[widgeon13]

Are they good or just lucky?

I am retired and manage my own portfolio (when I retired I took a lump sum, not too confident about the long term prognosis for my employer). I wouldn't be adverse to having someone manage it (or a portion) if they had a good track record and would be willing to only charge a fee when they make money for the portfolio. I realize that their (investment firms) mission might well be to minimize any lose when the market goes south but paying when the portfolio goes down just doesn't make sense to me. The fees most charge are fine if one has 10+ million to invest, I suppose. Paying someone a .25% when my portfolio goes down is taking food out of my mouth.

"Pay me whether I am successful or not" is just not my bag. I suppose the best option for me would be a financial plan based on a one time fee and then execute myself.

Has anyone encountered a firm that charges only if they make a net profit above the starting principle value.

The idea sounds like it could be very successful in the investment community if someone was good at investment management and was willing to live off their skills and knowledge, not completely off the deep? pockets of the other guy. Risk reward, at least they would have some skin in the game. Right now all they want to do is use your money to play the game and when the market goes south they still get their pound of flesh.

I' not flaming the investment community but it just seems like doing it a different way could have some potential for success. It would also require a lower portfolio return to be successful since the individual is not paying when the market goes down.

Probably a crazy idea but since I have the time, crazy ideas don't cost me anything most of the time.