| Is my portfolio being mis-managed? |
|
|
|
|
|
Shirley G
New Member
Cash: $ 0.65
Posts: 3
Joined: 11 Jan 2015
Location: Venus, Tx
|
| Is my portfolio being mis-managed? |
 |
|
I have lost 72k in the last 4 years with a wealth management wrap account. I am now below my starting capital. With the stock market booming, I just don't understand my losses. It seems to be balanced well, with cash, bonds and equities, however, I would like to take over and do it all myself. I am 66 yrs old, retired and in good health. I don't understand why I should pay management fees for them to lose money for me. Am I naive?
|
Sun Jan 11, 2015 9:58 pm |
|
|
oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
|
quote:
lost 72k in the last 4 years with a wealth management wrap account.
Yeah, that's a pretty nasty performance - the stock market average grew by 85% over the last 4 years, so, as you point out, it would be hard to lose money there. And the bond funds that we have went up in that time. And cash just sits there - but it doesn't go down $72k.
I would sell out and move the money to a no-load fund company, Fidelity and Vanguard are the two major providers. You could invest about 50%/50% stocks/bonds. Use the SP500 Index Fund for the 50% stocks - and a GNMA bond fund for the bonds.
Over my many many years, I've noticed that when sales-folks have a real turkey to sell, they give it a cutesy name:
Fair Tax sounds better than 'huge federal sales tax'.
'Sliders' sound better than little bitty burgers.
'Pro-choice' sounds better than pro-abortion.
And 'wrap' sounds snappier than 'big management fee'.
At least you'll have a tax loss for 2015. 
|
|
Mon Jan 12, 2015 12:33 am |
|
|
Shirley G
New Member
Cash: $ 0.65
Posts: 3
Joined: 11 Jan 2015
Location: Venus, Tx
|
| Get out of a wrap account |
|
|
One of my accounts is an IRA the other is a POD. I have no clue how to get out and go to Vanguard or Fidelity. I guess I need a book for dummies! Do I call Vanguard and talk to someone there, and they do the paperwork for me?
|
|
Mon Jan 12, 2015 4:58 pm |
|
|
oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
|
I would start by calling the 800 number of either Vanguard or Fidelity, they will open 2 new accounts for you, and IRA & a brokerage account, (and assign the beneficiary for you - POD). Then they will pull your old accounts from the current brokers (they'll ask you to sign the authorizations).
You didn't say - but I'm guessing that you have the accounts in a bank? If so, don't do that again - banks are good for banking - checking & savings - but not very good at investing, They deal in high-fee, annuity-like funds, and use their 'trusted status' to sell to the elderly.
google "wrap accounts", you will see some recent SEC investigations, inappropriate selling techniques.
|
|
Mon Jan 12, 2015 7:06 pm |
|
|
Shirley G
New Member
Cash: $ 0.65
Posts: 3
Joined: 11 Jan 2015
Location: Venus, Tx
|
| Investment help |
|
|
Thanks so much for your help. I feel like I'm groping in the dark!
|
|
Mon Jan 12, 2015 10:26 pm |
|
|
|
