The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Re: If I Were to Take Over from FA... Date:  3/14/2014  9:40 AM
Author:  Hawkwin Number:  74512 of 88495

The FA has been OK, returning better than the benchmark net of fees, but how do I even know we are using the right benchmark? Why not 70/30? Trust but verify, right?

If you are invested 60/40 then the appropriate benchmark to measure performance would be indexes that are 60/40. You could use something broad like 60% S&P or it could be more specific like 30% S&P, 15% Russell 2000 and 15% MSCI.

If you have international stock in your port, it should include the international benchmark.

Asd to your larger question of whether or not 60/40 is more appropriate than 70/30, there are numerous asset allocation tools online where you can answer a few risk tolerance questions to give you an idea. Regardless, I don't think a difference of 10% one way or the other is likely a make or break situation.

If you are not happy with the services for which you are paying, then it is likely time to talk about such with the FA - and leave if that is not satisfactory.
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us