I recently let my financial planner go.

I recently let my financial planner go.
by Jellyfinger (2019-03-18 13:12:16)

In reply to: Choosing a financial planner. posted by JWIrish

He had me in 5 different mutual funds over the course of the past 8-9 years and made very few changes over those years. ~ yearly I would wire him another lump of cash to invest. He would regularly ask for more. I finally let him go when I realized that over the time he was with me, when the Dow had exploded, my portfolio had not kept pace with the index funds. It wasn't terrible, but I beat it with the few index funds I keep in a TD Ameritrade account. When I voiced my displeasure, his response was "Well I thought you wanted a conservative approach. With my higher wealth clients I can be more agressive and get higher returns...blah blah." Nice guy, but I came to the conclusion he didn't know much more than I do, which ain't much.

My guess is that a good tax advisor is as or more valuable.

Replies:

be careful - jt 2019-03-18 13:17:22
First sign of worry: mutual funds * - airborneirish 2019-03-18 13:14:05
- What would that cause worry? * - rflor 2019-03-18 13:22:37
  - Because they under-perform index funds? - NavyJoe 2019-03-18 15:20:13
    - the goal of every mutual fund is to outperform the index? - jt 2019-03-18 17:55:08
      - I understand that - NavyJoe 2019-03-18 18:48:04
        okay, but many can also scoff at index funds - jt 2019-03-18 20:45:49
    - 100% of mutual funds underperform index funds? - rflor 2019-03-18 15:50:09
      - For the horizon of any investor building for retirement yes - airborneirish 2019-03-18 16:40:49
        As JT describes below, good money management - rflor 2019-03-18 19:19:00
        "mutual funds" is just an overused term that can lead to - jt 2019-03-18 18:02:43
      - A sobering perspective of Actively Managed Funds linked (link) - NavyJoe 2019-03-18 16:09:09
        not all investors have the ability/desire - jt 2019-03-18 17:59:45
        I absolutely cede to your knowledge of this industry - NavyJoe 2019-03-18 18:52:45
        it's an industry thing - jt 2019-03-18 20:43:29