T2 Asset Management, LLC
Managing Principal & Portfolio Manager
As a Managing Principal and Portfolio Manager, Dan Timotic's focus is to help clients achieve their financial goals. He works closely with clients to understand their current financial situation, evaluate their current investments, and make recommendations to better allocate their portfolio based on their risk preferences.
Prior to founding T2 Asset Management, Dan held various positions at some of the largest investment firms in the country as a trader, portfolio manager, and strategist. With over 20 years of professional experience, he has managed billions of dollars for institutions, endowments, foundations, pension plans and individuals.
Dan received his MBA in Finance from DePaul University. He is a Chartered Financial Analyst and a member of CFA Institute as well as CFA Society of Chicago. Dan also serves as a member of the St. John of the Cross School Advisory Board in Western Springs, Illinois.
MBA, Finance, DePaul University
Assets Under Management:
I wouldn't recommend buying individual stocks. Research has shown that the vast majority of investment returns come from asset allocation, not stock picking. I also believe in fundamental, low-cost investing. With so many mutual funds underperforming their respective benchmarks, there is little reason to pay the higher expenses to hold them. I primarily hold ETFs for my clients. ETFs give my clients the exposure they need to the market with the lowest cost. To learn more about ETFs, you should visit Vanguard's website. They have good educational tools for your to review.
Unfortunately, many mutual funds have high sales charges and this is normal depending on how much your investing. The high commissions and fees on mutual funds is one of the reasons I use ETFs for my clients. If you're paying 4.5% to buy a mutual fund, you're already in the hole and that's not even taking into account the underlying expenses of the fund. Considering so many mutual funds underperform their benchmarks, you better have a really strong belief in that mutual fund if you're willing to pay that much. You're better off looking for no-load mutual funds or ETFs.
With mutual funds, you will always get the closing price of the day when you put your order in. I would suggest you look into ETFs instead of mutual funds. They trade throughout the day and have much lower expense ratios. We primarily use ETFs for our clients and it gives us the specific exposure we want based on our macroeconomic outlook and fundamental analysis.
That being said, if you're time horizon is long and you don't mind the ups/downs of the market, simply research some ETFs that are aligned to your risk tolerance and implement a systematic way of contributing to your account.
I think the CFA designation is very important to the buy side. Keep in mind, there are a lot of people competing for jobs on the buy side and the more you can differentiate your commitmet to the profession, the more likely you will stand out. Just remember, it is not easy to be awarded the CFA designation and will take a lot of effort on your part. Good luck with the exam. I remember the challenges.
Unfortunately, there's not enough information in your question. How is your 401k account allocated? Do you have 100% in stocks? If you own bonds in your 401k, what kind of bonds? Why do you have so much cash?
One thing you can do to really get a good idea of where you stand is to do a financial plan. A financial plan can project your future needs and give you an idea of where you are and what you may or may not need to do in order to achieve the retirement you want. Just keep in mind that many planners will charge you to do a financial plan. If you're willing to take the time to do one yourself, we offer a FREE online financial planning lab that you can go through and generate a financial plan. If you're interested, you can click on the link below: