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:
Dan Timotic, CFA
T2 Asset Mgmt Intro Video
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 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.
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.
First and foremost, I'm glad to hear that you are thinking about your future and starting to plan. I am a firm believer in low-cost index based investing for people. I use passive ETFs for my clients and actively manage the exposure to those ETFs. For you, I would find an indexed ETF that you like based on your risk tolerance and make regular contributions. You have a long time horizon and will benefit from the low-cost of ETFs compared to the high expense ratios of mutual funds.
All things being equal, I prefer to own term life instead of whole life if you don't have any estate planning needs. The vast majority of people are better suited to own a term life policy for their specific needs. For example, if you have kids that are 10 and 11 years old, and you're the only working parent, your income is essential to having them survive. If something happens to you, you would want them taken care of. That being said, how long do you want them taken care of. Maybe you want to replace your entire income for the next 10 years so they can finish college. A 10-year term policy will cost you much less than buying any permanent insurance policy.
The mistake people make is that they seem to want much more insurance than they need. I've seen people buy policies (or they were sold policies) that are way more than they should have in coverage. If you make $90,000 per year and want to make sure your kids maintain their standard of living for the next 10 years until they are adults, simple math says you should have about $900,000 of life insurance. Some people may add additional coverage to factor in inflation, but that's how the numbers work.
Some people say they want their kids' college paid for if they die. Well, if you stay alive, you will need to find the college money out of your current income, so why are you including college payments in your life insurance benefit? Like my father once told me, I want to make sure I'm not worth more dead than alive. Just something to think about before making a commitment that will cost you more than necessary.