Asked by Anonymous
Been investing with a financial advisor over the past 3 years. Small amounts of yearly dividends were reinvested into the funds. Till date, I have not gotten any monetary returns. And current valuation of my funds is ard 3% lesser than what I have invested. Do you think it is wise for me to end the relationship with my current advisor NOW and invest on my own? Reason being (1) my rs with the FA hasn’t been the warmest. (2) I want to start taking more ownership on my money
1) I would first seek to understand what's the problem with regards to the funds. From there, you can size up if our FA is really competent a not. IF not, you may proceed to "FIRE" your financial advisor.
2) I feel that it is not worth losing money just to "FIRE" someone whom you deem as not warm enough etc. But definitely its justifiable to "FIRE" if you really felt you should have better returns.
3) Taking ownership of your money is another matter all together. You are your funds owner, of course the profits and loss is your ownership.
4) Always part ways in a cordial manner as it does not help if your FA just drops everything and does not respond to you. You would suffer in a few ways
(A) if your funds require to go through him to execute (or it is much easier), just let him execute the last few actions to get the funds out.
(B) It may also not be true that your FA is not competent, rather your expectations has increased, and hence you felt "shortchanged". Have you ever wonder why people have done "stupid things" when they are young :D, which includes myself.
It is hard to judget if an investment adviser is good or bad by simply saying your funds lost 3%. There could be many reasons.
if you want to start investing by yourself, you should open a separate account first. Making your own decisions, make yourself accountable and comparing your own performance and the portfolio managed by the adviser. Then you can see if your adviser is doing any good job for you.
Have someone knowledgeable about funds to take a look at your funds portfolio and give some suggestions. Switching funds may yield better returns. If you think that your current advisor is not putting your interest first, ask the insurer to suggest another one who is more competent on funds management and advisory. It's your money, your choice on how you wish to put it to work for you. I'll suggest dropping the advisor or platform altogether if you can achieve better returns elsewhere and on your own.