Guaranteed! Make LESS money investing!

Recently a new client came to the office.  His small Roth Individual Retirement Account was not doing very well.  He opened the account a few years ago with a company well known for working the "Middle America" and "Main Street" marketplace and constantly trying to recruit folks to pitch their offerings.

At first glance of his Account Statement I noticed that the person responsible for managing the account was not referred to as an "Advisor" but rather he was a "Dealer."  Dealer?  I expect to see "dealers" in Las Vegas, and not on someone's individual retirement account.

Then I looked further into the account.  There I saw why the poor fellow's account was underperforming.

He had taken the responsible steps of making $150 contributions monthly to his Roth IRA.  But out of that $150, only around $141 was being invested.  Each month the "investment company" was skimming almost six percent in sales charges on each transaction.

So right off the bat his investment was in the red six percent.  He has to earn all that back just to break even!

Then we looked at just where the money was being invested.  It was in a single mutual fund that held conservative large companies based in the United States.  There were no mid-sized or small-sized companies.  No global companies either.  All of the eggs were in a single basket with no diversification.  While this fund would serve as a good cornerstone for a portfolio, it was missing entire chunks of the total stock market which would significantly increase the value and growth of the portfolio.

Obviously the new client was both surprised and distressed over the findings.  Going forward we're going to work our hardest to make this account perform significantly better.  You only have one shot at retirement.  Make it count.

Lesson learned?  If you want to gamble your money with a "dealer", then go to Las Vegas, Best Bet, or Victory Casino Cruises.  If you want competent, impartial and professional investment advice consult with a registered investment advisor.

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The views expressed here are that of myself or the cited individual or firm and do not constitute a recommendation, solicitation, or offer by myself, D2 Capital Management, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. D2, its clients, and its employees may or may not own any of the securities (or their derivatives) mentioned in this article.

 The Jacksonville Business Journal has ranked D2 Capital Management in the top 25 of Certified Financial Planners in Jacksonville.  The Firm is also a member of the Financial Planning Association of Northeast Florida, the Jacksonville Chamber of Commerce, the Southside Businessmen's Club, and the Beaches Business Association.