In my last post I discussed the first steps you would take to go beyond basic investment management while adding another integral safeguard in the process. Doing so offers the opportunity to reduce risk during stock market declines and enhance performance by being more opportunistic with individual stocks or trading strategies but not without greatly increasing your reliance on your individual expertise.

The basic investment management system I laid out originally is something anyone with a 4th grade math background and an hour once a month can implement successfully and it can literally save you millions over your investing lifetime. Going beyond this system requires an exponential leap in the amount of time and expertise needed to make it successful. Consider this carefully when deciding to attempt it.

Back when I started this blog series I suggested there were actually a few investment advisers “worth their weight in gold.” It is precisely their ability to effectively use these advanced techniques that determines this value to their clients. My best guess is that the advisers out there that truly do earn their fees in this way make up less than 1% of all advisers in the industry.

Because basic investment management is so simple I believe that nobody should have to pay anything for it. Many advisers, however, are very happy to charge you 2% to 3% of your assets every year for a system my 10-year-old daughter could manage for you. My advice is to tell those guys to take a hike.

For more information about Felder & Company advisory services or to receive a free portfolio review send me an email at jesse@felder.co or call 541.389.3345.