Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Index funds (lazy portfolios) vs CFA's
Old 11-10-2013, 03:45 PM   #1
Confused about dryer sheets
 
Join Date: Nov 2013
Location: Lewisville
Posts: 1
Index funds (lazy portfolios) vs CFA's

Hi, I'm new to this forum.
I'm 77, have had a CFA for several years. I work part-time still (M.D.) have a nest egg of about 600,000 + house and other minor savings. Thus, this CFA takes 1% of my total and on top of that I pay 12b fees, and maybe others...
I hear that 80% of financial advisors don't beat the S&P 500 index. The question, again, is should I fire him, move all my money to an online discount broker like Scottrade or Schwab, etc. and buy low fees ETF's, index funds, etc.?
Thanks a lot!
alsante1 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 11-10-2013, 03:54 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
MRG's Avatar
 
Join Date: Apr 2013
Posts: 11,078
Quote:
Originally Posted by alsante1 View Post
Hi, I'm new to this forum.
I'm 77, have had a CFA for several years. I work part-time still (M.D.) have a nest egg of about 600,000 + house and other minor savings. Thus, this CFA takes 1% of my total and on top of that I pay 12b fees, and maybe others...
I hear that 80% of financial advisors don't beat the S&P 500 index. The question, again, is should I fire him, move all my money to an online discount broker like Scottrade or Schwab, etc. and buy low fees ETF's, index funds, etc.?
Thanks a lot!
Welcome to a great forum. 'You know what you think you know'. You're helping finance the FAs life more than they are helping you.

There's a recommended book list here(among a bunch of other great resources). One of my favorite get started books is 'Millionaire Teacher'. Read and learn from others here.

Best wishes,
MRG
MRG is offline   Reply With Quote
Old 11-10-2013, 04:09 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: NC
Posts: 21,204
Based on your OP, these two links might get you started DIY investing.

Bogleheads® investment philosophy - Bogleheads

Lazy portfolios - Bogleheads

Vanguard, Fidelity and Schwab seem to be popular with members here, many whose investing philosophy and asset allocations closely resemble the info in the links above.

If you want more detail (highly recommended), this http://www.bogleheads.org/readbooks.htm may be the reading list MRG was referring to.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
Midpack is online now   Reply With Quote
Old 11-10-2013, 04:15 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 14,328
Quote:
Originally Posted by alsante1 View Post
.......should I fire him, move all my money to an online discount broker like Scottrade or Schwab, etc. and buy low fees ETF's, index funds, etc.?......
Yes. And we can help you do it.
travelover is offline   Reply With Quote
Old 11-10-2013, 04:18 PM   #5
Administrator
Gumby's Avatar
 
Join Date: Apr 2006
Posts: 22,973
Welcome, Alsante1. Glad to have you here.
__________________
Living an analog life in the Digital Age.
Gumby is online now   Reply With Quote
Old 11-10-2013, 08:27 PM   #6
Thinks s/he gets paid by the post
frayne's Avatar
 
Join Date: Oct 2002
Location: Chattanooga
Posts: 3,877
No brainer IMHO unless you like giving money away. Do a little analysis and see how your portfolio managed by your FA would have done against a Total Stock Market Index fund or even an S&P 500 Index 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 online now   Reply With Quote
Old 11-11-2013, 04:30 AM   #7
Thinks s/he gets paid by the post
bUU's Avatar
 
Join Date: Dec 2012
Location: Georgia
Posts: 2,240
Well, no: Comparing a reckless 100% equities fund against a responsible asset allocation is comparing apples to oranges. A proper comparison would be against the Three Fund Portfolio.
bUU is offline   Reply With Quote
Old 11-11-2013, 04:40 AM   #8
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,337
Quote:
Originally Posted by MRG View Post
There's a recommended book list here(among a bunch of other great resources). One of my favorite get started books is 'Millionaire Teacher'. Read and learn from others here.
+1 You beat me to it!

Ditching your CFA is one recommendation almost everyone gets that comes here. Does your advisor do anything for you except manage your portfolio of high fee funds and then taking 1% off the top? For most people the answer is no. If so, you can probably get a better return with low cost index funds.

I use Vanguard except for some residual 401k and SERP money that is in S&P500 Index funds. I have 40% in equities and 60% in a CD ladder. My equities are 60% Vanguard Total Stk Mkt and S&P500 Index, 10% Vanguard Small Cap, 20% Developed Mkt Index and 10% Vanguard Emerging Mkt Index. All are admiral shares. I rebalance once per year and it takes about 30 minutes.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Old 11-11-2013, 06:13 AM   #9
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: 36,264
Quote:
Originally Posted by alsante1 View Post
Hi, I'm new to this forum.
I'm 77, have had a CFA for several years. I work part-time still (M.D.) have a nest egg of about 600,000 + house and other minor savings. Thus, this CFA takes 1% of my total and on top of that I pay 12b fees, and maybe others...
I hear that 80% of financial advisors don't beat the S&P 500 index. The question, again, is should I fire him, move all my money to an online discount broker like Scottrade or Schwab, etc. and buy low fees ETF's, index funds, etc.?
Thanks a lot!
Yes. I suggest Vanguard - good products at a good price and with your nestegg they would also provide you with a free financial plan if you want/need one.
__________________
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
Reply

Tags
lazy


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


» Quick Links

 
All times are GMT -6. The time now is 04:17 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.