A Plan for FA to Convert DIYers

[seraphim]

Sure it was tragic for them, but how are you holding up?

Actually, doing great. Since September I've watched the market, followed news, and have been fascinated how the market responds. I've watched the equities drop, while the bond holdings kicked in and did their thing limiting volatility...

I believe I've acquired a basic understanding of how things work, and have felt the urge to do things 'wrong' lol; but I think I understand those urges and have no problems avoiding them.

Yes Midpack, even the urge to market time *grin*. I've gotten over it, if you remember the discussion. I was guilty of short term thinking.

I don't anticipate any major problems we can't get through. I've watched a 300+k [funds] portfolio work, and am now comfortable adding another 600+k around June into the market. I've looked into adding a percentage of REIT, mid cap and small cap funds to the basic three fund portfolio, but need to cogitate more on it.

I'm averaging an ER of .10%. And when I think about how much I would have paid in costs for the FA to handle things...

Next I need to tackle the possibility of LTC insurance but that's another topic.

 

[nun]

Even as effective and simple as most lazy portfolios are, as FinanceDude pointed out in a earlier thread, many people don't have the discipline to implement such a plan, and really go off the rails during corrections. I'd venture that while most people can easily understand the mechanics of AA, passive investing, rebalancing, tax efficiency/placement, etc. - we underappreciate the discipline required to manage a portfolio. Most amateurs can't resist the urge to act, when patience would serve them better.

I agree, some people need an advisor or just don't want to deal with investing their money. But from all I've read and heard I can do what most FAs do with very little time and effort. Also my track record through a couple of big down turns makes me confident that I can handle future market "corrections" without any costly hand holding and I think most people could do the same if they wanted.

 

[FinanceDude]

I agree, some people need an advisor or just don't want to deal with investing their money. But from all I've read and heard I can do what most FAs do with very little time and effort. Also my track record through a couple of big down turns makes me confident that I can handle future market "corrections" without any costly hand holding and I think most people could do the same if they wanted.

Sounds like you're ready to be an FA.............