Comparing a managed investment fund to DIY

[aschen]

IF I believe the hundred or so hours of podcast listening I have done on the subject, it is unprobably that high fee active manager will beat passive funds in the medium term and impossible in the long term.

Defining High fee, medium term, and long term is not something I am qualified to to here though.


Just went through this with my dad's estate. He was/is paying a financial service .70% to manage much of his portfolio. For this fee they actively adjust proportions of assets into very lowcost passive ETFs so you have the .05% or whatever they charge on top. Basically paying them to balance the proportions of etfs according to risk profile. I am mostly confident we could probably do this as well as the company with a bit of work and attention, but pay them for the convenience and hands off. Still with a decent estate a fraction of a percent is real money.

I do my own direction in mostly passive funds but I have smaller and simpler portfolio. Seems more usefull to focus getting money in early and often than the minutia of the market for me.

[Aurel]

Originally Posted by sugarwood

SPY returned 32% over the last 12 months.

I returned 35% on all my investments, over the same period, managing myself.
Some IRAs did over 100%...

[Z-man]

Interesting thread. Here's my breakdown of my assets:
Managed accounts: 43.59%
Employer matching 401k / 403b accounts: 21.52%
Real Estate investment: 31.31%
Personally managed accounts: 3.58%

My personally managed accounts are more near and mid term investments and are broken down into stocks and ETF's (I call it my "Sandbox") and a REIT I've invested in.


For those who like fancy charts and graphs:

Originally Posted by sammyg2

One thought I keep going back to:

It's easy when it's easy.
Anyone who hasn't made 30 or 40% over the past year and a half should prolly invest in CDs.
I've done really well just like everyone else but that won't last forever.

I really like studying, learning about investing, and monitoring my investments. When they go up.

I agree on both of those points. I added 8 stocks to my sandbox last year that I call my "lockdown stocks." Overall return on those stocks: 89%! Highest return from these stocks thus far is Kohls (KSS) with a 223% return. Lowest return thus far from these stocks is 34% - Three M (MMM). So there was absolutely many investment opportunities to grab onto some good returns last year!

Research. Always research & study and watch the trends.