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Started By
Message
401k/Roth Rate of Return
Posted on 12/27/16 at 10:07 pm
Posted on 12/27/16 at 10:07 pm
I am trying to understand how rate of return year to date is calculated. I have money I contribute each month into a Roth IRA at Edward Jones and this year return so far shows almost %7.8.
My company 401k is at fidelity and I make all the decisions myself and have a year to date return of %14.
My question here is does this include my contributions, dividends, etc? I contribute alot more each month into the 401k so that could be the reason for the big gap? I am wondering if I am getting what I am paying for at Edward Jones. Unfortunately my plant is shutting down in a few months so I need to decide what I do with 401k and pension or just leave where it is.
My company 401k is at fidelity and I make all the decisions myself and have a year to date return of %14.
My question here is does this include my contributions, dividends, etc? I contribute alot more each month into the 401k so that could be the reason for the big gap? I am wondering if I am getting what I am paying for at Edward Jones. Unfortunately my plant is shutting down in a few months so I need to decide what I do with 401k and pension or just leave where it is.
6
Posted on 12/27/16 at 10:13 pm to DownSouthTiger
quote:
My question here is does this include my contributions, dividends, etc?
no, that 14% is pure gains my friend.
That is gains on your contributions, your employer's contributions and dividends. I am guessing your 401k is positioned more aggressive than your Ed jones guy? if not, then you are absolutely right and you should not be paying him to manage your investments.
This post was edited on 12/27/16 at 10:14 pm
Posted on 12/27/16 at 10:14 pm to DownSouthTiger
quote:
I am wondering if I am getting what I am paying for at Edward Jones.
Odds are you probably aren't
Posted on 12/27/16 at 10:23 pm to 3morereps
Actually I am 42 and both the 401k and Roth do not contain any bonds. Edward Jones has their group of funds they will always want to use and the options I have at fidelity are outperforming those funds by a mile. Thanks I was making sure I was comparing the 2 correctly. Of course Edward Jones wants me to roll over my 401k into their hands but they would immediately sell my funds and buy into there hitting me with thousands of transaction fees so I will just leave it where it is looks like.
Posted on 12/27/16 at 11:28 pm to DownSouthTiger
good idea, i would look into moving what is at edward jones to vanguard or something similar, but i am guessing edward jones already got you with a bunch of front-end sales loads??
Posted on 12/28/16 at 4:35 am to 3morereps
Yes that is right.
Posted on 12/28/16 at 7:18 am to DownSouthTiger
Why are the holdings? Were funds purchased in 2016 in the Roth?
Posted on 12/28/16 at 8:10 am to Janky
Yes some were purchased in 2016. I make a monthly deposit but it is on average about one fourth of my monthly 401k pre tax contribution. The Roth is what ed Jones deems aggressive it does have some bonds in that it has capital income builder fund, growth fund of America, new perspective fund, a couple others but no bond funds. My 401k has contrafund, company stock (18%), vanguard extended market, a global fund, s&p 500 index fund, trp mid cap fund, NB genesis growth fund.
Posted on 12/28/16 at 8:19 am to DownSouthTiger
You are paying EJ, take your 401k statement in there and ask them why they are underperforming by 50%?
Chances are the percentages you are looking at is only the returns, but you could be correct in that some places online show the yearly increase/ decrease which includes contributions.
Chances are the percentages you are looking at is only the returns, but you could be correct in that some places online show the yearly increase/ decrease which includes contributions.
Posted on 12/28/16 at 8:49 am to DownSouthTiger
It could be lots of things but I would imagine the front end loads are a big contributor to the lag. Also, your company stock could be a big part of the 14% return as well. If you don't want to name the company can you tell us what the YTD return for the company stock is?
Those American funds more or less just track their index because they are so big.
Those American funds more or less just track their index because they are so big.
Posted on 12/28/16 at 9:52 am to DownSouthTiger
The annual return they give you should be a net figure of returns minus any fees.
To address your questsion more specifically though, capital income builder has underperformed this year pretty significantly due to the defensive allocation it had pre-election.
Most advisors are not going to attempt to outperform the market anymore. Rather it should be goal oriented (I.e. Based on your age, risk tolerance, goal of retirement, ~7% return will achieve your goal (hypothetically of course) so why would an advisor over risk a retirement portfolio for you when a 6-7% return will achieve your goal?)
To address your questsion more specifically though, capital income builder has underperformed this year pretty significantly due to the defensive allocation it had pre-election.
Most advisors are not going to attempt to outperform the market anymore. Rather it should be goal oriented (I.e. Based on your age, risk tolerance, goal of retirement, ~7% return will achieve your goal (hypothetically of course) so why would an advisor over risk a retirement portfolio for you when a 6-7% return will achieve your goal?)
Posted on 12/28/16 at 10:35 am to Janky
Yes the company I work for has a return around 19%. Also several of the funds I am in are between 15 and 20% return also.
Also, yes I see what you are saying about a 6-7% return meeting my goals while being somewhat safe about it.
My main question was understanding the returns to know whether I was comparing apples to apples as they say. I have a call in to Edward Jones to duscuss it all.
Also, yes I see what you are saying about a 6-7% return meeting my goals while being somewhat safe about it.
My main question was understanding the returns to know whether I was comparing apples to apples as they say. I have a call in to Edward Jones to duscuss it all.
Posted on 12/28/16 at 12:38 pm to DownSouthTiger
Posted on 12/28/16 at 1:15 pm to DownSouthTiger
quote:
I am wondering if I am getting what I am paying for at Edward Jones.
Why are you at Edward Jones? You really need a full service broker with no online trading and high commissions? not too mention everything else covered in the thread i linked above?
Posted on 12/29/16 at 2:29 pm to DownSouthTiger
still awaiting your answers to my questions posed
Posted on 12/30/16 at 8:21 am to Fat Bastard
You are correct. I know what I am doing so really no need for Edward Jones. I believe though since I have paid for the front loaded funds already the money I have in there should just stay there. I am thinking new money I will do something else with. I am also looking at a place to roll my pension over into when my plant shuts down in March I will have almost 100k in that to go into an IRA.
Posted on 12/30/16 at 8:27 am to DownSouthTiger
Just open a Roth at Fidelity or Vanguard and start contributing there. When you are ready at some point in the future your EJ funds will be able to be transferred into this Roth.
I don't remember if your 401k was a Roth or not, but if so it would be able to be transferred here as well.
I don't remember if your 401k was a Roth or not, but if so it would be able to be transferred here as well.
Posted on 12/30/16 at 8:32 am to Janky
No my 401k is not a Roth its at Fidelity. The Roth I have is what's at Edward Jones.
Posted on 12/30/16 at 8:35 am to DownSouthTiger
Ok, so open a Roth at Fidelity or Vanguard and contribute there. When the plant closes open a traditional IRA at the same place and roll your 401k into that IRA. You could do a Roth conversion but that would be a big tax hit on $100k.
Posted on 1/1/17 at 8:29 pm to DownSouthTiger
Go w/Vanguard,Fidelity, Etc...why are you paying someone that much to " manage" your investments?
Do it yourself and you win 95% of the time- year in and year out.
Do it yourself and you win 95% of the time- year in and year out.
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