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I know this is a "how long is a piece of string" question and the specific of everyone's case will vary depending on your portfolio but I just need some general indicators here to evaluate if I should be concerned.
I am a hands- off investor who put all my retirement monies in the hands of an independent financial planner with whom I had worked during my divorce settlement. It is a seven figure portfolio.
I am invested with TIAA Creff, a Fidelity IRA and a very small amount( only $50,000) with oil and gas through H.Beck.Overall it is a 60: 40 portfolio of shares and bonds.
I am still employed although I'm evaluating that situation, so we are theoretically more aggressively invested, to use my FP's words.
I am not adding to the fund actively but am not withdrawing from it either.
My problem is that the portfolio seems to have lost ground over this last year with no significant increase. I shall know more specifically when I meet for my next review when I want a percentage gain or loss figure.
When I expressed slight concern before I was reassured that we had bought low and should hold on as we can ride the inevitable upward wave: the analogy is mine, not hers.
Thank you for your patience so far. Here are my two questions: first, what kind of return might I have expected last year. Perhaps someone might be so kind as to share their own experience;second, what are the kind of questions I need to ask if the return is low or I have made a loss on the year which is what I suspect from the statements to date.
I have to confess that along with many others here, I don't have the time or expertize to manage my own portfolio.
I am merely looking for what percentage increases others have experienced this year on a traditional Fidelity 60:40.
Thank you for your input. I shall listen and learn.
My problem is that the portfolio seems to have lost ground over this last year with no significant increase. I shall know more specifically when I meet for my next review when I want a percentage gain or loss figure.
This part right here scares me more than having a flat year. Even good managers lose money some years. Are you saying you can't get a portfolio balance anytime you want it?
IDK, I'm hands off too as I don't understand things all that well. I can tell you I'm disappointed though. Morgan Stanley, never made much money in about 20 years. They blah blah blah in their money terms and its ALWAYS fine. Up this minute here, down this minute there, the advisors are constantly changing. Can't see the forest for the trees, they keep you suckered in.
I went to have everything looked over by an independent, charged 400.00 and basically was just disappointed that he couldn't take over my accounts. Didn't really tell me much.
All I care about, I gave you this much 20 years ago, how much am I up? Oh, like 3%. Well f that. Then they recently went and traded every little bit of my money within funds at a big go last year because they convinced me to unlock my accounts or something and I ended up paying about 5 times the amount to IRS than I ever have. Which I'm pretty sure effectively wiped out that 3% I hate those guys. The Nebraska branch.
I am still with MS which makes me feel stupid, a different branch/advisors. I'm trying to be more involved but I also know I'm just not ever going to get this stuff. Its really scary for me. I think the market is a big scam for non mult millionaries. Of course even big celebs have gotten taken for everything, some more than once. Basically I think financial advisors are slimey parasites.
Hopefully people here more knowledgeable than myself can help you.
UKgirl
understand, it seems I have been gaining and losing the same $3000 this year with my 60/40 split. Been kind of sideways on the whole maybe up a bit. on my moderately conservative funds. maybe 4-7%?
Some more knowledgeable people may respond and answer your question better.
I do get quarterly statements with returns so that might be something you can get worked out with your broker.
Don't count on making a lot this year. My return is down to about 6% which is less than half of what my portfolio did last year. By the end of this calendar year it could be even worse. I am expecting another drop when the fickle investors have tantrums when the Fed raises rates. Invest for the long haul. I rarely change any of my funds. I did last year when the managers of one fund consistently got everything wrong. Do not try to buy individual investments such as stocks. Unless you have some real expertise or are lucky you are likely to do worse than average.
This part right here scares me more than having a flat year. Even good managers lose money some years. Are you saying you can't get a portfolio balance anytime you want it?
We look at individual accounts which have all been down except a TIAA Creff account which is a guaranteed 2%, I believe.
I'm thinking I"m not asking the right question. What is my percentage gain/loss?
We look at individual accounts which have all been down except a TIAA Creff account which is a guaranteed 2%, I believe.
I'm thinking I"m not asking the right question. What is my percentage gain/loss?
You should have no problem find your results on the Fidelity and Tiaa-Cref webpages. Are you registered for online access? If not, registration is easy and will give you instant access and a wealth of information.
I have a guy I really like although he is expensive. I figure as long as he makes me money then I don't care if he is expensive. Each year I compare how it is now to its highest and I tithe on any gains. Some years its the same as my accounts highest ot sometimes it's lower. Most of the time its higher. One year reciently I made more than when I was working and I didn't do a thing.
I am invested with TIAA Creff, a Fidelity IRA and a very small amount( only $50,000) with oil and gas through H.Beck.Overall it is a 60: 40 portfolio of shares and bonds.
...
My problem is that the portfolio seems to have lost ground over this last year with no significant increase.
...
I am merely looking for what percentage increases others have experienced this year on a traditional Fidelity 60:40.
Doesn't your financial advisor provide you with at least a quarterly statement listing at the minimum YTD return?
We have three 401K accounts managed by Fidelity. I can log online and get detailed information of the accounts, YTD returns, the balance of each fund, the fund performance etc. anytime.
I just did a quick check and as of today:
1st 401K (47% bond, 53% stocks includes 18% foreign stocks - our most conservative portfolio): today YTD return is 2.02%. The YTD return values for this portfolio have fluctuated between 2-4% this year.
2nd 401K (78% stocks - includes 18% foreign stocks, 17% bond and 5% cash): today YTD return is 3.52%. The values have fluctuated between 1 to 5% this year.
3rd 401K (100% US index stock fund): today YTD return is 3.73%. Since this is a smaller account, I have not monitored its peformance often this year. My recollection is that on the average, it performs slightly better than the 2nd 401K (probably between 1.5 to 5%)
Most of our assets outside of 401K are in stocks or stock mutual funds. Since Fidelity financial engine had calculated that we would be doing fine in retirement with just the 1st 401K portfolio, I have invested more aggressively in the assets outside of 401K. The current allocation for this portfolio is 90% stocks with about 9% foreign stocks, 5% bonds and 5% cash. The YTD returns for this most aggressive portfolio have varied from 1.5% to 5%. If the second half of 2015 is like the first half, I expect the annual return for 2015 should be around 8-9%. This is worse than previous years (average 10-12%) simply because one of our major stock has not been doing well. I plan to slowly unload it after my retirement (for tax reason) and expect it to rebound in the next few years.
So with your portfolio at 60% bond and 40% stock, my guess is that the YTD returns should vary between 1.5 and 3.5% this year. If the average is 2.5% for the last 7 months, your annual return for this year should come out to be between 4 and 4.5%.
BTW, for those who wonder about our seemingly 'aggressive' investment style, I count our future SS payments (to be collected at the max amounts), and the small pensions that we have as bonds and cash (which will meet 75-100% of our expected retirement expenses depending on either maintaining or cutting back our current lifestyle). We owns our home and have zero debts so we should be able to weather wider stock market fluctuations (or even a 2007-2009 type of 'melt down') in the aggressive portfolios.
My problem is that the portfolio seems to have lost ground over this last year with no significant increase. I shall know more specifically when I meet for my next review when I want a percentage gain or loss figure.
No portfolio should have lost ground last year, or over the last 12M. This tells me your guy has you in inappropriate investments. Maybe you really made a few points, but his fees ate it up?
If you have a seven figure portfolio, here is what I would do (actually, it IS what I do):
Move it to Vanguard. Then you have two choices: One, for that size nest egg, they will work with you to invest it appropriately. They will do this at no charge. No. Charge. Vanguard has the LOWEST fees in the industry, and no ulterior motive other than what's best for you. (No, I don't work for them, but I have had money there for 30+ years.)
The second is to invest it in one of the low-maintenance concepts (3 fund style). Google will explain this fully, it tends to place in the top quarter of all investment concepts, and that includes pay-for-fee advisors. This is what I do. I track my return, and it is very good. And with no work! You can do this at Vanguard, Fidelity or any other low-fee fund house.
I am very financially astute, and after years of investing, including some fairly complicated allocations, I have learned this simple system is as good as any complicated one.
Please do yourself a favor and look into this. I hate seeing people who have worked hard to build up assets have them eaten up by fee advisers.
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You can do this at Vanguard, Fidelity or any other low-fee fund house.
