Three years ago, my husband and I engaged a financial advisor. The firm, which manages my mother’s accounts, offered us a fee of 1.10%. Between August and November of 2021, we entrusted our advisor with $20,000, which was allocated to a “joint retail account.” Despite being assured that our investment was part of a long-term strategy, the account’s value has failed to exceed the original investment amount at any point. Currently, it stands at around $18,000.
While I initially opted for this managed approach due to the low fee, I’m now reconsidering, especially given the underperformance and the prevailing interest rates. Would it be advisable to withdraw this money and transfer it to my Money Market Account (MMA), which offers a 4.55% interest rate?
2 Likes
You’ve been duped.
The fee is far too high and the amount you are getting “managed” far too low.
1 Like
Putting your money into a Money Market Account would be a smart idea since the shared account hasn’t been doing well and interest rates are low right now.
However, before you decide for sure, think about things like fees, how much money you could make, and what your financial goals are.
1 Like
Based on your situation, it seems advisable to transfer your funds to your Money Market Account (MMA) which offers a 4.55% interest rate. Over the past three years, your investment in the managed account has decreased from $20,000 to around $18,000, indicating consistent underperformance despite assurances of a long-term strategy.
The MMA provides a stable and predictable return, with your $20,000 potentially earning approximately $910 annually in interest, which is significantly better than the current trend in your managed account. Given the opportunity cost and the need to periodically re-evaluate your investment strategy, moving your money to a more stable and higher-yielding option like the MMA can be a prudent decision.
1 Like