Rant: Fidelity Managed Portfolio

[ffd213]

@bestillandknow313 It sounds like you have a reasonably well-diversified portfolio, but have strong opinions about your personal investment philosophy and how your money should be managed.

If your investment philosophy will never align with theirs, you should manage your own money and hold yourself accountable for any performance or risk issues. I would not invest my money in the way you suggest. However, that’s my prerogative and I don’t know anything about your finances.

For reference, Vanguard’s STAR fund (moderate risk, actively managed) is up 6.08% YTD and their index based equivalent Vanguard LifeStrategy Moderate is up 5.56% YTD.

 

[alsett]

@bestillandknow313 If you’d do better picking your own ETFs just do it. Chill out OP, you don’t get rich overnight.

You want some hard advice: figure out how to manage your own money. If you can do that, then don’t complain about a service you decided to pay for.

 

[chiropracticcenter]

@bestillandknow313 There is never a good time to pay 0.45% management fees! While not 1%, that’s still pretty massive over the long term.

Stop letting your nestegg bleed with compounding expenses! Paying “less” is more in the world of investing. Just set up auto invest in low cost index funds! See Fidelity’s zero expense index funds.

 

[thelordismyshepard123]

@bestillandknow313 What I would do is to transfer everything to a self-made portfolio, as much simple as possible, with a broker account. Financial advisors are basically a rip-off

 

[smiddy10]

@bestillandknow313 Based on this, it sounds like they are buying stuff that’s down ie. Emerging markets and foreign stocks. In theory, you want to buy stuff that’s low, not stuff that’s really high, like the S&P and tech. Those underperformed during the structural bear market between 2000-2009. Emerging markets have major upside potential in the long run and will remain low as the USD remains strong. Seems pretty prudent to me, depending on what the time frame is on your retirement.

 

[sparker]

@bestillandknow313 Do you have a money manager putting you in managed funds at the same company? Do you get hit with double expenses?

The 1 year and YTD aren't terrible.

 

[resjudicata]

@bestillandknow313 Professional investors know: diversification means always needing to apologize for something (in your portfolio)

If you’re this mad about it - you don’t know what you’re doing and I’d venture to guess they’ll earn back your 45bps/yr in fees if you listen to them (based purely on behavioral alpha)

 

[gasol]

@bestillandknow313 this has to be a troll post

 

[gavinb]

@bestillandknow313 I have a hunch that when EM takes off and leaves S&P in the dust at some point (not making predictions), OP will complain that their portfolio doesn’t have any EM.

Successful sectors rotate constantly and that’s the point of a diversified portfolio.

 

[stephaniel988]

@bestillandknow313 Dude, just ITOT and chill.

 

[baruch_atah]

@bestillandknow313 Yes, ditch the account management immediately.

 

[kidkaos2]

@bestillandknow313 Who manages your portfolio?

 

[sofialo09]

@bestillandknow313 The switch is a good idea. Investing in China now is extremely problematic.

 

[antimatter]

@bestillandknow313 Ditch the account management, just waste of money. They have been calling me every week for past 6 months to talk to one of their advisors SMH. Fidelity has great analysis tools-just use them (I use starmine rating, to figure which companies have decent choice) and get on with it. I manage to keep up with the market, saves wasting money on management fees.

 

[hocdmonster]

@bestillandknow313 I suggest vanguard and if you use Fidelity’s you pick your own etfs and funds to invest in.

 

[ssam3099]

@bestillandknow313 To be fair, all stocks have gone down in general.
The risk level means many boring stocks and bonds.
Emerging markets is a good idea Indra the value of the dollar lowers. But since it hasn’t well, things are bad All around while the fed tries to suck up all that extra cash out the system.

All of the managed accounts have diversified portfolio. Bonds, boring stocks , reit and big mutual funds and some stocks.
The VOO vti thing will work if stocks go up. They will eventually but if the fed now is increasing rates then you are fighting the fed. And therefore the fed wants you to loose some of that extra cash.

You can also diversify your own portfolio. Take out some cash and open your own account and do the vti/VOO thing. The minimum is like $50-100k for managed portfolio so you could take out 200k and use it for your own picks. Fidelity had the same funds as vanguard. They have their own version of those funds for the same price. They perform about the same.

 

[heterosaxual]

@bestillandknow313 Fidelity's "professionally managed portfolios" are a joke. They had one of my retirement accounts spread across 27 funds before I took control of it and boggleheaded it down to 3. There's no reason for so many funds, except the fees they can collect.

 

[bestillandknow313]

@heterosaxual YES. That’s what I mean. Even the returns I’m getting are bullshit when you tack the management fee onto the fund fees. I’m taking your same approach