My brother asked me (actually kind of begged me) to give him some advice on his holdings in an IRA.
First off I told him the fee's were high (they averaged almost 2%) and were in all kinds of funds that I was unfamiliar with. During 2013 he only "made" about 8%. He knew that stocks had surged 30% and was rather miffed.
I asked him if he knew about Vanguard or Fidelity and said he already had a small IRA with Vanguard. Duh!!! I told him to dump his high fee IRA and transfer it to Vanguard and then split it between Wellington and Wellsely. That way he could get the Admiralty rates.
I have a much more diversified portfolio but think that for him and his wife, this would do well for him. Told him it was a "boring" but solid way to go.
Was this OK advice or should I have spent more time and built him an index fund portfolio?
First off I told him the fee's were high (they averaged almost 2%) and were in all kinds of funds that I was unfamiliar with. During 2013 he only "made" about 8%. He knew that stocks had surged 30% and was rather miffed.
I asked him if he knew about Vanguard or Fidelity and said he already had a small IRA with Vanguard. Duh!!! I told him to dump his high fee IRA and transfer it to Vanguard and then split it between Wellington and Wellsely. That way he could get the Admiralty rates.
I have a much more diversified portfolio but think that for him and his wife, this would do well for him. Told him it was a "boring" but solid way to go.
Was this OK advice or should I have spent more time and built him an index fund portfolio?