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1. What percentage of your asset allocations were in liquid assets (money market funds, CDs and cash but excluding savings accounts) prior to January 31st 2020?
2. Now that the markets have tanked, are you taking advantage of this once in a lifetime opportunity and what funds are you using to make stock purchases?
3. Are you pleased/happy with your financial adviser?
I don't know what to think of my financial advisor. I'm not a very experienced investor. My advisor says that he recommends I hold onto my stocks; but he admits he doesn't know how low the market will go, how long the sharp drops will last. He did think it was a good idea for me to set about $80k aside. His most recent letter to clients (dated March 13) says that there will be a mini-recession lasting some months, leading to lower corporate activity; and advises us to stay the course in common stocks. My advisor does not deal in annuities or other insurance products. He had my account about 64% percent stocks and 35% treasury bonds; and I had a cash distribution every months, which I need, since I have no other source of income.
Location: Was Midvalley Oregon; Now Eastside Seattle area
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1. 10% of a manage MF account is held as cash or equivalents. It's a small account, at 60/30/10. This managed account is ~3% of what is we hold with him. The other 97% are GLWB VA and fixed-Index annuities. Essentially 100% conservative investment but aggressively invested into equities, but not cash. Too complicated to describe here. Current age 70/73.
2. We hold outside of his management, personal trading accounts. Yes I am buying into this falling market, individual stocks. The value is -50% from peak, Feb 18.
3. Satisfied with FA. He got us into foundational investment/retirement products (annuiteies) that are for Income and longevity. {the managed account in #1 is valued based. So is #2}
The amount in "cash" depends on your needs. If you are retired I would say you want from 2 to 5 years of your living expenses that are not covered by social security, annuities, or a pension in "cash".
This should be true now as it was in Jan.
I would say you just hold the course with the stock. Remember stock is a long term investment and not met for short term needs (say less than 5 years).
I don't know what to think of my financial advisor. I'm not a very experienced investor. My advisor says that he recommends I hold onto my stocks; but he admits he doesn't know how low the market will go, how long the sharp drops will last. He did think it was a good idea for me to set about $80k aside. His most recent letter to clients (dated March 13) says that there will be a mini-recession lasting some months, leading to lower corporate activity; and advises us to stay the course in common stocks. My advisor does not deal in annuities or other insurance products. He had my account about 64% percent stocks and 35% treasury bonds; and I had a cash distribution every months, which I need, since I have no other source of income.
Your advisor failed you, Regina.
If you had done what I suggested, and put the inverse ticker hedge on your account, you might still have lost money but it would have been much less.
If you had done what I suggested, and put the inverse ticker hedge on your account, you might still have lost money but it would have been much less.
If she had 80k set aside in cash and 35% in treasuries her advisor far from failed
Half or more of your calls are crap if one goes through your posting history so if everyone always did as you suggest things might look different than one singular call
They are saying “extended bloodbath. Buy guns and canned goods.”
Don't forget that about 5 weeks ago they were all saying "greatest economy ever," buy, buy, buy, and new record highs!
There's an old saying about financial brokers. They will make you broker......
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