My Roth IRA opinions

I set up a Roth IRA almost 2 yrs ago. The financial advisor suggested i go through pacific life. My Roth is broke down as follows:

Franklin Rising Dividend (Franklin) 15%
T. Rowe Price Dividend Growth(T. Rowe)15%
AFIS Asset Allocation (American Funds) 35%
Dynamix Moderate Growth (PFLA) 35%

Looking for opinions on the break down of it. I max it every year and it's maxed right now for the 2017 year.

TIA

ETA: 24 years old if that helps put things into better perspective.

You have no business being in an annuity and that's not aggressive enough for a 24 year old.

quote:

---

The financial advisor

---

Based on these fund choices plus the suggestion to go through a life insurance company, I'm betting your advisor is one of these guys who works primarily with lower net worth individuals.

Let me explain what I mean by that. If you're a high net worth guy, you will probably be working with an advisor who charges a 1% of assets or the like. Maybe even just an hourly rate. The problem for the low net worth clientele is that terms like that just aren't anywhere close to enough to be worth the advisor's time.

So instead you wind up with funds that charge a sales load, high expense ratios, investments based around insurance policies, that sort of thing. This won't bankrupt you or anything but your returns will be far lower than they would be if you'd just gotten your Roth at Schwab or Vanguard and invested in a Target Retirement fund.

So should I start a vanguard acct and just let this one go? Or is there a way to combine them. How should I go about that?

Most of my investment life was in complicated, high cost investments. Now I just have an account with Vanguard including a Roth and low cost index funds and I don't mess with them except to rebalance the stock/bond ratio to the 65/35-60/40 range. (total stock market index/total bond market index). If I was 24 all over again I would probably go 80/20 for 20 years unless I already had a large net worth. I do keep a higher percentage of bonds in the Roth for tax reasons but the overall account is still about 65/35.

As someone who manages high-net worth individuals, this financial adviser is not worth a dime.

Listen to the other advice on the forum... be more aggressive at 24 years old. Get rid of the broker. Open up a online discount broker account. Build your portfolio based on a world index, it'll benefit you in the long-run. Then when you get enough saved one day and your tax situations become more complex, come see a guy like me.

If someone charges more than 1% in commission walk out that door. It's going to take a lot longer to build your wealth.

Step 1 open vanguard account

Step 2 transfer money from all other accounts into that account

Step 3 close other account.

Step 4 put all the money in the vanguard account into a target date retirement fund

Step 5 educate yourself

Step 6 ???

Step 7 profit

Vanguard's Target Date funds tend to be a touch conservative, so I advise people to add ten years to their actual target retirement date. At 24, I imagine that would put you in the 2060 fund (VTTSX).

Will check into it thanks