CompoundInterestFan
Recycles dryer sheets
- Joined
- Jan 20, 2007
- Messages
- 222
Thanks to this board, I've been doing a lot of financial housecleaning lately and really scrutinizing how my money's invested. I've had the bulk of my money with Ameriprise for about 3 years now, after I rolled over my previous employer's 401k into an IRA with Ameriprise. Ever since I came on this board, I've seen warnings to stay away from loaded mutual funds, and while I knew I had some with Ameriprise, I never paid close attention. After all, what's a few percentage points? Besides, I felt I had bigger fish to fry, like getting rid of an old VUL policy I had.
Well, after doing some reading (this board, 4 Pillars, etc) and experimenting, I understand just how big a difference those few percentage points make over the long haul. So I start looking at how my money's invested w/Ameriprise, and it's all in loaded MFs (some examples: AWPAX, CFICX, MDIDX, GTABX, OMSBX). Not only that, but Ameriprise charges a 1.5% flat fee on all my assets on top of any individual fund fees. So my plan is to start moving money either out of Ameriprise and into Vanguard (or something similar) or at least start moving it to no-load funds within Ameriprise.
So, one question I have is, are loaded MFs ever worth having? I see some with high Morningstar ratings, but after reading 4 Pillars I'm a little leery of anything having to do with the financial industry. Is the Morningstar rating legit?
Well, after doing some reading (this board, 4 Pillars, etc) and experimenting, I understand just how big a difference those few percentage points make over the long haul. So I start looking at how my money's invested w/Ameriprise, and it's all in loaded MFs (some examples: AWPAX, CFICX, MDIDX, GTABX, OMSBX). Not only that, but Ameriprise charges a 1.5% flat fee on all my assets on top of any individual fund fees. So my plan is to start moving money either out of Ameriprise and into Vanguard (or something similar) or at least start moving it to no-load funds within Ameriprise.
So, one question I have is, are loaded MFs ever worth having? I see some with high Morningstar ratings, but after reading 4 Pillars I'm a little leery of anything having to do with the financial industry. Is the Morningstar rating legit?