Quote:
Originally Posted by DETRoadster
Quote:
Originally Posted by Matt@EuroJerks
I am in the business. My opinion is that it's more beneficial to give them most if not all and let them work for you. It will be more advantageous to your total cost (more assets, better rates, and ability to leverage management to reduce fees) as well as value added they can provide because they see the whole picture. If they are worth their weight they will provide a total financial plan that you are comfortable with as well as legacy planning for your kids (insurance and trusts). I find when you have different brokers then you have too much overlap and get hurt in the down times.
Just a thought.  |
Good points there. Thank you!
I discovered that what I thought was an annuity (as sold by my last broker) is nothing more than an unmanaged fund with a mix of equities and bonds. A "set it and forget it" sort of deal. Shame on me for not being more involved and trusting him. The good news is that I dont need a broker to make any changes I want. i can move some or all of the funds into any of their 200 or so accounts. They offer access to some Vanguard funds that look pretty good.
I hear you though on the idea of keeping the funds under one roof so that they can manage my who portfolio, leverage buying power, and get discounted fees. I just dropped into a lower fee structure with Baird so I have a loooong way to go till the next break.
Did some research on structured investments. So it kinda sounds too good to be true. What' the downside or risk? Why doesn't everyone do these? |
- issuer default risk
- fees
- not tax efficient
- usually have caps on max gain %
Having a well diversified portfolio is more beneficial over the long term. The only free lunch in finance is diversification.
For a typical investor it makes more sense to have 1 portfolio manager. They will be able to manage assets more effectively and be able to offer different products depending on the portfolio size (separately managed account, alternatives...). You will save some money on fees as many have a tiered fee schedule.