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re: Roth IRA advice.
Posted on 4/17/16 at 5:26 pm to rpg37
Posted on 4/17/16 at 5:26 pm to rpg37
I only have anecdotal evidence to go buy with EJ but I heard their fees were horrid. Before anyone can answer this, you need to see how your funds are performing and ask your advisor how he's charging you and if there are penalties to move your money. These EJ type places don't require much expertise to open a location, but that doesn't necessarily mean you've made terrible investments. You're just likely getting raped on the fees. I'd advise you to seek out someone with Charles Schwab and terminate your relationship with EJ in the most economical possible. I'm guessing you're a little young and $30,000 is nothing to sneeze at no matter who you are. Despite what you see here often times, it's more than many people in the US have in their retirement plan. It's not like you've lost your money so just do a little more homework going forward...
1
Posted on 4/17/16 at 5:34 pm to Canard Noir
I am 28 and know time is my best friend. Therefore, I want to maximize what I can do.
How are they different than EJ?
quote:
I'd advise you to seek out someone with Charles Schwab and terminate your relationship with EJ in the most economical possible.
How are they different than EJ?
Posted on 4/17/16 at 6:01 pm to rpg37
Again I really don't have details on EJ but Charles Schwab is widely regarded as one the best options for young investors. They have low minimums and handling fees, their advisors are much more capable than what you'll see at EJ but you kind of pay for that service because their commissions are a bit high. You couldn't go wrong with a Vanguard or Fidelity account either so just get your Google out and see what looks best to you.
Posted on 4/18/16 at 9:50 am to jeepfreak
quote:
Vanguard is crap, by the way. Their customer service is the worst and their funds, while "low cost", perform in the middle at best. Fidelity is even worse.
No, not even close on returns plus many of Vanguard's managed funds have outperformed index funds due to low costs. If someone wants/needs above average customer service they should try Schwab or Fidelity. 20+ years with Vanguard and can't recall a significant issue with them and that is with numerous taxable brokerage and tax advantaged accounts. I like getting 100 free trades a year with WellsTrade, but have never talked with a "live" person there in 5 years. Much of it is doing your homework and setting things up properly upfront instead of guessing and realizing you fricked up later.
Posted on 4/18/16 at 11:07 am to Unit225
anyone here have an opinion on Raymond James?
Posted on 4/18/16 at 11:13 am to rpg37
quote:I'd look forward to it. Go in with facts and expose him.
I dread the conversation of speaking with my advisor over this...
Posted on 4/18/16 at 11:18 am to Roberteaux
Posted on 4/18/16 at 1:45 pm to tirebiter
There funds may be good but their customer service is complete shite. I am having to write a letter to mail them with a personal check in order to fund my roth because of how shitty their system is set up. Good luck getting someone on the phone, you are looking at a 15 min wait easily.
Posted on 4/18/16 at 2:17 pm to GREENHEAD22
Damn, I wonder why that is. I set up me and my wife's ROTH IRA in a matter of about 2 minutes. I also have called a few times asking questions about the account and got someone immediately. Maybe I've just lucked out
Posted on 4/18/16 at 3:28 pm to Shepherd88
how's return compare to index after fees?
turnover will also likely be higher in active funds resulting in more taxes, which will impact real returns
turnover will also likely be higher in active funds resulting in more taxes, which will impact real returns
Posted on 4/18/16 at 3:43 pm to Books
Those returns are net of expense ratios. But the turnover is a good point, active funds will probably have more capital gains distributions.
But then again we are talking about a Roth IRA so taxes don't matter
But then again we are talking about a Roth IRA so taxes don't matter
This post was edited on 4/18/16 at 4:14 pm
Posted on 4/18/16 at 6:52 pm to Shepherd88
I haven't had the need to talk with anyone at Vanguard for years, but my one experience with their customer service department was excellent a few years ago. I had a Roth contribution and I wanted to recharacterize a portion of it, but - and maybe this is one flaw of theirs - reading their website led me to believe I'd have to snailmail a bunch of forms. I called to ask a question about one of the forms, and the CSR transferred me to someone who was able to recharacterize my contribution exactly as requested in maybe 5 mins.
Posted on 4/18/16 at 7:12 pm to foshizzle
Wanted to add another thought to this thread.
As I noted, I've been a Schwab customer for 20 years, ever since working with them as a junior analyst with a registered investment advisor. I've consistently found Schwab to have the best service, and it doesn't surprise me at all that they were at the top of the rankings for those with self-directed portfolios. Fidelity is good also.
That said, as someone who worked professionally in asset management I don't need guidance about anything other than technical details. Schwab does have personal advisors but I've never worked with them.
The Ed Jones and Raymond James type firms tend to work with people who simply have no idea how asset management works. That can be a fine thing but there is a price for that service.
Learning how to manage money isn't all that difficult, and I personally subscribe to the idea that bogleheads and such cover it reasonably well. The problem with the Raymond James and Ed Jones of the world is mostly that they charge you a helluva lot for that advice for something that isn't hard to pick up if you buckle down and learn everything you need to know online. But if you are unable to do dedicate the time to do that (and some truly aren't) then at least it is a place to get started.
But yes, you will be paying a bunch of money for something you can learn on your own.
As I noted, I've been a Schwab customer for 20 years, ever since working with them as a junior analyst with a registered investment advisor. I've consistently found Schwab to have the best service, and it doesn't surprise me at all that they were at the top of the rankings for those with self-directed portfolios. Fidelity is good also.
That said, as someone who worked professionally in asset management I don't need guidance about anything other than technical details. Schwab does have personal advisors but I've never worked with them.
The Ed Jones and Raymond James type firms tend to work with people who simply have no idea how asset management works. That can be a fine thing but there is a price for that service.
Learning how to manage money isn't all that difficult, and I personally subscribe to the idea that bogleheads and such cover it reasonably well. The problem with the Raymond James and Ed Jones of the world is mostly that they charge you a helluva lot for that advice for something that isn't hard to pick up if you buckle down and learn everything you need to know online. But if you are unable to do dedicate the time to do that (and some truly aren't) then at least it is a place to get started.
But yes, you will be paying a bunch of money for something you can learn on your own.
Posted on 4/18/16 at 7:51 pm to foshizzle
I use both schwab and vanguard. Schwab has better customer service. Vanguard has a better selection of funds (in my opinion).
either one is a better choice and just use their target date funds or their index funds and you'll be fine.
either one is a better choice and just use their target date funds or their index funds and you'll be fine.
Posted on 4/18/16 at 9:02 pm to Books
I'm younger and I've had a 401k with my
Company and my father in law used Schwab so I opened my Roths (mine and wives) with schwab. I've had nothing but great experience with Schwab, and I love the low fees. I pretty much only buy no cost schwab or other ETFs and then a handful of times a year I'll buy stocks. I think schwab has higher trade fees, but again that doesn't affect me.
I'd go with one of the big 3 fidelity, schwab, or vanguard personally. Start off super basic, you'd be just fine buying A large cap domestic fund, small cap domestic fund, and international fund. Buy funds that are low/ no trade costs and extremely low fee. Get your feet wet and get more complicated from there.
As said, nothing wrong with EJ, RJ, etc. they are just more salesman and going to cost you more. You are talking about a higher cost to trade so instead of buying $2000 for free and 0.07% annual fees it will cost you $50 and 1.1% annual fees.
Company and my father in law used Schwab so I opened my Roths (mine and wives) with schwab. I've had nothing but great experience with Schwab, and I love the low fees. I pretty much only buy no cost schwab or other ETFs and then a handful of times a year I'll buy stocks. I think schwab has higher trade fees, but again that doesn't affect me.
I'd go with one of the big 3 fidelity, schwab, or vanguard personally. Start off super basic, you'd be just fine buying A large cap domestic fund, small cap domestic fund, and international fund. Buy funds that are low/ no trade costs and extremely low fee. Get your feet wet and get more complicated from there.
As said, nothing wrong with EJ, RJ, etc. they are just more salesman and going to cost you more. You are talking about a higher cost to trade so instead of buying $2000 for free and 0.07% annual fees it will cost you $50 and 1.1% annual fees.
Posted on 4/18/16 at 9:35 pm to GREENHEAD22
quote:
Vanguards customer service is shite, I want to kill these ppl
I've been with them for 7 years and I've never had a problem.
Posted on 4/19/16 at 11:33 am to Hammond Tiger Fan
quote:
I've been with them for 7 years and I've never had a problem.
I imagine most people on this board got in the market around the same time as you did (within the last 10 years). The S&P 500 is up over 200% since 2009 and everything has been gravy.
This is when companies like Vanguard and other low cost fund companies thrive. Actively Managed funds such as American Funds shine in the down years. For example, when cheap index funds are down -15% with the market a good actively managed fund will be down--call it -9%. So for someone starting out with not much built up those large dips might not matter much since you have time to recover your losses but for a high net worth client and a much shorter time horizon that % can make a significant difference. I just want to put it into perspective that actively managed funds aren't trying to mirror an index (for the most part). The bread and butter of their company is downside protection of client assets in the down years with moderate gains in the up years. This is why American Funds are seen used with companies like Ed Jones and Raymond James since their target market is clients that have already built up their nest egg and can't afford the large losses.
Sure, starting out at a Vanguard or Fidelity might save you some money, but in the long run it also would not hurt you to have a relationship with an advisor when you have developed a large nest egg of your own. And call me crazy but it may also be easier to trust an advisor if you have already developed a long term relationship with them, even though it's not as cheap getting started at an Ed Jones or a Raymond James. The relationship you're building will be worth it.
I am still in the accumulation stage. I have index funds at a passively managed company but also have an account with an advisor, I realize it cost more, I'm not worried about that. I know the funds are good funds and in the meantime I've also taken advantage of the current bull market with low cost index funds. But I am glad to know I already have an advisor I have developed rapport with when I decide I'm done dealing with my passively managed funds on my own.
tl;dr: Passively managed funds are cheaper and do better in bull markets, active managed funds cost more and do better in bear markets, both are important. Having an advisor/company you can trust is also important. To each his own when it comes to investing, find out what works best for you
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