FMD Capital Management

Posts Tagged: robo-advisor

Investment Advisors Aren’t Worth The Money

Written by David Fabian, April 19th, 2017

I had a conversation with a prospective client the other day who called me inquiring as to what we do.  I gave him the typical run down that we are a fee-only investment advisor specializing in ETF portfolios.  In other words, we provide discretionary management of client accounts using low-cost investment tools.

His response {paraphrasing}: “Mr. Fabian, I know a CFO of a big publicly traded company.  He told me they did a big study about the use of investment advisors and that they aren’t worth the 1% fee.  That all you need to do is buy ETFs to reduce the drag of expenses on your portfolio.  What do you have to say to that?” Read more

Unbiased Financial Advice Is An Oxymoron

Written by David Fabian, November 12th, 2016

The other day I was looking at a colleague’s social media account where he proudly stated that he strives to provide “unbiased” financial advice.  Now on the surface this seems like a noble endeavor.  He obviously created that slogan to invoke a sense of trust and soundness of principle in his profession.  I’m sure it gives some folks a warm and fuzzy feeling. Read more

3 Unconventional Reasons To Hire An Investment Advisor

Written by David Fabian, August 15th, 2016

There are a multitude of conventional reasons why people hire investment advisors to look after their portfolios.  Some are just focused on their jobs or families and don’t have time to deal with the markets. Others don’t understand the moving pieces of stocks or bonds and want no part of it.  While another group assumes that a professional advisor is simply more accomplished at their craft and can outperform a part-time participant.  Read more

Active Management’s Second Act

Written by David Fabian, August 08th, 2016

If there has been one dominant force over the latter stages of this bull market, it has been the switch from active to passive investment management.  There has been a tremendous movement of assets from traditional money managers to the likes of Vanguard, Charles Schwab, and other index-based platforms.  The latest iteration to try and capitalize on this trend are robo-advisors and their low contact, systematic approach. Read more

Choosing an Advisor: Features vs Benefits

Written by David Fabian, May 02nd, 2016

I’ve been thinking a lot lately about the investment advisory business.  There are now so many options available to every-day investors that everyone starts to sound alike.  It used to be you were a rebel if you were using ETFs, transparently reporting performance, or compensated on a fee-only basis.  Now, this is the way that everyone sets up their shop.  Read more