What is your opinion of PenFed? - Page 2

xmanz3 · 06-20-2007, 07:11 PM

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?

Thanks!

Nords · 06-20-2007, 07:27 PM

Quote:

Originally Posted by xmanz3

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...

xmanz3 · 06-20-2007, 07:52 PM

Even though if you are getting a return of 26% and 21% with an expense ratio of 1.3 and 1.5%??

I believe that is the only reason why I have not switch to Vanguard or Fidelity yet, but I am still planning to buy some funds with Vanguard.

cute fuzzy bunny · 06-20-2007, 08:02 PM

What asset classes and risk levels are those funds and during what time period?

For example, most of the equity vanguard funds are giving that sort of 1 year return at an expense fee averaging below a quarter percent.

megacorp-firee · 06-20-2007, 08:04 PM

Quote:

Originally Posted by cute fuzzy bunny

FatWallet Forums - Finance

Look under the 'cd' thread.

Looks like 5.5-5.7's as good as is available right now.

Also Institution Rates For 1-year CD rates in Los Angeles, CA

Darn got all 'wet' thinking I could get 6%+ on a midterm cd

DRiP Guy · 06-20-2007, 08:07 PM

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.

It's a beautiful thing.

cute fuzzy bunny · 06-20-2007, 08:08 PM

Quote:

Originally Posted by megacorp-firee

Darn got all 'wet' thinking I could get 6%+ on a midterm cd

You might have...some months ago...and perhaps yet again.

But I'm thinking that rates like that might not be back around again for a few years.

xmanz3 · 06-20-2007, 08:45 PM

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%

Nords · 06-20-2007, 10:26 PM

Quote:

Originally Posted by xmanz3

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...

Tadpole · 06-21-2007, 03:07 AM

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.

cute fuzzy bunny · 06-21-2007, 07:52 AM

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!

xmanz3 · 06-21-2007, 07:53 PM

Quote:

Originally Posted by cute fuzzy bunny

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?

cute fuzzy bunny · 06-21-2007, 08:01 PM

That depends on your risk tolerance, objectives, financial status and a bunch of other stuff.

Dawg54 · 06-21-2007, 08:22 PM

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.

wildcat · 06-21-2007, 08:28 PM

Quote:

Originally Posted by Dawg52

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.

cute fuzzy bunny · 06-21-2007, 08:34 PM

They did a credit check on me too when I opened an account to buy some cd's.

No further questions regarding my credit worthiness or other funny business.

Check your credit report lately for errors or other badness?

Dawg54 · 06-21-2007, 08:37 PM

Quote:

Originally Posted by wildcat

They pulled a credit check when you opened your PenFed account. Strange. I wouldn't have provided them with a damn thing either.

Yeah, it really left a bad taste in my mouth.

OAG · 06-21-2007, 08:55 PM

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).

ESRBob · 06-21-2007, 10:07 PM

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

wildcat · 06-21-2007, 10:19 PM

Quote:

Originally Posted by ESRBob

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

List of Institutions that pull HARD credit inquiries when opening a NON-CREDIT account

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.

06-20-2007, 08:02 PM	#24
cute fuzzy bunny Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Dec 2003 Location: Losing my whump Posts: 22,527	What asset classes and risk levels are those funds and during what time period? For example, most of the equity vanguard funds are giving that sort of 1 year return at an expense fee averaging below a quarter percent. __________________ Many an optimist has become rich by buying out a pessimist

06-21-2007, 08:01 PM	#33
cute fuzzy bunny Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Dec 2003 Location: Losing my whump Posts: 22,527	That depends on your risk tolerance, objectives, financial status and a bunch of other stuff. __________________ Many an optimist has become rich by buying out a pessimist

06-21-2007, 08:22 PM	#34
Dawg54 Thinks s/he gets paid by the post Join Date: Feb 2005 Location: Mississippi Posts: 3,336	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. __________________ Full time golf bum.......

06-21-2007, 08:34 PM	#36
cute fuzzy bunny Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Dec 2003 Location: Losing my whump Posts: 22,527	They did a credit check on me too when I opened an account to buy some cd's. No further questions regarding my credit worthiness or other funny business. Check your credit report lately for errors or other badness? __________________ Many an optimist has become rich by buying out a pessimist

06-21-2007, 08:55 PM	#38
OAG Thinks s/he gets paid by the post Join Date: Jun 2006 Location: Dublin, Ohio Posts: 1,929	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.

06-20-2007, 07:11 PM	#21
xmanz3 Recycles dryer sheets Join Date: Mar 2006 Posts: 97	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? Thanks!

06-20-2007, 07:52 PM	#23
xmanz3 Recycles dryer sheets Join Date: Mar 2006 Posts: 97	Even though if you are getting a return of 26% and 21% with an expense ratio of 1.3 and 1.5%?? I believe that is the only reason why I have not switch to Vanguard or Fidelity yet, but I am still planning to buy some funds with Vanguard.

06-20-2007, 08:07 PM	#26
DRiP Guy Full time employment: Posting here. Join Date: Nov 2006 Posts: 506	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. It's a beautiful thing.

06-20-2007, 08:45 PM	#28
xmanz3 Recycles dryer sheets Join Date: Mar 2006 Posts: 97	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%

06-21-2007, 03:07 AM	#30
Tadpole Recycles dryer sheets Join Date: Jul 2004 Posts: 346	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.

06-21-2007, 10:07 PM	#39
ESRBob Thinks s/he gets paid by the post Join Date: Mar 2004 Posts: 1,283	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