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Just hired financial advisor. One question for the brain trust.

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Just hired financial advisor. One question for the brain trust.

Old 10-19-2020, 08:30 AM
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Default Just hired financial advisor. One question for the brain trust.

Hello all,
My wife and I just started working with a local financial advisor here in our area. We researched and interviewed 4 different firms and finally landed on one. We're both 33 and have a moderately aggressive to aggressive tolerance to our investment options.

My question for the group is relating to the below funds. My advisor is suggesting the following:

ESGU iShares ESG Aware MSCI USA ETF 9.97% - - 13.11% 12/1/16 - 1.46% -
IJR iShares Core S&P Small-Cap ETF -11.26% 4.47% 11.21% 8.63% 5/22/00 - 1.78% -
ITOT iShares Core S&P Total US Stock Mkt ETF 6.40% 10.18% 13.67% 8.41% 1/20/04 - 1.59% -
IVV iShares Core S&P 500 ETF 7.47% 10.69% 13.92% 5.83% 5/15/00 - 1.65% -
QUAL iShares MSCI USA Quality Factor ETF 6.70% 10.77% - 11.75% 7/16/13 - 1.42% -
VEA Vanguard FTSE Developed Markets ETF -4.26% 2.48% 6.10% 1.11% 7/20/07 - - -
VO Vanguard Mid-Cap ETF -0.21% 6.99% 12.47% 8.99% 1/26/04 1.44% 1.44% -
VWO Vanguard FTSE Emerging Markets ETF -2.89% 2.18% 3.15% 5.64% 3/4/05 - - -


How do you all feel about the above mix? I'm not really understanding the VEA/VWO mix as they historically haven't been great performers. What say you?
Old 10-19-2020, 08:54 AM
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I say you need to get your ducks in a row. Hire a FA and then ask THT members to advise you on what to buy? Choose one or the other, us or him.
Old 10-19-2020, 08:58 AM
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Agree. If you are coming here for advice on your advisors picks you have no confidence in your advisor.
Old 10-19-2020, 08:59 AM
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I would apply this theory......has worked for m.h e since 1991..
187▪︎\_`69.0¥÷□€4.77£8.¥88.33¥~12}>55<3.9*
With existential variability .
Old 10-19-2020, 09:29 AM
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If your new financial advisor is any good, I expect his first bit of advice would be to not seek financial advice on a boating forum.
Old 10-19-2020, 09:32 AM
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Originally Posted by scubayachts13 View Post
Hello all,
My wife and I just started working with a local financial advisor here in our area. We researched and interviewed 4 different firms and finally landed on one. We're both 33 and have a moderately aggressive to aggressive tolerance to our investment options.

....

How do you all feel about the above mix? I'm not really understanding the VEA/VWO mix as they historically haven't been great performers. What say you?

That's a great question for your FA --- they should be able to explain why they chose what the chose. Ask tons of questions and don't stop until you're satisfied. If they are worth their salt...they should be delighted to work with you and answer your questions. If not....move on.
Old 10-19-2020, 09:38 AM
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Having no insight into your Monthly income, net worth, amount already saved in retirement, Any future large purchases like a home or second home, year you desire to retire, expenses or if you have kids or any other dependents now or in the future you will need to care for I say the choices look great!

Your advisor will do a much better job than even the most knowledgeable THT‘er since they have personal information about you we do not.

Personally I pay my guy to run a portfolio of individual stocks and bonds. If he starts buying funds I’ll fire his ass. Not paying two management fee’s.
Old 10-19-2020, 09:39 AM
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Past success is no indication of future performance...and vice versa.

Far as the advisor...if you go that route you need to make sure you understand perhaps the most important aspect...fees. They'll steal a shockingly high amount of your returns, especially over the ~30 years you'll be investing.
Old 10-19-2020, 09:39 AM
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Non snarky answer.
4 of your first 5 are very heavy on FAANG stocks.

I would ask two questions.
1 too much FAANG exposure / enough diversification?
2 why all the ETFs over standard mutual funds?
Old 10-19-2020, 10:27 AM
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Those are all generic basic investments.

You can get similar suggestions for free from a robot advisor from schwab or somewhere else.
Old 10-19-2020, 10:30 AM
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"THT Brain Trust" is a fallacy!!!
Old 10-19-2020, 10:33 AM
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Originally Posted by olyveoil View Post
Non snarky answer.
4 of your first 5 are very heavy on FAANG stocks.

I would ask two questions.
1 too much FAANG exposure / enough diversification?
2 why all the ETFs over standard mutual funds?
Why the ETFs.. Because they pay your advisor more money.. You need to learn to do this yourself.. If you're paying your advisor an average of 1.5% over the next 30 years you're loosing 45% in returns
Old 10-19-2020, 10:34 AM
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Originally Posted by amofgreenville View Post
Why the ETFs.. Because they pay your advisor more money.. You need to learn to do this yourself.. If you're paying your advisor an average of 1.5% over the next 30 years you're loosing 45% in returns
Listen to this man.
Old 10-19-2020, 10:39 AM
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I would ask all of your questions directly to your Advisor. If he has a reason for his choices I'm sure he won't mind sharing with you. Too many people sit with their advisor and never ask any questions.
Old 10-19-2020, 10:45 AM
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Originally Posted by Sixstring View Post
Those are all generic basic investments.

You can get similar suggestions for free from a robot advisor from schwab or somewhere else.
good point.
Question #3 for your FA.
What are your fees? Based on assets under advisement or based on my (your) returns relative to overall market?
Old 10-19-2020, 10:47 AM
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OP...

Not sure why your getting all these arrogant responses, Monday maybe. I think your question is very valid and shows your doing your due diligence and double checking everything. There are many great folks here who will hopefully chime in with a recommendation, and/or "pm" sent to you with their opinion and advise. Like mentioned above, wayyyyyyy to many folks sit with advisors and never ask questions, your ahead of a lot of folks, and IMO are doing exactly what your supposed to do.

Never mind the old hags here.
Old 10-19-2020, 10:49 AM
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I think u took a good course of action with a F/A. Your fairly young so aggressive is fine.

most important is to monitor results semi annually with major index funds and see how u are doing vs the market. Remember someone is always doing better and then stops calling when they don’t , decide what u are happy with.

one good six month result does not mean u shouldn’t keep checking. Things are always changing In investment advisory world and it ultimately it’s on u on the investment positions

some people say check more or less frequently but remember u have time

if the F/A is constantly moving the funds I would monitor more frequently. For long term you can’t be on a yo yo.

good luck





Old 10-19-2020, 10:50 AM
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Originally Posted by spraynet 1 View Post
OP...

Not sure why your getting all these arrogant responses, Monday maybe. I think your question is very valid and shows your doing your due diligence and double checking everything. There are many great folks here who will hopefully chime in with a recommendation, and/or "pm" sent to you with their opinion and advise. Like mentioned above, wayyyyyyy to many folks sit with advisors and never ask questions, your ahead of a lot of folks, and IMO are doing exactly what your supposed to do.

Never mind the old hags here.
Agreed no stupid questions . Did you already invest? Because I expect a Big Dip in two weeks.
Old 10-19-2020, 10:56 AM
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One of the great paradoxes in the financial services industry: by the time you learn what questions you should ask your advisor...you no longer need an advisor.

OP, if you go to something like porfoliovisualizer.com you can back-test various porfolios. I have no idea how he or she is weighting your ETF's (is each of the 8 an equal proportion, eg, 12.5% of the total?), but assuming so, over the last 5 years your performance would be comparable to a simple 2050 target date retirement fund like the Vanguard VFIFX.
Not counting the management fee.

If you're hiring him to manage a tax-advantaged retirement account, the question you should be able to answer: what value is the advisor bringing to the table vs. investing in a target date, or handful of low-cost index funds?
Old 10-19-2020, 10:58 AM
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Paying a financial advisor to assemble a portfolio of ETFs is really a waste of money.

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