Destination Wealth Management

After 9 months with Destination, I received a performance report covering 6 months. Since in the first 3 months, they had lost money for me through what I would call sloppy «sell low/​buy high» actions, the returns were not reflecting reality. When I asked why they did not include the first 3 months of their management of my portfolio, their reply was that they don’t really do any management in the first 3 months. ??? «But you charged me your management fee for the first 3 months, so your report should reflect that period». I was then told that «well it’s just our period where we are doing our research for the next cycle». «Well why did you liquidate my stocks on down days to maximize losses when in a highly volatile market you could just wait a few days and sell on an up day or enter in a limit order price?» To this they replied, «Well we probably did dollar cost averaging selling so you came out ok». But I didn’t come out ok. They sold high dividend paying stocks a week or two before the ex-​date and other similar amateurish moves. Then they told me that I was just confused about their sophisticated approach to management. ;-)) REALLY…

Michael Yoshikami, founder and CEO of Destination Wealth Management (formerly YCMNet), has been our financial advisor for 14 years — and we are delighted with the success of our portfolio, including our IRA’s, under his fee-​based management.
In boom times our investments have lagged the top of the market by a little, but in «crash» or slow times, we stayed well above the bottom of the market — making recovery much faster. That’s a risk level we selected.
Other pluses: Michael is linked into the wider financial world and writes an excellent weekly column about investment trends; he always knows exactly why we are invested in a security or fund — and the reasons are usually not the obvious ones; the staff work with our accountant over tax matters, and are always available to answer questions or to meet in person, and finally, Destination Wealth donates a significant portion of its profits to charity.

I totally agree with Dorian. After a long time of watching profits go, Dorian is right — they are totally into hold hold hold. They may be too timid to take profits or to let a losing position go. They hardly ever trade within their portfolio! They traded one of the top 10 dividend payers, for a company that is really in trouble. Overall I can’t recommend them either– I don’t think Michael really manages your money. He just creates a strategy and holds to that regardless whether Europe is crumbling or China fails. It is a volatile market for the long haul and to buy and hold for years makes no sense to me. Everyone else is, well, trading. The traders are the ones making money so why hold and hold and hold, watching the market take 4 steps back and 3 forward? Not for me.

Thought I had vetted them well by calling clients of theirs for recommendations; meeting with their advisor, and feeling comfortable with Michael Yoshikami as the principal in the organization. Had my retirement portfolio with them for 9 months or so and it was setup with 55% stocks/​45% bonds. I kept a healthy amount of Verizon stock that I bought previously as I thought the dividend was good and there was upside potential. Otherwise they created a portfolio with their recommendations.
After 9 months of watching profits continually slip away (they are totally into hold hold hold and don’t use stops) and riding up & down a fair amount, I decided to bail. I feel that they are too timid to take profits or to let a losing position go. They hardly ever trade within their portfolio! There was no sense paying them 1.1% to create a portfolio that is easily duplicated if you read enough financial columns and newsletters — they bought some citigroup and it is down 41%. They doubled down and bought aflac twice, now at a 16% loss. The only trade that has been worthwhile was a small position in gld. Actually, there would be a bigger loss in my portfolio if I had not kept my verizon stock. Overall I can’t recommend them — I think if you want someone to manage your money, there are better companies out there…

These guys «want to be the GS for those under $ 10M» — a nice way to position themselves, at least initially.
I’ve been a tough customer and the folks at YCMNET have been great so far. George and Tony have been my main contacts to date.
I’ll update once I have more data involving different investment/​economic conditions…

A really personal and very knowledgable team, they’ve really helped me organize and plan out my long-​term financial goals. Caroline Egan, my advisor, is particularly great, and always keeps me in the loop about what’s going on in my portfolio. I highly recommend her and the firm!