Thanks, I will likely be building a simple bogglehead 3- or 4-fund portfolio and managing myself after a bit more research.
I have to assess the tax consequences, however, of moving stuff around at different times and from different allocations and account types.
Best,
The funds you listed for your portfolio were quite a lot better than I expected from a 0.5% AUM-free advisor. Lots of index funds, but some clunkers, too. But maybe they had less than 5% of the portfolio in the index funds and the rest in the other funds. For instance, isn't that Capitol World fund a front-end load fund?
Also, the point in time when one invested in such a portfolio was also critical in 2014. The market dipped into February, then rose, then lost the whole gain for the year in early Fall, then recovered. If the portfolio was set up in March to September, it would be trivially easy to be below the expected averages.
Here are some numbers from the Vanguard LifeStrategy Moderate Growth fund of index funds allocated in a 60/40
Return Months to December 31, 2014
7.1% 12 months (full year)
5.2% 08 Apr-Dec
1.4% 06 Jul-Dec
2.3% 03 Oct-Dec
Take away 0.5% from those returns for the extra fees, too.
Folks who did better than 7% usually had more US large caps, more REITs, less foreign, and/or more longer duration bonds. Your portfolio has some short-term bonds which would cause a drag.
So a 60/40 portfolio could be all over the map in 2014 from about 2% to 15% performance based on what was in the 60 and what was in the 40 along with when the money got invested.
Perhaps that was the explanation you were seeking from your sales rep. Send me via a message the e-mail you sent to them, so that I can also "fire" you!