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Here's what my 1% fee Fidelity Portfolio Advisors have me in
01-11-2009, 11:23 PM
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#1
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Recycles dryer sheets
Join Date: Jan 2009
Posts: 193
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Here's what my 1% fee Fidelity Portfolio Advisors have me in
I put in $800K with them last October after the crash, dollar cost averaging over the past three months.
Here's what their "experts" put it in, and the gains since then. They also sold some and realized a $35K capital gains loss for me on top of those results.
Hope it'll be worth their 1% fee on top of all those mutual fund fees:
http://i42.tinypic.com/2n835s.jpg
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01-11-2009, 11:35 PM
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#2
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Recycles dryer sheets
Join Date: Sep 2006
Posts: 312
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I can't say I knew what to expect, but my reaction was "Holy Cow, what a load of funds!" Can there be any real focus or strategy in all that? Do you have any idea what the costs (loads, management fees, etc.) for all those individual funds are? Well, it's at least nice to see all those green arrows.
I wouldn't tell you to change anything, but money that I put in a few Vanguard funds since October is up ~18%, and my average expense ratio is something like 0.11%.
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01-12-2009, 12:29 AM
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#3
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Recycles dryer sheets
Join Date: Jan 2009
Posts: 193
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The strategy is supposed to be 60/40 allocation which is "tax aware," which I guess explains the Maryland tax-exempt muni funds (I live in Maryland). They claim it's "personalized" service, but I suspect they just manage a handful of investment profiles and match new customers to the closest one.
So far though they're outperforming my own $100K "play" fund I set up for comparison, which is down 5% over the same period (my own mix of blue chip and index funds, bought mostly on popular website and TV blowhard recommendations).
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01-12-2009, 12:31 AM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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Quote:
Originally Posted by Kabekew
I put in $800K with them last October after the crash, dollar cost averaging over the past three months.
Here's what their "experts" put it in, and the gains since then. They also sold some and realized a $35K capital gains loss for me on top of those results.
Hope it'll be worth their 1% fee on top of all those mutual fund fees:
http://i42.tinypic.com/2n835s.jpg
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With that many funds you have pretty well duplicated an index fund, paid higher fund fees, and picked up a 1% poke in the eye.
Most everything likely will go up for a while, but this is an expensive way to do it. Furthermore, if you decide to ditch Fido, you will have a real pita dealing with all those funds.
I am kind of surprised that they would do this to you.
Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
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01-12-2009, 12:49 AM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2006
Posts: 7,733
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Wow that looks like my brokerage statement but instead of a smorgsborg of random mutual funds, I have individual stocks..
I am sorry but I think is stupid boarding on fiscally irresponsible to stick somebody in more than 40 mutual funds. It is way to much work for me to do this, but I would ask the Fido advisors to give you a morningstar Xray report on your almost million portfolio.
Eventhough you don't own an index fund per se, I bet you own every Dow stock, and the more popular ones like GE, Exxon, and Microsoft you probably own in 3 or more mutual funds.
Save yourself 8K and fire the advisors and cut the number of funds to max 10.
If you need help I've never subscribed but the M* mutual fund newsletter and $100 is heck of a lot cheaper.
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01-12-2009, 08:10 AM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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Looks like a wrap account, rarely a good idea. I thought Fido was low cost, guess i was wrong.........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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01-12-2009, 08:29 AM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,037
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Holy cannoli - 42 funds. I just got one-upped.
When I was a beginner, I eventually owned 33 funds between LH and I. It was all self-inflicted.
After reading some smart investing books and after some great sessions with a fee only CFP, I started trimming that Chinese menu order down. The stock intersection between funds was unbelievable and the high expense ratio drain was going to sap any kind of long term growth.
I agree with doing a M* portfolio modeling exercise. You can do it yourself as an education and getting your "talking points in order" exercise.
You can register at M* for free. It will take some typing on your part, but it will be time well spent. Then call FIDO and say, you gotta be kidding me.
Would everyone here agree that some fund inventory trimming is in order? Will the OP get clobbered with short term cap gains or would this be better as a long term exercise to trim down that fund inventory? It has taken me 4+ years to undo the damage I did to myself by chasing performance and going crazy with too many funds. Comments?
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
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01-12-2009, 08:42 AM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2003
Posts: 5,105
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I have to agree with what most have said - 42 funds, why?
Can you ask them their strategy?
I don't see a high yield corp fund in the mix; is there? If not, why not.
__________________
Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral
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01-12-2009, 08:54 AM
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#9
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Recycles dryer sheets
Join Date: Oct 2008
Posts: 433
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They did diversify for manager risk.
But can't believe all the front end loaded, high ER none FIDO funds.
At least you can sell them without a transaction fee,unless there is a redemption
fee on the fund.
Old Mike
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01-12-2009, 08:56 AM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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Quote:
Originally Posted by dex
I have to agree with what most have said - 42 funds, why?
Can you ask them their strategy?
I don't see a high yield corp fund in the mix; is there? If not, why not.
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Wonder what an overlap analysis would show?
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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01-12-2009, 09:07 AM
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#11
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Moderator Emeritus
Join Date: Sep 2007
Posts: 17,774
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I read your intro post--were your investments made using "new money" from the sale of your business or was that $$ invested elsewhere before you moved it to Fido?
Obviously we are a bunch of DIYers here but at least your advisor seems to have put you in things that made money for you.
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“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
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01-12-2009, 09:50 AM
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#12
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Thinks s/he gets paid by the post
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,635
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Well at least there should be little tax implications ($46K Gain, $35K CG Loss and $8K in Management Fees).
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Vietnam Veteran, CW4 USA, Retired 1979
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01-12-2009, 10:22 AM
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#13
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Thinks s/he gets paid by the post
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,698
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I guess if they just put you in a target retirement fund it wouldn't have looked like they were earning their money.
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01-12-2009, 10:31 AM
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#14
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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01-12-2009, 10:34 AM
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#15
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 2,610
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I think you need to question two things.
As noted by others...too many funds. Duplication is costly and unnecessary.
Additionally, you should take a look at the performance of your funds within their respective categories. For example: Your FLCSX does pretty poor in its category going back 3 years. The Fido floating rate fund has a much better long term record than does EABLX. While it is fool hardy to chase performance, a fund that consistently lags in its category should be given the toss.
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01-12-2009, 10:54 AM
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#16
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Moderator Emeritus
Join Date: May 2007
Posts: 12,901
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I don't know if it's Fidelity's policy to ramp up the number of funds they recommend to investors, but look at their Fidelity Freedom funds. Their 2030 offering is an amalgam of 24 funds while Vanguard's equivalent offering has only 5. And it shows in their ER too, 0.71% for Fidelity, 0.21% for Vanguard. And despite a lower equity allocation for Fidelity's fund, they still managed to trail the performance of the Vanguard's fund in the past year.
You also have a lot of expensive funds in that lineup. The Marsico growth fund for example, ER 1.24%. Not only is that very high for a large cap fund but it only adds insult to injury when you consider the fund's poor recent performance relative to its peers. I don't know what your overall expense ratio is, but I wouldn't be surprised if it was close to 1%. So, on a $800K portfolio, you give $8,000 to Fidelity each year to "manage" your money, plus probably another $8000 a year in various fund expenses (including the cost of having many fund managers since most of your funds seem to be managed funds). Do you feel you are getting $16,000 a year worth of professional advice? It's half a new car, or a couple of very, very nice vacations... Or you could do it yourself for 1/10th of the price and have $14,000 a year more to spend on something that really makes you happy.
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01-12-2009, 12:35 PM
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#17
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,037
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I am learning an awful lot from this thread. I had marginally entertained the idea of looking at a few Fidelity funds for some fresh investments for 2009. <buzzer> Pass! I'll stick with VG.
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
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01-12-2009, 01:13 PM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2007
Posts: 14,328
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I just use Fido for their Spartan funds, which I think must be a loss leader of sorts. When I was doing a roll over from my 401(k), which they administered, to an IRA, they were really helpful at a local brick and mortar store to help me sort out my pre and post tax holdings.
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01-12-2009, 01:18 PM
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#19
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,037
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Quote:
Originally Posted by travelover
I just use Fido for their Spartan funds, which I think must be a loss leader of sorts. When I was doing a roll over from my 401(k), which they administered, to an IRA, they were really helpful at a local brick and mortar store to help me sort out my pre and post tax holdings.
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um...were you doing tax planning or building an outdoor barbeque pit?
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
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01-12-2009, 01:38 PM
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#20
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 2,610
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Quote:
Originally Posted by freebird5825
I am learning an awful lot from this thread. I had marginally entertained the idea of looking at a few Fidelity funds for some fresh investments for 2009. <buzzer> Pass! I'll stick with VG.
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FIDO has some very good funds, but I'd pass on the advisory part.
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