Rich_by_the_Bay
Moderator Emeritus
OK, I will admit it: I have a chunk of money with Bernstein (the investment research company). Thus far, they have beaten with a 70:30 balance the returns I would have gotten on my own by about 1% - net of fees. So it is not a loser for me, and I appreciate not having to fuss with it with my busy life. But... my confidence is growing and I plan to eventually take it back. They have about 65% of my holdings all in all.
Meantime, Bernstein has me at about a 70:30 balance. While I feel OK about the equity side for the time being, it occurred to me that for that 30% in bonds they are using mostly their own bond index funds (the stocks are mostly individual companies - lots of them). So:
1. I am paying the bond funds' expenses in addition to my advisory fees
2. At bond yields in the 4-7% range, the advisory fee (on balance under management) is eating up 15-20% of my bond yield. Net of fees, I can do better.
So I am thinking of advising my manager to keep the assets he has, but move them all to stocks. I will adjust my other holdings to rebalance the whole deal to 70:30 or 65:35, whatever. As long as I am paying him it might as well be for investments where their resources can really shine, rather than in bonds which I can probably do better on my own.
Does this make sense? See what trouble you guys are causing, getting me all feisty about this stuff?!
Meantime, Bernstein has me at about a 70:30 balance. While I feel OK about the equity side for the time being, it occurred to me that for that 30% in bonds they are using mostly their own bond index funds (the stocks are mostly individual companies - lots of them). So:
1. I am paying the bond funds' expenses in addition to my advisory fees
2. At bond yields in the 4-7% range, the advisory fee (on balance under management) is eating up 15-20% of my bond yield. Net of fees, I can do better.
So I am thinking of advising my manager to keep the assets he has, but move them all to stocks. I will adjust my other holdings to rebalance the whole deal to 70:30 or 65:35, whatever. As long as I am paying him it might as well be for investments where their resources can really shine, rather than in bonds which I can probably do better on my own.
Does this make sense? See what trouble you guys are causing, getting me all feisty about this stuff?!
