I have never done any business with PenFed, but I was wondering how their services compared to USAA.
I am a member with USAA and I have: Checking accounts, Homeowners Insurance, Mutual Funds, ROTH IRA, and car insurance and I am very please and satisfied with their service. Also, this year they were considered as one of the best customer service companies.
Am I better off switching to PenFed or USAA has better customer service and products?
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I have never done any business with PenFed, but I was wondering how their services compared to USAA.
Am I better off switching to PenFed or USAA has better customer service and products?
Not a clue. I only use PenFed for the best CD rates I've been able to find.
Speaking as a 25-year USAA customer, I wouldn't buy USAA's mutual funds any more than I'd buy car insurance from Vanguard or home insurance from Fidelity...
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PenFed rocks. Also got some of that 6.25% CD action myself, and they were fast, friendly, and competent. Have a share account there, and also like their on line site, because it is so darn simple. Just the info. Plain and simple.
And as previously noted, looks like in Jan they knock off their funding pool, and do it by blowing the socks off of everyone else. I'll bet it's win win, because the investor class they end up with via the "unadvertised insider special" is savvy and not going to be skittish and pull out before maturity or otherwise cause them any hassles with the funding pool.
So since they have stability and no muss, fuss, or large customer service worries on our end, the savings get passed on to us in the form of a once-per-year premium-level CD rate.
Even though if you are getting a return of 26% and 21% with an expense ratio of 1.3 and 1.5%??
Nobody cares about expense ratios in a rising market, and nobody cares about anything else in a dropping market.
We have a mutual fund expense ration of 1.38%, considered "pretty good" as international ERs go, and we're still getting rid of it in favor of the 0.60% ER for the equivalent index ETF.
Our next-highest ER is our small-cap value index ETF at 0.25%.
The ER of our Berkshire Hathaway shares was an $8 trade about six years ago...
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PenFed is great. Their customer service will even advise you to wait a few days before you buy a CD because the new rates are coming out and are higher than the current rates. It gives you that warm and fuzzy feeling that they "care" about you.
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Join Date: Dec 2003
Location: Losing my whump
Posts: 22,526
Quote:
Originally Posted by xmanz3
Cute Fuzzy Bunny:
Here's the info
Emerging Markets Fund (USEMX)
Aggresive
Expense Ratio 1.61%
1yr 36.23% 5yr 23.94% 10yr 7.61%
USAA Precious Metals and Minerals Fund (USAGX)
Very Aggresive
Expense Ratio 1.21%
1yr 17.70% 3yr 30.24% 5yr 24.45% 10yr 15.90%
Heres a good example of fund performance and prices...check out vanguards emerging market and precious metals funds...which at a glance seem to have performed similarly or better...for under .5% expense ratios.
But heres the $64,000 question...has your advisor let you know that the emerging markets fund risk profile suggests that a 40-50% one year loss is quite plausible, or that the precious metals market went practically nowhere for the 20 years prior to the most recent 10?
These are good funds to add in 5-10% dollops to a core profile. If you're holding them in larger chunks...good luck!
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Many an optimist has become rich by buying out a pessimist
Heres a good example of fund performance and prices...check out vanguards emerging market and precious metals funds...which at a glance seem to have performed similarly or better...for under .5% expense ratios.
But heres the $64,000 question...has your advisor let you know that the emerging markets fund risk profile suggests that a 40-50% one year loss is quite plausible, or that the precious metals market went practically nowhere for the 20 years prior to the most recent 10?
These are good funds to add in 5-10% dollops to a core profile. If you're holding them in larger chunks...good luck!
What kind of portfolio mix would you suggest I should I strive for at 33?
Well I have just had a negative experience with PenFed. I applied for a cash rewards visa card that had been discussed earlier here. I was just told that I would have to provide them with 2 years worth of tax returns and all the supporting documents related to my income. Apparently they do not like the fact that I am retired with no pension and that I am relying on dividends and interest to live on. I told them to shove it as I have never had to provide such detail with respect to a frigging credit card. I'm sure they requested a credit report on me and I know that checked out fine. Never been past due on anything. I'll just keep on using the one I have. Chaps me though.
I guess the moral to the story is if you want a new credit card, you better get it before retirement while you have a 'normal' income.
Well I have just had a negative experience with PenFed. I applied for a cash rewards visa card that had been discussed earlier here. I was just told that I would have to provide them with 2 years worth of tax returns and all the supporting documents related to my income. Apparently they do not like the fact that I am retired with no pension and that I am relying on dividends and interest to live on. I told them to shove it as I have never had to provide such detail with respect to a frigging credit card. I'm sure they requested a credit report on me and I know that checked out fine. Never been past due on anything. I'll just keep on using the one I have. Chaps me though.
I guess the moral to the story is if you want a new credit card, you better get it before retirement while you have a 'normal' income.
They pulled a credit check when you opened your PenFed account. Strange. I wouldn't have provided them with a damn thing either.
__________________ "These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"
Been a member since 1975 (32 years). Never a problem, have had or have loans, credit cards, about 45 CD's (IRA and Regular CD's). SECOND largest CD in the USA; right behind Navy Federal CU, if I remember right. Also have direct deposit of SS and Mil Ret payments and several other smaller monthly direct deposits. Never a hold on any of them (they can not hold government deposits; but some, if not most, banks put a hold on other deposits).
__________________ Proud Vietnam Veteran: Cu Chi 66, 1 Bde, 25ID & Pleiku 66-67 41st Sig Bn 1st STRATCOM - Army Retired Jun 1979.
I wonder if I dodged that credit check/tax return hoo ha because I had a CD there? They never asked for that stuff from me. Then again, this may be the way the hold down their expenses/defaults on non-active-duty members
I wonder if I dodged that credit check/tax return hoo ha because I had a CD there? They never asked for that stuff from me. Then again, this may be the way the hold down their expenses/defaults on non-active-duty members
PenFed (unless they changed policy) does a hard credit pull when you sign up for an account. Not a huge deal unless you have a lot of them in you credit history.
__________________ "These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"
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