I am not someone who gets bent out of shape by having more than three or four funds. That said, nobody can really look at that list and know your allocation, and that is something you should know. I mean, do you know what percent of the equities overall is international? Or what the approximate duration is on your fixed income? You'd really have to look up some of those balanced funds to be able to know, or is a breakdown provided to you?Our plan is managed by a Financial Advisor with AUM fee of 0.5%.
The portfolio is approximately 60% Equities and 40% Fixed Income. In addition, we have a small portion of the portfolio tied to buffered notes.
In terms of reasonable, sure you are diversified. I guess the advisor needs something to do for the AUM fee.
In terms of performance, it's difficult to benchmark against the Vanguard Lifecycle Moderate Growth Index Fund without knowing more. For instance, the last 5 years have seen US outperform Intl (until recently), and bonds suffer from rising rates. I mean did your portfolio do relatively poorly due to a longer duration in fixed income or higher allocation to international? Or did it have a value tilt that hasn't done as well in that time?
My concern would be that you convince the group to make a change in tactics, only to find the holdings you had started to do well. If you do have that converstation, I would be sure you know 1) what your exposure really is 2) if there is a cheaper way to get that exposure and 3) what exposure the group wants.
My guess is that performance beat the market (before costs) by having a shorter duration. You really might not be able to get much better returns unless you ditch the advisor, get cheaper funds, or happen to stumble into a better allocation that just happens to hit the mark. Some will want an active hand on the wheel just in case something needs/can be done to react (good luck with that but many do feel that way). Finding an allocation everyone can agree sticking to may not be so easy. I mean if tariffs choke the US economy, won't some expect this or that to be changed? Personally, I am just staying the course no matter which way the river bends but that probably isn't everyone's inclination.
So I vote the plan is reasonable, and I think you would have a difficult time to convince people it isn't. It's certainly not as desirable as could be.
Statistics: Posted by typical.investor — Mon Mar 03, 2025 11:02 pm