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Old 10-20-2015, 06:10 AM   #41
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Now for something completely different...

Call Vanguard and put it all in Wellesley.
*You'll save on fees.
*You'll get inflation protection since the fund is 36% stock.
*You'll get income from the dividend stocks and bonds. (At $500K you could expect about $24K per year in distributions, plus or minus).
*You won't have to manage anything: set it, forget it, and stay the course (quit looking at daily performance!)
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Old 10-20-2015, 07:32 AM   #42
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^^^^^ I guess you missed post #33.... but an excellent idea if I must say so.
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Old 10-20-2015, 08:56 AM   #43
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reubenray,

You must remember that your FA is primarily a salesman. Doesn't matter how good he is at investing or or even if he has your interests at heart. He just has to sell YOU on the idea that he is any good.

I went through FA at Merrill Lynch and again at Edward Jones. After a while, I realized that they were bringing little value for the money they charged. Occasionally, I'll listen to a FA (usually for something free and a few hours of my time) hoping the gain some new ideas or insight. Found little added value, the last one just wanted to sell an annuity to cover what he perceived was my concerns for the future. Waste of time.

FAs were helpful in getting me started in investing when I was in my 30s, (was in mostly CDs prior), but as I gained knowledge and confidence, they were fired.
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Old 10-20-2015, 09:18 AM   #44
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Originally Posted by reubenray View Post
Due to us (wife & myself) doing a lot of traveling in our RV managing something myself would be impossible. A lot of time we may not have phone or internet for days or weeks.
If you cannot spare an hour a day, and a cell phone with a data plan, then leave it in the hands of a financial manager.
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Old 10-20-2015, 09:18 AM   #45
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The safest return you could make is to save the 1% you are paying to this investment firm! Learn a bit more about investing and manage your own money.
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Due to us (wife & myself) doing a lot of traveling in our RV managing something myself would be impossible. A lot of time we may not have phone or internet for days or weeks.
Reubenray,
It takes about 2 hours per year to do this yourself. You have enough time. What you don't have is enough money to give away $5000 every year to this "advisor".
You came here two years ago and a lot of people gave you some very good advice in this thread Fees Taking a Third of Profit ? . If you had taken it, you'd probably have a lot more in your account and you wouldn't be paying out all these fees every year. I recommend that you save time and money and re-read those previous suggestions, because they were good ones. I don't think you are being fair to us or, ultimately, to yourself.
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Old 10-20-2015, 11:04 AM   #46
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Reubenray, the good folks here offer sound advice. Fact: you can move your money to investments with comparable returns and lower fees, and there are many great set-and-forget options to choose from.

How much of your hesitation is due to thinking about confronting your FA and possibly being made to feel foolish, having to engage in a debate about investments, or having to "break-up" with someone you consider a friend?

I've had these concerns about some of the financial moves I've made the past few years. Mainly, the fear of confronting a financial expert and having to concede. FAs are trained killers, and sure to have convincing counterpoints to any argument regarding managing your own retirement accounts. Plus, they have personality. They are salesmen. They wouldn't have survived so far as FAs otherwise.

When I think about how I got set up by FAs in the past, well, . Never again. Had I known over the years what I learned from this forum in a few weeks, I'd probably be at least 20% closer to my retirement goal.
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Old 10-20-2015, 01:11 PM   #47
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reubenray,

You must remember that your FA is primarily a salesman. Doesn't matter how good he is at investing or or even if he has your interests at heart. He just has to sell YOU on the idea that he is any good.

I went through FA at Merrill Lynch and again at Edward Jones. After a while, I realized that they were bringing little value for the money they charged. Occasionally, I'll listen to a FA (usually for something free and a few hours of my time) hoping the gain some new ideas or insight. Found little added value, the last one just wanted to sell an annuity to cover what he perceived was my concerns for the future. Waste of time.

FAs were helpful in getting me started in investing when I was in my 30s, (was in mostly CDs prior), but as I gained knowledge and confidence, they were fired.

The senior level suits at Ed Jones must really be cracking the commission whip now. Just this morning before my morning walk I had a dressed up man knocking on my door. I assumed it was some religious person making there usual rounds so I didn't answer. Went out the door shortly later and there was an Edward Jones card in the door.
If I had known I would have had a little fun with him. I would have told him I would move all my money to his company if he could correctly tell me what the ticker symbols of my 3 biggest stock holdings mean.....AILLL, CNLPL, and CHSCL. Poor kid wouldn't have had a chance.


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Old 10-20-2015, 01:34 PM   #48
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... I would have told him I would move all my money to his company if he could correctly tell me what the ticker symbols of my 3 biggest stock holdings mean.....AILLL, CNLPL, and CHSCL. Poor kid wouldn't have had a chance.
Mine is TANSTAAFL

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Old 10-20-2015, 01:59 PM   #49
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The senior level suits at Ed Jones must really be cracking the commission whip now. Just this morning before my morning walk I had a dressed up man knocking on my door. I assumed it was some religious person making there usual rounds so I didn't answer. Went out the door shortly later and there was an Edward Jones card in the door.
Same here, an EJ guy came to my door several months ago. He seemed downtrodden, looked tired, and was wearing a rather limp, ill-fitting suit. I wonder if that's part of the act these days?
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Old 10-20-2015, 02:03 PM   #50
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Same here, an EJ guy came to my door several months ago. He seemed downtrodden, looked tired, and was wearing a rather limp, ill-fitting suit. I wonder if that's part of the act these days?

This was the first time it has ever happened to me. You have to feel a bit sorry for them. Takes a lot of gumption to take rejection over and over and knocking on peoples doors. But I guess, I don't feel sorry enough to give him my business. But still, he is out there trying to make a buck so I have to give him some credit.


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Old 10-20-2015, 02:27 PM   #51
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My brother and SIL use Edward Jones. I don't get it, what is the benefit? She tells me she withdraws the same amount every month but the account doesn't go down so she is happy, but now it went down. He told me they pay 3% she tells me they don't pay 3%. He keeps asking what I pay and I tell him nothing but he doesn't believe it.
What would Edward Jones charge to manage my money? I don't want to ask them since I am not likely to want to pay anything, just curious.
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Old 10-20-2015, 02:57 PM   #52
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My brother and SIL use Edward Jones. I don't get it, what is the benefit? She tells me she withdraws the same amount every month but the account doesn't go down so she is happy, but now it went down. He told me they pay 3% she tells me they don't pay 3%. He keeps asking what I pay and I tell him nothing but he doesn't believe it.
What would Edward Jones charge to manage my money? I don't want to ask them since I am not likely to want to pay anything, just curious.
Depends normally 1% then they put you in expensive funds that generally underperform basic low cost index funds. If you don't catch on they pitch you a nice variable annuity charging you ~3% in fees annually. Oh yea that annuity sounds real good too see it "returns" x percent every year. Better understand what "return" means, they return the principal.

Best thing to remember about ED Jones is stay away! Those poor downtrodden guys earn six figures a year in commission! That's only a small portion of what they bring in in commissions and fees every year, most gets passed up the chain.
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Old 10-21-2015, 12:36 AM   #53
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Last yr, I had an Edward Jones fellow stop by my house.
I took as a sign of desperation on their part, trying to drum up business going door to door.

Pretty sad really.... maybe its an office initiation ritual they are forced to do.
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Old 10-21-2015, 12:57 AM   #54
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I am amazed at how many people are ignorant of diversification. They think that they have 2 options: Stocks or cash. Ever heard of bonds? Ever heard the phrase "When stocks fall, money runs to the safety of bonds"?

If you can't stomach stock market volatility then you do a mix of stocks and bonds. Ticker symbols VOO and AGG.

The OP also needs to visit this page to test out the failure rates of various stock/bond allocations: https://retirementplans.vanguard.com/VGApp/pe/pubeducation/calculators/RetirementNestEggCalc.jsf
While you're at it, take a look at the failure rate of 100% cash.
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Old 10-21-2015, 08:43 AM   #55
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Last yr, I had an Edward Jones fellow stop by my house.
I took as a sign of desperation on their part, trying to drum up business going door to door.

Pretty sad really.... maybe its an office initiation ritual they are forced to do.
That's how they all start. After the first year spend on a few weeks to get their license then 6 months of sales training they are throw out to perform. If your not bringing in a six figure commission check after the training, don't worry there's another person that will.

It's all up to them, what a dilemma having ethics(not needed with the suitably standard) or putting food on the table?
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Old 10-21-2015, 09:24 AM   #56
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Old 10-21-2015, 10:12 AM   #57
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^^^^^ Good one!
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Old 10-21-2015, 10:41 AM   #58
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With so much to learn on the Internet it's hard to believe that brokers are still in business. I guess if you can't spend 10 minutes to learn that commission-based advisers don't legally work for you and your best interests then you might as well part ways with your money.
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Old 10-21-2015, 10:54 AM   #59
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With so much to learn on the Internet it's hard to believe that brokers are still in business. I guess if you can't spend 10 minutes to learn that commission-based advisers don't legally work for you and your best interests then you might as well part ways with your money.
I'm sympathetic to people who fall into this trap. There's advertising all over the TV, radio, internet suggesting that these advisors are the normal way to get help with this planning, and that these folks can help with a very important (yes) and complex (not really) subject. And, 1% really doesn't sound like much. People are used to seeking and getting professional help with important, complex things, and in other cases (medical, law, accounting, etc) it is generally money well spent.
They have no idea that 1) the amount they are spending is really big. 2) They are perfectly capable of doing it themselves. 3) Many of these advisors are putting their own interests ahead of those of clients, so their investment results (net of investment expenses) will be worse than if they'd done this by themselves. 4) Virtually nobody can predict the market no mater what the EJ rep says), and anyone who could would NOT be selling advice to small-time retail investors, they'd become fabulously rich in a few years by leveraging their own money in the options market.

Who is it logical for these people to believe--all the folks in the commercials with the big offices and glossy brochures, or a few people on the internet and folks they've never heard of who write books on how to do this yourself? The easy and "logical" option is . . . But a few people figure it out and that's a victory we should be happy about.
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Old 10-21-2015, 10:57 AM   #60
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Three out of four U.S. investors mistakenly think that financial advisers at brokerage firms are required to put clients’ interests first.
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