Does anyone have any experience with these managed investment portfolios? We currently have our money invested in a variety of mutual funds, some of which have fairly high expense ratios, and I'd like to move our money into something more tax efficient and with a lower cost.
My advisor keeps recommending these Research Portfolios, which are basically baskets of stocks in the usual investment categories - growth, income, capital preservation, ... - but the fee is still 1.19% per year, taken out of your account in monthly increments. Since it's a direct fee rather than a baked-into-the-performance fee, it's tax deductible, but only if it exceeds 2% of AGI and you're not subject to the AMT.
We've been talking about this for over a year, but somehow I can't bring myself to sign on the dotted line because when you actually see the fee coming out of your account, it feels more like a tax. He put together numbers that show the performance over the past 10 years net of fees compared to our mutual fund investments, and it outperformed them overall, but I can't help but wonder if we wouldn't be better off with low cost ETFs through the likes of Fidelity or Vanguard. I just hate to have to upset all of the conveniences - we have 4 different accounts at ML (CMA, IRA, SEP, 529), an untapped HELOC, credit card, checks, and bill pay - and we've been with our advisor for around 16 years.
Is 1.19% a reasonable cost for professionally managed funds? I've read many of the articles about the long-term impact of fees, and I'm concerned that we're overpaying, but don't know how to extricate myself at this point.
Okay, how about this simple question: Does anyone use Fidelity for cash management, investments, and retirement funds, and are you happy with the performance and service?
jasper said:Okay, how about this simple question: Does anyone use Fidelity for cash management, investments, and retirement funds, and are you happy with the performance and service?
I have the utmost trust and confidence in Fidelity. If you haven't looked at their website, I suggest that you do so to see what services they provide. You can also call the number provided to find out information from a representative.
eta - I have manged my portfolio for years and years, and have recently turned over a small part of it to Fidelity to manage. I am of an age where I want to be sure that when I'm no longer around, there is someone I trust and have confidence in to mange it.
I have had a Fidelity Brokerage account for years. Maybe 30% of my portfolio I manage myself.......all in sector funds,
pharmaceuticals , transportation, health care etc. The balance I have given over to them for management.
They buy and sell independently. Before you get involved they question you extensively for your risk tolerance.
Of course that varies from extremely conservative to swing for the fences. That can be changed at any
time. They design a portfolio tailored to your risk tolerance. I draw monies from there monthly to supplement
by retirement funds. They are extremely efficient and I find everyone knowledgeable in money handling .As
I am approaching 70 and a half I need talk to them soon about required with drawls from what is a managed IRA
to satisfy government requirements. I recommend
Thanks, cramer. I have looked at it briefly, but do you work with any particular Fidelity office/person, or do you just do everything online?
I've become accustomed to having a personal financial advisor that I can call with questions or to go over our "plan", but I feel like we're paying too much in expense ratios and his suggestions simply move our money into other vehicles with perhaps slightly better fees but still on the high side.
Thanks, author. Do you work with one person in particular, or do you just call the 800 number and get who you get?
jasper - I do have a representative in the Millburn office who I can discuss my portfolio with and ask for suggestions at any time (by phone or in person, having set up a time.) He is great, and Mrs. C and I feel that we're in good hands. I don't meet with him or talk with him that much, probably once a year. If I haven't been in touch with him for a while, he will call just to touch base, but as I said, I know that he is there if I want to discuss something with him.
Thanks, cramer. PM'ed you.
We have several accounts with Fidelity and overall have been quite pleased. While we haven't used the Millburn office that much they are always professional and helped me with some complex options issues with a previous employer. We are satisfied with the online trading platform.
In contrast, I haven't been to the Schwab office in awhile, but I hated dealing with that office. They weren't that friendly or helpful even for the simplest request. Where the Fidelity office always asks "how else can I help you.", I always feel like the Schwab office wants to say "ok, now go away."
krnl - I feel exactly the same way about the Schwab Millburn office. We had accounts with Schwab for many, many years, but they were opened at another branch. We transferred all the Schwab accounts to Fidelity earlier this year, where we had accounts for many years as well. The people at the front in the Schwab Millburn office are really a turn-off.
jasper said:Thanks, author. Do you work with one person in particular, or do you just call the 800 number and get who you get?
Theoretically I have a brokerage person assigned me. But I have never had any major inquiry or problem so
I simply call in and they quickly assign a knowledgeable person. Always been satisfied with their guidance.
Vanguard is also a fine company but they have no office closer than King of Prussia Pa if you want face to face
time. Their customer service on the phone never impressed me
jasper: how did it turn out?
author said: jasper said:Thanks, author. Do you work with one person in particular, or do you just call the 800 number and get who you get? Theoretically I have a brokerage person assigned me. But I have never had any major inquiry or problem soI simply call in and they quickly assign a knowledgeable person. Always been satisfied with their guidance.Vanguard is also a fine company but they have no office closer than King of Prussia Pa if you want face to facetime. Their customer service on the phone never impressed me
For the first time I gave a call to my brokerage account rep a few days ago
Needed two questions asked and to execute a rather large trade
Both questions answered to my satisfaction ............was transferred to what was probably the trading desk
to execute the monetary transaction. Everything proceeded smoothly
My bank confirmed the arrival of my funds through electronic transfer today.
Oh and while on the line with them they walked me through the procedure necessary to move some monies from
one particular Fidelity fund to my checking account. Can now do the reverse process easily when need be
I am sure a simple procedure for most but it saves a physically moving cash around myself
I recommend Fidelity Investments for your brokerage needs.
Thanks, author, for that update.
dickf3, I haven't done anything yet. About a week after I last posted on this, I lost my job, and that threw everything up in the air. I decided that I needed to hold tight while I get my ducks in a row. Meanwhile, all the capital gains distributions from the mutual funds landed in my account, so I'll once again have to suck up the taxes on that money, but it doesn't seem to be quite as bad as last year.
It has occurred to me that the money I have in my 401K would be a good testing ground for opening an account at Fidelity rather than just bundling it into my SEP account at ML, which is what I otherwise would have done. Now that I have a little bit of extra time until I find a new job, I'm going to try to make a visit to the Fidelity office in Millburn just to see what they have to offer, and then I'll decide. I'll try to report back once that happens.
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