Re: Not Sure What To Do
I think it depends. Are there any back-end loads? If so, the decision is a bit more complicated.
Here's a few suggestions:
- In the tax-deferred accounts, it is pretty simple. Managed equity funds should almost certainly be given the boot in favor of cheap index funds or ETFs. I personally think there is room for managed bond funds, but only if the expense ratio is reasonable (.5% or less) and the manager is actually any good.
- In the taxable accounts, you will have to figure out what it would cost you in cap gains taxes from switching and contrast that with how much you would save. I think a simple calculaion of payback period would probably suffice. If you get pay back in 5 years or less, it is probably a no-brainer.
"Neither my companion or I carry firearms on our persons. We depend on the goodwill of our fellow man and the forbearance of reptiles."
- English Bob