Investment Advisor made 36% on wife's IRA!?!
- Thread starter SumpChump
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IMO, there are too many good no-load funds to bother with most of the load funds unless you have the load waived through a brokerage, etc.
Edward Jones was given a significant fine a few years ago for loading up their portfolios with American Funds product. They did this because there was a big commission kickback to the sales reps and they tended to just recommend mostly American funds. The joke was that if you had your money through Edward Jones then it'd be rare that less than half your funds weren't from American. I'd like to see the current percentage of American Funds as their total holdings...I'm assuming it's different now.
Edward Jones was given a significant fine a few years ago for loading up their portfolios with American Funds product. They did this because there was a big commission kickback to the sales reps and they tended to just recommend mostly American funds. The joke was that if you had your money through Edward Jones then it'd be rare that less than half your funds weren't from American. I'd like to see the current percentage of American Funds as their total holdings...I'm assuming it's different now.
I don't see the problem. This is for people who have no idea how to invest themselves, are too lazy, or maybe their time is worth more than the measly $10/month.
Why not tell your wife she was stupid to invest with them?
LOL. Don't do that.....
Why not tell your wife she was stupid to invest with them?
Originally Posted By: Nate1979
I don't see the problem. This is for people who have no idea how to invest themselves, are too lazy, or maybe their time is worth more than the measly $10/month.
You don't get it. It isn't just $10 a month. Its a lifetime of compounding fees. It can be tens or even hundreds of thousands of dollars.
https://investor.vanguard.com/mutual-funds/low-cost
I don't see the problem. This is for people who have no idea how to invest themselves, are too lazy, or maybe their time is worth more than the measly $10/month.
You don't get it. It isn't just $10 a month. Its a lifetime of compounding fees. It can be tens or even hundreds of thousands of dollars.
https://investor.vanguard.com/mutual-funds/low-cost
Yep, I used to work for Citigroup, they use Hewitt for their 401k.
Every time you move the money around to another fund, there is a percentage fee.
Lately they have been sending me mail every month asking why I don't have a professional handle my portfolio, for another fee.
I think the front loaded fees are a few points, which adds up to be big bucks if you have a decent amount in there.
I've just left it alone in a good mix of things, and haven't made any transactions.
Every time you move the money around to another fund, there is a percentage fee.
Lately they have been sending me mail every month asking why I don't have a professional handle my portfolio, for another fee.
I think the front loaded fees are a few points, which adds up to be big bucks if you have a decent amount in there.
I've just left it alone in a good mix of things, and haven't made any transactions.
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I posted last week about the fees charged in my 401K. No reason why funds in an IRA or 401K has excessive fees.
$10 per month is excessive for something so basic.
$10 per month is excessive for something so basic.
Originally Posted By: Nate1979
I don't see the problem. This is for people who have no idea how to invest themselves, are too lazy, or maybe their time is worth more than the measly $10/month.
Why not tell your wife she was stupid to invest with them?
LOL. Don't do that.....
Investing in an Index fund at Vangard is about as easy as it can get. But it and forget it till retirement.
I don't see the problem. This is for people who have no idea how to invest themselves, are too lazy, or maybe their time is worth more than the measly $10/month.
Why not tell your wife she was stupid to invest with them?
Investing in an Index fund at Vangard is about as easy as it can get. But it and forget it till retirement.
I invested a modest sum of money with Ameriprise (was part of American Express) . I specifically refused heavily loaded funds and ones that have exceedingly long terms.
So, eventually, I was provided with an option that met my criteria.
You can guess what happened! They placed my funds in a heavily front loaded, 10 year annuity with poor returns. And, more specifically, they did not place my money in the real estate fund I had picked, the very one they had me sign up for.
6 years down the road, there really is nothing I can do. Some investment advisers really are going to line their pockets without regard to the clients wishes.
Thank God it was not a huge sum of money.
Edit: What seems to have happened is that they did place my money in the real-estate fund (6-7 years ago) , for 1 year. It did very well. The money then simply became a "cash on account" with no interest situation. So the adviser simply invested my money, without my consent in a 10 year annuity. I'm only 3 years in.
So, eventually, I was provided with an option that met my criteria.
You can guess what happened! They placed my funds in a heavily front loaded, 10 year annuity with poor returns. And, more specifically, they did not place my money in the real estate fund I had picked, the very one they had me sign up for.
6 years down the road, there really is nothing I can do. Some investment advisers really are going to line their pockets without regard to the clients wishes.
Thank God it was not a huge sum of money.
Edit: What seems to have happened is that they did place my money in the real-estate fund (6-7 years ago) , for 1 year. It did very well. The money then simply became a "cash on account" with no interest situation. So the adviser simply invested my money, without my consent in a 10 year annuity. I'm only 3 years in.
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I can get these Fidelity funds (IRA and 401K) through my employeer.
0.01% Large Cap
0.04% Mid Cap
0.04% Small Cap
Cujet,
What did this 'adviser' say when you confronted him the way your money was invested ?
OT: Unfortunately that's how elderly folks (82 year old parents) would get taken advantage of if they let a stranger invest their money. Most advisers only care about fat commissions.
0.01% Large Cap
0.04% Mid Cap
0.04% Small Cap
Cujet,
What did this 'adviser' say when you confronted him the way your money was invested ?
OT: Unfortunately that's how elderly folks (82 year old parents) would get taken advantage of if they let a stranger invest their money. Most advisers only care about fat commissions.
Originally Posted By: Mr Nice
I can get these Fidelity funds (IRA and 401K) through my employeer.
0.01% Large Cap
0.04% Mid Cap
0.04% Small Cap
Are those the expenses taken by your employer's fund manager? I've never seen Fidelity funds with expense ratios that low--those are really REALLY low! Do you know what their symbols are?
I can get these Fidelity funds (IRA and 401K) through my employeer.
0.01% Large Cap
0.04% Mid Cap
0.04% Small Cap
Are those the expenses taken by your employer's fund manager? I've never seen Fidelity funds with expense ratios that low--those are really REALLY low! Do you know what their symbols are?
Ctrl and + to enlarge image.
We're in one of the greatest bull markets in US history. The SP500 has gained 66% in the last 3 years including dividends. A 15% return is pathetic unless he has been investing in ultra-conservative (short term bonds) and CDs whose value remain stable. Do you know exactly what the investments were?
Originally Posted By: Hokiefyd
Originally Posted By: Mr Nice
I can get these Fidelity funds (IRA and 401K) through my employeer.
0.01% Large Cap
0.04% Mid Cap
0.04% Small Cap
Are those the expenses taken by your employer's fund manager? I've never seen Fidelity funds with expense ratios that low--those are really REALLY low! Do you know what their symbols are?
Yes, a large company can negotiate (demand) ultra low expense ratios.
No symbols as only GE employees can buy these funds.
Originally Posted By: Mr Nice
I can get these Fidelity funds (IRA and 401K) through my employeer.
0.01% Large Cap
0.04% Mid Cap
0.04% Small Cap
Are those the expenses taken by your employer's fund manager? I've never seen Fidelity funds with expense ratios that low--those are really REALLY low! Do you know what their symbols are?
Yes, a large company can negotiate (demand) ultra low expense ratios.
No symbols as only GE employees can buy these funds.
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