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Should I be "concerned" about my Roth IRA? - update page 2
Posted on 5/15/15 at 8:48 am
Posted on 5/15/15 at 8:48 am
I am a complete novice when it comes to this stuff, I want to make that clear right off the bat. Approximately the summer of 2013, so roughly 2 years ago, I opened a RIRA to help supplement my retirement (I have accounts through work as well). This was just to give me a little extra when the time comes.
I was just looking at the most recent statement, and from inception to right now, the account only has $11 more dollars in it than the money that I myself have contributed. Is that an issue? When I talked to the advisor I told them I'm not really the risk taking kind of guy, and that I don't really care what it does month to month or year to year, since my end goal was about 30 years down the road.
And I totally get that youd' go mad if you check it all the time. But still, even though I know I won't touch any of this until roughly 30 years from now, should I be concerned that it doesn't really seem to be doing anything? Should I maybe move them into more risky funds to get a better return for a few years?
I was just looking at the most recent statement, and from inception to right now, the account only has $11 more dollars in it than the money that I myself have contributed. Is that an issue? When I talked to the advisor I told them I'm not really the risk taking kind of guy, and that I don't really care what it does month to month or year to year, since my end goal was about 30 years down the road.
And I totally get that youd' go mad if you check it all the time. But still, even though I know I won't touch any of this until roughly 30 years from now, should I be concerned that it doesn't really seem to be doing anything? Should I maybe move them into more risky funds to get a better return for a few years?
This post was edited on 5/21/15 at 7:08 pm
6
Posted on 5/15/15 at 8:50 am to WG_Dawg
What fund(s) are is your Roth money in, and who does your advisor work for? Does your fund have any load fees?
Posted on 5/15/15 at 8:55 am to LSUtoOmaha
quote:
What fund(s) are is your Roth money in, and who does your advisor work for? Does your fund have any load fees?
-it's through Edward Jones
-There's a $40 annual fee
-95% of the money is in Mutual Funds
1 says MFS Growth Allocation (MAGWX) which appears to steadily trend upwards
1 says Ivy Asset Strategy Fund (WASAX) which was going up in 14, then went way down, now is kind of going up again
Posted on 5/15/15 at 8:59 am to WG_Dawg
If you've got a 30 year horizon, you can afford to take on some more risk
By doing so, you'll have TONS more come thirty years, dont worry what happens week to week
ETA: 30 years
By doing so, you'll have TONS more come thirty years, dont worry what happens week to week
ETA: 30 years
This post was edited on 5/15/15 at 9:00 am
Posted on 5/15/15 at 9:03 am to Danny Woodhead
That's what I was thinking. Should I go balls to the wall and go super heavy risk, since I have so much time? Or is that never a good idea?
Posted on 5/15/15 at 9:04 am to WG_Dawg
WG - it is great that you are saving. I would educate myself on long term dividend and growth stocks / mutual funds....research the expense and go from there.
There are some great threads pinned at the top of the money board.
Also, in before anyone else says Vanguard, set it and forget it.
There are some great threads pinned at the top of the money board.
Also, in before anyone else says Vanguard, set it and forget it.
Posted on 5/15/15 at 9:07 am to WG_Dawg
The MFS fund is a solid fund, I know IVY is a reputable company but I can't speak for that fund itself.
I do however find it odd that the advisor has you in 2 separate funds with 2 separate mf companies with one of them at least being an allocation model.
I do however find it odd that the advisor has you in 2 separate funds with 2 separate mf companies with one of them at least being an allocation model.
Posted on 5/15/15 at 9:09 am to WG_Dawg
quote:
I was just looking at the most recent statement, and from inception to right now, the account only has $11 more dollars in it than the money that I myself have contributed
One share of VTI at approx. $100 has gone up about that amount since middle 2014, so ya, i'd be fricking worried.
Posted on 5/15/15 at 9:16 am to WG_Dawg
quote:
That's what I was thinking. Should I go balls to the wall and go super heavy risk, since I have so much time? Or is that never a good idea?
What you should do is stop paying an annual fee to somebody who does nothing you cannot do, which is passively invest in Vanguard or Fidelity funds with no-loads and an expense ratio of 0.2%. For starters try a fund like VIGRX, or VIVAX.
Posted on 5/15/15 at 9:26 am to WG_Dawg
quote:Get out as soon as you can. Go through Vanguard.
-it's through Edward Jones
-There's a $40 annual fee
The last two years have been a lot better than $11 in gains.
Posted on 5/15/15 at 9:31 am to bayoubengals88
That seems to be the prevailing sentiment. The only reason I started with EJ is because I knew absolutely nothing about investing and they had an office right by my house, so I liked the fact I could walk in to a physical location and talk to the same person about any questions. VG comes so highly regarded from this board, so the only thing that worries me is that since I would do everything myself online rather than having a physical branch to go to, its' putting all the onus on me, and I don't really trust me.
But besides that, let's say I do decide to cut bait and move on. How does that process work? Like how do I get the money already invested with EJ into something with Vanguard?
But besides that, let's say I do decide to cut bait and move on. How does that process work? Like how do I get the money already invested with EJ into something with Vanguard?
Posted on 5/15/15 at 9:39 am to WG_Dawg
How much money are we talking about? What percentage of your contribution is wiped out by the $40 annual fee? I agree with the people that are saying drop EJ. I learned about several different funds on this board and by doing my own research- it doesn't take a lot of knowledge to pick a couple of reputable, higher yielding Mutual Funds & put some money into them.
I've had my Scottrade Account for just over a year- after 6 months, I was up about 14%. After 9 months, I was barely breaking even
4 months later, I'm up about 5% with my newest contributions being a month old (haven't had time to earn much).
Also, depending on how much money you put in every month, your advisor may have had to wait until you had enough money to buy into those funds- they probably have a minimum initial investment. So while you've been putting money in for almost 2 years, you may have only owned the mutual fund for a few months.
I've had my Scottrade Account for just over a year- after 6 months, I was up about 14%. After 9 months, I was barely breaking even
4 months later, I'm up about 5% with my newest contributions being a month old (haven't had time to earn much). Also, depending on how much money you put in every month, your advisor may have had to wait until you had enough money to buy into those funds- they probably have a minimum initial investment. So while you've been putting money in for almost 2 years, you may have only owned the mutual fund for a few months.
Posted on 5/15/15 at 9:43 am to WG_Dawg
No offense dude but that is pretty bad.
Just about every equity fund out there is up nearly double digits the last 2-3 years.
Not sure how much you have in there but if you've maxed it thats about 10k, you should be well up over 1k in earnings.
You might want to check with your advisor, a dog could be up at least 5% the last 2-3 years the way the market has been.
Also consider where the market is going, lots of talk about a bust up and with us basically being in recession again, I'd be careful about going full risk. I'd re-think your portfolio and look for downside buying opportunity if things start to correct.
The equity bubble is pretty real right now IMO.
Just about every equity fund out there is up nearly double digits the last 2-3 years.
Not sure how much you have in there but if you've maxed it thats about 10k, you should be well up over 1k in earnings.
You might want to check with your advisor, a dog could be up at least 5% the last 2-3 years the way the market has been.
Also consider where the market is going, lots of talk about a bust up and with us basically being in recession again, I'd be careful about going full risk. I'd re-think your portfolio and look for downside buying opportunity if things start to correct.
The equity bubble is pretty real right now IMO.
Posted on 5/15/15 at 9:44 am to WG_Dawg
quote:
But besides that, let's say I do decide to cut bait and move on. How does that process work? Like how do I get the money already invested with EJ into something with Vanguard?
You just tell them you want to roll it out into another Roth. They have a procedure for it.
They'll cut you a check and send it directly to Vanguard.
Posted on 5/15/15 at 9:47 am to STLhog
quote:
Not sure how much you have in there
Not a lot, I don't make a super high salary so when I started I was just putting in about $100 a month. I now put in $150 a month and within the next few months would like to go up to $200 a month. I'm nowhere near maxing it out.
Posted on 5/15/15 at 9:49 am to STLhog
quote:
You just tell them you want to roll it out into another Roth. They have a procedure for it.
They'll cut you a check and send it directly to Vanguard.
Thanks. Again, this is like a reddit "explain like I'm 5" type of situation. I know nothing. Basically, do I just need to find a VG fund I like (there's one that is always recommended on here VTSMX or something similar to that I think?). Then after I pick one, EJ can put the funds into that? Due to my lack of knowledge (and honestly, lack of effort) I woudl prefer a "set it and forget it" type of situation. Since VG would be all online and at my control, is there somethign I can do to make it, for lack of a better term, "self correct" and put me into funds that it recommends instead of me having to keep checking and moving things around?
Posted on 5/15/15 at 9:55 am to WG_Dawg
You need at least $3000 to invest in VTSMX.
All of the target retirement funds require just $1,000. You might want to start there.
Check out the website and the available mutual funds. It's very user friendly.
All of the target retirement funds require just $1,000. You might want to start there.
Check out the website and the available mutual funds. It's very user friendly.
This post was edited on 5/15/15 at 9:58 am
Posted on 5/15/15 at 9:57 am to bayoubengals88
quote:
You need at least $3000 to invest in VTSMX.
I have a little over that much so good to go there.
quote:
All of the target retirement funds require just $1,000. You might want to start there.
what is the difference in these 2 things?
Posted on 5/15/15 at 10:13 am to WG_Dawg
Just put your money into a Vanguard target retirement fund.
It is about as simple as it gets. Pick the year you think you will be retired and invest in that. It will diversify based on your intended year of retirement. If you don't want to actively manage your account, this is the simplest route.
It is about as simple as it gets. Pick the year you think you will be retired and invest in that. It will diversify based on your intended year of retirement. If you don't want to actively manage your account, this is the simplest route.
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