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Ric Edelman
Old 01-28-2016, 05:36 PM   #1
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Ric Edelman

I listen to Edelmans radio show every week, I enjoy the programs. Anyone members that have actually used this firm to manage their portfolio?


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Old 01-28-2016, 06:52 PM   #2
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I listen too. No way I would pay Ric's firm for management.


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Old 01-28-2016, 07:09 PM   #3
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I have an interest in finance and love his show. I don't use him because I can do things in my own. Having said that, I've told my wife that if I die, she is to call them immediately. Yes, Ric is spendy, but not as expensive as some ripoff insurance salesman. My wife would be wise to have someone assist her with finances once I go.


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Old 01-28-2016, 07:11 PM   #4
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I listen to his show also and went to a local seminar his firm put on. Good info but when I talked to him about portfolio management they wanted 100% of my assets so I'd be diversified and for an annual 1.5% fee. Just to expensive for me.
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Old 01-28-2016, 07:13 PM   #5
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I listen to his show also and went to a local seminar his firm put on. Good info but when I talked to him about portfolio management they wanted 100% of my assets so I'd be diversified and for an annual 1.5% fee. Just to expensive for me.

Yup, way too pricey!


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Old 01-28-2016, 07:33 PM   #6
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Originally Posted by Brianeboatman View Post
. Having said that, I've told my wife that if I die, she is to call them immediately. Yes, Ric is spendy, but not as expensive as some ripoff insurance salesman. My wife would be wise to have someone assist her with finances once I go.
Good idea. I had a family trust,and after my wife died, I met with the attorney to amend the trust. He told me of all the woman he had to deal with that did not have a clue about what to do or where the assets were. Sad.
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Old 01-28-2016, 08:17 PM   #7
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Yes, Ric is spendy, but not as expensive as some ripoff insurance salesman.
That's a pretty low bar. I'm sure she can get better assistance for less money. Yes, I listen to his show, and he's among the better talking heads. But paying 1.5% of assets every year would cut your wife's safely-allowable spending by about 30-40%. That's a lot of money. If you are really concerned, consider interviewing a few fee-only planners who bill by the hour, then picking one.
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Old 01-28-2016, 08:36 PM   #8
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I listen to his show also and went to a local seminar his firm put on. Good info but when I talked to him about portfolio management they wanted 100% of my assets so I'd be diversified and for an annual 1.5% fee. Just to expensive for me.

I understand they use mutual funds. Is that right? Which ones? I've heard him speak favorably wrt Vanguard, I think.


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Old 01-28-2016, 10:00 PM   #9
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That's a pretty low bar. I'm sure she can get better assistance for less money. Yes, I listen to his show, and he's among the better talking heads. But paying 1.5% of assets every year would cut your wife's safely-allowable spending by about 30-40%. That's a lot of money. If you are really concerned, consider interviewing a few fee-only planners who bill by the hour, then picking one.
That depends on assets, no? Of course, if with significant assets, it's hard for me to stomach paying more for the AUM fee than my personal expenditures.
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Old 01-28-2016, 10:47 PM   #10
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I understand they use mutual funds. Is that right? Which ones? I've heard him speak favorably wrt Vanguard, I think.
They use ETFs and Institutional mutual funds, to get the costs down as low as they can.

BTW, here is his fee schedule:

  • First $150,000 2.00%
  • Next $250,000 1.65%
  • Next $350,000 1.25%
  • Next $250,000 1.00%
  • Next $2 million 0.75%
  • Next $7 million 0.60%
  • Next $15 million 0.50%
  • Amounts above $25 million are negotiable
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Old 01-29-2016, 07:11 AM   #11
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I listen weekly, too. I think he's pretty straight up. However, like he says, I have "the time, the interest and the ability" to do my own investing, so I don't have any money with him either. I told my wife to call our (free) Personal Representative at Vanguard when I kick over.
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Old 01-29-2016, 07:33 AM   #12
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They use ETFs and Institutional mutual funds, to get the costs down as low as they can.

BTW, here is his fee schedule:

  • First $150,000 2.00%
  • Next $250,000 1.65%
  • Next $350,000 1.25%
  • Next $250,000 1.00%
  • Next $2 million 0.75%
  • Next $7 million 0.60%
  • Next $15 million 0.50%
  • Amounts above $25 million are negotiable
I've only listened to his show a few times. I liked it but listen to a similar, local, show instead. I have read a few of his books and incorporated some of his suggestions.

The rates do seem high to me. For example, the local show I listen to has rates of 1% for $1 million or less then it transitions to 0.8% over $1 million. As the assets under management increase the rates continue to decrease.

The same local firm has a "bot" type approach for people with assets much less than $1 million and the rate is ~0.7%. They use ETFs almost exclusively for the "bot" approach. The bots are actually real people that rebalance for you as needed but at least once a year. I guess some people just don't want to do it themselves and want to have a "guy" so they can believe/trust somebody smarter than them is handling their investments.

Does Ric Edelman have a "bot" approach? Based on his fee structure it appears he is looking for clients with large amounts of capital.
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Old 01-29-2016, 07:53 AM   #13
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I understand they use mutual funds. Is that right? Which ones? I've heard him speak favorably wrt Vanguard, I think.


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Yes he uses ETF's, a big fan of them.
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Old 01-29-2016, 07:56 AM   #14
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He's also a big fan of having a mortgage in retirement because the rates are so low. Having no mortgage payment for over 15 years I don't think I'd go back now to monthly payments!
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Old 01-29-2016, 08:57 AM   #15
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He's also a big fan of having a mortgage in retirement because the rates are so low. Having no mortgage payment for over 15 years I don't think I'd go back now to monthly payments!
Yeah, his whole thinking on mortgages doesn't mesh well with my thinking.

I recall hearing him advising folks to keep a hefty mortgage and use the money to invest with - I'm pretty sure I heard him advise callers to take out second mortgages and invest the cash, but that was a long time ago. He stopped talking about that after the subprime debacle, but over the last fews years it's crept back into his show on accessions.

My take is that either he likes leverage way more than I do or he's simply interested in getting more of people's asset into investments so he can collect more of a fee. It's probably both.

Still I listen to his show on occasion. Most of his advice is reasonable and when I don't agree with him, it makes me think.

He and Bob Brinker are the two radio investment folks I listen to. They both have their shortcomings, but both offer a fair amount of useful information.

And no way would I put my own money under his firm's care.
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Old 01-29-2016, 09:43 AM   #16
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I used to watch his TV show. I don't know if it is still running. I've also listened to his radio show. I thought most of the advice was quite good.
The really big thing that I can't get over though (as some others mentioned) is his advice to carry a mortgage into retirement. I think that's just asking for trouble. To me, it seems more prudent to pay off the mortgage out of the bond portion of a portfolio, since bonds are not making much anyway.

I paid off my mortgage in my mid 40's, with money that would otherwise have gone to bonds. That made me a happier, more relaxed person. One less (big) thing to worry about.
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Old 01-29-2016, 10:29 AM   #17
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Yeah, his whole thinking on mortgages doesn't mesh well with my thinking.

I recall hearing him advising folks to keep a hefty mortgage and use the money to invest with - I'm pretty sure I heard him advise callers to take out second mortgages and invest the cash, but that was a long time ago. He stopped talking about that after the subprime debacle, but over the last fews years it's crept back into his show on accessions.

My take is that either he likes leverage way more than I do or he's simply interested in getting more of people's asset into investments so he can collect more of a fee. It's probably both.

Still I listen to his show on occasion. Most of his advice is reasonable and when I don't agree with him, it makes me think.

He and Bob Brinker are the two radio investment folks I listen to. They both have their shortcomings, but both offer a fair amount of useful information.

And no way would I put my own money under his firm's care.
This is my view, exactly. I think his views on mortgages are somewhat skewed by the local housing market in the DC area (hi COL, relatively stable, recession resistant). Many of his views reflect a "my way and my way only" attitude.

I am a long time Bob Brinker fan but his program is getting more and more difficult to access. He is just not interesting enough to be popular. Another program in the DC area is The Wise Investor Group. They focus on value investing and individual stocks. They are a full service advisory but they promote their radio program as a DIY service.
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Old 01-29-2016, 12:01 PM   #18
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I used to watch his TV show. I don't know if it is still running. I've also listened to his radio show. I thought most of the advice was quite good.

The really big thing that I can't get over though (as some others mentioned) is his advice to carry a mortgage into retirement. I think that's just asking for trouble. To me, it seems more prudent to pay off the mortgage out of the bond portion of a portfolio, since bonds are not making much anyway.



I paid off my mortgage in my mid 40's, with money that would otherwise have gone to bonds. That made me a happier, more relaxed person. One less (big) thing to worry about.

Yes, I find his thinking on the big mortgage in retirement repellant, I would never go it but I guess he makes a good argument for it. Maybe I will go to one of his seminars and see how he does the math. But I still wouldnt do it, I hate debt.


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Old 01-29-2016, 04:28 PM   #19
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Yes, I listen to his show, and he's among the better talking heads. But paying 1.5% of assets every year would cut your wife's safely-allowable spending by about 30-40%. That's a lot of money. If you are really concerned, consider interviewing a few fee-only planners who bill by the hour, then picking one.
This is good advice. I self managed for a long time. In 2005 I put about half my investments with a manager that charged 1% of assets/year. The pitch was that his firm had access to investments and other managers that a single individual could not do, so I tried it. It took me nine years to figure out that all of that was really no better than my own judgement and I was paying a fee for returns that were lower than my own on the rest of my investments. I ended the relationship and took it back myself, and I am happier for it with better results.
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Old 01-29-2016, 04:39 PM   #20
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This is good advice. I self managed for a long time. In 2005 I put about half my investments with a manager that charged 1% of assets/year. The pitch was that his firm had access to investments and other managers that a single individual could not do, so I tried it. It took me nine years to figure out that all of that was really no better than my own judgement and I was paying a fee for returns that were lower than my own on the rest of my investments. I ended the relationship and took it back myself, and I am happier for it with better results.

Cheers!


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