Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Fired my financial adviser
Old 06-18-2019, 02:49 PM   #1
Dryer sheet wannabe
 
Join Date: Dec 2015
Posts: 18
Fired my financial adviser

And his 1 percent fee. In the two years I have used him I have 6 k less than I started with! So I知 looking for some simple index vanguard funds. Trying to keep it simple. Maybe three funds. This is money that we don稚 plan to use but want it reasonable invested. Maybe 60 40. I知 looking at Wesleyan and Wellington and maybe a small percent in international. No rush I知 in an all cash position. For some reason I知 feeling very empowered!
retired2015b2d is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-18-2019, 02:55 PM   #2
Recycles dryer sheets
 
Join Date: Feb 2018
Posts: 98
IMO
I'd stay all cash for a little bit to see what this market is going to do. Buy in after the correction is most likely on the horizon.
This is just my opinion and I know many here don't think the market will correct anytime soon
jjflyman is offline   Reply With Quote
Old 06-18-2019, 02:56 PM   #3
Thinks s/he gets paid by the post
SumDay's Avatar
 
Join Date: Aug 2012
Posts: 1,862
Good for you! Use than 1% for a nice vacation someday!

Here are some articles I used to help me pick our AA. I was pretty new to this too:
https://www.morningstar.com/articles...have-perf.html

https://www.theretirementmanifesto.c...et-allocation/

And this one from Boglheads, where I believe this is discussed frequently on their board: https://www.bogleheads.org/wiki/Three-fund_portfolio

Good luck to you! Just being nosey - did he try to talk you out of it?
__________________
FIRE Class of 2018 @ 61

Old men and women sit in the shade of trees they planted long ago
SumDay is offline   Reply With Quote
Old 06-18-2019, 03:13 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 10,308
"The Coffeehouse Investor" by Bill Schultheis

You can download the first chapter: https://www.coffeehouseinvestor.com/
OldShooter is offline   Reply With Quote
Old 06-18-2019, 03:28 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 10,252
Wellington and Wellesley are not index funds, so since you are looking for index funds, then you probably should not be looking at them.

Vanguard Balanced Index fund is 60/40 US equities and bonds without International. It is one of a handful of superb choices for a tax-advantaged account.
LOL! is offline   Reply With Quote
Old 06-18-2019, 03:52 PM   #6
Thinks s/he gets paid by the post
frayne's Avatar
 
Join Date: Oct 2002
Location: Chattanooga
Posts: 3,871
Put 60 in a FIDO or VGD total market index fund and walk away. Put the 40 in CDs or a bond fund.
__________________
Earning money is an action, saving money is a behavior, growing money takes a well diversified portfolio and the discipline to ignore market swings.
frayne is offline   Reply With Quote
Old 06-18-2019, 05:28 PM   #7
Thinks s/he gets paid by the post
Cut-Throat's Avatar
 
Join Date: Jan 2007
Location: Minneapolis
Posts: 1,172
Quote:
Originally Posted by jjflyman View Post
IMO
I'd stay all cash for a little bit to see what this market is going to do. Buy in after the correction is most likely on the horizon.

And what percentage drop exactly do you recommend "buying in" after the correction?


5%
10%
15%
20%
25%
30%
35%
40%
50%

? ? ?

And what do you Watch
The DJIA, The S&P 500 ? or ?
Cut-Throat is offline   Reply With Quote
Old 06-18-2019, 05:50 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,204
If tax efficiency isnt a concern... for example the money is all tax-deferred... I would plunk the whole lot in Wellington or the Balanced Index Fund and declare victory.

If you're concerned about the market being so high you could do 25% now and 10% a month until the cash is fully invested.... but if it was in a 60/40 combination you could rationalize just going in all at once which is what would have happened if you stuck with your FA (less the 1% AUM fee of course).
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56
pb4uski is offline   Reply With Quote
Old 06-18-2019, 06:09 PM   #9
Recycles dryer sheets
 
Join Date: Jun 2018
Posts: 441
Quote:
Originally Posted by retired2015b2d View Post
And his 1 percent fee. In the two years I have used him I have 6 k less than I started with! So I知 looking for some simple index vanguard funds. Trying to keep it simple. Maybe three funds. This is money that we don稚 plan to use but want it reasonable invested. Maybe 60 40. I知 looking at Wesleyan and Wellington and maybe a small percent in international. No rush I知 in an all cash position. For some reason I知 feeling very empowered!
I also had some cash come available. I'm heavy enough on stock so put in 2+% MM for now. If market keeps going up, I'm good. If it dips, I have a little fire power to buy low.
WhenIsItTime is offline   Reply With Quote
Old 06-18-2019, 06:18 PM   #10
Moderator
Jerry1's Avatar
 
Join Date: Nov 2014
Posts: 9,070
Quote:
Originally Posted by retired2015b2d View Post
In the two years I have used him I have 6 k less than I started with!
Any insight as to how he lost $6K? Seems like the last two years have been pretty good. How壇 he screw that up?
__________________
Every day when I open my eyes now it feels like a Saturday - David Gray
Jerry1 is offline   Reply With Quote
Old 06-18-2019, 06:19 PM   #11
Thinks s/he gets paid by the post
Cut-Throat's Avatar
 
Join Date: Jan 2007
Location: Minneapolis
Posts: 1,172
Quote:
Originally Posted by Jerry1 View Post
Any insight as to how he lost $6K? Seems like the last two years have been pretty good. How壇 he screw that up?

+1 -- That takes a 'special' kind of talent!
Cut-Throat is offline   Reply With Quote
Old 06-18-2019, 07:49 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Mar 2016
Posts: 8,968
He's one of the guys that give FA's a bad name.
RobbieB is offline   Reply With Quote
Old 06-18-2019, 07:56 PM   #13
Moderator Emeritus
aja8888's Avatar
 
Join Date: Apr 2011
Location: Conroe, Texas
Posts: 18,593
Quote:
Originally Posted by RobbieB View Post
He's one of the guys that give FA's a bad name.
Believe me, he's on a long list.
__________________
*********Go Astros!*********
aja8888 is offline   Reply With Quote
Old 06-18-2019, 08:52 PM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,204
Quote:
Originally Posted by retired2015b2d View Post
And his 1 percent fee. In the two years I have used him I have 6 k less than I started with!...
Quote:
Originally Posted by Cut-Throat View Post
+1 -- That takes a 'special' kind of talent!
+2 Just a generic 60/40 would have returned 5.0% for 2017-2018... less 1% AUM would be +4%... not negative!

https://www.portfoliovisualizer.com/...al2=0&total3=0
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56
pb4uski is offline   Reply With Quote
Old 06-18-2019, 10:17 PM   #15
Thinks s/he gets paid by the post
skipro33's Avatar
 
Join Date: Sep 2011
Location: Placerville
Posts: 1,788
I have the exact situation. After firing them, I immediately put 30% in a Dow index, another 30% in S&P500 index and the rest is in core position, buying in the remaining 40% at 5% a month into these two funds until I'm 100% invested.

Like you, I don't plan to draw on this as income in the near future, most likely no draws until RMD at 70.5 years old, so why 60/40 split? I can ride out any market fluctuations if I am not planning on spending it. If we ever have extensive health expenses or medical live-in care needed, we can use it for that.

I live fine on my pension and early SS, about $2,000 a month less than that take-home actually. I use this extra for new car every 4 years, gifting and charity.
skipro33 is offline   Reply With Quote
Old 06-19-2019, 07:07 AM   #16
Thinks s/he gets paid by the post
The Cosmic Avenger's Avatar
 
Join Date: May 2016
Location: Mid-Atlantic
Posts: 2,642
Quote:
Originally Posted by jjflyman View Post
IMO
I'd stay all cash for a little bit to see what this market is going to do. Buy in after the correction is most likely on the horizon.
This is just my opinion and I know many here don't think the market will correct anytime soon

No offense, jjflyman, but I drove myself nuts trying to do that early on. My 2 cents, I've found that my best tactic is, as soon as I conclude that I want a change in strategy I try to implement it ASAP. Otherwise I wind up trying to time the markets, and that's been a frustrating experience for me; more than once I would have done better if I had implemented sooner rather than later. Even if the markets go way down, deciding when to buy in can be really difficult! At least when I've decided on a strategy, I regret it less if I have short-term losses following it, since I'm more concerned about long-term results.
__________________
-Looking to FIRE in the mid-2020s, which would be our mid-50s.
The Cosmic Avenger is offline   Reply With Quote
Old 06-19-2019, 09:13 AM   #17
Thinks s/he gets paid by the post
 
Join Date: Nov 2015
Posts: 2,690
Quote:
Originally Posted by jjflyman View Post
IMO
I'd stay all cash for a little bit to see what this market is going to do. Buy in after the correction is most likely on the horizon.
This is just my opinion and I know many here don't think the market will correct anytime soon
Perhaps, but then people have been saying this for at least 3 years now, suggesting that the market is due for correction. And maybe it is, but then could be you continue to miss out on the gains from those years. Seems the usual advise is to never try to time the market.
bobandsherry is offline   Reply With Quote
Old 06-19-2019, 09:21 AM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 10,308
Quote:
Originally Posted by bobandsherry View Post
... Seems the usual advise is to never try to time the market.
+1 And for good reason.

@jjflyman: If you have verified talent in identifying the correct buy points during a correction, please be kind enough to advise the rest of us clueless investors when that point comes.

Thanks in advance.
OldShooter is offline   Reply With Quote
Old 06-19-2019, 09:59 AM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Chuckanut's Avatar
 
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 17,134
Mr. OP, You've received some very good advice to think about in this thread. And the cost is zero, other than your time. I wish others would be as open to the kind of advice above as you are. Alas, many are not, and they continue to give away a huge chunk of their gains (if any) every year.

A friend's nephew works for SpaceX and has a t-shirt that says "Yes. It is rocket science." Thankfully, that is not true for his investing decisions.
__________________
Comparison is the thief of joy

The worst decisions are usually made in times of anger and impatience.
Chuckanut is offline   Reply With Quote
Old 06-19-2019, 11:47 AM   #20
Thinks s/he gets paid by the post
 
Join Date: Dec 2015
Posts: 1,155
As much as I'm a HUGE fan of Wellington and Wellesley (and own both within a much broader and highly diversified portfolio), neither fund gives you broad exposure to the equity markets as each holds < 100 stocks - total. More specifically, Wellesley holds 68 and Wellington holds 93 as of the latest reporting.

Assuming you're looking for broader diversification, either VTSAX (Total Market) or VINIX (S&P500 index) + optionally VEXAX (Extended Market) if you also want broader Mid and Small-Cap exposure would be good choices. If you'd like, you can hold Wellesley/Wellington and these other funds - I just wouldn't recommend all of your eggs in the VWINX/VWELX basket..

I just read a great article the other day on Seeking Alpha that studied the performance of a combination of Wellesley, Wellington and a S&P500 index fund. Wellesley provided the "ballast" (worst year was < -10%) while Wellington was more conservative than a pure stock fund (having ~35% bonds). The S&P fund then gave the growth - if you could live with the potential 50+% drawdowns along the way. Backtesting this gave some pretty solid results as Wellesley and Wellington provide some bond exposure (albeit, with a heavy tilt toward corporates and less Treasuries than would be ideal) while the stock components of the 3 funds provide upside during market rallies. If you really want/need Treasuries also, adding VBTLX (Total Bond) or a pure Treasury fund like VFIUX would do that..

ETA - as great a fund as Wellington is, there have been periods of extended drawdowns that you need to be aware of..I don't have the data at hand at the moment, but if memory serves me right, the worst was ~3 years underwater. Of course, that beats the heck out of the S&P - for example, starting back in 2008. Wellesley predictably given it's greater bond holdings was less (~18 months IIRC)..

Hope that helps! Good luck in whatever you decide to do.
24601NoMore is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Need Help/advice with Financial Adviser Questions PeteW Other topics 64 12-05-2012 09:43 AM
financial adviser situation... anders2010 FIRE and Money 31 10-12-2010 07:39 AM
26 yr old financial adviser workin4me Hi, I am... 11 09-25-2007 04:07 PM
Trust Me I'm Not a Financial Adviser elroy FIRE and Money 34 05-01-2006 10:36 AM

» Quick Links

 
All times are GMT -6. The time now is 03:40 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.