I have inherited some investments and am a complete newcomer to the world of stocks. The inherited assets include both index funds and a number of individual tech stocks. They are currently being managed by an advisor at a total cost of about 1%.
A good friend has recommended a fixed fee financial planner and investment management model (specifically with Facet, who I believe only invests in index funds). I’m trying to decide what makes the most sense, and I think there are two big questions included:
– Is it worth holding on to individual tech stocks (right now)? Do they tend to outperform index funds, or would I do better to have everything in index funds?- Is there any reason to continue with the advisor charging the 1% fee for assets under management (for instance, if I do hold on to those individual stocks)?
There are ethical implications wrapped up in the question about major tech stocks, which I’m considering separately. For now, I would just like some help in understand the financial implications of these options.
Thanks!
