Two things you must know about your portfolio are 1.) How you are allocated and 2.) How much you are paying. You absolutely should know how much you have in stocks, bonds, cash, etc...and if thats appropriate given your specific investment goals and ability to stomach market swings. You also must be certain of the total amount you are paying in fees. My personal opinion is anything more than around 1% should be criminal, but I dont make up those rules. I cant believe anyone would actually pay a 4% or 5% commission up front just to put money into a mutual fund. My general sense is most dont realize they have other options. I get frustrated with this industry, because so much of it is focused on the wrong side of the desk. I truly believe that if the industry actually cared about client needs, instead of client fees, much of it would look far, far different. Regardless, make sure you have a good handle on both of those areas. If you arent comfortable with either, then feel free to find another solution. You get to call the shots, not them.
Posted on: Wed, 06 Aug 2014 20:12:31 +0000
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