advice for me…

[socalarm]

Hi, I credit piggington for helping me learn about the housing market. I sold my house in LA in ’06, and have been a happy renter since. I have however made one ‘error’ since. Till June this year, I’d parked my cash with ING and didn’t want to touch any risky investments until the outlook became clearer. By June however, I succumbed to the notion that the market wasn’t tumbling quite yet. Through a financial advisor at Morgan Stanley I invested in a combination of equity and bond funds. I know it’s only been 6 months, but so far I’m down 5% (and dwindling steadily). When I mentioned I wanted to be very conservative, he recommended I diversify into currency funds as well. My portfolio now stands at about 40% equity funds, 40% bond funds, 20% currency funds. I’m definitely not an expert and I don’t want to tell him how to do his job, but I’m quite stressed about the whole idea now. I don’t need this money for income but I also don’t want to watch my savings dwindle. Thanks in advance !

[stansd]

That doesn’t strike me as a conservative portfolio. Depending on how soon you think you may need the money, 40% equity may be aggressive. The mix of the bond fund is also important as well. If it’s longer term maturities (look at the duration of the fund-if it’s more than a couple years, it’s fairly risky for someone that may need the dough soon), or a fund that invests in anything except T-bills, you may have risk there.

The currency fund may not be a terrible idea if it’s a bet against the dollar (the assumption being if the dollar does well, your other funds will do well also, but if the dollar does poorly, your equities are likely to do poorly so you are a bit more hedged). That said, I have trouble seeing a conservative portfolio that includes a currency fund.

Is your advisor earning any fees on these funds (look for the front or back end load and the expense ratio)? If any of those are more than 1%, you’ve been taken for a ride in my mind.

Hard to say without more info, but the early indicators aren’t good to me that you have been given good advice.

Stan

[socalarm]

thanks for the responses. i will have to check the details, but last i checked, my advisor wasn’t paid fees on the funds. he is paid an annual fee.
the bond funds are a mix of short term treasuries, except one high-yield fund which i’m uncomfortable with. when i told him so, he said (his explanation as i understood it) – a lot of high yield corporate bonds got hammered because of the sub-prime fiasco since nobody wanted to touch any high yield bonds. however, a lot of these are AAA (again, his words) so short term panic is making good bonds appear worse than they are because of the taint.
i hope i’ve conveyed what he said with some sense. apologize if this explanation amounts to garbage…

[moneymaker]

How about a money market account,currently paying 4-5 %,FDIC insured,can access it any time.Not a money market fund though that is different I believe.

[moneymaker]

How about a money market account,currently paying 4-5 %,FDIC insured,can access it any time.Not a money market fund though that is different I believe.

[moneymaker]

How about a money market account,currently paying 4-5 %,FDIC insured,can access it any time.Not a money market fund though that is different I believe.

[moneymaker]

How about a money market account,currently paying 4-5 %,FDIC insured,can access it any time.Not a money market fund though that is different I believe.

[moneymaker]

How about a money market account,currently paying 4-5 %,FDIC insured,can access it any time.Not a money market fund though that is different I believe.

[socalarm]

thanks for the responses. i will have to check the details, but last i checked, my advisor wasn’t paid fees on the funds. he is paid an annual fee.
the bond funds are a mix of short term treasuries, except one high-yield fund which i’m uncomfortable with. when i told him so, he said (his explanation as i understood it) – a lot of high yield corporate bonds got hammered because of the sub-prime fiasco since nobody wanted to touch any high yield bonds. however, a lot of these are AAA (again, his words) so short term panic is making good bonds appear worse than they are because of the taint.
i hope i’ve conveyed what he said with some sense. apologize if this explanation amounts to garbage…

[socalarm]

thanks for the responses. i will have to check the details, but last i checked, my advisor wasn’t paid fees on the funds. he is paid an annual fee.
the bond funds are a mix of short term treasuries, except one high-yield fund which i’m uncomfortable with. when i told him so, he said (his explanation as i understood it) – a lot of high yield corporate bonds got hammered because of the sub-prime fiasco since nobody wanted to touch any high yield bonds. however, a lot of these are AAA (again, his words) so short term panic is making good bonds appear worse than they are because of the taint.
i hope i’ve conveyed what he said with some sense. apologize if this explanation amounts to garbage…

[socalarm]

thanks for the responses. i will have to check the details, but last i checked, my advisor wasn’t paid fees on the funds. he is paid an annual fee.
the bond funds are a mix of short term treasuries, except one high-yield fund which i’m uncomfortable with. when i told him so, he said (his explanation as i understood it) – a lot of high yield corporate bonds got hammered because of the sub-prime fiasco since nobody wanted to touch any high yield bonds. however, a lot of these are AAA (again, his words) so short term panic is making good bonds appear worse than they are because of the taint.
i hope i’ve conveyed what he said with some sense. apologize if this explanation amounts to garbage…

[socalarm]

thanks for the responses. i will have to check the details, but last i checked, my advisor wasn’t paid fees on the funds. he is paid an annual fee.
the bond funds are a mix of short term treasuries, except one high-yield fund which i’m uncomfortable with. when i told him so, he said (his explanation as i understood it) – a lot of high yield corporate bonds got hammered because of the sub-prime fiasco since nobody wanted to touch any high yield bonds. however, a lot of these are AAA (again, his words) so short term panic is making good bonds appear worse than they are because of the taint.
i hope i’ve conveyed what he said with some sense. apologize if this explanation amounts to garbage…

[stansd]

That doesn’t strike me as a conservative portfolio. Depending on how soon you think you may need the money, 40% equity may be aggressive. The mix of the bond fund is also important as well. If it’s longer term maturities (look at the duration of the fund-if it’s more than a couple years, it’s fairly risky for someone that may need the dough soon), or a fund that invests in anything except T-bills, you may have risk there.

The currency fund may not be a terrible idea if it’s a bet against the dollar (the assumption being if the dollar does well, your other funds will do well also, but if the dollar does poorly, your equities are likely to do poorly so you are a bit more hedged). That said, I have trouble seeing a conservative portfolio that includes a currency fund.

Is your advisor earning any fees on these funds (look for the front or back end load and the expense ratio)? If any of those are more than 1%, you’ve been taken for a ride in my mind.

Hard to say without more info, but the early indicators aren’t good to me that you have been given good advice.

Stan

[stansd]

That doesn’t strike me as a conservative portfolio. Depending on how soon you think you may need the money, 40% equity may be aggressive. The mix of the bond fund is also important as well. If it’s longer term maturities (look at the duration of the fund-if it’s more than a couple years, it’s fairly risky for someone that may need the dough soon), or a fund that invests in anything except T-bills, you may have risk there.

The currency fund may not be a terrible idea if it’s a bet against the dollar (the assumption being if the dollar does well, your other funds will do well also, but if the dollar does poorly, your equities are likely to do poorly so you are a bit more hedged). That said, I have trouble seeing a conservative portfolio that includes a currency fund.

Is your advisor earning any fees on these funds (look for the front or back end load and the expense ratio)? If any of those are more than 1%, you’ve been taken for a ride in my mind.

Hard to say without more info, but the early indicators aren’t good to me that you have been given good advice.

Stan

[stansd]

That doesn’t strike me as a conservative portfolio. Depending on how soon you think you may need the money, 40% equity may be aggressive. The mix of the bond fund is also important as well. If it’s longer term maturities (look at the duration of the fund-if it’s more than a couple years, it’s fairly risky for someone that may need the dough soon), or a fund that invests in anything except T-bills, you may have risk there.

The currency fund may not be a terrible idea if it’s a bet against the dollar (the assumption being if the dollar does well, your other funds will do well also, but if the dollar does poorly, your equities are likely to do poorly so you are a bit more hedged). That said, I have trouble seeing a conservative portfolio that includes a currency fund.

Is your advisor earning any fees on these funds (look for the front or back end load and the expense ratio)? If any of those are more than 1%, you’ve been taken for a ride in my mind.

Hard to say without more info, but the early indicators aren’t good to me that you have been given good advice.

Stan

[stansd]

That doesn’t strike me as a conservative portfolio. Depending on how soon you think you may need the money, 40% equity may be aggressive. The mix of the bond fund is also important as well. If it’s longer term maturities (look at the duration of the fund-if it’s more than a couple years, it’s fairly risky for someone that may need the dough soon), or a fund that invests in anything except T-bills, you may have risk there.

The currency fund may not be a terrible idea if it’s a bet against the dollar (the assumption being if the dollar does well, your other funds will do well also, but if the dollar does poorly, your equities are likely to do poorly so you are a bit more hedged). That said, I have trouble seeing a conservative portfolio that includes a currency fund.

Is your advisor earning any fees on these funds (look for the front or back end load and the expense ratio)? If any of those are more than 1%, you’ve been taken for a ride in my mind.

Hard to say without more info, but the early indicators aren’t good to me that you have been given good advice.

Stan

[mrwrong]

I’m not qualified to give financial advice, but if you trust your financial advisor, I will suggest you to talk to this guy about exactly what you are uneasy about your portfolio and see if he can do anything to make you comfortable again. Investment involves risks and everyone’s risk tolerance is different. It is important that your asset allocation reflects that.

Mr. Wrong

[mrwrong]

I’m not qualified to give financial advice, but if you trust your financial advisor, I will suggest you to talk to this guy about exactly what you are uneasy about your portfolio and see if he can do anything to make you comfortable again. Investment involves risks and everyone’s risk tolerance is different. It is important that your asset allocation reflects that.

Mr. Wrong

[mrwrong]

I’m not qualified to give financial advice, but if you trust your financial advisor, I will suggest you to talk to this guy about exactly what you are uneasy about your portfolio and see if he can do anything to make you comfortable again. Investment involves risks and everyone’s risk tolerance is different. It is important that your asset allocation reflects that.

Mr. Wrong

[mrwrong]

I’m not qualified to give financial advice, but if you trust your financial advisor, I will suggest you to talk to this guy about exactly what you are uneasy about your portfolio and see if he can do anything to make you comfortable again. Investment involves risks and everyone’s risk tolerance is different. It is important that your asset allocation reflects that.

Mr. Wrong

[mrwrong]

I’m not qualified to give financial advice, but if you trust your financial advisor, I will suggest you to talk to this guy about exactly what you are uneasy about your portfolio and see if he can do anything to make you comfortable again. Investment involves risks and everyone’s risk tolerance is different. It is important that your asset allocation reflects that.

Mr. Wrong

[XBoxBoy]

If you want to be conservative, you might put your money in short term treasuries. They don’t pay much, but you don’t need to worry about losing any of your capital. (Although like all dollar investments, you could lose purchasing power as the dollar declines in value) One nice thing is you can do this through Treasury Direct, and not pay any broker fees whatsoever.

Advantages: Investment is fully backed by the USA government. Never loses any capital, no broker fees to deal with.

Disadvantages: Doesn’t pay that great a return. But hey, you don’t risk much, you can’t really expect a lot of upside.

XBoxBoy

[XBoxBoy]

If you want to be conservative, you might put your money in short term treasuries. They don’t pay much, but you don’t need to worry about losing any of your capital. (Although like all dollar investments, you could lose purchasing power as the dollar declines in value) One nice thing is you can do this through Treasury Direct, and not pay any broker fees whatsoever.

Advantages: Investment is fully backed by the USA government. Never loses any capital, no broker fees to deal with.

Disadvantages: Doesn’t pay that great a return. But hey, you don’t risk much, you can’t really expect a lot of upside.

XBoxBoy

[XBoxBoy]

If you want to be conservative, you might put your money in short term treasuries. They don’t pay much, but you don’t need to worry about losing any of your capital. (Although like all dollar investments, you could lose purchasing power as the dollar declines in value) One nice thing is you can do this through Treasury Direct, and not pay any broker fees whatsoever.

Advantages: Investment is fully backed by the USA government. Never loses any capital, no broker fees to deal with.

Disadvantages: Doesn’t pay that great a return. But hey, you don’t risk much, you can’t really expect a lot of upside.

XBoxBoy

[XBoxBoy]

If you want to be conservative, you might put your money in short term treasuries. They don’t pay much, but you don’t need to worry about losing any of your capital. (Although like all dollar investments, you could lose purchasing power as the dollar declines in value) One nice thing is you can do this through Treasury Direct, and not pay any broker fees whatsoever.

Advantages: Investment is fully backed by the USA government. Never loses any capital, no broker fees to deal with.

Disadvantages: Doesn’t pay that great a return. But hey, you don’t risk much, you can’t really expect a lot of upside.

XBoxBoy

[XBoxBoy]

If you want to be conservative, you might put your money in short term treasuries. They don’t pay much, but you don’t need to worry about losing any of your capital. (Although like all dollar investments, you could lose purchasing power as the dollar declines in value) One nice thing is you can do this through Treasury Direct, and not pay any broker fees whatsoever.

Advantages: Investment is fully backed by the USA government. Never loses any capital, no broker fees to deal with.

Disadvantages: Doesn’t pay that great a return. But hey, you don’t risk much, you can’t really expect a lot of upside.

XBoxBoy

[Trojan4Life]

Ultimately it’s your money. Your advisor should be listening to your goals and putting you into investment vehicles that match them. If you can’t sleep at night, then you are taking on more risk than you’re comfortable with.

Change FAs.

[lindismith]

I was in the same situation last year with my FA. I left him and went to Rich. I’m doing really well, and I feel so much ‘safer’ because I know Rich gets it.

I would recommend you call him or email him asap.

[socalarm]

thanks for the posts and the recommendations. i think this whole idea needs a re-thinking.

[socalarm]

thanks for the posts and the recommendations. i think this whole idea needs a re-thinking.

[socalarm]

thanks for the posts and the recommendations. i think this whole idea needs a re-thinking.

[socalarm]

thanks for the posts and the recommendations. i think this whole idea needs a re-thinking.

[socalarm]

thanks for the posts and the recommendations. i think this whole idea needs a re-thinking.

[cooperthedog]

By currency fund, do you mean an actual foreign exchange fund or did you possibly misintepret this and you really have 20% in a money market?

The reason I ask is that an actual currency fund would not meet your goals of “very conservative” so it would make no sense to shift funds into one (unless your advisor thinks, for example, that a fall in the dollar is a “sure thing”, which is a red flag in itself).

[cooperthedog]

By currency fund, do you mean an actual foreign exchange fund or did you possibly misintepret this and you really have 20% in a money market?

The reason I ask is that an actual currency fund would not meet your goals of “very conservative” so it would make no sense to shift funds into one (unless your advisor thinks, for example, that a fall in the dollar is a “sure thing”, which is a red flag in itself).

[cooperthedog]

By currency fund, do you mean an actual foreign exchange fund or did you possibly misintepret this and you really have 20% in a money market?

The reason I ask is that an actual currency fund would not meet your goals of “very conservative” so it would make no sense to shift funds into one (unless your advisor thinks, for example, that a fall in the dollar is a “sure thing”, which is a red flag in itself).

[cooperthedog]

By currency fund, do you mean an actual foreign exchange fund or did you possibly misintepret this and you really have 20% in a money market?

The reason I ask is that an actual currency fund would not meet your goals of “very conservative” so it would make no sense to shift funds into one (unless your advisor thinks, for example, that a fall in the dollar is a “sure thing”, which is a red flag in itself).

[cooperthedog]

By currency fund, do you mean an actual foreign exchange fund or did you possibly misintepret this and you really have 20% in a money market?

The reason I ask is that an actual currency fund would not meet your goals of “very conservative” so it would make no sense to shift funds into one (unless your advisor thinks, for example, that a fall in the dollar is a “sure thing”, which is a red flag in itself).

[34f3f3f]

lindismith, who is Rich? I am tentatively looking for a new FA. Mine is retiring.

[(former)FormerSanDiegan]

lindismith, who is Rich? I am tentatively looking for a new FA. Mine is retiring.

That’s funny !

Rich is the dude who set up this blog.

[(former)FormerSanDiegan]

lindismith, who is Rich? I am tentatively looking for a new FA. Mine is retiring.

That’s funny !

Rich is the dude who set up this blog.

[(former)FormerSanDiegan]

lindismith, who is Rich? I am tentatively looking for a new FA. Mine is retiring.

That’s funny !

Rich is the dude who set up this blog.

[(former)FormerSanDiegan]

lindismith, who is Rich? I am tentatively looking for a new FA. Mine is retiring.

That’s funny !

Rich is the dude who set up this blog.

[(former)FormerSanDiegan]

lindismith, who is Rich? I am tentatively looking for a new FA. Mine is retiring.

That’s funny !

Rich is the dude who set up this blog.

[34f3f3f]

lindismith, who is Rich? I am tentatively looking for a new FA. Mine is retiring.

[34f3f3f]

lindismith, who is Rich? I am tentatively looking for a new FA. Mine is retiring.

[34f3f3f]

lindismith, who is Rich? I am tentatively looking for a new FA. Mine is retiring.

[34f3f3f]

lindismith, who is Rich? I am tentatively looking for a new FA. Mine is retiring.

[lindismith]

I was in the same situation last year with my FA. I left him and went to Rich. I’m doing really well, and I feel so much ‘safer’ because I know Rich gets it.

I would recommend you call him or email him asap.

[lindismith]

I was in the same situation last year with my FA. I left him and went to Rich. I’m doing really well, and I feel so much ‘safer’ because I know Rich gets it.

I would recommend you call him or email him asap.

[lindismith]

I was in the same situation last year with my FA. I left him and went to Rich. I’m doing really well, and I feel so much ‘safer’ because I know Rich gets it.

I would recommend you call him or email him asap.

[lindismith]

I was in the same situation last year with my FA. I left him and went to Rich. I’m doing really well, and I feel so much ‘safer’ because I know Rich gets it.

I would recommend you call him or email him asap.

[Trojan4Life]

Ultimately it’s your money. Your advisor should be listening to your goals and putting you into investment vehicles that match them. If you can’t sleep at night, then you are taking on more risk than you’re comfortable with.

Change FAs.

[Trojan4Life]

Ultimately it’s your money. Your advisor should be listening to your goals and putting you into investment vehicles that match them. If you can’t sleep at night, then you are taking on more risk than you’re comfortable with.

Change FAs.

[Trojan4Life]

Ultimately it’s your money. Your advisor should be listening to your goals and putting you into investment vehicles that match them. If you can’t sleep at night, then you are taking on more risk than you’re comfortable with.

Change FAs.

[Trojan4Life]

Ultimately it’s your money. Your advisor should be listening to your goals and putting you into investment vehicles that match them. If you can’t sleep at night, then you are taking on more risk than you’re comfortable with.

Change FAs.

[Coronita]

Open a vanguard account and do it yourself. I bet your "advisor" wouldn't do that much better than that.

[sd_bear]

I’m a vanguard guy myself. I feel in love with the expense ratios.

[sd_bear]

I’m a vanguard guy myself. I feel in love with the expense ratios.

[sd_bear]

I’m a vanguard guy myself. I feel in love with the expense ratios.

[sd_bear]

I’m a vanguard guy myself. I feel in love with the expense ratios.

[sd_bear]

I’m a vanguard guy myself. I feel in love with the expense ratios.

[Coronita]

Open a vanguard account and do it yourself. I bet your "advisor" wouldn't do that much better than that.

[Coronita]

Open a vanguard account and do it yourself. I bet your "advisor" wouldn't do that much better than that.

[Coronita]

Open a vanguard account and do it yourself. I bet your "advisor" wouldn't do that much better than that.

[Coronita]

Open a vanguard account and do it yourself. I bet your "advisor" wouldn't do that much better than that.

[patientrenter]

And yet another vanguard guy here! I think that just means we’re cheap, and confident about our own investment choices.

socalarm, you don’t sound confident about your own investment choices, so you probably do want to get a FA. I concur with the others who said that you have the wrong FA. He is probably friendly, and you like him personally, or he seems super-professional in his manner, or whatever. Otherwise, you’d never have gone to, or stayed with, someone who puts you into investments you’re clearly not comfortable with.

I’d guess you need a new FA. Their job is two-fold:
(A) Psychological – Listen carefully to the what their client needs and wants. M
(B) Technical – Use their financial expertise to offer financial options that fit the client’s needs established in A.

It’s a feedback loop. If the FA doesn’t get it right the first time, then they should be listening carefully and making modifications pronto. Doesn’t sound like your guy is doing that. Sorry.

I’m in the financial business, so I don’t need an advisor (or don’t feel I do anyway), but I’ve actually been tempted to check out Rich because, as someone else said here, he gets it. You need to find an advisor that you can say that about.

Patient renter in OC

[patientrenter]

And yet another vanguard guy here! I think that just means we’re cheap, and confident about our own investment choices.

socalarm, you don’t sound confident about your own investment choices, so you probably do want to get a FA. I concur with the others who said that you have the wrong FA. He is probably friendly, and you like him personally, or he seems super-professional in his manner, or whatever. Otherwise, you’d never have gone to, or stayed with, someone who puts you into investments you’re clearly not comfortable with.

I’d guess you need a new FA. Their job is two-fold:
(A) Psychological – Listen carefully to the what their client needs and wants. M
(B) Technical – Use their financial expertise to offer financial options that fit the client’s needs established in A.

It’s a feedback loop. If the FA doesn’t get it right the first time, then they should be listening carefully and making modifications pronto. Doesn’t sound like your guy is doing that. Sorry.

I’m in the financial business, so I don’t need an advisor (or don’t feel I do anyway), but I’ve actually been tempted to check out Rich because, as someone else said here, he gets it. You need to find an advisor that you can say that about.

Patient renter in OC

[patientrenter]

And yet another vanguard guy here! I think that just means we’re cheap, and confident about our own investment choices.

socalarm, you don’t sound confident about your own investment choices, so you probably do want to get a FA. I concur with the others who said that you have the wrong FA. He is probably friendly, and you like him personally, or he seems super-professional in his manner, or whatever. Otherwise, you’d never have gone to, or stayed with, someone who puts you into investments you’re clearly not comfortable with.

I’d guess you need a new FA. Their job is two-fold:
(A) Psychological – Listen carefully to the what their client needs and wants. M
(B) Technical – Use their financial expertise to offer financial options that fit the client’s needs established in A.

It’s a feedback loop. If the FA doesn’t get it right the first time, then they should be listening carefully and making modifications pronto. Doesn’t sound like your guy is doing that. Sorry.

I’m in the financial business, so I don’t need an advisor (or don’t feel I do anyway), but I’ve actually been tempted to check out Rich because, as someone else said here, he gets it. You need to find an advisor that you can say that about.

Patient renter in OC

[patientrenter]

And yet another vanguard guy here! I think that just means we’re cheap, and confident about our own investment choices.

socalarm, you don’t sound confident about your own investment choices, so you probably do want to get a FA. I concur with the others who said that you have the wrong FA. He is probably friendly, and you like him personally, or he seems super-professional in his manner, or whatever. Otherwise, you’d never have gone to, or stayed with, someone who puts you into investments you’re clearly not comfortable with.

I’d guess you need a new FA. Their job is two-fold:
(A) Psychological – Listen carefully to the what their client needs and wants. M
(B) Technical – Use their financial expertise to offer financial options that fit the client’s needs established in A.

It’s a feedback loop. If the FA doesn’t get it right the first time, then they should be listening carefully and making modifications pronto. Doesn’t sound like your guy is doing that. Sorry.

I’m in the financial business, so I don’t need an advisor (or don’t feel I do anyway), but I’ve actually been tempted to check out Rich because, as someone else said here, he gets it. You need to find an advisor that you can say that about.

Patient renter in OC

[patientrenter]

And yet another vanguard guy here! I think that just means we’re cheap, and confident about our own investment choices.

socalarm, you don’t sound confident about your own investment choices, so you probably do want to get a FA. I concur with the others who said that you have the wrong FA. He is probably friendly, and you like him personally, or he seems super-professional in his manner, or whatever. Otherwise, you’d never have gone to, or stayed with, someone who puts you into investments you’re clearly not comfortable with.

I’d guess you need a new FA. Their job is two-fold:
(A) Psychological – Listen carefully to the what their client needs and wants. M
(B) Technical – Use their financial expertise to offer financial options that fit the client’s needs established in A.

It’s a feedback loop. If the FA doesn’t get it right the first time, then they should be listening carefully and making modifications pronto. Doesn’t sound like your guy is doing that. Sorry.

I’m in the financial business, so I don’t need an advisor (or don’t feel I do anyway), but I’ve actually been tempted to check out Rich because, as someone else said here, he gets it. You need to find an advisor that you can say that about.

Patient renter in OC

[Author]

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