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Old 10-16-2007, 07:09 PM   #21
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They gotta pay Dennis Hopper somehow...
Oh, dont take it out him, the Waterworld royalties dont buy very many donuts, you know....
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Old 10-16-2007, 07:20 PM   #22
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I gotta admit though that I enjoy those Dennis Hopper ads...beautifully photographed, engaging scripts ---- but I STILL wouldn't invest with 'em, no matter how much I like their commercials!
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Old 10-16-2007, 08:15 PM   #23
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Old 10-16-2007, 09:12 PM   #24
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I am still grandfathered onto the 10 free trades per month per account plus the company 401(k) is still there so I keep them. However, I don't pay any monthly fees and do not have an advisor.
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Old 10-17-2007, 10:08 AM   #25
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Headline from WSJ-online this AM:

Several States
Probe Practices
At Ameriprise

Regulators Focus on Sales
Of Signature Financial Plans
Allegedly Never Delivered
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Old 10-17-2007, 05:06 PM   #26
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I rolled over a 401k into an IRA with Ameriprise just over two years ago. Since then I've become much more determined in respect to FIRE and I've begun to examine my accounts. I can't find a symbol for my IRA account to check what companies make up the fund, and it doesn't give me a rate of return either. I'm currently contemplating switching to Vanguard to hold this account for me. Does Vanguard show a rate of return? I've browsed through their funds and like their website in general.

I picked Ameriprise because I was following what my parents did. Now that I know more of my parents financial situation, I'm very nervous about the decision I made a few years ago.

Should I switch?
Yes, you should switch. Vanguard is an excellent choice. You won't go wrong with Vanguard. I have had a substantial portion of my assets with them for over a decade. I have always been more than pleased with their service, their costs, their offerings, and the ease of using their website.

Make the move. I believe a custodian to custodian move is initiated by you filling out an application with Vanguard, and they go back to the other custodian to "get" the funds.

With Vanguard, you designate which particular funds you want your money in. It is easy then to look up each fund in which you are invested to see all details of expense rations, individual holdings, fund rates of return over various periods including most recent, etc. Very transparent as to all such info.

Do it. Sooner rather than later.
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Old 10-17-2007, 05:18 PM   #27
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Yes, you should switch. Vanguard is an excellent choice.
Do it. Sooner rather than later.
I forgot to mention, Vanguard is owned by the fundholders, so the company is "automatically" aligned in terms of its interests and the shareholders interests. The company "is" the shareholders.
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update
Old 10-18-2007, 08:06 AM   #28
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update

So her explanation of the 5.75% fee is that it is "average", and that it's "taken immediate off" and I "never even see it". She keeps stressing how well the fund has done, but is avoiding telling me who is getting the 5.75% since I'm clearly not or how well I would have done had they not taken me for everything I'm worth.

I need to get my name changed in their system before I can fire her (recently married), and as soon as possible I'll be making the switch to Vanguard.

I told my mother how they are ripping her off, and she says that she's going to ask her advisor about the fees. I've told her that it's going to be a scripted answer designed to not really explain but to keep her there, but at least she's thinking about it.
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Old 10-18-2007, 08:47 AM   #29
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So her explanation of the 5.75% fee is that it is "average", and that it's "taken immediate off" and I "never even see it". She keeps stressing how well the fund has done, but is avoiding telling me who is getting the 5.75% since I'm clearly not or how well I would have done had they not taken me for everything I'm worth.
FWIW, this is the way the load is paid:

1)The fund company charges 5.75% on sales that are typically under $25,000. We'll assume the "sale" was $15,000.

2)The first .75% goes to the mutual fund company, whomever it is.

3)Out of the remaining 5%, Amerprise keeps a portion and pays the advisor the rest. For Ameriprise brokers who own their own office, typically its around 75%, so the advisor would get a commission of 75% of 5% of $15,000, or $562.50.

4)On an ongoing basis, the advisor receives a 12B-1 fee, usually they are .25% but I have seen some as high as .50%.

Hope that clears things up...... Either way, it appears you want to manage their funds and they are comfortable with you doing so, so get those transfers working.......
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Old 10-23-2007, 06:56 PM   #30
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Move. Seriously. Move.
Horrible, just horrible.
Sarah
Can you elaborate more. We have met with an Ameriprise CFP twice now and while most of what he's done has been helpful, my wife and I have a bit of a bad taste in our mouths from him. Plus reading online about them hasn't helped. Any additional info would be appreciated as to whether we decide to get our money back (as they guaranteed we could).

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5.75% front load! Should be against the law! Before I retired, I talked with my local "friendly" banker, who recommended a Franklin Templeton fund that also carried a 5.75% front load. After I recovered from nearly swallowing my tongue, I asked if this crap investment opportunity was a popular choice. She said it was with many of the widows she worked with. Yet another reason why women as well as men need to be educated about financial issues.
I'm clueless...what does 5.75% front load mean in laymans terms?
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Old 10-23-2007, 07:02 PM   #31
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I'm clueless...what does 5.75% front load mean in laymans terms?
See FinanceDude's explanation above.

What it means is for every $1000 in funds you buy, only $942.50 is invested. $57.50 is subtracted as a front load (sales charge). Generally regarded as highway robbery not good.
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Old 10-23-2007, 08:06 PM   #32
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From that blog,

"I understand the desire to focus on expenses. It makes sense, but frankly it is only one part of the selection process. I would gladly pay 5% on the front end and .25% ongoing for a fund that outperforms. Infact I have. I own Riversource (RVS)Diversified Equity Income, RVS Mid Cap Value, RVS Parnters International Select Value, and RVS Discovery Fund. If you care, look up how these funds have done for me over the last 3 years. I really don’t care about the fee’s What matters most is the fact that I have 60% more money in my account now than I did when I started."


AAICX: Basic Chart for RIVERSOURCE INTERNATIONAL EQUIT - Yahoo! Finance

Ouch.
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Old 10-23-2007, 08:25 PM   #33
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Can you elaborate more. We have met with an Ameriprise CFP twice now and while most of what he's done has been helpful, my wife and I have a bit of a bad taste in our mouths from him. Plus reading online about them hasn't helped. Any additional info would be appreciated as to whether we decide to get our money back (as they guaranteed we could).




I'm clueless...what does 5.75% front load mean in laymans terms?
RhodyGreg: Go with your gut. Don't make any decisions with your money until you are fully comfortable that you have all the information you need and you understand exactly what you're getting into.

Ask all the questions you want...folks here are terrific at explaining anything you might not understand. The whole idea is to keep as much of your money working for you, not for the advisor/investment firm -- so you generally want to avoid front load fees, redemption fees and other fees/loads/expenses that eat into your portfolio.
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Old 10-23-2007, 11:01 PM   #34
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I'm clueless...what does 5.75% front load mean in laymans terms?
You give your broker 1000 dollars. He or she invests 942.50 of it for you and pockets the 57.50. You have to have your fund go up over 6% to get back to even.

Edit: As other people have noted.
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Old 10-24-2007, 10:34 AM   #35
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You give your broker 1000 dollars. He or she invests 942.50 of it for you and pockets the 57.50. You have to have your fund go up over 6% to get back to even.

Edit: As other people have noted.
Edit: The broker DOESN'T POCKET the $57.50............a common misconception. See my post above. Bottom line, you can do it yourself for no load if you want............
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Old 10-24-2007, 11:35 AM   #36
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Edit: The broker DOESN'T POCKET the $57.50............a common misconception. See my post above. Bottom line, you can do it yourself for no load if you want............
Doesn't matter whose pocket it goes in -- it comes out of mine. I would never, ever buy a loaded fund.
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Old 10-24-2007, 11:38 AM   #37
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Doesn't matter whose pocket it goes in -- it comes out of mine. I would never, ever buy a loaded fund.
Understood....but based on what I'm reading about retirement plans, particularly 403B's, insurance companies like Nationwide, Principal. and Hartford have been "picking the pockets" of their investors for many years, with up to 3% internal charges.........
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Old 10-24-2007, 11:44 AM   #38
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Too true. My wife's 403(b) plan offers a wide variety of annuities from insurance companies (why you would need an annuity inside a tax sheltered account seems to have escaped the notice of most people). After she bugged the administration, they added Vanguard as an option.
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Old 10-24-2007, 11:47 AM   #39
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Can you elaborate more. We have met with an Ameriprise CFP twice now and while most of what he's done has been helpful, my wife and I have a bit of a bad taste in our mouths from him. Plus reading online about them hasn't helped. Any additional info would be appreciated as to whether we decide to get our money back (as they guaranteed we could).
What money did you invest, in a financial plan or a fee account or life insurance?

Funny how Amerprise keeps "reinventing" themselves. IDS and then American Express "advisors" were basically insurance agents masquerading as "financial planners".................sounds like not much has changed..........



I'm clueless...what does 5.75% front load mean in laymans terms?[/quote]
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Old 10-24-2007, 11:53 AM   #40
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Too true. My wife's 403(b) plan offers a wide variety of annuities from insurance companies (why you would need an annuity inside a tax sheltered account seems to have escaped the notice of most people). After she bugged the administration, they added Vanguard as an option.
403Bs are getting looked at. Principal is the worst offender in this arena........the costs are BURIED in "accumulation units", and you need some heavy math skills to extrapolate out the costs...........

Based on my experience, I have yet to see an annuity based 403B with costs less than 2%...even TIAA-CREF has a lot of hidden charges that are not transparent in their plans..........
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