For those who were wondering what really happened...

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Rick Ferri
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For those who were wondering what really happened...

Post by Rick Ferri » Fri Apr 12, 2019 4:18 pm

A lot of people have asked or wondered what really happened three years ago that caused me to leave Portfolio Solutions. Now that a non-compete is over, I opened up to ThinkAdviser reporter Bernice Napach. Hold on to your hats!

Rick Ferri Is Back in Business, Challenging the AUM Fee Model

Rick Ferri
The Education of an Index Investor: born in darkness, finds indexing enlightenment, overcomplicates everything, embraces simplicity.

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aspirit
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Re: For those who were wondering what really happened...

Post by aspirit » Fri Apr 12, 2019 4:26 pm

Rick Ferri wrote:
Fri Apr 12, 2019 4:18 pm
A lot of people have asked or wondered what really happened three years ago that caused me to leave Portfolio Solutions. Now that a non-compete is over, I opened up to ThinkAdviser reporter Bernice Napach. Hold on to your hats!

Rick Ferri Is Back in Business, Challenging the AUM Fee Model

Rick Ferri
Thx for that info RICK!
:happy
Time & tides wait for no one. A man has to know his limitations. | "Give me control of a nation's money and I care not who makes it's laws" | — Mayer Amschel Bauer Rothschild ~

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linenfort
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Re: For those who were wondering what really happened...

Post by linenfort » Fri Apr 12, 2019 4:30 pm

Sorry you had to go through that, but congrats on winning.

Greenman72
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Re: For those who were wondering what really happened...

Post by Greenman72 » Fri Apr 12, 2019 4:31 pm

I'm still waiting on my royalty check for the "Core 4" name that you stole from underneath me.
In case you've forgotten my address, you can PM me.

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Rick Ferri
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Re: For those who were wondering what really happened...

Post by Rick Ferri » Fri Apr 12, 2019 6:16 pm

At least your not claiming ownership of my name. Long story!
The Education of an Index Investor: born in darkness, finds indexing enlightenment, overcomplicates everything, embraces simplicity.

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nisiprius
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Re: For those who were wondering what really happened...

Post by nisiprius » Fri Apr 12, 2019 6:43 pm

Thank you very much. I admit to curiosity and some concern, particularly about the surprisingly small size of your full-time RV.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

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Re: For those who were wondering what really happened...

Post by abuss368 » Sat Apr 13, 2019 12:26 pm

Hi Rick -

Interesting story and I wish you and the new firm a lot of luck and success.

Best.
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

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Re: For those who were wondering what really happened...

Post by saintsfan342000 » Sat Apr 13, 2019 4:51 pm

Very cool, and congratulations. May I ask: How did you arrive at $450/hour, and in general how could newcomers judge whether someone is charging a fair hourly rate?

Woodshark
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Re: For those who were wondering what really happened...

Post by Woodshark » Sat Apr 13, 2019 5:06 pm

Welcome back Rick. Glad to hear that you are out from under the NCC. I think you're one of the good guys and I look forward to seeing you back on the forum more often. I know that you have a few detractors but I'm sure you are used to that by now. It's a new day.

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HueyLD
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Re: For those who were wondering what really happened...

Post by HueyLD » Sat Apr 13, 2019 5:13 pm

Rick Ferri wrote:
Fri Apr 12, 2019 4:18 pm
A lot of people have asked or wondered what really happened three years ago that caused me to leave Portfolio Solutions. Now that a non-compete is over, I opened up to ThinkAdviser reporter Bernice Napach. Hold on to your hats!

Rick Ferri Is Back in Business, Challenging the AUM Fee Model

Rick Ferri
It is nice to see a favorable outcome for a good guy like Rick. Congrats and keep up with your crusade.

DB2
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Re: For those who were wondering what really happened...

Post by DB2 » Sun Apr 14, 2019 3:35 pm

Hey Rick,

I think you do a really nice job laying out the portfolio options, examples, and specific fund options, etc. on the Core 4 site. Good stuff.

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Re: For those who were wondering what really happened...

Post by ralph124cf » Sun Apr 14, 2019 4:07 pm

saintsfan342000 wrote:
Sat Apr 13, 2019 4:51 pm
Very cool, and congratulations. May I ask: How did you arrive at $450/hour, and in general how could newcomers judge whether someone is charging a fair hourly rate?
I am also interested in this question.

Please note: This is NOT an implied criticism of the rate that you have chosen, it is a question of the process of choosing an appropriate rate to charge for intellectual services.

Thanks,

Ralph

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Rick Ferri
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Re: For those who were wondering what really happened...

Post by Rick Ferri » Sun Apr 14, 2019 9:13 pm

I asked Allan Roth.

:happy

Rick Ferri
The Education of an Index Investor: born in darkness, finds indexing enlightenment, overcomplicates everything, embraces simplicity.

randomguy
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Re: For those who were wondering what really happened...

Post by randomguy » Sun Apr 14, 2019 9:31 pm

Rick Ferri wrote:
Sun Apr 14, 2019 9:13 pm
I asked Allan Roth.

:happy

Rick Ferri
Just remember if your schedule fills up, you are not charging enough. I must admit it seems like sort of a niche service between the people who will do it all themselves and the ones that want to outsource most of it . How many people will rebalance, do tax efficient withdrawals, TLHJ, and so on but can't pick out assets? Seems like someone familiar with Rick would also be up on the various passive portfolios. But niche services still need to be filled.

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Re: For those who were wondering what really happened...

Post by Time2Quit » Sun Apr 14, 2019 9:36 pm

“A client with $2 million paying 0.9% of AUM annually is told that half the fee is for planning and half is for investment management, but continues to pay $9,000 every single year for a financial plan that’s already done, explains Ferri.”

Not to nitpick but 0.9% AUM of $2M is $18k.
"It is not the man who has too little, but the man who craves more, that is poor." --Seneca

software
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Re: For those who were wondering what really happened...

Post by software » Sun Apr 14, 2019 9:39 pm

Time2Quit wrote:
Sun Apr 14, 2019 9:36 pm
“A client with $2 million paying 0.9% of AUM annually is told that half the fee is for planning and half is for investment management, but continues to pay $9,000 every single year for a financial plan that’s already done, explains Ferri.”

Not to nitpick but 0.9% AUM of $2M is $18k.
And half of 18k is...? (Hint: re-read the quote)

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Harry Livermore
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Re: For those who were wondering what really happened...

Post by Harry Livermore » Tue Apr 16, 2019 6:15 am

Congrats Rick. Good article. The $450/ hr and $500 one-time initial are compelling values. There are a lot of folks who are very DIY but would benefit from a second pair of eyes.
Cheers

GaryA505
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Re: For those who were wondering what really happened...

Post by GaryA505 » Tue Apr 16, 2019 12:01 pm

Harry Livermore wrote:
Tue Apr 16, 2019 6:15 am
Congrats Rick. Good article. The $450/ hr and $500 one-time initial are compelling values. There are a lot of folks who are very DIY but would benefit from a second pair of eyes.
Cheers
I agree, even if it's just getting a confirmation we're "getting most of it right and not making any big mistakes".

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