how long to get money invested?

[chas57006]

I transferred my 401k to Morgan Stanley on 2/22/12.

After interviewing several advisors we selected Morgan Stanley. I like the advisor I have been working with and that is the main reason my wife and I selected Morgan Stanley.

However of my 7 figure portfolio there is still around 10% in cash.
I have stated that I am not happy with that level of cash, which is slated for the bond market.
He states that he is having a hard time finding high quality investments and that I have to be patient.
I am happy with the remaining 90% of the portfolio and how it is invested.

We are trying to learn more about investing and hope that someday will be handling our portfolio on our own.

Should it take this long to get the money invested?
What advice would you give on what I might do to get this money invested?

Thanks

 

[RockyMtn]

you're the boss. If you want it invested tell him to invest it or you'll find someone who will.

No it shouldn't take that long to invest it.

 

[bondi688]

So you spent time interviewing several advisers and decided on the one at MS, and you are happy with 90% of the investments he had selected for you, I am not sure you want to complain too much about it.
There is a significant number of advisers who are cautious about the valuation and direction of the market. And a lot of managed funds have large cash position because they cannot find good opportunities.

 

[soupcxan]

Why can't you just allocate the remaining 10% into the same proportion of investments tht make up the 90%?

 

[JakeBrake]

I'm glad someone is using Morgan Stanley (MS). I inherited a few MS shares in 2007. Those shares are now down 61.5% per Quicken. On the other hand, MS had previously spun off Discover Financial Services (DFS). Those shares are now up 149.9% per Quicken.

These shares are not a significant portion of my portfolio, but they are fun to watch.

 

[Meadbh]

Perhaps your FA is waiting to invest at the bottom of the market, which may occur coincident with, or following, the drop off the fiscal cliff!

 

[pb4uski]

It shouldn't take long to get that money invested. Worst case, ask your FA to just buy more of the bonds you already own.

 

[hlfo718]

How is your account being invested, through individual securities or funds? I am guessing the remaining 10% is for individual bonds. He is probably waiting for some event before start buying.

By the way, the fee charged by this 10% should be reduced or zero.

 

[Tyro]

He states that he is having a hard time finding high quality investments and that I have to be patient.

I think I would ask him to elucidate. Taking everything said here at face value (not knowing all the facts), I'm wondering if he is having a hard time finding high quality (i.e. low risk) investments that match your time frame, risk aversion & tolerance, expected RoR, etc.

Part of what you're paying for (and trusting in) is his judgment, and in his judgment, that money may be safer sitting in cash waiting for an opportunity than risking it during this period of uncertainty and aberrantly low interest rates.

I'd ask him where he's coming from and why, and perhaps discuss some short term alternatives; it certainly couldn't hurt your quest to learn more about investing and investment vehicles.

Tyro

 

[donheff]

Yeah, if I was going to trust somebody to actively manage my money I wouldn't begrudge him taking his time with 10%. He could be waiting for any number of things. The bigger question is what he has the 90% invested in and whether your basic confidence in his stewardship is warranted. Post that AA here by ticker symbol and percent of portfolio and you will get lots of reaction on the stewardship question.

 

[eytonxav]

Normally, alot of these FAs will rush to get your $s invested, so if he is not charging you a fee for the 10% in cash, I would consider that to be a positive for him. Now on the other hand, if he is waiting to stick you in something that provides him with a bigger fee, then lookout.

 

[Sarah in SC]

I'd say he is telling you the truth and that there are a lot of people holding cash looking for the right place to put it.

 

[Bestwifeever]

You asked, he answered. How woukd you feel if he put it into bonds immediately at your request against what is apparently his better judgment and they fell 25 percent in the next quarter?

You decided to go with an FA and chose him after a lot of research and seem to trust his decisions on the rest of the investments so I would stop thinking about it.

 

[chas57006]

Appreciate everyone's reply. What a great forum, although I do not post often, I read daily.

From a private standpoint this is not a subject I feel comfortable discussing with other retired friends and did not want to just call another advisor and ask questions.

We are not being charged for the money not invested.
The goal for the 10% not invested is to finish the diversification plan.
In my previous 401K I was used to being in charge and all of the money was invested however not diversified very well.

I will put my "patient hat" on and give it another couple of months.

Thanks for everone's reply.

 

[Sun456]

I'm impressed with two things. The first is that your happy with what he has done. The second is that he is holding back some cash looking for opportunity. I'm doing the same and surfing around in the bond market. Every now and then a muni for my state comes up that I want. But it isn't too often. Maybe once a month or so. Just missed two I really liked because I didn't have the cash in the right account and they weren't listed for sale at my other brokerage where I had plenty of cash. I had to shift in new money from a money market at a bank where I was getting a nice .55% (nice for cash). So now I'm still fishing, waiting for someone else to sell something I like. Haven't seen anything good for a couple of weeks. I've also got a bunch of limit buy orders in at 2008 levels, just in case. They will probably never execute but if I see something good in the bond market I'll cancel the orders and buy the bond. Or maybe I'll shift some back out to the bank to get the .55% ticking again. Good luck with your adviser. I've had no luck with them. But I'm a micro manager so not a good client.