Managed Investments

sayansh · Post by **sayansh** » Sun Jul 17, 2016 12:42 pm

Hi
I invested in Chase Private banking and brought in 100K $ (50K Retirement + 50K Investment ) under mgmt to the bank . On the 50K Investment - It's been around 6 months now and I'm trying to understand what will be the return on investment in a year and I've learnt that it will be a dismal 3% after taking off fees and the tax I'll have to pay on the profits .
Is this typically how things work ?
I'm fairly new and am trying to understand in a moderately balanced portfolio ,is this what I should expect?

b2blr · Post by **b2blr** » Mon Jul 18, 2016 10:42 am

Hi you will need to provide more details on what investments were made and if they informed you about it when you signed up. For example, if they said they were going to invest the 50k in Treasury bonds, then a 3% after tax return is pretty good because Treasuries are extremely low risk. In other words, you cannot classify a return as good or bad without knowing what kind of risk you are taking on

FB2020 · Post by **FB2020** » Mon Jul 18, 2016 5:09 pm

sayansh;634829Hi
I invested in Chase Private banking and brought in 100K $ (50K Retirement + 50K Investment ) under mgmt to the bank . On the 50K Investment - It's been around 6 months now and I'm trying to understand what will be the return on investment in a year and I've learnt that it will be a dismal 3% after taking off fees and the tax I'll have to pay on the profits .
Is this typically how things work ?
I'm fairly new and am trying to understand in a moderately balanced portfolio ,is this what I should expect?

there are better options than going to a private banking firm and having them charge all those fees.

tahoelocal · Post by **tahoelocal** » Mon Jul 18, 2016 10:25 pm

IMHO, managed investment is a scam, you can do far better on your own with a few simple choices in vanguard. I strongly recommend this option.

check out this thread:
http://www.r2iclubforums.com/forums/showthread.php/39952-Simple-investment-choices

venkat786 · Post by **venkat786** » Mon Jul 18, 2016 11:54 pm

> IMHO, managed investment is a scam

I disagree with the above comment. If you are managing yourself, there is 100% chance that you become emotional on every news bit and react accordingly.

For some, managed investments makes better sense.

tahoelocal · Post by **tahoelocal** » Tue Jul 19, 2016 12:47 am

venkat786;634926> IMHO, managed investment is a scam

I disagree with the above comment. If you are managing yourself, there is 100% chance that you become emotional on every news bit and react accordingly.

For some, managed investments makes better sense.

Check out the thread I linked above. It has some excellent ideas. I should note that OP hasn't mentioned his goals for investing: retirement? long-term investment?

my advice is generally for retirement or long-term investment. A simple portfolio with a a vanguard balanced fund or even a mix of total bond market + total stock market + total intl stock can do better than a managed investment with high expense ratio. Vanguard is very good in terms of low expense ratios for its funds (i heard fidelity is lowering to match vanguard). If you invest with these funds, you can be hands-off, just setup a monthly transfer, rebalance in your tax advantaged account to stick to your portfolio or for a taxable account just direct new funds to bring back funds to original portfolio allocation. This is pretty much hands-off investment -- infact i even forget that this happens, and it happens automatically without involving me in the decision process (as you say, we humans are emotional). But note that this approach is super simple, and doesn't involve paying someone to manage it. IMHO, this approach can also outperform your chase money manager.

sayansh · Post by **sayansh** » Tue Sep 20, 2016 3:45 am

Thanks all for the wealth of info you guys have provided .
So in my case - I'm looking to see if I can get anything more then 5% it will help me as I have a substantial sized bay area mortgage at 3.3% which is a lot money and I can take this 50K and bring it down to more manageable level .
When I signed up for chase,my situation was different but now with this huge mortgage - I'm thinking of bringing it down to atleast 450K wherein I can actually start thinking about having a mortgage that I can afford to pay down in 30 years.

i read the loong threads on investing v/s paying off mortgages and as every desi -a sense of security (although superficial) around bringing my mortgage payment in affordable range looks more appealing then investing when i'm just even on the net gains. any thoughts / views will be very appreciated.