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Advisor took me Out of the Market 4 months ago!

By Terry Savage on January 27, 2017 | Investments

After managing my own money for 25 years I went with a financial advisor. Oct 1st he suggested a bond portfolio because he felt the market was at an all time high- Dow was 18,400. ( I was in a 50-50 portfolio.) I am so sorry I listened to him. I want to change back to a 50 -50 or 40 -60 mix. Do I do this ? Do I dollar cost average? Do I wait for a drop? I am retired. Appreciate any advise you can give. I feel like a fool! Thanks you.

Terry Says

Well, that is terrible advice and you should immediately file a complaint with the brokerage firm and tell them you are going to ask for arbitration because there is absolutely NO REASON (except for commissions) to put you in an all-bond portfolio that is likely to lose more money in the months ahead!  Remember, when interest rates rise (as they are doing daily),  bond prices FALL. If you sell your bonds now with this firm you will get ripped off again on commissions.   If it is a large brokerage firm tell them you are going to get an attorney, and you expect them to liquidate this bond portfolio at the best prices and without commission.  And let them know your attorney will be checking the sales prices as part of your complaint. Then contact Andrew Stoltmann, an attorney who specializes in these issues.  His number in Chicago is 312-332-4200.  (Feel free to use my name.) But don't be paralyzed.  You need to liquidate a significant portion of this account, and perhaps got to a no-commission fund company like Fidelity or Vanguard to create a low-cost diversified plan.  Sticking with an all-bond portfolio is likely to be costly in this environment. And by the way, your "financial advisor" was likely not a FIDUCIARY -- someone who looks out for your interests ahead of their own fees and commissions.  Next time you decide to follow an "advisor" check him our through the links at www.Finra.org using their "broker check" tool to look up the background of investment professionals.  



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