CaseInPoint
Recycles dryer sheets
Here’s my dilemma:
With the market falling, my portfolio has taken a serious beating, roughly equivalent to the Dow. I’m 43, and don’t plan on retiring any time soon, but I’ve now started thinking about making some major changes to my investment strategy, and I’d be interested in hearing some opinions from the folks here.
For the most part, my investments are in cash reserves and in three main "holdings," which are just about in equal parts. I do so to diversify not only my investments, but also the locations at which they are being held.
1. A mid-size wealth management company. Managed mutual funds. Highest cost of management. Some tax planning.
2. A discount broker. Managed funds. Moderate fees. No tax planning.
3. Vanguard. Half managed, half ETF. Lowest fees. No tax planning.
I’m now thinking of cashing out of the wealth management funds and moving the money into Vanguard. Basically, I feel that the investment advice I’m getting is pretty much worthless, as my portfolio has dropped almost exactly the same as the market.
If I shift funds around, I’ll take a substantial loss on the sale of the shares, but I will also be buying into other investments at equally low prices. If/when the market rebounds, obviously, I’d rather pay less fees at Vanguard than at the wealth management company.
On the other hand, the option is to wait out the downturn and then make the move without taking a loss – even on paper. Of course, that could take years, and during that time, I’d be paying management fees all along.
What would you do, if faced with this question?
With the market falling, my portfolio has taken a serious beating, roughly equivalent to the Dow. I’m 43, and don’t plan on retiring any time soon, but I’ve now started thinking about making some major changes to my investment strategy, and I’d be interested in hearing some opinions from the folks here.
For the most part, my investments are in cash reserves and in three main "holdings," which are just about in equal parts. I do so to diversify not only my investments, but also the locations at which they are being held.
1. A mid-size wealth management company. Managed mutual funds. Highest cost of management. Some tax planning.
2. A discount broker. Managed funds. Moderate fees. No tax planning.
3. Vanguard. Half managed, half ETF. Lowest fees. No tax planning.
I’m now thinking of cashing out of the wealth management funds and moving the money into Vanguard. Basically, I feel that the investment advice I’m getting is pretty much worthless, as my portfolio has dropped almost exactly the same as the market.
If I shift funds around, I’ll take a substantial loss on the sale of the shares, but I will also be buying into other investments at equally low prices. If/when the market rebounds, obviously, I’d rather pay less fees at Vanguard than at the wealth management company.
On the other hand, the option is to wait out the downturn and then make the move without taking a loss – even on paper. Of course, that could take years, and during that time, I’d be paying management fees all along.
What would you do, if faced with this question?