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Subject:  Re: Talk me out of a Financial Advisor Date:  6/2/2013  9:10 AM
Author:  Rayvt Number:  72357 of 88102

I spoke with two highly compensated coworkers and they both love the guy.

So what? Are you looking for love or to make money? Everybody "loves" whatever product they bought, even if it it's bad.

I tend to take the advice of people I know personally over anonymous internet posters,
Sure. But what is important is what backs up the advice. Is it authoritative or just personal opinion. Do your co-workers *know* (vs. just think or believe) that this guy has outperformed something like Fidelity Contra? Do they *know* what level of risk their accounts have been facing? (The answer to this is No. Almost nobody does.)

My question is should I put some assets under his management and potentially earn higher returns with lower volatility.
First, I would ask him HOW he gets "higher returns with lower volatility". What is his strategy? Does he have a concrete method, or is it seat-of-the-pants. Can he articulate it?

Frankly, it's not all that impressive to have beaten the S&P500 over the last 10 years, since the S&P just went thru a 10-year period that went essentially nowhere. Depends on the exact dates he's quoting. Is it some specific dates 10 years apart, or is it handwaving ten-ish years. More importantly, is he comparing to S&P500 WITH DIVIDENDS, or without? I bet it's without, because all the charts you see are always raw price without dividends.

What I'd do is ask him for [the data which would allow you to chart] a month-by-month chart of an account he managed compared to SPY or FCNTX.

You might want to do something like what I did when I retired. I thought it worthwhile to put a significant chunk of our money with Fisher Investments (Ken Fisher), to protect us in case I wasn't as smart as I thought I was. ;-)

From that aspect, it was successful. They invested my money in a completely different & independent way than I did. But overall, it was no value-added over FCNTX. Or BRK.
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