

Post by whereskyle »

MoneyMike82 wrote: Tue Sep 08, 2020 7:02 pm I'm currently a para planner at a small wealth management firm and I love the work and my boss is the nicest person I've ever met...

I'm currently studying for the 65 and she recently asked me to work with her on putting together a new model. This will be our "dividend fund". She and I have VERY different investment philosophies. I believe in indexing and she doesn't, but she also places a great deal of emphasis on short term (2 or 3 months) performance. Because I know that there's no real skill in picking stocks, I'm perfectly fine to throw darts at a list of dividend stocks, but I'd still have to give a reason to my boss as to why I'm picking them, even though I don't think it matters. Also, I'm not super thrilled with the idea that my picks may not do so well and then my boss will think less of me even though I know it's just random.

I'd love any advice or input other than "go work somewhere else." I've never had a job I really loved until now and it pays great with great benefits.
Obviously you need to present the three-fund portfolio in ETF form. Other than that, I honestly think this is a lose-lose proposition.
"I am better off than he is – for he knows nothing and thinks that he knows. I neither know nor think that I know." - Socrates. "Nobody knows nothing." - Jack Bogle
dru808
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Re: My boss asked me to build a portfolio

Post by dru808 »

Cam894 wrote: Tue Sep 08, 2020 7:05 pm
MoneyMike82 wrote: Tue Sep 08, 2020 7:02 pm I'm currently a para planner at a small wealth management firm and I love the work and my boss is the nicest person I've ever met...

I'm currently studying for the 65 and she recently asked me to work with her on putting together a new model. This will be our "dividend fund". She and I have VERY different investment philosophies. I believe in indexing and she doesn't, but she also places a great deal of emphasis on short term (2 or 3 months) performance. Because I know that there's no real skill in picking stocks, I'm perfectly fine to throw darts at a list of dividend stocks, but I'd still have to give a reason to my boss as to why I'm picking them, even though I don't think it matters. Also, I'm not super thrilled with the idea that my picks may not do so well and then my boss will think less of me even though I know it's just random.

I'd love any advice or input other than "go work somewhere else." I've never had a job I really loved until now and it pays great with great benefits.
You work at a wealth management firm. Not only did you decide you needed the Internets advice. You came here of all places.

This can't be real.

Smells fishy.
Sptm 65 | Vigi 20 | Blv 10 | Btc/Eth 5
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celia
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Re: My boss asked me to build a portfolio

Post by celia »

OP, This is YOUR test. We can't take it for you.

Chose something that will please your boss as well as your conscience.
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MoneyMike82
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Re: My boss asked me to build a portfolio

Post by MoneyMike82 »

I don't know why this has to be fishy...

I wanted to get input on how someone who believes in passive investing would handle this situation. And again, I'm a paraplanner who's studying for the series 65. It's not like I posted "I'm a CFA, but what do you all think I should invest my money in."

I'm sure I'm the first person ever to have a disagreement with their boss about something. :shock:
Dottie57
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Re: My boss asked me to build a portfolio

Post by Dottie57 »

celia wrote: Tue Sep 08, 2020 7:19 pm OP, This is YOUR test. We can't take it for you.

Chose something that will please your boss as well as your conscience.
+1
alex_686
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Re: My boss asked me to build a portfolio

Post by alex_686 »

The answer to this is simple yet deceptive.

Active management can lead to higher returns, counter to what other Bogleheads say. The problem is that this is a skilled endeavor. I sincerely doubt that you can pull it off. I am not trying to be patronizing, but having been in the business of a medium sized wealth management firm I know how hard it is for a small one to pull this off.

No, the real answer lies in the fact that she is asking you to build a dividend portfolio. Dividend investing is simple and intuitive, like the notion that heavy objects fall faster than light ones. It is totally wrong and has been discredited since the 1950s. Dividend payouts have no informational value. It is a exterior value, not a internal measure. It is like trying to measure the intelligence of a woman based on if she is wearing a dress or pants. Yes, dividend stocks have shown to be consistent winners, expect those which have higher than average risk. Just not a good measure.

I would show her how bright you were by coming up with a factor portfolio based on Quality & Low Beta.
Former brokerage operations & mutual fund accountant. I hate risk, which is why I study and embrace it.
whereskyle
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Joined: Wed Jan 29, 2020 10:29 am

Re: My boss asked me to build a portfolio

Post by whereskyle »

MoneyMike82 wrote: Tue Sep 08, 2020 7:29 pm I don't know why this has to be fishy...

I wanted to get input on how someone who believes in passive investing would handle this situation. And again, I'm a paraplanner who's studying for the series 65. It's not like I posted "I'm a CFA, but what do you all think I should invest my money in."

I'm sure I'm the first person ever to have a disagreement with their boss about something. :shock:
Honestly, what could be wrong about explaining in detail why the three-fund portfolio is the best possible option?

If you really are just looking for stock-picking advice, and you know the truth is that it doesn't matter which stocks you pick, the only thing for you to do that I imagine would please your boss is push a narrative. "This sector is due and here's the dividend-growth narrative for this particular company in this particular sector." Not to point fingers, but I expect you are more attuned to what people in this industry spend their time talking about than the bogleheads who choose not to play the game. Anyways, narratives are fun for everyone. People like stories.
"I am better off than he is – for he knows nothing and thinks that he knows. I neither know nor think that I know." - Socrates. "Nobody knows nothing." - Jack Bogle
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LadyGeek
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Re: My boss asked me to build a portfolio

Post by LadyGeek »

This thread has run its course and is locked (asking on behalf of a business). See: Acceptable Topics and Subforum Guidelines
This is an investing and personal finance forum. We also maintain a subforum that allow our members to discuss consumer goods and services and recreational activities. Anything else is considered "Off Topic" and is not acceptable on this forum.
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