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Move my IRA to vanguard?

Posted on 8/24/23 at 9:53 pm
Posted by AuburnCPA
Member since May 2008
18821 posts
Posted on 8/24/23 at 9:53 pm
Currently at EJ. Paying 1.35% in fees and they have me in around 10 ETFs and 10 mutual funds. I'm seriously thinking I need to transfer to Vanguard, manage myself, liquidate all the international shite and put in VTI or something.

Just the reduction in fees will save me a few thousand a year. My big question is I would want to immediately simplify my holdings. Liquidate most of international funds and put into VTI, etc. Would it not be wise to do that when the market is near the highest its been all year? I'd be buying at a high point. I guess it would just fluctuate a bit starting out until it starts growing in a few years. Or would it be wise to liquidate over time to catch the weighted average moving from one fund to another?
This post was edited on 8/24/23 at 9:58 pm
Posted by UpstairsComputer
Prairieville
Member since Jan 2017
1576 posts
Posted on 8/24/23 at 10:15 pm to
You haven’t even fired his expensive arse and you’re already market timing. Just pointing out the obvious.
Posted by AuburnCPA
Member since May 2008
18821 posts
Posted on 8/24/23 at 10:36 pm to
I'm just trying to make sure I'm comfortable with my decision
Posted by thelawnwranglers
Member since Sep 2007
38785 posts
Posted on 8/24/23 at 10:44 pm to
quote:

would want to immediately simplify my holdings. 


Is it that complicated now?

You don't want any international exposure

I have 10-15 funds ripped off the Schwab auto investment plan. Who knows could be overly complicated
Posted by slackster
Houston
Member since Mar 2009
84886 posts
Posted on 8/24/23 at 10:53 pm to
quote:

Currently at EJ. Paying 1.35% in fees and they have me in around 10 ETFs and 10 mutual funds. I'm seriously thinking I need to transfer to Vanguard, manage myself, liquidate all the international shite and put in VTI or something.


I realize it may not be the most comfortable situation in the world, but paying 1.35% buys you time in front of your FA, at a minimum, so use it. Call up your advisor and talk to them. Explain your concerns about costs, international exposure, etc. then decide your next steps from there.
Posted by LemmyLives
Texas
Member since Mar 2019
6417 posts
Posted on 8/24/23 at 11:40 pm to
quote:

but paying 1.35% buys you time in front of your FA


Mine last traded on my account 27 months ago. I don't want to talk to you about my dreams, wishes, and what I think Korean ship builders are doing, just make me money. The current company is converting all of my accounts to non managed accounts, which I didn't ask for, but it will drop my expenses.

I don't believe (I am not a CPA or finance dude), but it seems odd to be paying that much for ETFs and funds, which are probably exposing you to the same company, repeatedly (Microsoft is in a lot of funds, etc.)

My stance cost me $$ while I had those accounts at USAA, because their investment group was already risk averse. I made considerable bank after rolling it into another firm that understood that I look at a down quarter as a down quarter, and if the fundamentals are good, I ignore it.
Posted by Hayekian serf
GA
Member since Dec 2020
2550 posts
Posted on 8/25/23 at 5:21 am to
I’m looking to move mine out of vanguard.

Posted by roadkill
East Coast, FL
Member since Oct 2008
1842 posts
Posted on 8/25/23 at 6:00 am to
quote:

I’m looking to move mine out of vanguard


Where would you move it?
Posted by RoyalWe
Prairieville, LA
Member since Mar 2018
3118 posts
Posted on 8/25/23 at 6:08 am to
Dollar cost out-of and dollar cost into the market if you're worried about it. Pick your time horizon. Personally, I usually just pull the trigger and don't look back.

I think your holdings are more complicated than they need to be. I've come to believe that FAs advising 10+ funds is just bullshite to make you think they have special knowledge. They don't.
Posted by TorchtheFlyingTiger
1st coast
Member since Jan 2008
2132 posts
Posted on 8/25/23 at 6:52 am to
Just rip the band aid off. If we just happen to be at a market high you are selling high and buying high so it is a wash. If a market low, the same. You might lose or gain a little if there is a lag between selling and reinvesting. Switching between asset classes or fund types is going to add a bit of fluctuation but how could you predict ideal time to sell international and move to VTI for instance?
Posted by Pelican fan99
Lafayette, Louisiana
Member since Jun 2013
34747 posts
Posted on 8/25/23 at 6:56 am to
Paying 1.35% is wild you absolutely can do it yourself and get pretty much the same results
Posted by TorchtheFlyingTiger
1st coast
Member since Jan 2008
2132 posts
Posted on 8/25/23 at 7:03 am to


Financial Samurai

Those AUM fees will cost you a ton of compounding growth over the years. Plus advisors are more likely to use higher cost funds.
Posted by NYNolaguy1
Member since May 2011
20895 posts
Posted on 8/25/23 at 9:37 am to
quote:

Currently at EJ. Paying 1.35% in fees and they have me in around 10 ETFs and 10 mutual funds. I'm seriously thinking I need to transfer to Vanguard, manage myself, liquidate all the international shite and put in VTI or something.


Yeah this should have been done yesterday. IIRC a lot of their funds are below 0.1%.
Posted by Pelican fan99
Lafayette, Louisiana
Member since Jun 2013
34747 posts
Posted on 8/25/23 at 9:45 am to
Right. You better be getting monster returns before even thinking about letting someone take 1.35%. That’s wild
Posted by bovine1
Walnut Ridge,AR via Tallulah,LA
Member since Dec 2004
1280 posts
Posted on 8/25/23 at 10:32 am to
Mine are at Vanguard. I definitely would. Our 401K is with Edward Jones and right after I turned 59 1/2 I started moving it to Vanguard.
Posted by geauxpurple
New Orleans
Member since Jul 2014
12352 posts
Posted on 8/25/23 at 11:58 am to
I recommend Vanguard. That is where most of my stuff is. But you don't have to completely eliminate all international exposure. Vanguard has many international funds, including international index funds. You can make sideways moves in to Vanguard.
Posted by UpstairsComputer
Prairieville
Member since Jan 2017
1576 posts
Posted on 8/25/23 at 12:41 pm to
quote:

FAs advising 10+ funds is just bullshite to make you think they have special knowledge.


Meh, that's a flippant and inadequate summary. You've explained what you do here, and I think anyone who follows your posts knows you take what 90% of the posters here, and probably 99.99% of regular people would think was a ton of risk. More risk than people who feel like they need an advisor are willing to take anyway...

However, an advisor (worth their fee anyway) is going to use an asset allocation strategy to diversify out some of the risks and 10 holdings is not even really that many in that scenario. Someone above made the point that 20 holdings is probably too many with overlap of holdings, but there's a lot of places to put money that can diversify risks and if it's not a "set it and forget it" strategy that shouldn't have a fee anyway, rebalancing and tweaking allocations along the way are very advantageous.

eta. but even that shouldn't cost 1.35%
This post was edited on 8/25/23 at 12:43 pm
Posted by AuburnCPA
Member since May 2008
18821 posts
Posted on 8/25/23 at 1:05 pm to
Well I called him today and had the talk. Initiated the transfer to Fidelity where I already have accounts. He was cool with it.
Posted by RoyalWe
Prairieville, LA
Member since Mar 2018
3118 posts
Posted on 8/25/23 at 1:05 pm to
I'm aware that my risk tolerance is different than most people. Just because my risk tolerance is high doesn't mean I think everyone should invest how I invest. In fact, I purposefully tell people not to do so because I don't want any blowback. No need to disparage me because you don't share my risk tolerance or intestinal fortitude. Regardless of risk tolerance, everyone can be educated enough to take control of their own investing and save thousands of dollars.

I'll just pass along this model for managing risk that my Finance/Investing professor gave me.

All you need is two funds.
1) A total bond market fund.
2) A total market index fund.

Pick whichever ones you like because there are dozens (hundreds?).

Want to be 100% risky? Go 100% total market index fund.

Want to be 100% risk minimization? Go 100% total bond market index fund.

What something in between? Mix/match your allocation however you desire.

The only modification I might make to this is to substitute a single market index fund with maybe two or three with different sector focus. Having said that, it's not necessary.
Posted by Sir Saint
1 post
Member since Jun 2010
5323 posts
Posted on 8/25/23 at 1:15 pm to
quote:

rebalancing and tweaking allocations along the way are very advantageous.


Are you a FA, or is this the line your FA has used on you? Either way, this above statement is total garbage. Complete guesswork by your FA that has no clue what the market is doing. Ever. If they did, they’d be managing billions at a private hedge fund somewhere. I unfortunately have personal experience with both Merrill and EJ (never again) - both of them managed to underperform in both bull AND bear markets. Talk about managing risk!

The only “rebalancing” that is objectively advantageous is tax optimization (TLH, TGH, etc). Rebalancing your equity:fixed income/bond ratio also makes sense when risk tolerance changes. Everything else IMO is a coin flip. I’m not totally against FAs btw - they serve a purpose especially to prevent overly emotional individuals from selling out of the market every time there’s a 2% drop. I’m sure the elite ones are also worth the coin at 10+ mil for wealth preservation, estate planning, etc.
This post was edited on 8/25/23 at 1:22 pm
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