franco12 wrote:

ToddTT wrote:Curiosity... I know we have some financially savvy folks in here.

Imagine signing on with one of the big name firms for their financial management. Wanting to diversify a sizeable position in stock "X".

They immediately move the entire position into an account where management fees are regularly charged. This fact eluded me.

Stock "X" is doing great, so diversification efforts for stock "X" are put on hold at my request, about a year later.

This "hold" goes on... for like another 10 years.

So basically, I've paid management fees for what amounts to a non-managed position.

Is this normal? Ethical? Criminal?

Shame on me for not asking more questions, and spending more time trying to understand the confusing-as-f*** statements from them.

By the way, I switched firms in the last few months.

if you have that kind of money, I guess you were ok with it. I remember learning about accredited investors.

I don't have that kind of money, but if I did, the one question I would ask is fiduciary.

I do want to add- that from their standpoint- they were providing ‘active expert’ guidance. Did the stock do well over that 10 year period? If it didn’t, I guess you could argue they should have acted in some fashion.

If it did well, then they kept an ‘active on it’.

The power of procrastination. Plus life's curve balls. Tomorrow often seems like a good time to investigate and catch up on things.

Their expert guidance was to sell/diversify. I said no. Turns out I was the expert! And also the idiot!

In that account did the firm have discretionary powers or non-descretionary? If Non, essentially you were driving the decisions.
For 10 years you were getting statements and no doubt saw the fees deducted and said or did nothing about it?
Most reputable firms would not allow you to have a concentrated postion with no activity year to year unless there was other positions in the account.

I do this for a living.

Most investors don’t factor “Adjusted risk” as part of the management. What is your goal? Beat the market? Grow your wealth? Remain invested long term to accomplish specific goals? If 3rd, I prescribe you take a multifaceted approach with a core low volatile equity holdings that can beat the market but doing it by not losing as much when it drops. Two ways to beat the market, take more risk or less. The latter is boring and requires patience. With other assets you invest in tech and other things as “satilite to the core”.

If you had long term success with a concentrated position (aka: Big % of your portfolio) then congratulations to you sir. Now, question is are you now confident in your abilities and are “successful/talented” or did you just get a bit lucky (Preparation/opportunity)? Cuz the past does not matter. You have tax implications if you sell or is it in an Erisa (IRA) account?
I love stocks, and as good as I am at it, I have dogs that offset winners. I know my annualized weighted return and do well but I understand my risks and thus my chess board is planned out in either directions.

Thats what management fees are for by the way. Advice not just suggestions.

ToddTT wrote:

Nalod wrote:Todd, was that the only position in the stock?
Firms FINRA is pretty intense now on these types of accounts and and firms have to justify the fees. But, FINRA does not give guidence.

In that account did the firm have discretionary powers or non-descretionary? If Non, essentially you were driving the decisions.
For 10 years you were getting statements and no doubt saw the fees deducted and said or did nothing about it?
Most reputable firms would not allow you to have a concentrated postion with no activity year to year unless there was other positions in the account.

I do this for a living.

Most investors don’t factor “Adjusted risk” as part of the management. What is your goal? Beat the market? Grow your wealth? Remain invested long term to accomplish specific goals? If 3rd, I prescribe you take a multifaceted approach with a core low volatile equity holdings that can beat the market but doing it by not losing as much when it drops. Two ways to beat the market, take more risk or less. The latter is boring and requires patience. With other assets you invest in tech and other things as “satilite to the core”.

If you had long term success with a concentrated position (aka: Big % of your portfolio) then congratulations to you sir. Now, question is are you now confident in your abilities and are “successful/talented” or did you just get a bit lucky (Preparation/opportunity)? Cuz the past does not matter. You have tax implications if you sell or is it in an Erisa (IRA) account?
I love stocks, and as good as I am at it, I have dogs that offset winners. I know my annualized weighted return and do well but I understand my risks and thus my chess board is planned out in either directions.

Thats what management fees are for by the way. Advice not just suggestions.

Thanks for the reply Nalod.

I had other stocks, but a disproportionate position in stock X.

In year one they started diversifying, as we had discussed when I signed up with them. But stock X kept climbing.

Around year 2 I said I regretted selling a single share, and to leave stock X be.

They're a big name firm, so I made assumptions that I should not have. Like that they had my best interest at heart, and that they were charging me fairly.

I should have been studying my statements, and trying to understand them better. But life.

My other failing is using an accountant to prepare my taxes. Otherwise I would have been more aware.

They were buying and selling various stocks over the years, but only asked me for feedback/approval on some. So I'm guessing discretionary powers? I'd probably have to find whatever documents I signed 10-ish years ago.

I have switched to a new big name firm in the last few months, with VERY friendly and informative staff, who communicate a lot with me. It's night and day. They will be reducing my position in stock X slowly (~10 years), to reduce risk while not killing me at tax time.

And firm #2 will not be charging me fees on stock X.

I plan to follow up on this matter with firm #1 (ask for review of my account), and also seek legal advice. I have some sort of legal services/advice as one of the benefits where I work (like $20 per paycheck... one of those deals). This would be the first time I use them.

What do you think, any chance I can get any restitution at all? Or do I chalk it up to life experience?

In short, many times firms will not assess a fee the entire concentrated position. so they might or might have not.
Also if they took notes they have documented decisions were you said to leave it alone.
What was the fee? on avg. they about 1% annually.
Your assumptions about being a big name firm does not excuse your neglect to read your statements. is 4 times a year unreasonable? Annually? Those fees are right there in black and white.
A 20$ a month legal service is cool for traffic tickets, maybe do an uncomplicated will, but to assist in litigating a complaint were you are complicit in neglect of your own money won't have much traction.

The process for a complaint is to write it all out. You kind of did and admit to not over seeing the detail. If they failed to follow instructions or traded without proper authorization and you were injured financially perhaps you have grounds.

Advice? Divest of the concentrated position and eat the 15% cap gain tax on the profit and pay attention to adjusted risk. Stock can drop more than 15% also so kicking the can down the road is not a sound strategy. Few people build wealth on a single position and if you have then congratulations and consider it a good thing.
Fear of regret is a real emotion. Fear you sell to soon or waited too long.
Concentrated successful position is like holding on to good NBA player too long. You become emotionally attached and don't want to pay taxes. You can't predict the future so its really not easy.

3 questions you should ask yourself to assess your objective:
1. Is the account to trade or create wealth?
2. Benchmark my goals or beat the market?
3. Keep invested thru all environments and progress towards accomplishment of your goals.
4. Do I identify my risks? What am I missing?

Everyone had different goals so if your firm offers suggestions vs. advice then be careful. Since I know more about your choice of team dancers then your financial situation thats as far as one can go. My best clients are those that can articulate their goals and emotions. Don't rely on accountant with your investments. A good one won't lend advice BTW. Good luck.

ToddTT wrote:Thanks again Nalod. All excellent advice.

Got your email, will act on it by forwarding it along.

I hope we win!!! 🫣

GustavBahler wrote:Anyone see this? Was leaked from an Army base in Iraq from 2018. Its called the "Jellyfish UFO". The most startling thing about it is how military it looks. Something Ive been noticing from some of the sightings made by the US military. Before that, grainy, out of focus, flying saucers from the public.

If its not of this earth, its probably about water. As a fuel maybe, like we're a rest stop, and they want to make sure we arent in a position to stop them.

If its not of this world, its reassuring that while it couldnt be seen on infra red, a surveillance blimp caught it on thermal!

If its not of this earth, its probably about water. As a fuel maybe, like we're a rest stop, and they want to make sure we arent in a position to stop them.

YOu not only can think like a NBA Front office exec, but now your transposing the intentions of an alien life form?
So we like an Alien “Bucees”? LOL. Looking for clean bathrooms? Slupee’s? Beef Jerkey?

I know, if we don’t understand something its “alien” and tilt right to some paranoid rhetoric about some Sci-Fi domination?

Don’t get all sensitive about this and whine your being trolled. Just understand what you wrote is kind of funny.
Nalod does not think we are alone in the universe. I also am open to the fact we are derived from some other life form not organically grown here or was helped along as the “Missing link”. Debunking religion and the existence of god would be quite the adjustment to make. We can’t handle the truth I suppose.

Aliens need our water? Cool, we got to much from what I read. If they can do that sci fi **** they can take what they want. Can take Trump also and probe his dumb ass. See what makes us so ****ing stupid as a species.

If its an alien drone thing perhaps they just flying it all over the place like some google map thing and it was just caught on tape. I’d go so far to say we got lots of that on tape.

“It leaked”. Perhaps, and thats OK. As Windhorst would say “Hmmm,why is that??” Thats our Base in Iraq? Who built it? HOpe it was us. Maybe we just testing things?

OR, maybe its a pixelated digital smudge of sorts that is really cool and “alien like?

If we can’t understand something its:

1. Alien
2. Conspiracy
3. Corrupt
4. Adam Silver wanted it.
5. CAA
6. Blame the Jews.
7. “They”

ToddTT wrote:Shogun on Hulu is pretty good a few episodes in. I may be biased because of Anna.

ToddTT wrote:Yep.

https://www.imdb.com/title/tt2788316/

martin wrote:Same series also on FX?

ToddTT wrote:Shogun on Hulu is pretty good a few episodes in. I may be biased because of Anna.

martin wrote:Same series also on FX?

ToddTT wrote:Shogun on Hulu is pretty good a few episodes in. I may be biased because of Anna.

She's also on Monarch Legacy of Monsters. She might've bumped Jessica Henwick out of my sexiest Hollywood Asian actress list.

ToddTT wrote:

BigDaddyG wrote:

martin wrote:Same series also on FX?

ToddTT wrote:Shogun on Hulu is pretty good a few episodes in. I may be biased because of Anna.

She's also on Monarch Legacy of Monsters. She might've bumped Jessica Henwick out of my sexiest Hollywood Asian actress list.

I’m gonna have to fire up the Google.