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need to divorce my CFP? how?

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  • #16
    So in addition to your current high fees, your advisor believes in market timing and  in a few years you will get into individual stocks. That is even scarier than your current  plan. Open a new 401k at fidelity or vanguard today and get out now.

    i am sure your fa is fine, but one of the things that made Bernie Madoff so successful was the presumed exclusivity that he had. Why would your friend be reluctant to tell everyone they know about this terrific fa? Wouldn't the great fa be happy to get as many new clients as possible?

    Comment


    • #17
      I thought of Madoff, too, when I read the OP.

      Did you ever read the Amityville Horror? "GET OUT!"

      Comment


      • #18




        I’m in my second year in PP. I have no current loans and have started to aggressively contribute to my 401K. I would love some help with our financial investor. My great friend gave us the name of her financial investor (AAMS, CFP). She’s very hush hush about him and doesn’t give it out often to “just anyone” so I guess I felt lucky. We just put in our first 401K contribution ($4500 monthly as we self match) and he send me an email with the following asset allocations suggestions:

        $2000 alpine capital research
        $800- IVA world wide fund
        $800 first eagle global fund
        $700 in alpha core absolute return
        $200 cash

        I’ve been reading WCI and now Physician on Fire aggressively and realize I’m getting myself into a trap with starting with a CFP rather than doing it myself (He charges 1%). So what do I do?? Change my mind and start doing in all myself? Stay with him for a year and try to learn– then take over my accounts? And how the heck do I do that? In regards to pulling money that he was managing and now manage it myself? I’m concerned my friend will be disappointed all well. Ugh. Would love some help.

        And any advice on the above allocation? He said the benefit of cash is “optionality to use when others are selling whenever we get into a cyclical downturn.” Thanks kindly WCI!!
        Click to expand...


        Alpine Capital Research (MQRIX): I'm not seeing what the 1.17% ER is for, too new to have any long-term data, does OK in its class ("Multialternative" is not a well-defined class anyway) but so far has poor upside/downside capture ratios per Morningstar (for what that's worth).  It itself holds 45% cash and 20% int'l and was up 8.38% in the past 12 months, while the average balanced portfolio was up like 13% in the same interval (VTSAX was up 21.5%).

        IVA Worldwide (IVWCX): Another internally-diversified fund.  Hope you don't have the C class (2% ER is awful, plus a load), 40% cash, 30% int'l, even 6% gold bullion.  Again, I find it very odd to have so much of the portfolio tied up in cash and internationals.  You seem way too young (2nd year in PP so I guessed) to limit your equity exposure so much.  This might be a better choice for a portfolio which needs greater stability and wants more international exposure, but I don't see it as fitting into your needs.

        First Eagle Global Fund (FESGX): What's with all the world-allocation funds?  This along with the prior two seem fairly redundant to one another.  It's yet another loaded, high-fee (1.86% for C class), cash-heavy (20%) fund with 35% int'l and 6% gold bullion.  While those particular parameters can be very good for several people's situations - Morningstar actually rates it very well for its category, given that its 10-yr return is 5.84%, 9th percentile in its World Allocation category and top-20% at 3 and 5 years - but the question is if anyone really needs this category in the first place, seeing as you should easily be able to recreate it with its constituent parts at a far lower cost with similar volatility and return.  Again, I question how appropriate this would be for your timeline, especially stacked on top of the other funds in the portfolio.

        AlphaCore Absolute Inst'l (GDAMX): This person really has a thing for "Multialternative" funds.  This one is shorted in currency and bonds to favor other cash (50%) and US stock (30%).  Compared to Morningstar's moderate risk index, weak alpha (-5.72 at 3 years, -1.5 at 5 years) and weak Sharpe ratios (< 1), and higher volatility (beta > 1).  Its 8.6% 5-year return wouldn't be horrible, but a basic 60/25/15 VTSAX/VTIAX/VBTLX and an auto-pilot target 2045 fund like VTIVX were both up 9.95% - never mind the increased fees (though the returns are reported after fees) and simplicity and the AUM fees to the advisor.

        Long story short: that portfolio is redundant, full of loaded high-cost funds with an asset allocation that is not fluid, too low in equities, and too high in cash.  You're absolutely getting yourself into a trap, fitting into a portfolio which probably poorly reflects what your retirement investing needs are at this point, while you pay the loads and AUM fees.  You can easily re-create the allocation with 3 or 4 low-cost funds at any major brokerage (Fido, VG, Schwab, TD, Etrade, etc).

        Chunk the deuce.

        Comment


        • #19




          Chunk the deuce.
          Click to expand...


          Classic!

          Comment


          • #20







            I’m in my second year in PP. I have no current loans and have started to aggressively contribute to my 401K. I would love some help with our financial investor. My great friend gave us the name of her financial investor (AAMS, CFP). She’s very hush hush about him and doesn’t give it out often to “just anyone” so I guess I felt lucky. We just put in our first 401K contribution ($4500 monthly as we self match) and he send me an email with the following asset allocations suggestions:

            $2000 alpine capital research
            $800- IVA world wide fund
            $800 first eagle global fund
            $700 in alpha core absolute return
            $200 cash

            I’ve been reading WCI and now Physician on Fire aggressively and realize I’m getting myself into a trap with starting with a CFP rather than doing it myself (He charges 1%). So what do I do?? Change my mind and start doing in all myself? Stay with him for a year and try to learn– then take over my accounts? And how the heck do I do that? In regards to pulling money that he was managing and now manage it myself? I’m concerned my friend will be disappointed all well. Ugh. Would love some help.

            And any advice on the above allocation? He said the benefit of cash is “optionality to use when others are selling whenever we get into a cyclical downturn.” Thanks kindly WCI!!
            Click to expand…


            Alpine Capital Research (MQRIX): I’m not seeing what the 1.17% ER is for, too new to have any long-term data, does OK in its class (“Multialternative” is not a well-defined class anyway) but so far has poor upside/downside capture ratios per Morningstar (for what that’s worth).  It itself holds 45% cash and 20% int’l and was up 8.38% in the past 12 months, while the average balanced portfolio was up like 13% in the same interval (VTSAX was up 21.5%).

            IVA Worldwide (IVWCX): Another internally-diversified fund.  Hope you don’t have the C class (2% ER is awful, plus a load), 40% cash, 30% int’l, even 6% gold bullion.  Again, I find it very odd to have so much of the portfolio tied up in cash and internationals.  You seem way too young (2nd year in PP so I guessed) to limit your equity exposure so much.  This might be a better choice for a portfolio which needs greater stability and wants more international exposure, but I don’t see it as fitting into your needs.

            First Eagle Global Fund (FESGX): What’s with all the world-allocation funds?  This along with the prior two seem fairly redundant to one another.  It’s yet another loaded, high-fee (1.86% for C class), cash-heavy (20%) fund with 35% int’l and 6% gold bullion.  While those particular parameters can be very good for several people’s situations – Morningstar actually rates it very well for its category, given that its 10-yr return is 5.84%, 9th percentile in its World Allocation category and top-20% at 3 and 5 years – but the question is if anyone really needs this category in the first place, seeing as you should easily be able to recreate it with its constituent parts at a far lower cost with similar volatility and return.  Again, I question how appropriate this would be for your timeline, especially stacked on top of the other funds in the portfolio.

            AlphaCore Absolute Inst’l (GDAMX): This person really has a thing for “Multialternative” funds.  This one is shorted in currency and bonds to favor other cash (50%) and US stock (30%).  Compared to Morningstar’s moderate risk index, weak alpha (-5.72 at 3 years, -1.5 at 5 years) and weak Sharpe ratios (< 1), and higher volatility (beta > 1).  Its 8.6% 5-year return wouldn’t be horrible, but a basic 60/25/15 VTSAX/VTIAX/VBTLX and an auto-pilot target 2045 fund like VTIVX were both up 9.95% – never mind the increased fees (though the returns are reported after fees) and simplicity and the AUM fees to the advisor.

            Long story short: that portfolio is redundant, full of loaded high-cost funds with an asset allocation that is not fluid, too low in equities, and too high in cash.  You’re absolutely getting yourself into a trap, fitting into a portfolio which probably poorly reflects what your retirement investing needs are at this point, while you pay the loads and AUM fees.  You can easily re-create the allocation with 3 or 4 low-cost funds at any major brokerage (Fido, VG, Schwab, TD, Etrade, etc).

            Chunk the deuce.
            Click to expand...


            Very well written. Nice work.

            Comment


            • #21
              Being an old square had to urban dicionary chunk the deuce. Noice!

              Comment


              • #22







                I’m in my second year in PP. I have no current loans and have started to aggressively contribute to my 401K. I would love some help with our financial investor. My great friend gave us the name of her financial investor (AAMS, CFP). She’s very hush hush about him and doesn’t give it out often to “just anyone” so I guess I felt lucky. We just put in our first 401K contribution ($4500 monthly as we self match) and he send me an email with the following asset allocations suggestions:

                $2000 alpine capital research
                $800- IVA world wide fund
                $800 first eagle global fund
                $700 in alpha core absolute return
                $200 cash

                I’ve been reading WCI and now Physician on Fire aggressively and realize I’m getting myself into a trap with starting with a CFP rather than doing it myself (He charges 1%). So what do I do?? Change my mind and start doing in all myself? Stay with him for a year and try to learn– then take over my accounts? And how the heck do I do that? In regards to pulling money that he was managing and now manage it myself? I’m concerned my friend will be disappointed all well. Ugh. Would love some help.

                And any advice on the above allocation? He said the benefit of cash is “optionality to use when others are selling whenever we get into a cyclical downturn.” Thanks kindly WCI!!
                Click to expand…


                Alpine Capital Research (MQRIX): I’m not seeing what the 1.17% ER is for, too new to have any long-term data, does OK in its class (“Multialternative” is not a well-defined class anyway) but so far has poor upside/downside capture ratios per Morningstar (for what that’s worth).  It itself holds 45% cash and 20% int’l and was up 8.38% in the past 12 months, while the average balanced portfolio was up like 13% in the same interval (VTSAX was up 21.5%).

                IVA Worldwide (IVWCX): Another internally-diversified fund.  Hope you don’t have the C class (2% ER is awful, plus a load), 40% cash, 30% int’l, even 6% gold bullion.  Again, I find it very odd to have so much of the portfolio tied up in cash and internationals.  You seem way too young (2nd year in PP so I guessed) to limit your equity exposure so much.  This might be a better choice for a portfolio which needs greater stability and wants more international exposure, but I don’t see it as fitting into your needs.

                First Eagle Global Fund (FESGX): What’s with all the world-allocation funds?  This along with the prior two seem fairly redundant to one another.  It’s yet another loaded, high-fee (1.86% for C class), cash-heavy (20%) fund with 35% int’l and 6% gold bullion.  While those particular parameters can be very good for several people’s situations – Morningstar actually rates it very well for its category, given that its 10-yr return is 5.84%, 9th percentile in its World Allocation category and top-20% at 3 and 5 years – but the question is if anyone really needs this category in the first place, seeing as you should easily be able to recreate it with its constituent parts at a far lower cost with similar volatility and return.  Again, I question how appropriate this would be for your timeline, especially stacked on top of the other funds in the portfolio.

                AlphaCore Absolute Inst’l (GDAMX): This person really has a thing for “Multialternative” funds.  This one is shorted in currency and bonds to favor other cash (50%) and US stock (30%).  Compared to Morningstar’s moderate risk index, weak alpha (-5.72 at 3 years, -1.5 at 5 years) and weak Sharpe ratios (< 1), and higher volatility (beta > 1).  Its 8.6% 5-year return wouldn’t be horrible, but a basic 60/25/15 VTSAX/VTIAX/VBTLX and an auto-pilot target 2045 fund like VTIVX were both up 9.95% – never mind the increased fees (though the returns are reported after fees) and simplicity and the AUM fees to the advisor.

                Long story short: that portfolio is redundant, full of loaded high-cost funds with an asset allocation that is not fluid, too low in equities, and too high in cash.  You’re absolutely getting yourself into a trap, fitting into a portfolio which probably poorly reflects what your retirement investing needs are at this point, while you pay the loads and AUM fees.  You can easily re-create the allocation with 3 or 4 low-cost funds at any major brokerage (Fido, VG, Schwab, TD, Etrade, etc).

                Chunk the deuce.
                Click to expand...




                 

                nailed it.

                Comment


                • #23
                  Thanks for the awesome explanation DMFA. Chucking him today

                  Comment


                  • #24
                    Separate accounts to pick stocks and bonds are usually a bad idea. As are actively managed mutual funds. This is not an advisor I would accept as an advertiser on the site.
                    Helping those who wear the white coat get a fair shake on Wall Street since 2011

                    Comment

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