FIREmenow
Full time employment: Posting here.
- Joined
- May 9, 2013
- Messages
- 756
I had some suspicions all year that my 60/40 portfolio was under performing as I was monitoring my account balances.
I decided to wait until the end of year report to see if I was missing something important that would explain. We have only been a client for a year, and have had very good and pleasant discussions at our meetings. His general strategy was promoted as a long-view, slow, 0.5% fee, not over-actively moving things around.
I got the report and low and behold, the overall performance was about 2% lower than the bulk of the 60/40 benchmarks I researched on the web, both single funds and AA portfolios. There were even some 50/50 benchmarks that did better. I thought that was a quite a bit low, even considering his promotion of the "long-term" view.
So I sent an email (OK, maybe just a bit terse) asking why the difference? What might I be missing? Why was a significant allocation in short term bonds (which he initially said he was against)? What could "we" do in 2015 to try to make this up?
I got an email reply that was a bit of a shock. It basically said that while he appreciated a knowledgeable client, the "tone" of my email was "unprofessional, condescending and disrespectful." He said that apparently I had taken a "adversarial approach to our engagement" and he could not continue work with a relationship like that. He said that I obviously didn't understand what a "long term relationship" was all about. As such, and apparently prior to writing me the email, he had immediately terminated his firm directing of my accounts.
For the entire day yesterday, I was quite embarrassed. I wrote back a very apologetic email noting that my email may have come across inappropriately and stated that I understood that if he was uncomfortable, it was not a good way to work.
However, the more I think about this today, why would I *NOT* be a bit terse about the under performing accounts that are basically my future quality of life? Why would I not question what his plans were going forward? I am paying to have someone "manage" my accounts better than I would be able to!
What does it say when the very first reaction is to immediately cancel our relationship when any (the first time, BTW) questions are asked?
Yes, I've read *ALL* of the posts here and know the general feeling about FA's, but still.......
Am I missing something? Why am I feeling embarrassed? Did I breach some kind of "code"?
Ray
(not doing THAT again.....)
I decided to wait until the end of year report to see if I was missing something important that would explain. We have only been a client for a year, and have had very good and pleasant discussions at our meetings. His general strategy was promoted as a long-view, slow, 0.5% fee, not over-actively moving things around.
I got the report and low and behold, the overall performance was about 2% lower than the bulk of the 60/40 benchmarks I researched on the web, both single funds and AA portfolios. There were even some 50/50 benchmarks that did better. I thought that was a quite a bit low, even considering his promotion of the "long-term" view.
So I sent an email (OK, maybe just a bit terse) asking why the difference? What might I be missing? Why was a significant allocation in short term bonds (which he initially said he was against)? What could "we" do in 2015 to try to make this up?
I got an email reply that was a bit of a shock. It basically said that while he appreciated a knowledgeable client, the "tone" of my email was "unprofessional, condescending and disrespectful." He said that apparently I had taken a "adversarial approach to our engagement" and he could not continue work with a relationship like that. He said that I obviously didn't understand what a "long term relationship" was all about. As such, and apparently prior to writing me the email, he had immediately terminated his firm directing of my accounts.
For the entire day yesterday, I was quite embarrassed. I wrote back a very apologetic email noting that my email may have come across inappropriately and stated that I understood that if he was uncomfortable, it was not a good way to work.
However, the more I think about this today, why would I *NOT* be a bit terse about the under performing accounts that are basically my future quality of life? Why would I not question what his plans were going forward? I am paying to have someone "manage" my accounts better than I would be able to!
What does it say when the very first reaction is to immediately cancel our relationship when any (the first time, BTW) questions are asked?
Yes, I've read *ALL* of the posts here and know the general feeling about FA's, but still.......
Am I missing something? Why am I feeling embarrassed? Did I breach some kind of "code"?
Ray
(not doing THAT again.....)