Do you have a portfolio manager?

I have around 25k in the market and haven't bought or sold anything in over 6 months. I've some pretty large returns when I was trading, but recently I've kind of lost interest. Some of my current positions are pretty high risk and I sometimes wonder if I should let someone else manage my account.

My grandparents and father use the same broker and they say he's great.

Anyways, what do you guys think? I basically have a third of my assets in the market and I don't know if that's too much/too little.

Thanks

Originally Posted by sweetbro858

I have around 25k in the market and haven't bought or sold anything in over 6 months. I've some pretty large returns when I was trading, but recently I've kind of lost interest. Some of my current positions are pretty high risk and I sometimes wonder if I should let someone else manage my account.

My grandparents and father use the same broker and they say he's great.

Anyways, what do you guys think? I basically have a third of my assets in the market and I don't know if that's too much/too little.

Thanks

Sit down with a professional personal finance adviser who is certified. They may not be who you choose to manage your account (if you do decide to have someone manage it) but they can get your risk tolerance, age, and other factors to help set you on a path to properly diversify your portfolio and ensure that it is allocated properly.

Don't just go by word of mouth if you do choose to have someone manage your portfolio either. Research them thoroughly. Maddoff was a great guy and everyone of his clients said so just a few short years ago...

p.s. with the size account you have, it will likely be difficult to find someone qualified and competent who will actively manage it for you.

Good advice, thanks.

Regarding the size of the account, I don't full understand what you mean. Is it too small?

Yea my very minimum is $70,000k because I charge 1% of your assets. So if you invested my minimum, I would make $700.00/year. Anywhere below that is really not worth the work of active, essentially 24 hour, management. Most of the mid sized firms have $500,000 minimums. The top hedge funds have like 10 million minimum, and usually only cater to institutional clients.

I started out trading in my personal account, scored high returns and then launched my own firm. However, I trade much differently for my clients. For my own account, I shoot for the moon sometimes, but I can afford that risk.

1% is pretty high though right? I think my parents were paying a half or even a quarter.. could be wrong though.

Originally Posted by sweetbro858

1% is pretty high though right? I think my parents were paying a half or even a quarter.. could be wrong though.

Edward Jones starts at 1.5% and goes down with an increased balance. Generally, from my current understanding, to get rates at .5% or less is generally limited to accounts of $500,000+ from most major firms.

totally depends on the manager/performance. yea its high if i only get 5-6% a year, which I don't. I also like to have a set fee instead of 10-20 fee declines for increased aum.

At the end of the day, I aim for the performance bonus of 20%, makes the other base fee irrelevant. But you need to have a 1.5m net worth, or atleast $750k invested before I can charge you that performance bonus above the set high water mark.

Originally Posted by sweetbro858

1% is pretty high though right? I think my parents were paying a half or even a quarter.. could be wrong though.

Yeah, I have one....he is me, myself, and I. I've booked profits every month since last May....up about 150% since then. Do some research and learn how to trade options.

Originally Posted by Wraisil

Sit down with a professional personal finance adviser who is certified. They may not be who you choose to manage your account (if you do decide to have someone manage it) but they can get your risk tolerance, age, and other factors to help set you on a path to properly diversify your portfolio and ensure that it is allocated properly.

This is great advise. Make sure you get one who's paid completely for reviewing your finance goals, and not there to sell you other service/products.

Originally Posted by Amoeba

This is great advise. Make sure you get one who's paid completely for reviewing your finance goals, and not there to sell you other service/products.

Easier said then found...I'll never trust anyone with my investments other than myself.

You should definitely understand it yourself before you trust someone else.