Quote:
Originally Posted by DrVenture
From Sept 2021 to now the S&P has gained almost 25% (7.861 annualized). A 50/50 porfolio with the FI portion in MMF (not necessarily advisable, but safe @ 5% now), would have returned 6.5% a year. Or a total return of appx 19.5%. With dividends reinvested a total return of about 30% (9.425% annualized). Your total return is 7.5% after almost three years. That is 2.5% annualized. Unless I misread something. Keep in mind, few are going to be 100% stocks.
You may have told him you were very risk averse and did not want to lose any money and he put it all in something like T-bills. But, it is not what I would call a great return. That is just a quick "back of envelope" calculation.
2022 was a bad year for both stocks and bonds. But, this is why I don't use a FA. They are better than nothing, but tend to use a "set and forget" process. And always get their fees. When I see a train coming, I get off the tracks. Several things were telegraphed very clearly. First was CoVid. Then inflation. And next, the clear knowledge that rates were going up. All three had logical responses, to those paying attention.
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This outfit has our money spread across multiple funds/stocks and we have our profile set at medium risk. We have a quarterly review coming up and I'm going to press into them a bit. Luckily, the bulk of our retirement money is managed elsewhere and things are performing much better.