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Step 1: Dump the advisor
About 80 percent chance index is better.
Subject Expert
True statement
I’m guessing you have at least $10m in investments seeng you have an advisor
At minimum 10m
Look at the expense ratio of this managed fund. If 1% or higher, it’s awful.
Ideally take the boglehead three-fund approach & chill.
I don’t have 10 m- maybe wrong word- ‘my Schwab guy’. I’m going to move into a lost cost index v. managed account Right move?
Unless your situation is complex - multinational jurisdictions, trusts, offshore entities, estate planning, etc. - odds are very good that you're better off with index funds.
Mentor
It depends on your goals and how involved your advisor is… but brass tax some funds outperform, some funds underperform… it’s just the basics of investing… and it’s not the same from year to year… but there’s something called advisor alpha, there’s extensive research on this, and on average having an advisor adds up to 2% alpha, by keeping assets held in the appropriate tax accounts, and talking you off ledges…
But people will say, I do this for a living so this is a PSA… but if you have complex goals and have at least $1M in investable assets, I’d have an advisor… I have an advisor and I work in the business because you’re susceptible to blind spots.
What's the expense ratio of both these managed funds? An index fund nowadays should have a near zero expense ratio.