Recently, my net worth has crossed into the 1M plus mark and I started getting calls from Fidelity to invest in their manages funds where the minimum investment is 100k and they have pretty hefty fees which reduce as you put in more money to manage. I wanted to know if anyone here uses them since I see a TON of posts with insane high TCs and crazy net worths. Questions : 1. If you use those funds, then what's the ROI? 2. How much money do you put in it? 3. Is it better than SPY which has basically 0 fees? 4. What are the pitfalls to watch out for? 5. Which funds from the managed funds are good? Context: I am in my early thirties with a toddler age 2. My wife earns similar TC and has similar net worth. We are kinda swimming in cash and don't understand where to put our money to grow modestly as long as it's tension free. I am not looking for get rich quick schemes and no I don't like Bitcoin. TC : 330k YOE : 10 #personalfinance #investments
I don't think there's any good reason to pay fees for a managed fund. VTI or VTSAX and chill. One thing that might be worth paying some modest fees for is a target retirement date fund. They will automatically put your investments on a glide path towards being less volatile as you approach your target retirement year.
I can't wait until I've passed the licensing requirements to hawk investment funds to people who don't even understand how bad of a deal they are for the "investors".
Don't have experience with these funds but worked for a manager with similar requirements (minimum 300k investment) that I'm guessing is similar. Don't put all your money into them, keep a good chunk of change in low cost index funds. These funds sometimes beat the market though even after expenses, although not guaranteed. These are more about diversification and exposing yourself to different strategies and fund managers
if they promise to beat the market , then Yes, else no brainer will be in Index funds or Large Cap Tech funds.
Just do low cost index funds. Bogleheads.