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it appears it might be helpful to do a rehash of bond price vs coupon rate vs yield, i might do that later when i get a chance
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Mar 4, 2021 14:00
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Personal Capital finally wore me down and I'm scheduled for a "20 minute consultation" next week. It's primarily to try to sell me on their brokerage stuff, right?
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Mar 4, 2021 14:45
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Residency Evil posted:Personal Capital finally wore me down and I'm scheduled for a "20 minute consultation" next week. It's primarily to try to sell me on their brokerage stuff, right? 100% chance that it's a sales call for their advisory service. It's 0.50% off the top, iirc.
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Mar 4, 2021 14:57
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Roseo posted:100% chance that it's a sales call for their advisory service. It's 0.50% off the top, iirc. Yup, thought so. I'm just gonna lead with "feel free to go through the spiel, but I'm not paying any AUM fees." Maybe they'll stop calling.
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Mar 4, 2021 15:04
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I woke up this morning and I kind of settled on “higher fed rates” means the fed is tightening all credit flows, including those towards the US government. They don’t buy as many bonds, which pushes prices down. I don’t know if this is correct but I have some peace of mind at least. 
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Mar 4, 2021 15:27
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Residency Evil posted:Yup, thought so. I'm just gonna lead with "feel free to go through the spiel, but I'm not paying any AUM fees." You can just say "Please do not call me, I'm not interested." and they should stop.
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Mar 4, 2021 16:21
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H110Hawk posted:You can just say "Please do not call me, I'm not interested." and they should stop. I’ve already done that the last 3-4 times they’ve called.
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Mar 4, 2021 16:27
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Residency Evil posted:I’ve already done that the last 3-4 times they’ve called. So block their number? File a SEC complaint? Open with "I told you to add me to your 'do not call' list the last 3 times you called me, what is the problem with your system?" File an FTC complaint? Start each call asking them about how they can track your gold bouillon you have buried in the desert? Either way, that's how I would spend that meeting. Talking them through you filing those complaints.
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Mar 4, 2021 16:30
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H110Hawk posted:So block their number? File a SEC complaint? Open with "I told you to add me to your 'do not call' list the last 3 times you called me, what is the problem with your system?" File an FTC complaint? Start each call asking them about how they can track your gold bouillon you have buried in the desert? Personal Capital probably had “you agree to periodically talk to us” in the terms of use for their program. I had a ten minute call, told the dude I had a three fund portfolio plan and maintained it myself, and wasn’t interested in a fee based consult, and that was that. Haven’t heard back in a year or two.
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Mar 4, 2021 16:40
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Velius posted:Personal Capital probably had “you agree to periodically talk to us” in the terms of use for their program. I had a ten minute call, told the dude I had a three fund portfolio plan and maintained it myself, and wasn’t interested in a fee based consult, and that was that. Haven’t heard back in a year or two. Just because some dumb clickwrap agreement says it doesn't mean that you have to play along.
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Mar 4, 2021 16:44
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H110Hawk posted:So block their number? File a SEC complaint? Open with "I told you to add me to your 'do not call' list the last 3 times you called me, what is the problem with your system?" File an FTC complaint? Start each call asking them about how they can track your gold bouillon you have buried in the desert? I am a beta-cuck millennial and averse of confrontation, duh.
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Mar 4, 2021 16:45
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Residency Evil posted:I am a beta-cuck millennial and averse of confrontation, duh. This is me too except for robocallers. I am pretty sure I sent a home inspector to a fake address in San Diego on Monday. Based on the text messages he had trouble finding the place.
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Mar 4, 2021 16:58
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Roseo posted:100% chance that it's a sales call for their advisory service. It's 0.50% off the top, iirc.
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Mar 4, 2021 17:04
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hobbez posted:I woke up this morning and I kind of settled on “higher fed rates” means the fed is tightening all credit flows, including those towards the US government. They don’t buy as many bonds, which pushes prices down. the fed funds rate target is independent of the fed bond buying (generally called "quantitative easing") program. but, there is an expectation that the current fed bond-buying program will be tapered off and ended (google "taper tantrum" for how this went down in 2013; JPow is doing a good job of setting market expectations in 2020 to avoid that tantrum) before the fed funds rate target would be raised.
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Mar 4, 2021 17:04
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H110Hawk posted:This is me too except for robocallers. I am pretty sure I sent a home inspector to a fake address in San Diego on Monday. Based on the text messages he had trouble finding the place. Please post your adventures in tormenting these people
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Mar 4, 2021 17:38
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Leperflesh posted:B) Suggest just using the S&P500 index in this account, and use your IRA to complete your asset allocation with international & bonds, assuming those two categories add up to 30% or less of your intended asset allocation runawayturtles posted:I was gonna base it off of Vanguard's target retirement 2050 fund, so that's why I thought maybe 10% bonds and 30% international would be good, but I could do 10%/20% instead (although I suppose the 401k will continue to grow from contributions much faster than the IRA, unfortunately). Is it not too top-heavy to go 70% S&P500, or is it just not worth the slight ER increase to include mid and small cap? I appreciate and am happy to follow the advice, but if you could share your reasoning it would be really helpful as I try to learn more about this stuff. (If anyone else has opinions, happy to hear them too!) Also scheduled a meeting with the COO tomorrow to discuss the poor 401k options, though I don't expect he'll have good news about being in a position to change anything.
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Mar 4, 2021 23:35
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H110Hawk posted:This is me too except for robocallers. I am pretty sure I sent a home inspector to a fake address in San Diego on Monday. Based on the text messages he had trouble finding the place. 
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Mar 5, 2021 00:49
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incogneato posted:Hey thanks for that link, this is one of the better retirement calculators/simulators I've seen. I'd love it if it had a few more variables to tweak and play around with, though. Did you have a more detailed one before you edited your initial post? This was the first one I looked at: http://fc.standardandpoors.com/ondemand/analytics/embedded/compute.vm?hnd=15&client=amp It's not great as a UI and I don't want to vouch for it in particular. I also came across this one: https://www.northwesternmutual.com/retirement-calculator/ But it seems to load really slowly, maybe my adblocker is messing with it. runawayturtles posted:I appreciate and am happy to follow the advice, but if you could share your reasoning it would be really helpful as I try to learn more about this stuff. (If anyone else has opinions, happy to hear them too!) Most of the options are too expensive. A three-fund portfolio typically has: a total US stock market fund, an international stock fund, and a total bond market fund. The total stock market fund is broader than a base S&P500 fund, but they tend to track fairly closely anyway, and an S&P500 fund is a reasonable proxy for the US stock market: https://www.thebalance.com/total-stock-market-vs-sandp-500-2466403 quote:Bottom Line I do not think you should pay a substantially higher ER just to gain that small additional diversification from using other funds in your list of options, within your 401(k). Good luck with that meeting! I suggest you be ready to explain how much of a drag on long-term earnings a high ER represents, perhaps with a chart or some numbers. https://www.investopedia.com/ask/answers/101415/how-do-mutual-fund-expense-ratios-affect-returns.asp https://www.magnifymoney.com/blog/investing/expense-ratio/ e. I like this article https://www.investopedia.com/articles/personal-finance/092613/pay-attention-your-funds-expense-ratio.asp Leperflesh fucked around with this message at 02:04 on Mar 5, 2021 |
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Mar 5, 2021 01:57
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Can I ask you guys a question about my mom's finances? She's 72, dad's passed and now she wants my input on her finances and I am dumb. I just need to know if she's getting hosed over. I've met her 'financial advisor' and he seems like a douche canoe and seems to be just a salesman. So right now, as far as she knows, this is an IRA. It's got ~$361k of value in it. It seems to be mostly in bond funds (biggest are: ABNFX @136k, IBAFX @102k, AMBFX @28k and CAIFX @ 28k). The rest seem like a bunch of stock funds with about 10k in them each. Looking at her overall statement, she's paid $1,130 in fees on her $361k investment and that only covers from Jan 1st to Feb 28th. So over the course of the year, she's going to end up spending about 1.8-1.9% of her investment principal in fees? That seems high to me, but as I explained before, I am dumb. She's got other money elsewhere, but I'm basically getting onboarded as statements come in, so this is the chunk I have to look at right now. Does this look reasonable to you guys or should I be worried? Bedurndurn fucked around with this message at 06:03 on Mar 5, 2021 |
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Mar 5, 2021 06:00
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Very interested in the responses to Bedurndurn because I'm dumb too and may end up in a similar situation. Gut feeling is it is a common situation. Yes that does seem expensive but what is it buying?
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Mar 5, 2021 06:37
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That’s a high fee. Vanguard, Fidelity and Schwab all have similar funds for 0 - 0.25%. For example it could all be put into a single Vanguard life strategy fund like VASIX that just handles the balancing for you and the fee is 0.11%. It’s basically paying the douche canoe advisor $500 a month to pick a basket of mutual funds. Doesn’t seem worth it.
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Mar 5, 2021 06:55
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I am not a smart investor but I concur with Koushiro.
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Mar 5, 2021 07:02
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I would try to get a year end statement instead; it may be that they have those fees every month or it may be that they have an annual fee paid in January. The fees are likely separate from the underlying expense ratio of the funds. These American funds have expense ratios of around .3-.4%. Not bad at all, but not great compared to Vanguard. And you're paying the fees on top of that. The single stocks are worrisome - are they churning her money for trading fees? Can you separate out what the "fees" are for? Either way, if she's not getting advice apart from investment management, she can get that at Vanguard for much cheaper through their personal advisory service, with cheaper funds as well. If she wants a full service financial planner who will work with her through insurance, estate planning and tax planning, she should go through napfa.org to find a CFP who is fee-only. Some of them will do standalone financial plans for someone like her with not quite enough assets to really make it worthwhile to pay for ongoing planning. You should expect to pay $1k-3k for a standalone financial plan that will cover everything except tax planning, and then she can probably just set it and forget it. If her situation isn't complicated (if all she has is IRA RMDs and social security for income, no other weird things), then she can just replicate the portfolio in Vanguard or get the Vanguard CFP to do it for her and forget about the rest. Investment management is a commodity that people are still paying premium prices for, as though you had to get a broker on the phone to purchase a stock every time you wanted to invest. It's dumb to be paying premium prices for what is essentially automated in the modern age. Her plan is likely a cookie cutter portfolio that the robots rebalance every quarter, and her advisor probably knows nothing else about her apart from the assets she has with him. In an IRA the rebalancing can even be done automatically since there is no tax impact. It's literally a couple of mouse clicks that she is paying for over and over again, every year. EmmaDilemma posted:Very interested in the responses to Bedurndurn because I'm dumb too and may end up in a similar situation. Gut feeling is it is a common situation. Yes that does seem expensive but what is it buying? If it's a CFP providing comprehensive planning, it would include tax plans and possibly preparation, Social security and Medicare planning, estate and insurance analysis, and any other things that crop up in a specific situation - stock options, getting out of old annuities, college funding for grandkids, rental real estate, etc. Full disclosure: I work for a CFP and am getting certified myself. I think our biggest value comes from keeping people away from stupid mistakes: suboptimal pension choices, signing into an annuity, buying whole life, forgetting to get an estate plan together, selling stock options without thinking about tax impact, not selling stock options without thinking about concentration risk, having terrible coverage in their insurance (hello wildfires!), getting out of the markets during a pandemic. This is where we can literally save people hundreds of thousands of dollars - avoiding disaster and making sure all bases are covered. But not a lot of people really need this level of planning, and the "cheaper" financial advisors usually are just sucking away a percentage of AUM and doing nothing else.
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Mar 5, 2021 07:16
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Power of Pecota posted:I started a Roth IRA at Vanguard when I was at my last job in mid-2018 and had no 401k option available. The holdings are mostly VTTSX. Following up on this from a while back, but if a match is offered in the future (I'm not holding my breath) or I can comfortably make it past max IRA contributions this is what's available: First group Second group I'm assuming the State Street Russell Small Cap Class VIII one would be the best pick since it's got the lowest expense ratio of the aggressive growth ones and I've got a long time until I'm looking at retirement
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Mar 5, 2021 09:17
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So I just want to make sure I'm doing this right. I opened a Vanguard Roth IRA account a few weeks ago. My goal is to invest into a Target Date Fund, but you need $1000 minimum to do that. Right now when I put money into the IRA it goes into a Settlement Fund (which from what I understand is basically a savings account). Once I have 1k in there, I can buy a Target Date Fund with the settlement fund and from then on I can invest monthly right into the target date fund. If that all sounds right, then I have another question. When people here talk about things like "V-----", they're usually talking about Vanguard funds. Like for instance, VTTSX is the 2060 target date fund. There aren't multiple different target date funds for the same year; if you want to retire in 2060 (and are looking for a vanguard target date fund) then you're putting money in VTTSX. That's correct? If I am considering putting money into a 2055 or 2060 target date fund, that also means I am choosing between VFFVX or VTTSX.
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Mar 5, 2021 14:22
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Right on both counts, yep!
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Mar 5, 2021 14:30
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Correct on your settlement fund situation. Once you buy in, then you can put in whatever amount. The naming convention isn't exactly authoritative. A single firm can put out multiple target date funds for the same year if they have different guiding principles. That being said, Vanguard doesn't do that (I don't think-- I haven't checked this particular thing). There's really not any "rules" for funds' naming/design principles, and if they do have principles they break them all the time as convenient. There are many, many funds all trying to do the exact same thing with wildly different structures and fee structures, like trace an index. Vanguard is just one of the firms doing things and they do things as you say. While you're doing a great job making sure you understand things before you get into it, don't forget that target date funds are one of many options you have as an investor to passively invest and then retire by That Date. You could also invest in a more general fund like an ETF/Mutual Fund and just sell at the target date at your own leisure. This might cause a bit of inefficiency of course, and rebalances might happen a bit differently. But don't insist that you absolutely must pick a target date fund.
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Mar 5, 2021 14:38
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Agree with everything jokes said, but also wanna throw this out there: If you wanna retire in comfort and don’t want to think about investment selection, shoveling as much money as possible into a Vanguard target date fund is the way to do it. You could think about investment selection, but unless that really excites you: don’t. A lot of the thread regulars get excited about it. e: I don’t want to sound like a grump that’s stifling curiosity. I just don’t want to complicate things for people who aren’t interested in the complication. Like: you’re not “missing out” if you don’t learn all the investing mumbo-jumbo. Your choice of a vanguard target date fund will almost certainly outperform people who take an active role in their own retirement fund selection. Newbie investors should be aware of the dangers of being too involved in their own retirement portfolio both from a psychological AND financial return perspective. Your retirement account will be most impacted by the amount of money you put into it. The choice between 90% stocks / 10% bonds, 85/15, or going wild with blends of sector ETFs is noise. Focus on living your life and making more money. ...but if you’re curious and wanna ask questions about poo poo, go for it. DNK fucked around with this message at 14:56 on Mar 5, 2021 |
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Mar 5, 2021 14:45
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DNK posted:Agree with everything jokes said, but also wanna throw this out there: No, that isn’t a grump thing to say. As a thread regular who probably does tweak my own Roth balances more than necessary, yeah, target base is the safest and easiest option and the 0.05% difference (give or take) definitely is immaterial.
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Mar 5, 2021 15:18
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I appreciate all the info!! But I am definitely looking for a more set-and-forget solution.
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Mar 5, 2021 15:56
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As a devout set and forget except for my yearly/random bouts of paranoia checks because I know it will only disastrously explode in my face as I plunge off a cliff, that approach has worked extremely well for me, so I vouch for it.
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Mar 5, 2021 17:20
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Heroic Yoshimitsu posted:I appreciate all the info!! But I am definitely looking for a more set-and-forget solution. You'll probably be very happy with a Vanguard target date fund 
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Mar 5, 2021 17:31
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Seconding and thirding and fourthing.... I’m a micromanager and extreme geek. But you should just buy a low cost, target date index fund and be rich when you retire.
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Mar 5, 2021 18:24
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Any reasons not to rollover an old 401k into an IRA? Especially if I just do it at the same brokerage?
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Mar 5, 2021 18:25
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It might mess up any employer match stuff you got goin' on?
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Mar 5, 2021 18:32
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jokes posted:It might mess up any employer match stuff you got goin' on? Sorry, by “old” I meant former employer
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Mar 5, 2021 18:34
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Flowers for QAnon posted:Any reasons not to rollover an old 401k into an IRA? Especially if I just do it at the same brokerage? It will prevent you from doing a backdoor Roth in the future, because now you'll have a lot of untaxed money in a traditional IRA.
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Mar 5, 2021 18:36
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I had a Schwab Simple IRA from an old job that I recently rolled to a Fidelity IRA, just to centralize it. Now I see that my current job has a John Hancock IRA. Should I continue the consolidation or wait a little while? Do I have to pay taxes on the rolled IRAs or only if I cash out a 401k? I have a DCP from another old job that looks like I will def pay taxes on if I roll it, but its only like 3.5K so might be worth it just to get better return.
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Mar 5, 2021 18:39
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Twerk from Home posted:It will prevent you from doing a backdoor Roth in the future, because now you'll have a lot of untaxed money in a traditional IRA. This is what I learned from this thread a few years back when I changed jobs. I have not hit the Roth IRA phase out yet, but it's conceivable that I will in my career, so I have kept my old 401k with my old company. They do use Vanguard though to manage their 401k though, so I'm in a great position. If your old company has high fees and you don't think you will ever need to use the backdoor Roth method, it could make sense to roll it to a 401k at Vanguard. I think others in this thread have mentioned 401k's having better protection against collection or bankruptcy, but I don't know anything about that.
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Mar 5, 2021 18:42
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Twerk from Home posted:It will prevent you from doing a backdoor Roth in the future, because now you'll have a lot of untaxed money in a traditional IRA. Can you elaborate? I’m receiving mixed feedback on this statement
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Mar 5, 2021 18:52
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