Vanguard IRA rollover/Direct managed Fund by Financial Advisor

[unknownxz]

Hi everyone, i'm new to the board and through some searching find this forum. I did some research and require some advices or help from fellow forum member regarding my situtation. Thank you.

I recently left my first job after 3 year and few month and have around the below amount from the old employer. There account will now charge me a adminstration fee of 55 buck each year for each account. So thinking about doing a IRA rollover, also I'm 27 btw.

Old Employer
1. 401k - 55k (Annual Fee 55 bucks & Fund expense fee 1%)
2. Pension that can be rollover to an IRA - 11k (Annual Fee 55 bucks & Fund expense fee 1%)
3. HSA - 13k due to investment growth, (Annual Fee 60 bucks & Fund expense fee 1.5%)

Invested during the 3 years.
4. Vanguard Traditional IRA (Target 2045)- 7k
5 Vanguard Roth IRA (Target 2045) - 3k

I stop by a Chase bank to upgrade my basic checking account and was basically let to a financial advisor who recommend their actively managed fund which he charged a 1.25% management fee into a 60% equity 40% Bond income growth fund, plus the fund own expense. He basically ask to look at what i was invested online through my account and proceed to tell me your not making as much as you should and lead me and fill out a final distribution online in my account by himself for my 401k and Pension right there and then. Proceed to open a brokerage account and had me signed the form required to directly transfer to that account.

I walked out and felt something was wrong right there. Give him a few call he didn't pick up. Also wondering why i would need to pay a 1.25% management fee for a 60% equity and 40% bond fund allocation. So i decided to cancel my final distribution through my 401k and pension myself.(Will still need to contact him once he realized the checks is not coming and tell him i don't think i need his services)

Now with that situtation it kept me thinking that i should rollover my 401k and pension to a cheaper Vanguard fund as my current expense for my fund in the 401k are around 1%.

1) Does anyone have any advice on what i should invest in through the IRA at Vanguard once i roll it over. As the 2045 Fund that i currently have are listed as being a fund that is under performing(Most Alarming 3-ALARM Funds) by the below website.

FundAlarm -- Most Alarming 3-ALARM Funds

2) Which Vanguard fund i should invest in and the % to get a good median aggressive allocation. Also heard that with 10k investment you can now invest in Admiral shares even lower expense ratios.

3) Also thinking about converting the Vanguard Traditional IRA with 7k into an Roth IRA. (thinking ahead, not sure if this is a good idea, wont mind the 7k hit to income between the two years) Good idea?

4) Any advice where i can transfer my HSA to a place with no fees and good investments choice?


Thanks everyone for any advice and help that you can offer

 

[stoutboy]

You did well by dropping that FA like a hot potato. I'd move the 401K and pension into a Vanguard Roth. Three funds: the US total stock market (75%) and with the remainder, put 60% in the International index and the rest in the emerging markets index. I think you're young enough that you can afford to go all equities and shouldn't worry about bonds until you're in your 40s.

Don't know what to say about the HSA. Good luck!

Hi everyone, i'm new to the board and through some searching find this forum. I did some research and require some advices or help from fellow forum member regarding my situtation. Thank you.

I recently left my first job after 3 year and few month and have around the below amount from the old employer. There account will now charge me a adminstration fee of 55 buck each year for each account. So thinking about doing a IRA rollover, also I'm 27 btw.

Old Employer
1. 401k - 55k (Annual Fee 55 bucks & Fund expense fee 1%)
2. Pension that can be rollover to an IRA - 11k (Annual Fee 55 bucks & Fund expense fee 1%)
3. HSA - 13k due to investment growth, (Annual Fee 60 bucks & Fund expense fee 1.5%)

Invested during the 3 years.
4. Vanguard Traditional IRA (Target 2045)- 7k
5 Vanguard Roth IRA (Target 2045) - 3k

I stop by a Chase bank to upgrade my basic checking account and was basically let to a financial advisor who recommend their actively managed fund which he charged a 1.25% management fee into a 60% equity 40% Bond income growth fund, plus the fund own expense. He basically ask to look at what i was invested online through my account and proceed to tell me your not making as much as you should and lead me and fill out a final distribution online in my account by himself for my 401k and Pension right there and then. Proceed to open a brokerage account and had me signed the form required to directly transfer to that account.

I walked out and felt something was wrong right there. Give him a few call he didn't pick up. Also wondering why i would need to pay a 1.25% management fee for a 60% equity and 40% bond fund allocation. So i decided to cancel my final distribution through my 401k and pension myself.(Will still need to contact him once he realized the checks is not coming and tell him i don't think i need his services)

Now with that situtation it kept me thinking that i should rollover my 401k and pension to a cheaper Vanguard fund as my current expense for my fund in the 401k are around 1%.

1) Does anyone have any advice on what i should invest in through the IRA at Vanguard once i roll it over. As the 2045 Fund that i currently have are listed as being a fund that is under performing(Most Alarming 3-ALARM Funds) by the below website.

FundAlarm -- Most Alarming 3-ALARM Funds

2) Which Vanguard fund i should invest in and the % to get a good median aggressive allocation. Also heard that with 10k investment you can now invest in Admiral shares even lower expense ratios.

3) Also thinking about converting the Vanguard Traditional IRA with 7k into an Roth IRA. (thinking ahead, not sure if this is a good idea, wont mind the 7k hit to income between the two years) Good idea?

4) Any advice where i can transfer my HSA to a place with no fees and good investments choice?


Thanks everyone for any advice and help that you can offer

 

[Darryl]

HSABank and Patelco are well known HSA administrators and you may check with your credit union as a place to transfer your HSA.

Roth conversion can make a lot of sense I think the younger you are the more sense it makes YMMV

Bonds should be part of a portfolio can't tell you to go 10,20,40 or 60% you have to read study and decide once you know that you can roll to a target fund that is close to those #'s while/if you develop a deeper strategy.

I'd wait to rollover a 401 or pension until you've studied some of the recommended reading on his site and understand the pro's&con's 1% is high but not highway robbery.

Great instincts in your Chase experience I just went into a branch to take advantage of an offer ($150 to open a checking acct) and OMG I left wishing I had just applied online. They made door to door vacuum salesman seem like choirboys. Way over the top hustling for commission misbehavior. The one kids hands were shaking so bad when I didn't respond correctly and then he brought the closer in to give me many hundreds of dollars worth of free advice on how to manage my money. Give me a break if I had a dog (sorry dawg) these clowns couldn't add value to his portfolio. I would run to get away from them (of course I'm waiting the 3 or 6 months so I retain the signup bonus)

 

[FinanceDude]

I stop by a Chase bank to upgrade my basic checking account and was basically let to a financial advisor who recommend their actively managed fund which he charged a 1.25% management fee into a 60% equity 40% Bond income growth fund, plus the fund own expense. He basically ask to look at what i was invested online through my account and proceed to tell me your not making as much as you should and lead me and fill out a final distribution online in my account by himself for my 401k and Pension right there and then. Proceed to open a brokerage account and had me signed the form required to directly transfer to that account.

Why did you sign the forms to hace Chase manage it that day?

I walked out and felt something was wrong right there. Give him a few call he didn't pick up. Also wondering why i would need to pay a 1.25% management fee for a 60% equity and 40% bond fund allocation. So i decided to cancel my final distribution through my 401k and pension myself.(Will still need to contact him once he realized the checks is not coming and tell him i don't think i need his services)

You don't need to pay that, just call up and cancel the sale through the Chase Investment Services 800 number........

 

[target2019]

1. Cancel the Chase agreement ASAP. You have x number of days to do that.
2. Speak with Vanguard advisor about your situation. It is best to look at all of your investments as a single portfolio. I think you're right to question the target funds. Better to slice and slice and max your returns.
3. Be careful of tax implications. Read that again.

 

[Texas Proud]

I agree.... cancel ASAP.....


If you do NOT cancel with Chase... they will present a valid transfer paper and it WILL happen... you have to go to the source and stop it...

 

[timekeepr]

I stop by a Chase bank to upgrade my basic checking account and was basically let to a financial advisor who recommend their actively managed fund which he charged a 1.25% management fee into a 60% equity 40% Bond income growth fund, plus the fund own expense.

I wonder what the fund fees are with Chase? If they are 1% then 2.25% for all. That's a lot.

I use Vanguard and most index funds are under 0.20%. Even less for total mkt and index 500 Admiral shares, 0.07%! Min. balance for Admiral shares is now only $10,000.

 

[target2019]

I wonder what the fund fees are with Chase? If they are 1% then 2.25% for all. That's a lot.

I use Vanguard and most index funds are under 0.20%. Even less for total mkt and index 500 Admiral shares, 0.07%! Min. balance for Admiral shares is now only $10,000.

I think some managed funds have a $50K requirement. Other funds do not have admiral shares.

I just converted Total Stock, Total Bond and REIT to admiral shares. A nice gift for us.

 

[unknownxz]

Thanks everyone for the advice. I called the 800 number and they said they couldn't do it but i left a few message to the FA and he finally called back and i gave him the speech and he said once you start the rollover it can't be undone, then i proceed to tell him i have already cancel the transfer on my part and he then agree to cancel my account.

This is my current allocation let me know what you think, i just apply for a vanguard 401k rollover and will have

25% Total Bond index - Admiral shares
45% Total Stock index - Admiral shares
15% Emerging Market Stock index ETF - as the Mutual fund charges purchase fee of .50% and redemption fee of .25%. ETF give lower expense ratio and no fee for buying or selling.
15% Total international Index - This one doesn't have any admiral shares offering or ETF

Convert my 7k Traditional 2045 target fund to Roth. so for a total of around 10k Roth that can be invest in something other then the 2045 target fund any other recommend fund to invest the 10k in?



Any other

 

[unknownxz]

I see REIT Index, Precious Metals and Mining Fund, Small Cap index, Vanguard FTSE All-World ex-US Small-Cap ETF. Anything you recommend to invest the other 10k for more diversification or any reccomening to change to my allocation i currently have would be helpful. Thank you.

 

[travelover]

I see REIT Index, Precious Metals and Mining Fund, Small Cap index, Vanguard FTSE All-World ex-US Small-Cap ETF. Anything you recommend to invest the other 10k for more diversification or any reccomening to change to my allocation i currently have would be helpful. Thank you.

It appears that you have chosen an asset allocation, from your post above. Why not just replicate it in your Roth?

 

[Emeritus]

Thanks everyone for the advice. I called the 800 number and they said they couldn't do it but i left a few message to the FA and he finally called back and i gave him the speech and he said once you start the rollover it can't be undone,

Keep this lying cheating scum in mind when anyone tells you just what humanitarians become financial advisers. IMHO it is the career path for those who have been discharged as unethical from used car sales.

Question to ask anyone who wants to make decisions about your money.

Do you owe me an absolute fiduciary duty?
"Do you put that in writing?
Is it also signed by your corporate employer?
Unless the answer to all three is yes, don't let them handle your money

 

[timekeepr]

I see REIT Index, Precious Metals and Mining Fund, Small Cap index, Vanguard FTSE All-World ex-US Small-Cap ETF. Anything you recommend to invest the other 10k for more diversification or any reccomening to change to my allocation i currently have would be helpful. Thank you.

I have some in VG REITS, probably not needed. Better to keep it simple, you could just put into the others like travelover suggested.

One rule of thumb I have heard is your age in bonds, so 25% bonds is optimal for you.

 

[Emeritus]

I see REIT Index, Precious Metals and Mining Fund, Small Cap index, Vanguard FTSE All-World ex-US Small-Cap ETF. Anything you recommend to invest the other 10k for more diversification or any reccomening to change to my allocation i currently have would be helpful. Thank you.

I hate owing more than 6 separate items. Its not diversification, it's playing. keep your money in 20K blocks until you have 6 blocks then keep building the blocks