Capital Income Builder 5 years
chief: you’re right about my point.snaggle: "I am trying to build a book. I don't have time to do all this research".......is a great reason to chuck all this fund family stuff and buy asset classes in their purest tradeable form. Much easier. icecold is absoluetly right, Hank is absolutely wrong.
Explicit commissions, Implicit trading costs, and soft dollar arrangements borne by the fund.
well, returns shown are net of trading costs. But that doesn’t mean they don’t add to a good argument against active funds MOVING FORWARD.
Does it really make that much of a difference whether you use ETFs or actively managed mutual funds if all you are doing is an asset allocation strategy? I don’t believe so. The differences don’t start to materialize until you take the investments to levels beyond asset allocation.<o:p></o:p>
If a client can handle proper asset allocation on their own, why should they pay to have an advisor to do it for them? Fortunately for asset allocation advisors, many clients either can not or choose not to do it on their own.
If you are an asset allocation advisor, I think that you are better off focusing on there other areas where you provide value. While significant, investment selection is only one small piece of the services that an asset allocation advisor can offer. Unfortunately it is where people focus most of their energy.
Agreed. I just show 'em my Edward Jones diversification bar chart, show them the cool Lord Abbett Knight's logo and then move on to more important issues like 'Did you call the damn estate attorney like I told you!' and 'Exactly what kind of income do you want in retirement? No, really, give me a sensible answer.'
lotta truth in that. I put on the green eye shades on this forum “just for fun” (to quote my first post on this topic). When another FA says that my posts on indexing “piss me off”-- it just cracks me up.We're not splitting the atom here.
Lord Abbett rules… Love those guys 2 spaces one way then 1 space the other way, pawns and bishops never see you coming.
[quote=moneyguy]*I follow an internal analyst I have a lot of faith in, and provide this level of active management without adding in a 3rd party fee. For one, I believe in it. Secondly, I want to avoid the question, “So we are just buying a bunch of indeces, holding the %'s constant, and rebalancing no matter what? Okay, I’ll do that at Vanguard.” Not saying I wouldn’t have an answer, I just want to believe my own answer. **I also overlay a covered call strategy over the portfolio, but that is a topic for another time.
Sounds like Merrill Lynch's sector strategy portfolios by Brian Belski
What minimums do you use for your covered call strategy?
[quote=moneyguy]Yes, the domestic core is comprised of BB’s weightings, but not the stock selections. For the covered calls, it is anywhere between 1 and 2%. I wish I could standardize, but my negotiating skills need some polishing. I go to 1% all too often.[/quote]
If you are not following BB's stock picks, what are you using for your selections? Why do you think your methodology is better?
I was not asking what you charge. I don't go below 1.5%, unless it is a $2.5MM+ relationship....but that's not a problem yet. I was asking what is the minimum size portfolio that you would put in a covered call portfolio. I am curious on answers for both a balanced portfolio (with S/B/C/AI) and just the covered portion of any overall portfolio. For me it's $500k on the covered portion and about $1.5MM on the total...but that can vary dramatically based on tolerances.