T2 Asset Management, LLC
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 have been a portfolio manager at large and small firms. The size of the firm is much less important than the manager making investment decisions. You should also consider the actual mutual fund objectives. Many mutual funds have a mandate to stay fully invested regardless of market conditions. Think back to 2008 when the market collapsed. There are alternatives to investing in mutual funds that cost much less and have specific objectives to better meet your needs. The most important thing, in my opinion, is to work with someone that has the agility, ability, and experience to protect you when the market inevitable rolls over. Many advisors simply allocate you investments and tell you to hang in there for the long term. While this idea may have worked 30 years ago, we live in a different time where interest rates are extremely low and stock prices elevated. Investors have been programmed to believe in buy and hold strategies. You see them advertised everywhere. The most important question to ask yourself is, "Can I live with another huge market correction and will I have the mental fortitude to hang in there?" If your answer is no, you should find advisors that have the ability and experience to play defense when the next recession hits.
I personally don't like annuities. There are a lot of costs associated with them and they are usually sold to people generating a large commission to the broker. Given today's interest rate environment, I would not want to be locked into a low fixed rate. That being said, if you're risk averse, then an annuity may work for you. Just remember, the guarantees are only as good as the insurance company selling it to you.
I always recommend to my clients to have the money wired directly to their accounts.
Congratulations on taking the first steps to becoming a successful investor. The fact that you are young gives you a great deal of options for your future. Generally, the word stable and the S&P 500 Index don't necessarily go together. The market has volatility and will go up and down. That being said, for someone your age and with your long time horizon, you should do well by investing in the S&P 500 Index. There are a lot of low-cost ETFs out there that should fit your needs. You can also own a few different market ETFs like the Nasdaq, the Dow Jones Industrial Average, Russell 1000, etc. Start with Vanguard and do a little research on what kind of investor you are and the type of volatility you can handle. I recently wrote a couple of articles that you may find interesting...
As a young adult, you have a number of advantages. My advice to you would be to create a budget, understand your spending, and begin a plan to invest for your future. The sooner you begin saving for your retirement, the higher the probability you will achieve and potentially exceed your retirement expectations. Time is on your side right now. The later you begin saving for your retirement, the more you will need to put away and sometimes your needs later in life won't allow for the necessary increases in savings.