Is having separately managed and ETF/Index Fund Accounts a bad idea?
I currently have a managed account and recently became aware of the fees eating up my investments. Furthermore, my advisor mostly invests in individual stocks, which feels risky to me. Coming in with little knowledge, I just sent money to him to invest, since he handles my family members' accounts.
I would like to open an account where I purchase index funds. If I keep the managed account while simultaneously having a separate index fund account, is this risky in terms of tax implications or costs or other issues?
I would prefer not to dump my managed account right away, as I am new to the idea of strategic investing and it feels intimidating to take this chunk of money that is managed and right away invest it myself.
I have heard that “Washing” can be an issue. If my advisor invests in a particular stock that also wind up as part of an index I purchase in a separate account, could this be a problem, if he sells that managed stock?
Excuse my ignorance. Trying to make the best decisions over the long haul as currently learn. Any thoughts appreciated
Leave a Reply