I'm just starting to invest and going with a managed account.

I'm sure any investment firm would love to manage all my available money, however I'm not ready to put all my eggs in one basket (if ever). I have more traditional savings available that I'm not touching until I feel more confident.

The result, it seems, is that the asset allocation model I'm discussing with the advisor is very different than my "actual" model. He insists that I must have a cash component. What's the point of having any cash in that account's makeup if, once I count my separate CD/savings, the result is balanced or even conservative?

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    Why not come clean with the advisor, and tell him you have x$ in cash/CDs? Else, he'd continue to push for a mix but not have all the details due to your 'hiding' these extra funds. Odd way to start a relationship. Nov 11, 2012 at 23:59

1 Answer 1


Your adviser cannot advise you if you don't tell him the whole picture. You don't have to invest everything with the adviser, you can just say that you have the cash allocation portion already invested elsewhere, and he can consider your portfolio based on that information. He works for you and you pay him for this work, why would you want him to provide a result that you know is worthless, because you didn't tell him what he needs to know?

  • Thanks, that obviously makes sense. My advisor seemed to be ignoring the cash I have elsewhere and insisting on a cash component in his portfolio. I wanted to confirm that this doesn't make sense - that cash outside one account counts as much as cash inside.
    – Drew
    Nov 14, 2012 at 19:57

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