I keep running into sources that tell me I dont understand what investment advisors are doing for me.
I "get" what they do. They keep non-BH people from losing their hard earned fortunes by not allowing them to make their own decisions. Maybe I am one of those people. Probably am.
I have a large amount with a registered investment advisor that in 2024 has charged me 0.75% for a YTD return of 16.9% in a year that the S&P did 27.19%
I am middle aged, and have won. Ultra-high income on top of an eight digit net worth. I have seven digits with the AUM and eight overall. I have a separate account that I manage thats just 4.5%ish money market due to the fact that we are shopping for a new ranch residence.
I have read the BH Guide. Have Jacks book. Read here frequently, and KNOW that I have all the biases that make people like me dangerous.
However..........how much underperformance is too much. The difference between my AUM performance and, say VOO's performance, is like 3/4 of a million dollars not earned YTD. Drives me nuts to see that I failed to earn what ANYONE would have if I had just parked everything in a low cost index fund and forgotten about it
I wake up every day, look at markets, and all I see is what I "lost" by having these advisors.
Hope its ok for me to throw such a generalized question out there. I know the BH community will be HEAVILY slanted in their opinions, but some people here do have managed funds, so I am hoping to have a fair opinion of "how much underperformance is too much"...
Thanks all......
I "get" what they do. They keep non-BH people from losing their hard earned fortunes by not allowing them to make their own decisions. Maybe I am one of those people. Probably am.
I have a large amount with a registered investment advisor that in 2024 has charged me 0.75% for a YTD return of 16.9% in a year that the S&P did 27.19%
I am middle aged, and have won. Ultra-high income on top of an eight digit net worth. I have seven digits with the AUM and eight overall. I have a separate account that I manage thats just 4.5%ish money market due to the fact that we are shopping for a new ranch residence.
I have read the BH Guide. Have Jacks book. Read here frequently, and KNOW that I have all the biases that make people like me dangerous.
However..........how much underperformance is too much. The difference between my AUM performance and, say VOO's performance, is like 3/4 of a million dollars not earned YTD. Drives me nuts to see that I failed to earn what ANYONE would have if I had just parked everything in a low cost index fund and forgotten about it
I wake up every day, look at markets, and all I see is what I "lost" by having these advisors.
Hope its ok for me to throw such a generalized question out there. I know the BH community will be HEAVILY slanted in their opinions, but some people here do have managed funds, so I am hoping to have a fair opinion of "how much underperformance is too much"...
Thanks all......
Statistics: Posted by Front Toward Enemy — Mon Dec 02, 2024 8:04 am — Replies 23 — Views 462