1. Do we own funds that cost less than 1%? If so, why?
2. Do we pay trading commissions? If so, why?
3. Do we earn 2% on our cash? If not, why not?
4. Does our broker lend out our shares and earn revenue? Do we share in that revenue? If not, why not?
5. Do we own stock mutual funds in taxable accounts that are expected to pay capital gains? If so, why don’t we own tax-efficient ETFs?
6. Will you show me how you allocate your own money with holdings? If not, why not?
7. For the fee I pay you (1% is standard), what do you consider your major value add is and will be in the future?
8. Do we have home country bias in our portfolio (meaning a client has less than 50% in foreign investments). If so, why?
Meb Faber is a podcaster, prolific author and a co-founder and chief investment officer of Cambria Investment Management. The Manhattan Beach, California-based manager heads up Cambria’s ETFs and separate accounts. In a recent Twitter thread, Faber outlined eight common questions clients should ask their advisors and brokers toward year’s end. “As the decade nears its end, always a good time to reflect,” he tweeted. Check out his questions in the gallery above.
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