Thoughts on Scott Burns....

[Ed_The_Gypsy]

Huh? Look at their fee schedule
AssetBuilder Inc. - Registered Investment Advisor- AssetBuilder Fees

Quote for AssetBuilder :"We are currently only accepting accounts with at least $50,000."

Have you even read his site?

Actually, yes. I have to go back and check to see what I did read. My wife yells at me for skimming. Guess she is right. There is $2MM in there somewhere.

 

[FinanceDude]

Any salesman, or sales exec for that matter has wet dreams over the mere hint that they might get hold of a product with a unique and easily demonstrated sell points. Like, WOW, what happened?? This product is actually better, and it's all mine!!Ha

I understand your point, but I have a different perspective than you do on this. DFA has a unique product, but they are controlling HOW you get to offer their products to your clients. In other words, they don't NEED to offer this to every investor out there. Saluki9 can provide some guidance here, but my understanding is that DFA first distributed through wealth management channels before it got offered to other advisors. The money flows have been strong, so they don't need to homogenize it and give it to a market already bloated by too many ETFs.......

 

[FinanceDude]

Actually, yes. I have to go back and check to see what I did read. My wife yells at me for skimming. Guess she is right. There is $2MM in there somewhere.

Seems pretty straighforward:

I'll use a $250,000 example because a lot of folks on here have at least that much they could invest if they were convinced:

ER cost: 28-48 bp,depending on the portfolios used. I'll use an average of 38bp.

Fee cost: 43 bp on $250,000.

A trade cost of $20-$50 PER fund bought to get started,I will use an average of $30 a trade, because I know I and most other firms can do that.

So, your $250,000 costs $330 to buy the funds, the ER is $950 a year, and the ongoing management fee (wrap fee) is $1075. You paid $2355 to get "started", and ongoing of 81bp forever ($2025) a year.........

And a lot of you are excited about it, even though you have your money in VG at ER ratios of under 30bp?? You guys make me smile............

 

[haha]

I understand your point, but I have a different perspective than you do on this. DFA has a unique product, but they are controlling HOW you get to offer their products to your clients. In other words, they don't NEED to offer this to every investor out there. Saluki9 can provide some guidance here, but my understanding is that DFA first distributed through wealth management channels before it got offered to other advisors. The money flows have been strong, so they don't need to homogenize it and give it to a market already bloated by too many ETFs.......

I am in complete agreement with what you said. I was maybe clumsily trying to say the same thing I think. One way to create a uniquqe product with highly incentivized salespeople is to carefully control distribution, so that if a rep gets a presentation he and not someone down the block is going to get the sale if a sale is made by anyone at all. It all helps to keep price competition at bay.

Ha

 

[FinanceDude]

I am in complete agreement with what you said.
Ha

You just scared the hell out of me with that comment...........

But then, I am just an FA on a DIY Internet forum with thousands of anonymous folks giving my opinions...........

 

[haha]

You just scared the hell out of me with that comment...........

Oh-Oh, you must be an Old Phart too.

Ha

 

[FinanceDude]

Oh-Oh, you must be an Old Phart too.

Ha

Fear not, I may pay the $3000 or whatever, do the due diligence, get DFA certified, undercut Scott Burn's fees at his company, and interested parties can then contact me...........

 

[unclemick]

Oh-Oh, you must be an Old Phart too.

Ha

Soooo - this month when I turn 65 - I should become 'born again' threaten to write a book about age 49-65 in ER and become a turncoat and say people should actually read books and proclaim ER is more complex than:

Pssst - Wellesley or or OR if you want modern - Target Retirement.

Successful investing is faith - as long as there is an economy and people are working:

'God Looks After Drunkards, Fools and The United States of America.' even if I do mis quote.

No matter what Angus Madison says!

heh heh heh - 1966-2006 after making it extremely complex - I figured it out - it's so stone simple - it just pisses me off when I think about it.



P.S. Still like Scott - especially his old series on the motorcycle and his articles on 'creative' lifestyles(aka cheap).

 

[windsurf]

want2...you are right. However, everything you read, be it internet, newspaper, or in book, was written by someone. You are accepting someones' opinion as being correct. I am a firm believer in read everything, ask lots of questions, then go with your gut, but again, investing is so much guesswork and hypotheticals based on past performance, and yet that's the major disclaimer.
In regard to investing styles, it is totally dependent on the individual. Are you a gambler, or one who feels safer with money under the mattress? One product does definitely NOT fit all, and yet Scott Burns makes a living of stating how simple investing is for everyone. I can't help but crack up laughing when he does his reviews and he'll state, "well, the couch potato portfolio earned X, but if you had just added in Y fund or Z fund, it would have earned this!" Well, then he himself is recommending NOT doing his own couch potato fund. And now he's suggesting hiring someone to move around your portfolio, well what's couch potato about that

Hey, you're probably pretty young. Go fer it. Bet the friggin farm. Dismiss the chrome dome geezer who has lived through a couple of the ups and downs that defined your great grandparents experience. You know what's best. Guide us. p.s. Abide Uncle Mick. The MF admits being through some wringers. Very educational: if ya care.

 

[Notmuchlonger]

Fear not, I may pay the $3000 or whatever, do the due diligence, get DFA certified, undercut Scott Burn's fees at his company, and interested parties can then contact me...........

Hey want to discuss some annuities?

 

[d]

oh goody, everyone's favorite topic!

 

[Art G]

Seems pretty straighforward:

I'll use a $250,000 example because a lot of folks on here have at least that much they could invest if they were convinced:

ER cost: 28-48 bp,depending on the portfolios used. I'll use an average of 38bp.

Fee cost: 43 bp on $250,000.

A trade cost of $20-$50 PER fund bought to get started,I will use an average of $30 a trade, because I know I and most other firms can do that.

So, your $250,000 costs $330 to buy the funds, the ER is $950 a year, and the ongoing management fee (wrap fee) is $1075. You paid $2355 to get "started", and ongoing of 81bp forever ($2025) a year.........

And a lot of you are excited about it, even though you have your money in VG at ER ratios of under 30bp?? You guys make me smile............

LOL! Classic!