Self Managed Investing

Self managed investing can be intimidating and daunting for many people. If experience has taught us anything, no one manages your money better than you. In insurance we call it 'Needs Analysis' meaning, what does the client want? Morre times than not, investors are told what they want to hear then placed in a 'Mutual Fund' with 25 different allocations. Diversification means cash, insurance, property, precious metals, stocks... not 25 frivolous mediocre stocks in a bundle that don't perform.

What  we have seen is clients who think they are up 4% when in fact they are not looking at the fees. Why do clients get 2 statements? The 1st is your gains, the 2nd is your fees. I have heard many times 'he said I was up 4%' when in fact, with a legal pad, I add up both statements  and they are dead even. It is frustrating as an agent/broker/consultant to hear these folks reiterate over and over again this same statement when in fact, it is right in front of them and they ignore middle school math.

When my father was beginning to decline  he asked me to review his portfolio. HIs top earner at that time was Dollar Value, double digit gains while everything else was + - .5%. After a couple months Dollar Value was replaced with a similar lackluster product. When I called the CFP his response was 'our algorithm told us it was time'. I asked to speak with the algorithm when he replied 'We can't do that, it's a third party entity we employ, we cannot share private information'... Does any else see the conflict of interest? Does anyone else smell something fishy? How does double digit gains get replaced with + - .5%? At that time the Dow and the S & P were up 11% while dad's portfolio was up 4%, barely matching cost of living increases. Where did the other 7% go? 

I wish we didn't see similar situationns with other clients. A complete lack of involvement with large personal funds. This is how less than honorable CFP's pad their paychecks with reallocation fees, on top of monthly management fees. Every month. Legal larceny, your agreement with the CFP gives them complete control of YOUR money.  

If you are overwhelmed with the idea of self management and 'your guy' makes you happy do nothing. If you abhore  the  idea of losing 7% to a CFP with less than honorable intentions ask us. We can direct you to a trading platform we use. We'll even help navigate this platform with you. No one manages your finances better than  you do.