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Started By
Message
re: Edward Jones - Get out ---> Vanguard is the way to go!!!
Posted on 7/14/15 at 2:25 pm to bayoubengals88
Posted on 7/14/15 at 2:25 pm to bayoubengals88
I'll join in and also suggest pulling your money from Edward Jones. Either go with Vanguard IRAs and funds or find a reputable independent financial advisor/wealth management firm who is willing to show you their track record before and after fees.
Personally, I have a bit of a disliking for the major financial advisory firms (Edward Jones, Morgan Stanley, Ameriprise, etc.). The offices are run by CFPs, which means they should be capable in giving you financial advise/helping you plan your financial life. That isn't always the case.
Just because someone works in a finance profession or have a financial certification doesn't mean they are good with money. There are CFPs that have gone bankrupt or will do so in the future managing their own money.
Heck, the CFP Institute has a board that regularly deals with that, and I say that because someone I know was on that board once.
Second, most CFPs have no better idea on what makes or is a good stock than you do. If they can't tell you their investing methods and/or show their track record, be skeptical. Most/all of the big firms, like Edward Jones, have corporate create funds (with above-average fees) or buy big blocks of shares on Wall Street that individual offices sell to clients at a slight premium. Corporate makes money that way, the offices make it off of asset management fees, performance fees, etc.
Personally, I have a bit of a disliking for the major financial advisory firms (Edward Jones, Morgan Stanley, Ameriprise, etc.). The offices are run by CFPs, which means they should be capable in giving you financial advise/helping you plan your financial life. That isn't always the case.
Just because someone works in a finance profession or have a financial certification doesn't mean they are good with money. There are CFPs that have gone bankrupt or will do so in the future managing their own money.
Heck, the CFP Institute has a board that regularly deals with that, and I say that because someone I know was on that board once. Second, most CFPs have no better idea on what makes or is a good stock than you do. If they can't tell you their investing methods and/or show their track record, be skeptical. Most/all of the big firms, like Edward Jones, have corporate create funds (with above-average fees) or buy big blocks of shares on Wall Street that individual offices sell to clients at a slight premium. Corporate makes money that way, the offices make it off of asset management fees, performance fees, etc.
2
Posted on 7/14/15 at 2:34 pm to jimbeam
quote:
Can open a vanguard account on your own online in like 20 minutes and then go from there.
See that's the thing. I don't know how to "go from there". I'm in a similar position as the OP. I am not rich or apathetic. But as a 27 yr old not in the financial sector, I am very clueless. I invest with EJ because I don't know how to manage an account on my own.
I could open a Vanguard account, but I would have absolutely no clue how to manage it (what funds to buy). Is it as easy as just pick a fund and let it sit there or do I actually need to pay attention? Yea I'm paying higher fees with EJ, but least these guys do this for a living. I just don't have confidence that I could do better in the long run than a financial professional.
Finance is just not my arena. I browse this board a lot and am trying to learn, but I'm still hesitant to manage my life's savings on my own.
Posted on 7/14/15 at 2:38 pm to Omada
quote:
find a reputable independent financial advisor/wealth management firm who is willing to show you their track record before and after fees.
To be honest, it is going to be hard to find an independent that will take a $20,000 account.
Posted on 7/14/15 at 2:50 pm to PhiTiger1764
Okay. Until you learn more, dump it into a target date fund. Mine is 2060.
This post was edited on 7/14/15 at 2:51 pm
Posted on 7/14/15 at 2:53 pm to PhiTiger1764
PhiTiger:
I'll quote jimbeam from page 1. He says all there is to say.
"If you want stupid easy, dump it all into a vanguard target date fund. Done. Keep adding
A little more complex would be to buy 3 or 4 vanguard funds (sp500, total stock market, international, ect) to lower your expenses but you will have to rebalance yearly or so"
Google vanguard target retirement 2045.
That one fund can last you thirty years.
It's extremely diversified by using broad US and Global indexes. You'll literally be buying very small amounts of thousands of individual stocks using one fund.
So, as the U.S. And World economy goes, so goes your money. That's generally a good and safe thing.
The other good thing about the target retirement funds is that they rebalance and change allocation based on your age.
Simply put, the percentage of bonds in your fund will increase as you get older. Because bonds are safer than stocks. They don't move as much in either direction.
I'll quote jimbeam from page 1. He says all there is to say.
"If you want stupid easy, dump it all into a vanguard target date fund. Done. Keep adding
A little more complex would be to buy 3 or 4 vanguard funds (sp500, total stock market, international, ect) to lower your expenses but you will have to rebalance yearly or so"
Google vanguard target retirement 2045.
That one fund can last you thirty years.
It's extremely diversified by using broad US and Global indexes. You'll literally be buying very small amounts of thousands of individual stocks using one fund.
So, as the U.S. And World economy goes, so goes your money. That's generally a good and safe thing.
The other good thing about the target retirement funds is that they rebalance and change allocation based on your age.
Simply put, the percentage of bonds in your fund will increase as you get older. Because bonds are safer than stocks. They don't move as much in either direction.
This post was edited on 7/14/15 at 2:56 pm
Posted on 7/14/15 at 2:53 pm to jimbeam
quote:
Mine is 2060.
Damn, I thought the target fund was to be the year you retired?
Posted on 7/14/15 at 2:54 pm to Omada
Just FYI, Edward jones does not have proprietary funds as you just mentioned.
But yall have significantly deviated from the OP. It sounds as if he's just looking to get access to his statements to show his lender proof of funds. Maybe I'm wrong though.
But yall have significantly deviated from the OP. It sounds as if he's just looking to get access to his statements to show his lender proof of funds. Maybe I'm wrong though.
This post was edited on 7/14/15 at 2:56 pm
Posted on 7/14/15 at 2:55 pm to bayoubengals88
quote:
Google vanguard target retirement 2045.
At 28, this seems to the most appropriate place to dump the money and continue stocking it. I am holding off making move until all accounts are synced up and the house is closed on. I changed jobs from TN to MS and so I am doing some rollovers now as we speak. Once this is all settled, I will likely make this move!
Posted on 7/14/15 at 2:56 pm to rpg37
Doesn't have to be. The glide path changes (stocks/bonds) for each date. I just went with the "most aggressive". Even though it is likely identical to the 2050 for the next 20 years
Posted on 7/14/15 at 2:56 pm to Shepherd88
quote:
But yall have significantly deviated from the OP. It sounds as if he's just looking to get access to his statements to show his lender proof of funds. Maybe I'm wrong though.
It's okay. They did get back to me and we are good there. However, the thread is helping me immensely in money management even though it's be hijacked.
Posted on 7/14/15 at 2:57 pm to jimbeam
quote:
I just went with the "most aggressive".
This makes sense. So, the longer the date is away, the more aggressive it becomes? Do you plan to move the funds into more conservative ones as you approach the last few years you plan to work?
Posted on 7/14/15 at 2:59 pm to rpg37
It just keeps you in stocks heavier, longer. I may move into 2050 or 2055 depending. I'll see in 20 years
Honestly I'll likely move into admiral shares once I start investing more heavily.
Honestly I'll likely move into admiral shares once I start investing more heavily.
Posted on 7/14/15 at 3:02 pm to jimbeam
Yep. The later the year the more agressive.
Also it's really easy to exchange some of your funds for other ETFs at NO cost.
For example, if the Vanguard Energy ETF (VDE) gets down to $99 then I can just exchange however much of VTIVX (target 2045) I want for VDE.
The option is there.
Also it's really easy to exchange some of your funds for other ETFs at NO cost.
For example, if the Vanguard Energy ETF (VDE) gets down to $99 then I can just exchange however much of VTIVX (target 2045) I want for VDE.
The option is there.
Posted on 7/14/15 at 3:04 pm to bayoubengals88
quote:
The other good thing about the target retirement funds is that they rebalance and change allocation based on your age.
And this is done automatically?
quote:
A little more complex would be to buy 3 or 4 vanguard funds (sp500, total stock market, international, ect) to lower your expenses but you will have to rebalance yearly or so"
Please bear with me here, but what do you mean by rebalance? What would I actually need to do?
Posted on 7/14/15 at 3:09 pm to PhiTiger1764
Just changing the ratio of stocks/bonds. If your stocks heavily outperform your bonds, but you still want a 80/20 split, you move some $ to bonds from stocks to restore the ratio.
This post was edited on 7/14/15 at 3:10 pm
Posted on 7/14/15 at 3:11 pm to jimbeam
Ahhh ok. Thanks for the help guys. This has been extremely helpful.
Posted on 7/14/15 at 3:13 pm to PhiTiger1764
The Target funds DO rebalance automatically.
Rebalancing:
The SELLING of funds that have done well in order to BUY funds (within your portfolio) that have underperformed.
Over simplified version using stocks:
Say I own two stocks. Netflix and Coca Cola
Netflix is up over 100% for the year (these are real stats)
Coke is down about 3.5%
I would sell some of the money I've made on Netflix (NFLX) to buy Coca Cola (KO) while it's cheap...because I still believe in KO as a company.
Rebalancing:
The SELLING of funds that have done well in order to BUY funds (within your portfolio) that have underperformed.
Over simplified version using stocks:
Say I own two stocks. Netflix and Coca Cola
Netflix is up over 100% for the year (these are real stats)
Coke is down about 3.5%
I would sell some of the money I've made on Netflix (NFLX) to buy Coca Cola (KO) while it's cheap...because I still believe in KO as a company.
Posted on 7/14/15 at 3:32 pm to bayoubengals88
Don't put all your eggs in one basket.
Have a lot in the Target fund but that is low risk/low reward.
Put some in the S&P and other funds.
You're really only buying 3-5 funds with 20k anyway. Just research them and their returns. Vanguard has a ridiculously easy website to find all that stuff out.
Use a Sunday to do it, set it and forget it.
Moving out of Edward Jones is the best thing you could have done. They still use door to door people for god's sakes. I HATE THAT.
Have a lot in the Target fund but that is low risk/low reward.
Put some in the S&P and other funds.
You're really only buying 3-5 funds with 20k anyway. Just research them and their returns. Vanguard has a ridiculously easy website to find all that stuff out.
Use a Sunday to do it, set it and forget it.
Moving out of Edward Jones is the best thing you could have done. They still use door to door people for god's sakes. I HATE THAT.
This post was edited on 7/14/15 at 3:33 pm
Posted on 7/14/15 at 3:50 pm to Shepherd88
quote:Edward Jones doesn't create their own funds, no, but they do receive revenue sharing payments from its preferred mutual fund and insurance product partners. This link is proof and also shows that the large advisory firms have conflicts of interest and other issues.
Just FYI, Edward jones does not have proprietary funds as you just mentioned.
Posted on 7/14/15 at 4:13 pm to Omada
So if you're say 45 and all of your money is in EJ cause you're pretty money knowledge poor but you KNOW you've needed to save and HAVE been saving since age 23, AND because, well, that's what your parents did, is it too late to change??? Concerned we've got too much to risk!
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