Hello all,
My last post was very similar to this one, however I figured I would make a continued post this time with numbers of my father's portfolio, just to ensure that I am not misreading the figures and to verify before we do something drastic like firing the financial advisor. I also have some updated information, please disregard any discrepancies from the last post as my father was not remembering certain figures correctly.
For those who need a quick rundown:
His principal investment was $250,000 3 years ago in his investment account, inception date Jul 31, 2021. The money was invested by a First Horizon Bank Financial Advisor, it is sitting only at around ~$270k now. Inception to date is 3.1% which seems very, very low at what appears to be less than a 1% annual return.
His 401k, also managed by said FA, began in 2014. He had $80k contributed annually, it is now at 1.3 million. My father's friends have informed him as of late this is also disappointingly low, as it should be much higher. From a quick skim, 75% of the 401k appears to be in mutual funds and the other 25% in equities.
There appeared to be a unanimous decision on my last post, to fire the financial advisor and handle the money ourselves, (some even suspected churning) and invest all of it/reallocate the money into index funds like S&P, VOO, VTI, etc. However others said that the time he began to invest that the market was in a really bad place, and perhaps the poor performance is simply a result of that, or that my father may have asked for an ultra conservative investment style, it doesn't help that he can't remember if that's the convo he had though lol. Though if that was the case, what explains the poor performance on the 401k? This is why I am confused. If anyone would be willing to go over the portfolio's and help me decide which of the two it is I would greatly appreciate it, thank you in advance.
The investment account's portfolio, which ends at Dec 31, 2023: https://imgur.com/a/L7yuZl3
The 401k portfolio: https://imgur.com/a/BDQ1AlG
My dad is almost 59 years of age, and has 6 children, including me. He has voiced his concern about this for many months now and I figured I would try to get to the bottom of the issue myself. He moved to America 2 decades ago and is, for the most part, financially illiterate. We are in the midst of financial troubles as he has had to pull out of his savings to pay bills as of late. As a family we are trying to cut back on any costs and so any help would truly be appreciated in regard to this matter. He has accepted that he will work until the day he passes, which I hate, and I want to be able to change for him.
Submitted July 01, 2024 at 12:03AM by XShadowSlayerX3 https://ift.tt/ci8D0gv
