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Ready To Switch To Vanguard
Old 12-22-2006, 01:43 PM   #1
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Ready To Switch To Vanguard

Okay...I've been reading (and sometimes participating) for a while now. I have a Roth, and DH has a Roth and traditional IRA with Edward Jones (accounts have been open for about 3 years now). I know that we are probably paying too much in fees, etc, but I just haven't felt confident to make a move to managing these myself. DH is not interested in managing investments, so the responsibility is mine. These are relatively small accounts as we each have sizable 401k accounts and follow the LBYMs lifestyle. So, I think it is time to jump. Feedback or recommendations appreciated! FYI...we are both 49 years old.
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Re: Ready To Switch To Vanguard
Old 12-22-2006, 02:07 PM   #2
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Re: Ready To Switch To Vanguard

Quote:
Originally Posted by Dog
These are relatively small accounts as we each have sizable 401k accounts and follow the LBYMs lifestyle. So, I think it is time to jump. Feedback or recommendations appreciated! FYI...we are both 49 years old.
Dog, just do it. I found the hardest part was breaking the ice. Once I felt confident it was easier than it looked.

If you hesitate, why not move some of your accounts now and leave the rest. Watch what happens. In a year or so, move the balance.
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Re: Ready To Switch To Vanguard
Old 12-22-2006, 02:10 PM   #3
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Re: Ready To Switch To Vanguard

DW has been with Vanguard ten years now with an IRA. She likes it very much. I'm happy with Fidelity but both services have been very reliable.
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Re: Ready To Switch To Vanguard
Old 12-22-2006, 02:31 PM   #4
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Re: Ready To Switch To Vanguard

I have had accounts with Vanguard for about twenty years and have always been satisfied with their products and services. Currently they hold my Roth IRA, traditional IRA, and six college accounts for my kids. I would recommend them without hesitation.

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Re: Ready To Switch To Vanguard
Old 12-22-2006, 02:44 PM   #5
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Re: Ready To Switch To Vanguard

jump!
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Re: Ready To Switch To Vanguard
Old 12-22-2006, 02:54 PM   #6
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Re: Ready To Switch To Vanguard

Quote:
Originally Posted by Dog
I know that we are probably paying too much in fees, etc, but I just haven't felt confident to make a move to managing these myself.
Manage what? Transfer it to a Target Retirement fund or the STAR fund or something. A "fund of funds". ... and let it ride. In the case of the Target Retirement funds, Vanguard will change the allocations as you get closer to your "date".

Vanguard's Balanced Funds

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Re: Ready To Switch To Vanguard
Old 12-22-2006, 03:01 PM   #7
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Re: Ready To Switch To Vanguard

Just do it !
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Re: Ready To Switch To Vanguard
Old 12-22-2006, 03:23 PM   #8
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Re: Ready To Switch To Vanguard

Quote:
I know that we are probably paying too much in fees,
What's the worst thing that could happen if you jump? You could only save $ on fees.

I suggest that you get it over with before 2006 is over so you can enjoy 2007 and not have to put up with all of this uncertainty in 2007.
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Re: Ready To Switch To Vanguard
Old 12-22-2006, 03:58 PM   #9
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Re: Ready To Switch To Vanguard

Edward Jones does not even publish a fee schedule because they want to fleece as much as possible on a per customer basis. They fleeced my grandmother when she was 92 years old. I helped my dad and uncle get their money out of there when they inherited what was left. Run, don't walk.

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Re: Ready To Switch To Vanguard
Old 12-22-2006, 04:41 PM   #10
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Re: Ready To Switch To Vanguard

Quote:
Originally Posted by Rich_in_Tampa
Dog, just do it. I found the hardest part was breaking the ice. Once I felt confident it was easier than it looked.

If you hesitate, why not move some of your accounts now and leave the rest. Watch what happens. In a year or so, move the balance.
Watching the comparisons can be very helpful. I still have a fair amount in managed funds that I have been reluctant (still am) to move because I would take a cap gains hit. I have been complacent because total return has seemed to be at or above what I was getting on the index side. But this year the return to the mean on the managed side bit me in the butt. I have a sizable chunk with Calamos and they bet on tech this year. The index side did great but Calamos took me way down on the managed side.
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Re: Ready To Switch To Vanguard
Old 12-22-2006, 04:50 PM   #11
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Re: Ready To Switch To Vanguard

I read thru these quickly, so maybe I missed something..........what types of investments (stocks, funds, etc.) are in the Edward Jones Account? I am not sure if anyone mentioned that you should do a trustee to trustee rollover if possible. Depending on what type of investments are in there, it could get just a bit tricky, but you gotta get outta there and go with Vanguard ASAP.
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Re: Ready To Switch To Vanguard
Old 12-22-2006, 06:30 PM   #12
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Re: Ready To Switch To Vanguard

Quote:
Originally Posted by jazz4cash
I read thru these quickly, so maybe I missed something..........what types of investments (stocks, funds, etc.) are in the Edward Jones Account? I am not sure if anyone mentioned that you should do a trustee to trustee rollover if possible. Depending on what type of investments are in there, it could get just a bit tricky, but you gotta get outta there and go with Vanguard ASAP.
They are all class A mutual funds invested in American Funds (High Income, Capital Builder, World Growth & Income, Growth Fund, New Perspective and SmallCap World Fund). The general consensus seems to be for me to jump quickly. I guess I better spend some time on the Vanguard website. Thanks everyone!
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Re: Ready To Switch To Vanguard
Old 12-22-2006, 07:03 PM   #13
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Re: Ready To Switch To Vanguard

Vanguard is owned by the shareholders. Fees are among the lowest in the industry. It's probably the most ethical fund company in the U.S. John Bogle, the founder and former director is the father of index funds. In 1951, he wrote his university thesis on the theory of indexing the stock market. Later, he started Vanguard and proved his theory to be true. He believes as does Vanguard that shareholders are the ones who invest their hard earned money and should be justly rewarded for their risk. They should not be gouged in order to make the fund manager and directors rich as is the case with most mutual fund companies.
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Re: Ready To Switch To Vanguard
Old 12-22-2006, 08:36 PM   #14
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Re: Ready To Switch To Vanguard

I get sick when I think back about how much money I spent on brokers stealing my money.
ML and AG edwards did very well with my money and now every dime is with Vanguard.
Take the hit on the taxes and fees and run like hell!
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Re: Ready To Switch To Vanguard
Old 12-22-2006, 08:50 PM   #15
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Re: Ready To Switch To Vanguard

Dog,

From what I understand, to acquire American Funds, an investor needs to cough up front loads which can be as high as 5.75%. So I am assuming you already have paid these loads. I am not as confident as the prevoius posters that you should get out of these funds since these loads are "sunk costs" . Also American Funds are very good funds with reasonable annual Expense ratios.

I would suggest (if these funds fit your desired asset allocation) that you consider keeping these funds and do not contribute to them any more (to avoid the loads). Maybe pump any add'l dinero to Vanguard.

Note the vast majority of my funds are Vanguard Funds. I do have one American Fund - EuroPacific-in my 401K and its a keeper.

Golfnut
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Re: Ready To Switch To Vanguard
Old 12-23-2006, 05:12 PM   #16
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Re: Ready To Switch To Vanguard

Vanguard all the way! I have been very pleased with them. They keep adding funds and their expenses are rock bottom. I am a big believer in indexing, and they are the leader in that. If you ever move your 401ks to an IRA, Vanguard even reduces expenses for larger fund balances (over 100k) for most funds and waives most charges for things like wires in/out or account maintenance fees. They are also available until 10 PM weekdays and on Saturdays and always very patient answering questions.
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Re: Ready To Switch To Vanguard
Old 12-23-2006, 08:36 PM   #17
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Re: Ready To Switch To Vanguard

Thank you all for your input and advice. It is clear to me that I have much to learn. I plan to call Vanguard early next week. I spent some time on their web site and plan to ask about their Target Retirement Fund. I'm curious if anyone out there belongs to an investment club? If so, would you recommend it? Anyway, thanks again!
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Re: Ready To Switch To Vanguard
Old 12-24-2006, 05:53 AM   #18
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Re: Ready To Switch To Vanguard

Dog,

I have recently looked into Roth IRA's for myself (just starting), and I have found Vanguard to be one of my top picks with very low fees, and great funds to choose from.

So, if you decide to invest with them, I'm in it with you, darling!
Maybe we could take the plunge together!

~M
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Re: Ready To Switch To Vanguard
Old 12-24-2006, 08:27 AM   #19
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Re: Ready To Switch To Vanguard

Quote:
Originally Posted by Dog
I'm curious if anyone out there belongs to an investment club? If so, would you recommend it?
My spouse was in an investment club for more than 10 years. Her club followed NAIC prinicples for selecting growth stocks. NAIC does not really espouse the principles of value stock investing, nor asset allocation, nor mutual fund investing (though their monthly magazine does have mutual fund selection).

My spouse's club returned below market rates for their investments. They would have been better off just investing in index funds.

An investment club is a great educational tool, but it will generally not make you any money.
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Re: Ready To Switch To Vanguard
Old 12-24-2006, 12:30 PM   #20
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Re: Ready To Switch To Vanguard

Quote:
Originally Posted by Dog
I plan to call Vanguard early next week.
Well, as they slog through fund distributions, tax questions, Roth IRA conversions, and other end-of-year cyclical overloads, it'll certainly tell you how robust their customer service is.

Quote:
Originally Posted by Dog
I'm curious if anyone out there belongs to an investment club? If so, would you recommend it? Anyway, thanks again!
Absolutely. An investment club requires a contractural commitment to join with others, a steady investment of dollar-cost-averaging funds, and consistent research to keep up with your investments. Every investor needs that type of support.

Investment clubs also fuel a healthy desire to avoid looking like an idiot in front of the rest of the group. That alone gives one the motive to make sure they know what they're talking about and don't make risky uninformed decisions.

BTW, Dog, it looks like you've already joined this investment club...
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