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Posted: 9/15/2018 12:31:18 AM EDT
[#1]
Quote HistoryQuoted:
Super simple example What if you limited your download to 5% loss on 25% of your equity holdings? Then the market falls ten? You just bought yourself time Wouldnt you agree that adds alpha? Quote HistoryQuoted:
Quoted: I haven't assumed comissions are the norm. I have assumed if it is anything other than simple fee for time interests are not aligned. I have assumed you cant know all the deals, but if you dont place investments the same place you get advice there are no misaligned goals. As to the book it assumes in most cases the primary prediction pf sucess are fees as in less fees more money. Commissions arent the only type of fees. Give me a concrete example of this awesome alpha? What if you limited your download to 5% loss on 25% of your equity holdings? Then the market falls ten? You just bought yourself time Wouldnt you agree that adds alpha? |
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Posted: 9/15/2018 9:50:57 AM EDT
[#2]
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But then it goes immediately up 20%? Are you telling me a bunch of arbitrary loss limits will make you earn more over the long term? Quote HistoryQuoted:
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Quoted: I haven't assumed comissions are the norm. I have assumed if it is anything other than simple fee for time interests are not aligned. I have assumed you cant know all the deals, but if you dont place investments the same place you get advice there are no misaligned goals. As to the book it assumes in most cases the primary prediction pf sucess are fees as in less fees more money. Commissions arent the only type of fees. Give me a concrete example of this awesome alpha? What if you limited your download to 5% loss on 25% of your equity holdings? Then the market falls ten? You just bought yourself time Wouldnt you agree that adds alpha? from a stupid simple standpoint...let's say you only took 10% and bought a zero coupon based upon the future par value and then a ATM call on an index with the difference on the cash. That's like asymmetrical investing 101. Then start to expound on that and doing other strategies that take advantage of the mean reversion of the indices and average historical returns, the math simple proves that once you start to add bonds to an allocation it mathematically becomes inferior to what I am talking about. The biggest problem is that the majority of the firms out there are not going or even able to do somthing like that. They just aren't allowed. |
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Posted: 9/15/2018 1:07:48 PM EDT
[#3]
Quote HistoryQuoted:
LOL....Stop Losses aren't what I am talking about at all. from a stupid simple standpoint...let's say you only took 10% and bought a zero coupon based upon the future par value and then a ATM call on an index with the difference on the cash. That's like asymmetrical investing 101. Then start to expound on that and doing other strategies that take advantage of the mean reversion of the indices and average historical returns, the math simple proves that once you start to add bonds to an allocation it mathematically becomes inferior to what I am talking about. The biggest problem is that the majority of the firms out there are not going or even able to do somthing like that. They just aren't allowed. Quote HistoryQuoted:
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Quoted: I haven't assumed comissions are the norm. I have assumed if it is anything other than simple fee for time interests are not aligned. I have assumed you cant know all the deals, but if you dont place investments the same place you get advice there are no misaligned goals. As to the book it assumes in most cases the primary prediction pf sucess are fees as in less fees more money. Commissions arent the only type of fees. Give me a concrete example of this awesome alpha? What if you limited your download to 5% loss on 25% of your equity holdings? Then the market falls ten? You just bought yourself time Wouldnt you agree that adds alpha? from a stupid simple standpoint...let's say you only took 10% and bought a zero coupon based upon the future par value and then a ATM call on an index with the difference on the cash. That's like asymmetrical investing 101. Then start to expound on that and doing other strategies that take advantage of the mean reversion of the indices and average historical returns, the math simple proves that once you start to add bonds to an allocation it mathematically becomes inferior to what I am talking about. The biggest problem is that the majority of the firms out there are not going or even able to do somthing like that. They just aren't allowed. This is revolutionary. |
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Posted: 9/15/2018 1:43:33 PM EDT
[#4]
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Let's talk about these other strategies. I mean really put the whole picture together. Explain how you know exactly which strategy. This is revolutionary. Quote HistoryQuoted:
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Quoted: I haven't assumed comissions are the norm. I have assumed if it is anything other than simple fee for time interests are not aligned. I have assumed you cant know all the deals, but if you dont place investments the same place you get advice there are no misaligned goals. As to the book it assumes in most cases the primary prediction pf sucess are fees as in less fees more money. Commissions arent the only type of fees. Give me a concrete example of this awesome alpha? What if you limited your download to 5% loss on 25% of your equity holdings? Then the market falls ten? You just bought yourself time Wouldnt you agree that adds alpha? from a stupid simple standpoint...let's say you only took 10% and bought a zero coupon based upon the future par value and then a ATM call on an index with the difference on the cash. That's like asymmetrical investing 101. Then start to expound on that and doing other strategies that take advantage of the mean reversion of the indices and average historical returns, the math simple proves that once you start to add bonds to an allocation it mathematically becomes inferior to what I am talking about. The biggest problem is that the majority of the firms out there are not going or even able to do somthing like that. They just aren't allowed. This is revolutionary. To touch upon what you asked about, how do I know which strategy to use? That entirely depends on what is out there at that time. The biggest issue is that the retail person only gets to see X,Y and Z, your basic markowitz style portfolio. Stocks, Bonds, Cash, that's your only three basic choices in that theory. Sure...you can pick sectors, cap values, weighting of each indicie you chose, credit style of bond, sector of bond, etc. But at the end of the day, you are only in stocks bonds and cash. Now like I stated above. If your allocation tells you to have 40% bonds, most folks are going to buy you the AGG. Now, what if you simply bought your own zero coupon and then a ATM call. What are you going to give up? It's a zero coupon, 1-2% of 10-20%? But if the index runs, that option makes cake. bigly Now as far as the other strategies, basically just expounding on that. maybe you want some leverage at the cost of a cap. It entirely depends what's going on at that time. The biggest issue, is you can't have some one with a lot of clients, your typical advisor 300+ clients doing this. There simply isn't enough man power available. You are only going to see this in the RIA/Indie space. That goes back to one of my biggest pet peeves. I call on folks who have basic portfolios and are paying upwards of 2% for those portfolios when you take into consideration the Advisory fee and the fund fees and the other fees associated with the account. That's a shit load of % return you are giving up every year for somthing you can get for close to nothing at the major discount firms. You are paying 2% for somthing that is not adding alpha. You are also paying for an advisor that was either tending bar or was cooking food a year prior. |
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Posted: 9/15/2018 3:15:54 PM EDT
[#5]
Quote HistoryQuoted:
No it's not revolutionary and no I am not going over what I do because I can't give out details because of compliance. To touch upon what you asked about, how do I know which strategy to use? That entirely depends on what is out there at that time. The biggest issue is that the retail person only gets to see X,Y and Z, your basic markowitz style portfolio. Stocks, Bonds, Cash, that's your only three basic choices in that theory. Sure...you can pick sectors, cap values, weighting of each indicie you chose, credit style of bond, sector of bond, etc. But at the end of the day, you are only in stocks bonds and cash. Now like I stated above. If your allocation tells you to have 40% bonds, most folks are going to buy you the AGG. Now, what if you simply bought your own zero coupon and then a ATM call. What are you going to give up? It's a zero coupon, 1-2% of 10-20%? But if the index runs, that option makes cake. bigly Now as far as the other strategies, basically just expounding on that. maybe you want some leverage at the cost of a cap. It entirely depends what's going on at that time. The biggest issue, is you can't have some one with a lot of clients, your typical advisor 300+ clients doing this. There simply isn't enough man power available. You are only going to see this in the RIA/Indie space. That goes back to one of my biggest pet peeves. I call on folks who have basic portfolios and are paying upwards of 2% for those portfolios when you take into consideration the Advisory fee and the fund fees and the other fees associated with the account. That's a shit load of % return you are giving up every year for somthing you can get for close to nothing at the major discount firms. You are paying 2% for somthing that is not adding alpha. You are also paying for an advisor that was either tending bar or was cooking food a year prior. Quote HistoryQuoted:
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Quoted: I haven't assumed comissions are the norm. I have assumed if it is anything other than simple fee for time interests are not aligned. I have assumed you cant know all the deals, but if you dont place investments the same place you get advice there are no misaligned goals. As to the book it assumes in most cases the primary prediction pf sucess are fees as in less fees more money. Commissions arent the only type of fees. Give me a concrete example of this awesome alpha? What if you limited your download to 5% loss on 25% of your equity holdings? Then the market falls ten? You just bought yourself time Wouldnt you agree that adds alpha? from a stupid simple standpoint...let's say you only took 10% and bought a zero coupon based upon the future par value and then a ATM call on an index with the difference on the cash. That's like asymmetrical investing 101. Then start to expound on that and doing other strategies that take advantage of the mean reversion of the indices and average historical returns, the math simple proves that once you start to add bonds to an allocation it mathematically becomes inferior to what I am talking about. The biggest problem is that the majority of the firms out there are not going or even able to do somthing like that. They just aren't allowed. This is revolutionary. To touch upon what you asked about, how do I know which strategy to use? That entirely depends on what is out there at that time. The biggest issue is that the retail person only gets to see X,Y and Z, your basic markowitz style portfolio. Stocks, Bonds, Cash, that's your only three basic choices in that theory. Sure...you can pick sectors, cap values, weighting of each indicie you chose, credit style of bond, sector of bond, etc. But at the end of the day, you are only in stocks bonds and cash. Now like I stated above. If your allocation tells you to have 40% bonds, most folks are going to buy you the AGG. Now, what if you simply bought your own zero coupon and then a ATM call. What are you going to give up? It's a zero coupon, 1-2% of 10-20%? But if the index runs, that option makes cake. bigly Now as far as the other strategies, basically just expounding on that. maybe you want some leverage at the cost of a cap. It entirely depends what's going on at that time. The biggest issue, is you can't have some one with a lot of clients, your typical advisor 300+ clients doing this. There simply isn't enough man power available. You are only going to see this in the RIA/Indie space. That goes back to one of my biggest pet peeves. I call on folks who have basic portfolios and are paying upwards of 2% for those portfolios when you take into consideration the Advisory fee and the fund fees and the other fees associated with the account. That's a shit load of % return you are giving up every year for somthing you can get for close to nothing at the major discount firms. You are paying 2% for somthing that is not adding alpha. You are also paying for an advisor that was either tending bar or was cooking food a year prior. However, statistically hedge funds suck pretty bad too. |
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Posted: 9/15/2018 3:23:15 PM EDT
[#6]
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We certainly agree on your last point. But if you cant give any details i can't evaluate your argument. However, statistically hedge funds suck pretty bad too. Quote HistoryQuoted:
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Quoted: I haven't assumed comissions are the norm. I have assumed if it is anything other than simple fee for time interests are not aligned. I have assumed you cant know all the deals, but if you dont place investments the same place you get advice there are no misaligned goals. As to the book it assumes in most cases the primary prediction pf sucess are fees as in less fees more money. Commissions arent the only type of fees. Give me a concrete example of this awesome alpha? What if you limited your download to 5% loss on 25% of your equity holdings? Then the market falls ten? You just bought yourself time Wouldnt you agree that adds alpha? from a stupid simple standpoint...let's say you only took 10% and bought a zero coupon based upon the future par value and then a ATM call on an index with the difference on the cash. That's like asymmetrical investing 101. Then start to expound on that and doing other strategies that take advantage of the mean reversion of the indices and average historical returns, the math simple proves that once you start to add bonds to an allocation it mathematically becomes inferior to what I am talking about. The biggest problem is that the majority of the firms out there are not going or even able to do somthing like that. They just aren't allowed. This is revolutionary. To touch upon what you asked about, how do I know which strategy to use? That entirely depends on what is out there at that time. The biggest issue is that the retail person only gets to see X,Y and Z, your basic markowitz style portfolio. Stocks, Bonds, Cash, that's your only three basic choices in that theory. Sure...you can pick sectors, cap values, weighting of each indicie you chose, credit style of bond, sector of bond, etc. But at the end of the day, you are only in stocks bonds and cash. Now like I stated above. If your allocation tells you to have 40% bonds, most folks are going to buy you the AGG. Now, what if you simply bought your own zero coupon and then a ATM call. What are you going to give up? It's a zero coupon, 1-2% of 10-20%? But if the index runs, that option makes cake. bigly Now as far as the other strategies, basically just expounding on that. maybe you want some leverage at the cost of a cap. It entirely depends what's going on at that time. The biggest issue, is you can't have some one with a lot of clients, your typical advisor 300+ clients doing this. There simply isn't enough man power available. You are only going to see this in the RIA/Indie space. That goes back to one of my biggest pet peeves. I call on folks who have basic portfolios and are paying upwards of 2% for those portfolios when you take into consideration the Advisory fee and the fund fees and the other fees associated with the account. That's a shit load of % return you are giving up every year for somthing you can get for close to nothing at the major discount firms. You are paying 2% for somthing that is not adding alpha. You are also paying for an advisor that was either tending bar or was cooking food a year prior. However, statistically hedge funds suck pretty bad too. This may help...If you have ever seen the big short, you know how Michael Burry was going to banks or who ever was out there and were making those deals with shorting the MBSs? Well that is just 1% of what is possible out there. Burry went to places and asked them to let him buy somthing that would give him a certain payout if certain things went belly up. You can literally do that with anything with anyone out there in the world. I am at the point to where my AUM is large enough I can request custom stuff not just the cookie cutter things out there. Literally 1% of pros know this even exist and the majority can't even offer them. As far as hedge funds.....they are like a box of chocolates, you never know what you are going to get. But...I think folks confuse hedge funds with Private equity and private credit shops. They kind of all look the same from the outside. I wish I was a hedge fund...nothing like 2% of aum and 20% performance fees over the hurdle return %....hell I'd do it for 1% and 10% 
Hell there's a hedge fund down the street from my office. I know the guy, no idea what they are doing in there, but they aren't the brightest so it can't be that hard to be a hedge fund manager.
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Posted: 9/15/2018 3:27:34 PM EDT
[#7]
watch out like others have said.. I know someone in their late 40's, they had a bachelors degree in engineering or something random, he had a friend that had a local investment firm, larger investment chain. he got a job there as an investment manager or some such thing with no accounting or finance degree at all. Sure he went to some seminars and classes before beginning his job but he mainly just sold prepackaged ETF's 401k etc.. no previous finance degree or ANYTHING related and now hes an "investment advisor" or some such title.
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Posted: 9/15/2018 3:31:12 PM EDT
[#8]
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"Be specific" what details are you looking for?. I may be able to answer them. This may help...If you have ever seen the big short, you know how Michael Burry was going to banks or who ever was out there and were making those deals with shorting the MBSs? Well that is just 1% of what is possible out there. Burry went to places and asked them to let him buy somthing that would give him a certain payout if certain things went belly up. You can literally do that with anything with anyone out there in the world. I am at the point to where my AUM is large enough I can request custom stuff not just the cookie cutter things out there. Literally 1% of pros know this even exist and the majority can't even offer them. As far as hedge funds.....they are like a box of chocolates, you never know what you are going to get. But...I think folks confuse hedge funds with Private equity and private credit shops. They kind of all look the same from the outside. I wish I was a hedge fund...nothing like 2% of aum and 20% performance fees over the hurdle return %....hell I'd do it for 1% and 10%
Hell there's a hedge fund down the street from my office. I know the guy, no idea what they are doing in there, but they aren't the brightest so it can't be that hard to be a hedge fund manager. Quote HistoryQuoted:
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Quoted: I haven't assumed comissions are the norm. I have assumed if it is anything other than simple fee for time interests are not aligned. I have assumed you cant know all the deals, but if you dont place investments the same place you get advice there are no misaligned goals. As to the book it assumes in most cases the primary prediction pf sucess are fees as in less fees more money. Commissions arent the only type of fees. Give me a concrete example of this awesome alpha? What if you limited your download to 5% loss on 25% of your equity holdings? Then the market falls ten? You just bought yourself time Wouldnt you agree that adds alpha? from a stupid simple standpoint...let's say you only took 10% and bought a zero coupon based upon the future par value and then a ATM call on an index with the difference on the cash. That's like asymmetrical investing 101. Then start to expound on that and doing other strategies that take advantage of the mean reversion of the indices and average historical returns, the math simple proves that once you start to add bonds to an allocation it mathematically becomes inferior to what I am talking about. The biggest problem is that the majority of the firms out there are not going or even able to do somthing like that. They just aren't allowed. This is revolutionary. To touch upon what you asked about, how do I know which strategy to use? That entirely depends on what is out there at that time. The biggest issue is that the retail person only gets to see X,Y and Z, your basic markowitz style portfolio. Stocks, Bonds, Cash, that's your only three basic choices in that theory. Sure...you can pick sectors, cap values, weighting of each indicie you chose, credit style of bond, sector of bond, etc. But at the end of the day, you are only in stocks bonds and cash. Now like I stated above. If your allocation tells you to have 40% bonds, most folks are going to buy you the AGG. Now, what if you simply bought your own zero coupon and then a ATM call. What are you going to give up? It's a zero coupon, 1-2% of 10-20%? But if the index runs, that option makes cake. bigly Now as far as the other strategies, basically just expounding on that. maybe you want some leverage at the cost of a cap. It entirely depends what's going on at that time. The biggest issue, is you can't have some one with a lot of clients, your typical advisor 300+ clients doing this. There simply isn't enough man power available. You are only going to see this in the RIA/Indie space. That goes back to one of my biggest pet peeves. I call on folks who have basic portfolios and are paying upwards of 2% for those portfolios when you take into consideration the Advisory fee and the fund fees and the other fees associated with the account. That's a shit load of % return you are giving up every year for somthing you can get for close to nothing at the major discount firms. You are paying 2% for somthing that is not adding alpha. You are also paying for an advisor that was either tending bar or was cooking food a year prior. However, statistically hedge funds suck pretty bad too. This may help...If you have ever seen the big short, you know how Michael Burry was going to banks or who ever was out there and were making those deals with shorting the MBSs? Well that is just 1% of what is possible out there. Burry went to places and asked them to let him buy somthing that would give him a certain payout if certain things went belly up. You can literally do that with anything with anyone out there in the world. I am at the point to where my AUM is large enough I can request custom stuff not just the cookie cutter things out there. Literally 1% of pros know this even exist and the majority can't even offer them. As far as hedge funds.....they are like a box of chocolates, you never know what you are going to get. But...I think folks confuse hedge funds with Private equity and private credit shops. They kind of all look the same from the outside. I wish I was a hedge fund...nothing like 2% of aum and 20% performance fees over the hurdle return %....hell I'd do it for 1% and 10%
Hell there's a hedge fund down the street from my office. I know the guy, no idea what they are doing in there, but they aren't the brightest so it can't be that hard to be a hedge fund manager. |
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Posted: 9/15/2018 4:05:09 PM EDT
[#9]
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You are pretty vague so i have no idea what you actually do. I know there are unlimited possibilities of options deals, but you can't show me any statistical proof those make anyone rich either. Sure they can theoretically, but we are talking about statistics, and someone is asking about financial advisors. You aren't going to suggest they put their life savings on a short position or binary option are you? Quote HistoryQuoted:
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Quoted: I haven't assumed comissions are the norm. I have assumed if it is anything other than simple fee for time interests are not aligned. I have assumed you cant know all the deals, but if you dont place investments the same place you get advice there are no misaligned goals. As to the book it assumes in most cases the primary prediction pf sucess are fees as in less fees more money. Commissions arent the only type of fees. Give me a concrete example of this awesome alpha? What if you limited your download to 5% loss on 25% of your equity holdings? Then the market falls ten? You just bought yourself time Wouldnt you agree that adds alpha? from a stupid simple standpoint...let's say you only took 10% and bought a zero coupon based upon the future par value and then a ATM call on an index with the difference on the cash. That's like asymmetrical investing 101. Then start to expound on that and doing other strategies that take advantage of the mean reversion of the indices and average historical returns, the math simple proves that once you start to add bonds to an allocation it mathematically becomes inferior to what I am talking about. The biggest problem is that the majority of the firms out there are not going or even able to do somthing like that. They just aren't allowed. This is revolutionary. To touch upon what you asked about, how do I know which strategy to use? That entirely depends on what is out there at that time. The biggest issue is that the retail person only gets to see X,Y and Z, your basic markowitz style portfolio. Stocks, Bonds, Cash, that's your only three basic choices in that theory. Sure...you can pick sectors, cap values, weighting of each indicie you chose, credit style of bond, sector of bond, etc. But at the end of the day, you are only in stocks bonds and cash. Now like I stated above. If your allocation tells you to have 40% bonds, most folks are going to buy you the AGG. Now, what if you simply bought your own zero coupon and then a ATM call. What are you going to give up? It's a zero coupon, 1-2% of 10-20%? But if the index runs, that option makes cake. bigly Now as far as the other strategies, basically just expounding on that. maybe you want some leverage at the cost of a cap. It entirely depends what's going on at that time. The biggest issue, is you can't have some one with a lot of clients, your typical advisor 300+ clients doing this. There simply isn't enough man power available. You are only going to see this in the RIA/Indie space. That goes back to one of my biggest pet peeves. I call on folks who have basic portfolios and are paying upwards of 2% for those portfolios when you take into consideration the Advisory fee and the fund fees and the other fees associated with the account. That's a shit load of % return you are giving up every year for somthing you can get for close to nothing at the major discount firms. You are paying 2% for somthing that is not adding alpha. You are also paying for an advisor that was either tending bar or was cooking food a year prior. However, statistically hedge funds suck pretty bad too. This may help...If you have ever seen the big short, you know how Michael Burry was going to banks or who ever was out there and were making those deals with shorting the MBSs? Well that is just 1% of what is possible out there. Burry went to places and asked them to let him buy somthing that would give him a certain payout if certain things went belly up. You can literally do that with anything with anyone out there in the world. I am at the point to where my AUM is large enough I can request custom stuff not just the cookie cutter things out there. Literally 1% of pros know this even exist and the majority can't even offer them. As far as hedge funds.....they are like a box of chocolates, you never know what you are going to get. But...I think folks confuse hedge funds with Private equity and private credit shops. They kind of all look the same from the outside. I wish I was a hedge fund...nothing like 2% of aum and 20% performance fees over the hurdle return %....hell I'd do it for 1% and 10%
Hell there's a hedge fund down the street from my office. I know the guy, no idea what they are doing in there, but they aren't the brightest so it can't be that hard to be a hedge fund manager. |
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Posted: 9/15/2018 5:47:55 PM EDT
[#10]
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I have to be vague, but I never said anything about putting 100% into somthing silly like naked, shorts & options. Quote HistoryQuoted:
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Quoted: I haven't assumed comissions are the norm. I have assumed if it is anything other than simple fee for time interests are not aligned. I have assumed you cant know all the deals, but if you dont place investments the same place you get advice there are no misaligned goals. As to the book it assumes in most cases the primary prediction pf sucess are fees as in less fees more money. Commissions arent the only type of fees. Give me a concrete example of this awesome alpha? What if you limited your download to 5% loss on 25% of your equity holdings? Then the market falls ten? You just bought yourself time Wouldnt you agree that adds alpha? from a stupid simple standpoint...let's say you only took 10% and bought a zero coupon based upon the future par value and then a ATM call on an index with the difference on the cash. That's like asymmetrical investing 101. Then start to expound on that and doing other strategies that take advantage of the mean reversion of the indices and average historical returns, the math simple proves that once you start to add bonds to an allocation it mathematically becomes inferior to what I am talking about. The biggest problem is that the majority of the firms out there are not going or even able to do somthing like that. They just aren't allowed. This is revolutionary. To touch upon what you asked about, how do I know which strategy to use? That entirely depends on what is out there at that time. The biggest issue is that the retail person only gets to see X,Y and Z, your basic markowitz style portfolio. Stocks, Bonds, Cash, that's your only three basic choices in that theory. Sure...you can pick sectors, cap values, weighting of each indicie you chose, credit style of bond, sector of bond, etc. But at the end of the day, you are only in stocks bonds and cash. Now like I stated above. If your allocation tells you to have 40% bonds, most folks are going to buy you the AGG. Now, what if you simply bought your own zero coupon and then a ATM call. What are you going to give up? It's a zero coupon, 1-2% of 10-20%? But if the index runs, that option makes cake. bigly Now as far as the other strategies, basically just expounding on that. maybe you want some leverage at the cost of a cap. It entirely depends what's going on at that time. The biggest issue, is you can't have some one with a lot of clients, your typical advisor 300+ clients doing this. There simply isn't enough man power available. You are only going to see this in the RIA/Indie space. That goes back to one of my biggest pet peeves. I call on folks who have basic portfolios and are paying upwards of 2% for those portfolios when you take into consideration the Advisory fee and the fund fees and the other fees associated with the account. That's a shit load of % return you are giving up every year for somthing you can get for close to nothing at the major discount firms. You are paying 2% for somthing that is not adding alpha. You are also paying for an advisor that was either tending bar or was cooking food a year prior. However, statistically hedge funds suck pretty bad too. This may help...If you have ever seen the big short, you know how Michael Burry was going to banks or who ever was out there and were making those deals with shorting the MBSs? Well that is just 1% of what is possible out there. Burry went to places and asked them to let him buy somthing that would give him a certain payout if certain things went belly up. You can literally do that with anything with anyone out there in the world. I am at the point to where my AUM is large enough I can request custom stuff not just the cookie cutter things out there. Literally 1% of pros know this even exist and the majority can't even offer them. As far as hedge funds.....they are like a box of chocolates, you never know what you are going to get. But...I think folks confuse hedge funds with Private equity and private credit shops. They kind of all look the same from the outside. I wish I was a hedge fund...nothing like 2% of aum and 20% performance fees over the hurdle return %....hell I'd do it for 1% and 10%
Hell there's a hedge fund down the street from my office. I know the guy, no idea what they are doing in there, but they aren't the brightest so it can't be that hard to be a hedge fund manager.  Attached File |
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Posted: 9/15/2018 6:51:50 PM EDT
[#11]
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Quoted: I haven't assumed comissions are the norm. I have assumed if it is anything other than simple fee for time interests are not aligned. I have assumed you cant know all the deals, but if you dont place investments the same place you get advice there are no misaligned goals. As to the book it assumes in most cases the primary prediction pf sucess are fees as in less fees more money. Commissions arent the only type of fees. Give me a concrete example of this awesome alpha? What if you limited your download to 5% loss on 25% of your equity holdings? Then the market falls ten? You just bought yourself time Wouldnt you agree that adds alpha? from a stupid simple standpoint...let's say you only took 10% and bought a zero coupon based upon the future par value and then a ATM call on an index with the difference on the cash. That's like asymmetrical investing 101. Then start to expound on that and doing other strategies that take advantage of the mean reversion of the indices and average historical returns, the math simple proves that once you start to add bonds to an allocation it mathematically becomes inferior to what I am talking about. The biggest problem is that the majority of the firms out there are not going or even able to do somthing like that. They just aren't allowed. This is revolutionary. To touch upon what you asked about, how do I know which strategy to use? That entirely depends on what is out there at that time. The biggest issue is that the retail person only gets to see X,Y and Z, your basic markowitz style portfolio. Stocks, Bonds, Cash, that's your only three basic choices in that theory. Sure...you can pick sectors, cap values, weighting of each indicie you chose, credit style of bond, sector of bond, etc. But at the end of the day, you are only in stocks bonds and cash. Now like I stated above. If your allocation tells you to have 40% bonds, most folks are going to buy you the AGG. Now, what if you simply bought your own zero coupon and then a ATM call. What are you going to give up? It's a zero coupon, 1-2% of 10-20%? But if the index runs, that option makes cake. bigly Now as far as the other strategies, basically just expounding on that. maybe you want some leverage at the cost of a cap. It entirely depends what's going on at that time. The biggest issue, is you can't have some one with a lot of clients, your typical advisor 300+ clients doing this. There simply isn't enough man power available. You are only going to see this in the RIA/Indie space. That goes back to one of my biggest pet peeves. I call on folks who have basic portfolios and are paying upwards of 2% for those portfolios when you take into consideration the Advisory fee and the fund fees and the other fees associated with the account. That's a shit load of % return you are giving up every year for somthing you can get for close to nothing at the major discount firms. You are paying 2% for somthing that is not adding alpha. You are also paying for an advisor that was either tending bar or was cooking food a year prior. However, statistically hedge funds suck pretty bad too. This may help...If you have ever seen the big short, you know how Michael Burry was going to banks or who ever was out there and were making those deals with shorting the MBSs? Well that is just 1% of what is possible out there. Burry went to places and asked them to let him buy somthing that would give him a certain payout if certain things went belly up. You can literally do that with anything with anyone out there in the world. I am at the point to where my AUM is large enough I can request custom stuff not just the cookie cutter things out there. Literally 1% of pros know this even exist and the majority can't even offer them. As far as hedge funds.....they are like a box of chocolates, you never know what you are going to get. But...I think folks confuse hedge funds with Private equity and private credit shops. They kind of all look the same from the outside. I wish I was a hedge fund...nothing like 2% of aum and 20% performance fees over the hurdle return %....hell I'd do it for 1% and 10%
Hell there's a hedge fund down the street from my office. I know the guy, no idea what they are doing in there, but they aren't the brightest so it can't be that hard to be a hedge fund manager.
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Posted: 10/2/2018 12:19:10 PM EDT
[#12]
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Posted: 10/2/2018 12:26:46 PM EDT
[#13]
Quote HistoryI mean...if someone has 100 million to my 10 million, I would be hard pressed to make more money than them.
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Posted: 10/2/2018 12:33:03 PM EDT
[#14]
Quote HistoryThere is more to financial advising than just "here's where you get the highest rate of return." A lot more, such as understanding goals, timelines, risk tolerances, etc. |
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Posted: 10/2/2018 12:40:40 PM EDT
[#15]
Quote HistoryQuoted:
This assumes that a financial advisor will tell you what to do. The good ones educate and inform you as to options, lay out different courses of action, explain each course of action's advantages and disadvantages, then leave the decision up to the client. There is more to financial advising than just "here's where you get the highest rate of return." A lot more, such as understanding goals, timelines, risk tolerances, etc. Quote HistoryQuoted:
This assumes that a financial advisor will tell you what to do. The good ones educate and inform you as to options, lay out different courses of action, explain each course of action's advantages and disadvantages, then leave the decision up to the client. There is more to financial advising than just "here's where you get the highest rate of return." A lot more, such as understanding goals, timelines, risk tolerances, etc.
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Posted: 10/2/2018 1:27:51 PM EDT
[#16]
Quote HistoryQuoted:
This assumes that a financial advisor will tell you what to do. The good ones educate and inform you as to options, lay out different courses of action, explain each course of action's advantages and disadvantages, then leave the decision up to the client. There is more to financial advising than just "here's where you get the highest rate of return." A lot more, such as understanding goals, timelines, risk tolerances, etc. Quote HistoryQuoted:
This assumes that a financial advisor will tell you what to do. The good ones educate and inform you as to options, lay out different courses of action, explain each course of action's advantages and disadvantages, then leave the decision up to the client. There is more to financial advising than just "here's where you get the highest rate of return." A lot more, such as understanding goals, timelines, risk tolerances, etc. |
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Posted: 10/2/2018 1:43:46 PM EDT
[#17]
Quote HistoryQuoted:
I thought it was all a bout that fat commission? Quote HistoryQuoted:
Quoted:
This assumes that a financial advisor will tell you what to do. The good ones educate and inform you as to options, lay out different courses of action, explain each course of action's advantages and disadvantages, then leave the decision up to the client. There is more to financial advising than just "here's where you get the highest rate of return." A lot more, such as understanding goals, timelines, risk tolerances, etc. 
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Posted: 10/2/2018 2:02:04 PM EDT
[#18]
Quote HistoryQuoted:
Agree with you and midcap completely. Just saw that post today and for some reason it reminded me of this discussion. Quote HistoryQuoted:
Quoted:
This assumes that a financial advisor will tell you what to do. The good ones educate and inform you as to options, lay out different courses of action, explain each course of action's advantages and disadvantages, then leave the decision up to the client. There is more to financial advising than just "here's where you get the highest rate of return." A lot more, such as understanding goals, timelines, risk tolerances, etc. For example, the guy who just got hired on by big green and was a line cook a month prior is in no way shape or form competent to give advice....but they do. before I got hired I was an investor through the 90s into the 2000s, then was studying finance as a CFA major, and then I had a 1.5 year apprenticeship with an advisor that was in the bis for 25 years and a CFP. I felt I was suitable to provide advice. |
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Posted: 10/2/2018 2:02:25 PM EDT
[#19]
Quote HistoryQuoted:
if you do it my way, and gently nudge the waffling client to make SOME decision, the commissions flow. Quote HistoryQuoted:
Quoted:
Quoted:
This assumes that a financial advisor will tell you what to do. The good ones educate and inform you as to options, lay out different courses of action, explain each course of action's advantages and disadvantages, then leave the decision up to the client. There is more to financial advising than just "here's where you get the highest rate of return." A lot more, such as understanding goals, timelines, risk tolerances, etc.
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Posted: 10/4/2018 10:41:26 PM EDT
[#20]
This thread has been a great help!
I'm "hung" in a managed advisory account currently that I am going to liquidate soon... and take a bath in taxes. The only way out is to sell out (I'm told that there is no way to transfer). The advisory account has not outperformed my regular account or my Roth IRA or my Traditional IRA. All it has done is churned and churned and churned leading to capital gains and taxes. When I do this, I'm moving firms - probably with everything. |
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Posted: 10/5/2018 5:05:31 AM EDT
[#21]
Quote HistoryQuoted:
This thread has been a great help! I'm "hung" in a managed advisory account currently that I am going to liquidate soon... and take a bath in taxes. The only way out is to sell out (I'm told that there is no way to transfer). The advisory account has not outperformed my regular account or my Roth IRA or my Traditional IRA. All it has done is churned and churned and churned leading to capital gains and taxes. When I do this, I'm moving firms - probably with everything. Fidelity pulled that shit on a client this year. They do that because the shares of stock in the funds aren't there. They are lent out on margin. |
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Posted: 10/5/2018 8:27:48 AM EDT
[#22]
Quote HistoryQuoted:
What firm? Fidelity pulled that shit on a client this year. They do that because the shares of stock in the funds aren't there. They are lent out on margin. Quote HistoryQuoted:
Quoted:
This thread has been a great help! I'm "hung" in a managed advisory account currently that I am going to liquidate soon... and take a bath in taxes. The only way out is to sell out (I'm told that there is no way to transfer). The advisory account has not outperformed my regular account or my Roth IRA or my Traditional IRA. All it has done is churned and churned and churned leading to capital gains and taxes. When I do this, I'm moving firms - probably with everything. Fidelity pulled that shit on a client this year. They do that because the shares of stock in the funds aren't there. They are lent out on margin. |
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Posted: 10/5/2018 5:45:58 PM EDT
[#23]
Quote HistoryQuoted:
The big one from St. Louis. Quote HistoryQuoted:
Quoted:
Quoted:
This thread has been a great help! I'm "hung" in a managed advisory account currently that I am going to liquidate soon... and take a bath in taxes. The only way out is to sell out (I'm told that there is no way to transfer). The advisory account has not outperformed my regular account or my Roth IRA or my Traditional IRA. All it has done is churned and churned and churned leading to capital gains and taxes. When I do this, I'm moving firms - probably with everything. Fidelity pulled that shit on a client this year. They do that because the shares of stock in the funds aren't there. They are lent out on margin. If so what they do now is they hold the actual stocks in house and then have a managers AFS, Franklin MFS etc just advise the holdings. It's a way for them to make more money off the clients. But, it's a bitch to try and get they to give you your exact shares. If you want before you do anything, I can call my contacts and get an answer for you. You may have to submit a request to the home office. |
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Posted: 10/5/2018 9:50:56 PM EDT
[#24]
Quote HistoryQuoted:
Advisory Solutions? If so what they do now is they hold the actual stocks in house and then have a managers AFS, Franklin MFS etc just advise the holdings. It's a way for them to make more money off the clients. But, it's a bitch to try and get they to give you your exact shares. If you want before you do anything, I can call my contacts and get an answer for you. You may have to submit a request to the home office. Quote HistoryQuoted:
Quoted:
Quoted:
Quoted:
This thread has been a great help! I'm "hung" in a managed advisory account currently that I am going to liquidate soon... and take a bath in taxes. The only way out is to sell out (I'm told that there is no way to transfer). The advisory account has not outperformed my regular account or my Roth IRA or my Traditional IRA. All it has done is churned and churned and churned leading to capital gains and taxes. When I do this, I'm moving firms - probably with everything. Fidelity pulled that shit on a client this year. They do that because the shares of stock in the funds aren't there. They are lent out on margin. If so what they do now is they hold the actual stocks in house and then have a managers AFS, Franklin MFS etc just advise the holdings. It's a way for them to make more money off the clients. But, it's a bitch to try and get they to give you your exact shares. If you want before you do anything, I can call my contacts and get an answer for you. You may have to submit a request to the home office. I would be much appreciative. I have not done anything yet and do not have the 2nd meeting with the new potential advisor for a couple more weeks. I'm curious as to what you mean by: "But, it's a bitch to try and get they[m] to give you your exact shares." What's the alternative??? for them to give me less than my statements say? Thanks again |
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Posted: 10/8/2018 7:00:01 PM EDT
[#25]
Quote HistoryQuoted:
I wouldn’t meet one. I would take the time and learn to do it yourself. No one cares as much about your money than you do. I had a "Manager" for about 90 days. Gave me a song and dance about "Tactical Allocation, Strategic Moves, Going Short to protect assets during market swoons." Bottom Line: He was constantly moving into one bond fund and into another every month 3-5 purchases and sales of diff't bond funds: WTF? He (or his company ) shorted, the market went UP and my account was "whip-sawed". The he created his own mutual, and put 10% of all of his clients money into it. When I called my account manager to ask him about losing money on that short move, his answer was "Moe always loses money when he goes short." What" "ALWAYS LOSES MONEY"? What a STUPID answer! I got OUT, right there and then. I had him put me into cash and I have been doing it myself ever since. ( That was late 2011) Last I heard his Mutual Fund was "delisted" from the New Your Stock Exchange, back in 2012, just a few months after I took my money away from them. Fucking bullshitting SOBs! |
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Posted: 10/8/2018 8:32:27 PM EDT
[#26]
Quote HistoryQuoted:
THIS! I had a "Manager" for about 90 days. Gave me a song and dance about "Tactical Allocation, Strategic Moves, Going Short to protect assets during market swoons." Bottom Line: He was constantly moving into one bond fund and into another every month 3-5 purchases and sales of diff't bond funds: WTF? He (or his company ) shorted, the market went UP and my account was "whip-sawed". The he created his own mutual, and put 10% of all of his clients money into it. When I called my account manager to ask him about losing money on that short move, his answer was "Moe always loses money when he goes short." What" "ALWAYS LOSES MONEY"? What a STUPID answer! I got OUT, right there and then. I had him put me into cash and I have been doing it myself ever since. ( That was late 2011) Last I heard his Mutual Fund was "delisted" from the New Your Stock Exchange, back in 2012, just a few months after I took my money away from them. Fucking bullshitting SOBs! Quote HistoryQuoted:
Quoted:
I wouldn’t meet one. I would take the time and learn to do it yourself. No one cares as much about your money than you do. I had a "Manager" for about 90 days. Gave me a song and dance about "Tactical Allocation, Strategic Moves, Going Short to protect assets during market swoons." Bottom Line: He was constantly moving into one bond fund and into another every month 3-5 purchases and sales of diff't bond funds: WTF? He (or his company ) shorted, the market went UP and my account was "whip-sawed". The he created his own mutual, and put 10% of all of his clients money into it. When I called my account manager to ask him about losing money on that short move, his answer was "Moe always loses money when he goes short." What" "ALWAYS LOSES MONEY"? What a STUPID answer! I got OUT, right there and then. I had him put me into cash and I have been doing it myself ever since. ( That was late 2011) Last I heard his Mutual Fund was "delisted" from the New Your Stock Exchange, back in 2012, just a few months after I took my money away from them. Fucking bullshitting SOBs! That dudes prolly out the biz by now |
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Posted: 10/18/2018 10:06:15 PM EDT
[#27]
Bump for any further input from those in the field. I will be having meeting #2 with new potential adviser in two weeks.
I hate the thought of change... but it is necessary for my sanity 
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Posted: 10/19/2018 1:19:50 AM EDT
[#28]
@jaymack
Disclaimer - I am biased because of where I work and personal philosophy. There are many business models and compensation structures that work well. Some general pointers. Consider advisors that are some or all of the following: - Fee only RIA - Fiduciary - Independent - CFP® professionals - Works with you, not for you (educates and collaborates instead of dazzle and dictate) I can elaborate on any of those if needed. As I mentioned, I am biased because this is the area of financial services that I work in and know that we only do what is truly in our clients best interest. Regarding investment management, a subset of wealth management, I prefer investments that are liquid, transparent, and low cost. That pretty much rules out insurance products. A fee only advisor is paid directly by the client and cannot receive compensation from other sources (commissions, rebates, awards, finder’s fees, bonuses) I've included our fee schedule for reference. This is for comprehensive wealth management (Education Planning, Risk Management and Insurance, Investment, Tax, Retirement Savings and Income, and Estate) Market Value of Portfolio : Annual Fee Up to $1,000,000 : 1.00% $1,000,001 to $2,000,000 : 0.75% $2,000,001 to $5,000,000 : 0.50% $5,000,001 to $10,000,000 : 0.40% $10,000,001 and above : 0.30% e.g. $1.5mm would have a blended rate of 0.917% ($13,750) annually. Hope some of this helps. |
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Posted: 10/23/2018 8:19:54 PM EDT
[#29]
Quote HistoryQuoted:
@jaymack Disclaimer - I am biased because of where I work and personal philosophy. There are many business models and compensation structures that work well. Some general pointers. Consider advisors that are some or all of the following: - Fee only RIA - Fiduciary - Independent - CFP® professionals - Works with you, not for you (educates and collaborates instead of dazzle and dictate) I can elaborate on any of those if needed. As I mentioned, I am biased because this is the area of financial services that I work in and know that we only do what is truly in our clients best interest. Regarding investment management, a subset of wealth management, I prefer investments that are liquid, transparent, and low cost. That pretty much rules out insurance products. A fee only advisor is paid directly by the client and cannot receive compensation from other sources (commissions, rebates, awards, finder’s fees, bonuses) I've included our fee schedule for reference. This is for comprehensive wealth management (Education Planning, Risk Management and Insurance, Investment, Tax, Retirement Savings and Income, and Estate) Market Value of Portfolio : Annual Fee Up to $1,000,000 : 1.00% $1,000,001 to $2,000,000 : 0.75% $2,000,001 to $5,000,000 : 0.50% $5,000,001 to $10,000,000 : 0.40% $10,000,001 and above : 0.30% e.g. $1.5mm would have a blended rate of 0.917% ($13,750) annually. Hope some of this helps. Thanks for the info. I had the second meeting yesterday. The potential firm is a fiduciary. They work off of a flat 1.25% - no breaks for portfolio value. The value proposition is that they will be available for most facets of financial advice including estate planning and picking funds for my roth 401k (not managed by them). They have also offered to assist with all paperwork of moving my American Funds from the current firm to DIRECT with AF since I hold A shares. My greatest concern is having to liquidate my Advisory Solutions account completely just to get away from the current firm. The prospect has committed into looking into it for me. [edit to add] any transactions within the new advisory acct are a flat $7.50. any stocks are a flat $40 fee. He affirmed that if I want to dabble in stocks, it would be best to just use my TDA acct. As with any change, I am hesitant... however, at my age and holdings it is time I think. |
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Posted: 10/23/2018 8:31:06 PM EDT
[#30]
Quote HistoryQuoted:
@lonestar12 Thanks for the info. I had the second meeting yesterday. The potential firm is a fiduciary. They work off of a flat 1.25% - no breaks for portfolio value. The value proposition is that they will be available for most facets of financial advice including estate planning and picking funds for my roth 401k (not managed by them). They have also offered to assist with all paperwork of moving my American Funds from the current firm to DIRECT with AF since I hold A shares. My greatest concern is having to liquidate my Advisory Solutions account completely just to get away from the current firm. The prospect has committed into looking into it for me. [edit to add] any transactions within the new advisory acct are a flat $7.50. any stocks are a flat $40 fee. He affirmed that if I want to dabble in stocks, it would be best to just use my TDA acct. As with any change, I am hesitant... however, at my age and holdings it is time I think. Quote HistoryQuoted:
Quoted:
@jaymack Disclaimer - I am biased because of where I work and personal philosophy. There are many business models and compensation structures that work well. Some general pointers. Consider advisors that are some or all of the following: - Fee only RIA - Fiduciary - Independent - CFP® professionals - Works with you, not for you (educates and collaborates instead of dazzle and dictate) I can elaborate on any of those if needed. As I mentioned, I am biased because this is the area of financial services that I work in and know that we only do what is truly in our clients best interest. Regarding investment management, a subset of wealth management, I prefer investments that are liquid, transparent, and low cost. That pretty much rules out insurance products. A fee only advisor is paid directly by the client and cannot receive compensation from other sources (commissions, rebates, awards, finder’s fees, bonuses) I've included our fee schedule for reference. This is for comprehensive wealth management (Education Planning, Risk Management and Insurance, Investment, Tax, Retirement Savings and Income, and Estate) Market Value of Portfolio : Annual Fee Up to $1,000,000 : 1.00% $1,000,001 to $2,000,000 : 0.75% $2,000,001 to $5,000,000 : 0.50% $5,000,001 to $10,000,000 : 0.40% $10,000,001 and above : 0.30% e.g. $1.5mm would have a blended rate of 0.917% ($13,750) annually. Hope some of this helps. Thanks for the info. I had the second meeting yesterday. The potential firm is a fiduciary. They work off of a flat 1.25% - no breaks for portfolio value. The value proposition is that they will be available for most facets of financial advice including estate planning and picking funds for my roth 401k (not managed by them). They have also offered to assist with all paperwork of moving my American Funds from the current firm to DIRECT with AF since I hold A shares. My greatest concern is having to liquidate my Advisory Solutions account completely just to get away from the current firm. The prospect has committed into looking into it for me. [edit to add] any transactions within the new advisory acct are a flat $7.50. any stocks are a flat $40 fee. He affirmed that if I want to dabble in stocks, it would be best to just use my TDA acct. As with any change, I am hesitant... however, at my age and holdings it is time I think. Also what's your account value? |
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Posted: 10/23/2018 8:48:58 PM EDT
[#31]
Quote HistoryQuoted:
List all your ticker symbols Also what's your account value? Quote HistoryQuoted:
Quoted:
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@jaymack Disclaimer - I am biased because of where I work and personal philosophy. There are many business models and compensation structures that work well. Some general pointers. Consider advisors that are some or all of the following: - Fee only RIA - Fiduciary - Independent - CFP® professionals - Works with you, not for you (educates and collaborates instead of dazzle and dictate) I can elaborate on any of those if needed. As I mentioned, I am biased because this is the area of financial services that I work in and know that we only do what is truly in our clients best interest. Regarding investment management, a subset of wealth management, I prefer investments that are liquid, transparent, and low cost. That pretty much rules out insurance products. A fee only advisor is paid directly by the client and cannot receive compensation from other sources (commissions, rebates, awards, finder’s fees, bonuses) I've included our fee schedule for reference. This is for comprehensive wealth management (Education Planning, Risk Management and Insurance, Investment, Tax, Retirement Savings and Income, and Estate) Market Value of Portfolio : Annual Fee Up to $1,000,000 : 1.00% $1,000,001 to $2,000,000 : 0.75% $2,000,001 to $5,000,000 : 0.50% $5,000,001 to $10,000,000 : 0.40% $10,000,001 and above : 0.30% e.g. $1.5mm would have a blended rate of 0.917% ($13,750) annually. Hope some of this helps. Thanks for the info. I had the second meeting yesterday. The potential firm is a fiduciary. They work off of a flat 1.25% - no breaks for portfolio value. The value proposition is that they will be available for most facets of financial advice including estate planning and picking funds for my roth 401k (not managed by them). They have also offered to assist with all paperwork of moving my American Funds from the current firm to DIRECT with AF since I hold A shares. My greatest concern is having to liquidate my Advisory Solutions account completely just to get away from the current firm. The prospect has committed into looking into it for me. [edit to add] any transactions within the new advisory acct are a flat $7.50. any stocks are a flat $40 fee. He affirmed that if I want to dabble in stocks, it would be best to just use my TDA acct. As with any change, I am hesitant... however, at my age and holdings it is time I think. Also what's your account value? Second - Advisory Solutions has me in so many funds that it would take a whole page of the forum |
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Posted: 10/23/2018 9:56:21 PM EDT
[#32]
Quote HistoryQuoted:
First - why do you ask? (don't mind to disclose if for a reason) Second - Advisory Solutions has me in so many funds that it would take a whole page of the forum Quote HistoryQuoted:
Quoted:
Quoted:
Quoted:
@jaymack Disclaimer - I am biased because of where I work and personal philosophy. There are many business models and compensation structures that work well. Some general pointers. Consider advisors that are some or all of the following: - Fee only RIA - Fiduciary - Independent - CFP® professionals - Works with you, not for you (educates and collaborates instead of dazzle and dictate) I can elaborate on any of those if needed. As I mentioned, I am biased because this is the area of financial services that I work in and know that we only do what is truly in our clients best interest. Regarding investment management, a subset of wealth management, I prefer investments that are liquid, transparent, and low cost. That pretty much rules out insurance products. A fee only advisor is paid directly by the client and cannot receive compensation from other sources (commissions, rebates, awards, finder’s fees, bonuses) I've included our fee schedule for reference. This is for comprehensive wealth management (Education Planning, Risk Management and Insurance, Investment, Tax, Retirement Savings and Income, and Estate) Market Value of Portfolio : Annual Fee Up to $1,000,000 : 1.00% $1,000,001 to $2,000,000 : 0.75% $2,000,001 to $5,000,000 : 0.50% $5,000,001 to $10,000,000 : 0.40% $10,000,001 and above : 0.30% e.g. $1.5mm would have a blended rate of 0.917% ($13,750) annually. Hope some of this helps. Thanks for the info. I had the second meeting yesterday. The potential firm is a fiduciary. They work off of a flat 1.25% - no breaks for portfolio value. The value proposition is that they will be available for most facets of financial advice including estate planning and picking funds for my roth 401k (not managed by them). They have also offered to assist with all paperwork of moving my American Funds from the current firm to DIRECT with AF since I hold A shares. My greatest concern is having to liquidate my Advisory Solutions account completely just to get away from the current firm. The prospect has committed into looking into it for me. [edit to add] any transactions within the new advisory acct are a flat $7.50. any stocks are a flat $40 fee. He affirmed that if I want to dabble in stocks, it would be best to just use my TDA acct. As with any change, I am hesitant... however, at my age and holdings it is time I think. Also what's your account value? Second - Advisory Solutions has me in so many funds that it would take a whole page of the forum If the EJ guy isn't a total goober, he can give you the same advice as the other firm will. Hell, you the EJ guy and a CFP from the home office can get on the horn together and have as many meetings as you want. yeah it's probably like 15-20 funds. I keep forgetting to call my guy for you. one last thing, why does that one firm want to keep the American Funds direct at american? You would all be in american funds at that point? I mean if you want to park your A shares for free somewhere, I can arrange that.
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Posted: 10/24/2018 9:20:23 AM EDT
[#33]
Quote HistoryQuoted: because that 1.25% at the other firm you mentioned seems high for what little they are doing, instead of going there, I'd just get your EJ guy to discount down to 1.15% He can do it, if he doesn't tell him he's FOS. If the EJ guy isn't a total goober, he can give you the same advice as the other firm will. Hell, you the EJ guy and a CFP from the home office can get on the horn together and have as many meetings as you want. yeah it's probably like 15-20 funds. I keep forgetting to call my guy for you. one last thing, why does that one firm want to keep the American Funds direct at american? You would all be in american funds at that point? I mean if you want to park your A shares for free somewhere, I can arrange that. (the last time and EDJ adviser suggested for me to buy a stock it was 2003. I bought it hook, line and sinker. It was a hippie coffee company I had never heard of SBUX.) Nevertheless, it's time to leave. I'm not happy that AS has not outperformed my regular account. I'm not happy that the AS acct constantly "churns" and jacks up my taxes every year due to UNEXPECTED capital gains. I like capital gains = I am making $.... however it's nice when I know they are coming so I can prepare my Schedule F to offset some of this. I am not sure why the prospect has suggested to move my A shares direct to AF. Are there any disadvantages to this? He said that he would still assist in managing it with obviously no skin in the game except for my benefit. (CAIBX, CWGIX, ANCFX, AGTHX, AMECX, SMCWX) My Roth and TradIRA are also all AF Ashares. 22 funds in Advisory from multiple groups... maybe one AF. |
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Posted: 10/24/2018 1:14:56 PM EDT
[#34]
Quote HistoryOriginally Posted By @jaymack @graniteclimber:
I have somewhat lost faith in EDJ over the last few years. My acct was involuntarily moved due to my previous adviser's retirement (yes-good for him, he retired). I had a very personal relationship with the old guy... hell I'd been with him for over 15yrs... started when I was a freshman in college. I trusted him. I also trusted him when Advisory Solutions first came out. I had asked the "new to me" adviser, "can you graph the advisory solutions performance vs standard S&P 500 mutual funds including dividends?" He absolutely refused to do it. You know why? Most vanguard S&P 500 funds beat the advisory solutions before even including the -1.5% commission they take. That said all I needed. The next week I moved EVERYTHING from EJ to Vanguard. It doesn't matter who you move money to, it's going to cost you money. Typically 1%-1.5%. You'll be paying for trust but the back of your mind you'll be second guessing them churning your account. Meanwhile if you go with a Northwest Mutual type of advisers, they'll then bury additional fees and call them "premiums" and other types of fees while upselling you to expensive products. It's much financially cheaper to handle it yourself but takes more time/energy into it. But then again, buying S&P500 tracking mutual funds at .05%-.3% is pretty damn easy. You have to pay to play one way or another. |
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Posted: 10/24/2018 10:20:48 PM EDT
[#35]
The real purpose of financial advisors is financial planning and behavioral discipline.
Their expertise lies in assessing your current financial condition, assessing risk, your financial goals, putting a plan together to make that happen, and the behavioral discipline reinforcement to help you make good financial decisions, saving more, spending less, being less impulsive, and sticking to the plan. That is where you should be focused when you meet with them. You want a financial advisor that is going to pitch you a great financial plan and behavioral discipline, not a stock picker. Now, if you already have those skills down and you are investing large sums of money, 2M+ then it's time to seek additional depth beyond just financial planning and behavioral discipline, and get into the fine details of what to invest in, how to do it, but again this is all based on your financial goals. |
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Posted: 10/25/2018 7:41:25 PM EDT
[#36]
Quote HistoryQuoted:
Sounds similar to my story when I previously posted it in another thread. Had a gentleman that I trusted which taught me along the way. He got pushed out of EJ then they transferred accounts to someone new that was previously a house wife (nothing wrong with housewives). Then I got transferred to another fellow locally. I had asked the "new to me" adviser, "can you graph the advisory solutions performance vs standard S&P 500 mutual funds including dividends?" He absolutely refused to do it. You know why? Most vanguard S&P 500 funds beat the advisory solutions before even including the -1.5% commission they take. That said all I needed. The next week I moved EVERYTHING from EJ to Vanguard. It doesn't matter who you move money to, it's going to cost you money. Typically 1%-1.5%. You'll be paying for trust but the back of your mind you'll be second guessing them churning your account. Meanwhile if you go with a Northwest Mutual type of advisers, they'll then bury additional fees and call them "premiums" and other types of fees while upselling you to expensive products. It's much financially cheaper to handle it yourself but takes more time/energy into it. But then again, buying S&P500 tracking mutual funds at .05%-.3% is pretty damn easy. You have to pay to play one way or another. Quote HistoryQuoted:
Originally Posted By @jaymack @graniteclimber:
I have somewhat lost faith in EDJ over the last few years. My acct was involuntarily moved due to my previous adviser's retirement (yes-good for him, he retired). I had a very personal relationship with the old guy... hell I'd been with him for over 15yrs... started when I was a freshman in college. I trusted him. I also trusted him when Advisory Solutions first came out. I had asked the "new to me" adviser, "can you graph the advisory solutions performance vs standard S&P 500 mutual funds including dividends?" He absolutely refused to do it. You know why? Most vanguard S&P 500 funds beat the advisory solutions before even including the -1.5% commission they take. That said all I needed. The next week I moved EVERYTHING from EJ to Vanguard. It doesn't matter who you move money to, it's going to cost you money. Typically 1%-1.5%. You'll be paying for trust but the back of your mind you'll be second guessing them churning your account. Meanwhile if you go with a Northwest Mutual type of advisers, they'll then bury additional fees and call them "premiums" and other types of fees while upselling you to expensive products. It's much financially cheaper to handle it yourself but takes more time/energy into it. But then again, buying S&P500 tracking mutual funds at .05%-.3% is pretty damn easy. You have to pay to play one way or another. unless the sp500 cracks a 16%+ it';s going to be my beyotch this year.....I did under perform last year by 400 bips.....you start doing that math on that one and come back to me about performance. |
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Posted: 10/26/2018 7:49:28 AM EDT
[#37]
Quote HistoryOriginally Posted By @midcap: LOL....AS won't ever beat the sp500. They only have like one 100% equity model and they are too diversified with it. unless the sp500 cracks a 16%+ it';s going to be my beyotch this year.....I did under perform last year by 400 bips.....you start doing that math on that one and come back to me about performance. Sorry for asking if you have already posted it. |
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Posted: 10/29/2018 6:37:39 PM EDT
[#38]
So... does anyone here know if Advisory Solutions is proprietary or can I do an in kind exchange? Or is it based on the funds that are in the AS account?
The last few weeks have obviously not been to kind for me in the short term and the thought of total liquidation does not give me a warm fuzzy feeling... especially nearing the 6 figure short term loss frame. |
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Posted: 11/7/2018 11:03:08 AM EDT
[#39]
Quote HistoryQuoted:
And what's your fee structure with how much money under management? Sorry for asking if you have already posted it. Quote HistoryQuoted:
Originally Posted By @midcap: LOL....AS won't ever beat the sp500. They only have like one 100% equity model and they are too diversified with it. unless the sp500 cracks a 16%+ it';s going to be my beyotch this year.....I did under perform last year by 400 bips.....you start doing that math on that one and come back to me about performance. Sorry for asking if you have already posted it. |
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Posted: 11/7/2018 11:05:08 AM EDT
[#40]
my wife posted the above comment and I am not confirming or denying it
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Posted: 11/7/2018 12:17:14 PM EDT
[#41]
Quote HistoryQuoted:
So... does anyone here know if Advisory Solutions is proprietary or can I do an in kind exchange? Or is it based on the funds that are in the AS account? The last few weeks have obviously not been to kind for me in the short term and the thought of total liquidation does not give me a warm fuzzy feeling... especially nearing the 6 figure short term loss frame. Unless you have the bridge builders you should be able to transfer all the other mutual funds and ETFs to the new firm. |
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Posted: 11/7/2018 7:49:49 PM EDT
[#42]
Quote HistoryQuoted: @jaymack Unless you have the bridge builders you should be able to transfer all the other mutual funds and ETFs to the new firm. Well, that's freaking awesome... since 40% of my AS acct is in 5 different BB funds! I am assuming that I will still be able to transfer the other funds after liquidating the BB funds?? I meet with the new firm in 2 weeks and we are going to conference call the St. Louis office. What a mess. 
By the way - Thanks for the reply! |
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Posted: 11/8/2018 9:26:40 AM EDT
[#43]
Quote HistoryQuoted:
@midcap Well, that's freaking awesome... since 40% of my AS acct is in 5 different BB funds! I am assuming that I will still be able to transfer the other funds after liquidating the BB funds?? I meet with the new firm in 2 weeks and we are going to conference call the St. Louis office. What a mess.
By the way - Thanks for the reply! Quote HistoryQuoted:
Quoted: @jaymack Unless you have the bridge builders you should be able to transfer all the other mutual funds and ETFs to the new firm. Well, that's freaking awesome... since 40% of my AS acct is in 5 different BB funds! I am assuming that I will still be able to transfer the other funds after liquidating the BB funds?? I meet with the new firm in 2 weeks and we are going to conference call the St. Louis office. What a mess.
By the way - Thanks for the reply! Fildelity does this same bullshit too, so don't fret, EJ isn't the only clowns out there pulling this stuff. Look at the good news...the BBs tanked recently so your gains are lower
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