You may not want to lose money but neither does your advisor if he has your assets under management (AUM) and is charging you a flat fee of 1%, 1.5% or even as high as 2%.
If cash earns less than 1%, you may be losing money on that portion of your portfolio with the advisor. Laddered CD's should not be managed by your advisor. You can do this. You can do this all but certainly don't leave cash to be managed by your AUM advisor.
Most advisors know that they cannot time the markets but if their first priority is "protecting their income base" (oh, I mean, keeping you from experiencing losses in your portfolio), then this may be a major conflict of interest.
Your best interests may be served by holding stocks long-term and not trying to determine when to get in and get out, but your advisor just might be telling you that he is "controlling risk in a financial crisis" by selling. He may know that you will most likely miss the turnaround. If he did not tell you this, then he may be managing his own interests.
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.