Self managed?

[Badger]

I have always managed myself. I had a few bumps in the process but it has turned out much better than a future of biscuits and beans.
However, I do have someone at Schwab that I have known since the Scottrade days that I will be seeing soon. He knows I self-manage and how I view my investments vs taxes now and when one of us is single again so he will be showing some options that i could consider. If nothing sounds like an improvement then I will stay the course.
Next will be an update on the Trust.

 

[VanWinkle]

I've always done my own and have learned to be patient with my investments. Changing things may seem like you're making a difference, but in most cases you're making a mistake if emotions are involved. This is why some people need an advisor and do better than handling it themselves. Be honest with yourself, and you'll know if you need an advisor. Then work hard to find an honest one with a track record of simple tax friendly investing. If he sells annuities, run away. It's ok to buy an annuity in some cases, but don't get sold one by your own advisor.

 

[CRLLS]

Another DIY manager. I am in it for the long haul. Finding an FA that in retrospect, beats the market over a few years is easy. Studies have shown that finding an FA that can beat the market every year is virtually impossible. I mainly invest in low cost SP500 index funds and am quite happy getting close-to-market returns. I don't even rebalance.

 

[Gotadimple]

Self managed.

 

[Dtail]

DIY and still get financial advice from Fidelity when I wish to for free.

 

[HawkeyeNFO]

I figure nobody really cares about my money, unless they want some of it. So I manage it myself.

 

[pjigar]

I can't imagine paying advisor fees. Let's assume a 4% WR and 1% AUM fee. That means 25% of your income from your portfolio is going to the advisor. Ouch!

I try to use the same argument when trying to convince people to ditch their AUM advisors. Most people don't seem to grasp the gravity of this statement!

Some people do need advisors but they can always use fee-only advisors. In my experience, I see more wealthy folks fleeced by AUM advisors and they are very happy to be fleeced. I don't know if it is because of fear or ignorance. A lot of rational folks seem to shutdown their rationality when it comes to investment management. Go figure.

 

[pjigar]

I self-manage because no-one loves my money more than I do unless they want my money.

 

[imjustawarrior]

I try to use the same argument when trying to convince people to ditch their AUM advisors. Most people don't seem to grasp the gravity of this statement!

Some people do need advisors but they can always use fee-only advisors. In my experience, I see more wealthy folks fleeced by AUM advisors and they are very happy to be fleeced. I don't know if it is because of fear or ignorance. A lot of rational folks seem to shutdown their rationality when it comes to investment management. Go figure.

I had a very smart co-worker who used a FA. He told me that the FA was paying for his clients to go to China to look at investments. My co-worker was excited about the free trip. I asked him who he thought was really paying for the trip. He wasn't smiling any more.

I don't know any rich people. I do know middle class people paying their money to Edward Jones.

 

[rodi]

Self manage

 

[scrabbler1]

Self managed - since I first started investing in the late 1980's.

Cheers

Same here. I do have an unpaid Account Executive with Fidelity so I can bounce ideas off him when I am uncertain what to do. He is also useful if I have questions about the Fidelity website. I meet with him once every 18 months or so. The AE was useful when I was planning out my ER plan in 2007-2008 because I hadn't yet found this website. She (my AE back then) ran my numbers through the Fidelity RIP program and gave me the green light to ER whenever I felt ready (which happened 7 months later).

 

[big-papa]

Same here. I do have an unpaid Account Executive with Fidelity so I can bounce ideas off him when I am uncertain what to do. He is also useful if I have questions about the Fidelity website. I meet with him once every 18 months or so. The AE was useful when I was planning out my ER plan in 2007-2008 because I hadn't yet found this website. She (my AE back then) ran my numbers through the Fidelity RIP program and gave me the green light to ER whenever I felt ready (which happened 7 months later).

Yeah, I have one of those, too. Once you reach a certain dollar amount invested with Fidelity, you get one assigned. I think I'm on my 3rd or 4th one now. I have not ever talked to any of them. They call (does anybody answer the phone these days?), they email, etc. They get silence from me.

I'm probably the type of customer they like the least. I don't wish to talk to Fidelity reps except for those very few times when there is no other choice, like when I rolled a Fidelity 401K over to my Fidelity IRA, or when I opened up a second Fidelity IRA because it helped me organize some investments a little bit more easily. Both times I got a pretty light sales pitch from the rep, but we moved on pretty quickly.

The only actual Fidelity product I hold is our core money market funds in each of our accounts and I try and keep the long term dollar amount in them to a minimum.

Cheers.

 

[Scuba]

Self directed, but always trying to learn more to help make better decisions. I also meet with free Fidelity advisor occasionally.

Same

 

[LTSTRYAGIN]

I finally figured out that if i wanted to become wiser in financial matters i was going to have to earn it
that no FA buddy or supposed expert was going to teach me.... as i requested
I had to get into the water and slowly wade into the deeper end
Best thing ever did, amazingly after swallowing a lot of water and losing some hard-earned capital You become confident and are happy dogpaddling and better off than when my buddy was pulling me under.
At least this way hopefully i can teach some kids or grandkids to swim
originally Fidelity and this forum have been Very helpful great resource many wise ones here

 

[scrabbler1]

Yeah, I have one of those, too. Once you reach a certain dollar amount invested with Fidelity, you get one assigned. I think I'm on my 3rd or 4th one now. I have not ever talked to any of them. They call (does anybody answer the phone these days?), they email, etc. They get silence from me.

I'm probably the type of customer they like the least. I don't wish to talk to Fidelity reps except for those very few times when there is no other choice, like when I rolled a Fidelity 401K over to my Fidelity IRA, or when I opened up a second Fidelity IRA because it helped me organize some investments a little bit more easily. Both times I got a pretty light sales pitch from the rep, but we moved on pretty quickly.

The only actual Fidelity product I hold is our core money market funds in each of our accounts and I try and keep the long term dollar amount in them to a minimum.

Cheers.

Yes, I remember being notified by letter that I was eligible for an AE due to reaching a certain balance held with Fido.

Besides my (first) visit with my AE who gave me the green light to ER, I made a visit to my (new) AE later in 2008 just after I left my company. I had two large transactions to make, each over $200k, and I wanted to make both of them in person. One was the purchase of the big bond fund via check using the proceeds of the ESOP sale, and the other was the direct, trustee-to-trustee rollover from the 401k into a Fido IRA using a paper check sent to me per instructions. In my presence, the AE handled it all, giving me comfort that all went as planned. The AE also showed me how to handle the unusual dividend reinvestment options afterward because, for some unknown reason, we couldn't do that during my visit. I got that done at home a few days later.

I have had mixed results with AEs over the years. Those first 2 AEs were good. But the third one, one I have written around before ("Mr. Pushy") was lousy and I dumped him. AE #4 was good and was my AE from 2010-2021 before he moved out of Long Island. He did fix me up with AE #5 who wasn't there for to long, not even 2 years. I was then moved to AE #6 who lasted for less than a year. I just met with AE #7 last month for the first time. It would be nice to keep one for more than 2 years like AE #4.

 

[Koolau]

Yes, I remember being notified by letter that I was eligible for an AE due to reaching a certain balance held with Fido.

Besides my (first) visit with my AE who gave me the green light to ER, I made a visit to my (new) AE later in 2008 just after I left my company. I had two large transactions to make, each over $200k, and I wanted to make both of them in person. One was the purchase of the big bond fund via check using the proceeds of the ESOP sale, and the other was the direct, trustee-to-trustee rollover from the 401k into a Fido IRA using a paper check sent to me per instructions. In my presence, the AE handled it all, giving me comfort that all went as planned. The AE also showed me how to handle the unusual dividend reinvestment options afterward because, for some unknown reason, we couldn't do that during my visit. I got that done at home a few days later.

I have had mixed results with AEs over the years. Those first 2 AEs were good. But the third one, one I have written around before ("Mr. Pushy") was lousy and I dumped him. AE #4 was good and was my AE from 2010-2021 before he moved out of Long Island. He did fix me up with AE #5 who wasn't there for to long, not even 2 years. I was then moved to AE #6 who lasted for less than a year. I just met with AE #7 last month for the first time. It would be nice to keep one for more than 2 years like AE #4.

I have no data, but I assume a "free" anything means that YOU are the profit center. IOW a free AE means they will be pushing stuff on you to make money. I could be wrong, but I'd be surprised if FIDO doesn't come out ahead by offering this "free" help to its clients. YMMV

 

[CRLLS]

I have no data, but I assume a "free" anything means that YOU are the profit center. IOW a free AE means they will be pushing stuff on you to make money. I could be wrong, but I'd be surprised if FIDO doesn't come out ahead by offering this "free" help to its clients. YMMV

Of course, they make money from everyone who invests thru them. They are in the business of making money from their clients. I think they offer the free service more to keep you a happy client than to suck more from you. I am sure there are some incentives to getting you into more lucrative products. The good AEs know when you say no, to not keep pushing. I have had 4 AEs at Fido. The first was absolutely great. The 2nd was just Okay. The 3rd was absolutely dismal. My 4th and present AE may turn out to be as good as the 1st. She has been We have only been hers ( or she, ours) for a little over a year so it may be too soon to tell for sure.

One can look on the Fido website, see the people with their experience levels and certifications. It is easy to change to somebody else if you find someone more in tune with your style.

 

[Semi-Retyrd]

I have a team of very active advisors who contribute almost daily new ideas on investments. I then filter these ideas and do research on the ones I think are most suitable for me. Some of these advisors are on this forum and some are on Youtube channels. None of them charge me anything.
Almost all of my portfolio is made from the best ideas of others. I own no index funds as my target is a 7% CAGR with the lowest possible standard deviation (approx 30/70 allocation) - similar to university endowment goals.

 

[all4j]

I don’t want this bit of a topic drift to hijack the thread; hopefully it’ll just add a dimension to discussion.

Basically the question is: Whether or not you diy or use fa, are your heirs aware & on board?

I’ve struggled with best approach for my family. I lean to using an FA to at least provide a bridge whenever I move on. Spouse is capable, but won’t have interest. Will also be contracting out yard work, etc, so other gaps filled that way. Kids aren’t really capable (currently or in foreseeable future) nor interested.

I read article recently about a survey of million/billionaires heirs. 80+% are planning to change from current fa. Mainly an age thing it sounds like. That is, Gen z doesn’t think like a boomer…Want to get info differently, invest differently, interact differently, etc

Gave me pause. No point in me picking out an fa that would soon be replaced by another…

Thoughts?

 

[aja8888]

Over the last 40 years I have been with Schwab, I have had maybe 20 + FA's and I am sure all of them retired wealthy!

 

[scrabbler1]

I have no data, but I assume a "free" anything means that YOU are the profit center. IOW a free AE means they will be pushing stuff on you to make money. I could be wrong, but I'd be surprised if FIDO doesn't come out ahead by offering this "free" help to its clients. YMMV

My AEs have never, ever pushed any specific funds on me, except for Mr. Pushy from 2010 who wanted to take control of managing my entire portfolio, something I quickly declined (and complained to his boss about it, prompting an immediate change in AEs). I learned later he left Fido.

My current AE told me they are now prohibited from recommending specific funds.

I agree with @CRLLS take on the AEs.

 

[OnTheBeach]

I use a financial advisor (at a wealth management firm) for a portion of my assets and manage the remainder myself. I have worked with them for about 15 years and they 1) provide valuable market insights (monthly calls) 2) actionable investment ideas (about one per year) 3) provide trustee services (with my attorney) and 4) access to private equity and private credit investments. Although they only manage a portion of the assets - I provide them full disclosure on all my assets so if anything happens to me - my wife will have someone to advise her.

 

[frayne]

I’ve been a DIY investor for years, and reading Bogle and Bernstein just confirmed what many of us already know, that handling it yourself can make a big difference, especially when you see how much AUM and ER fees can cost you over the long run.