My sister has an IRA that was from her deferred comp plan. It is about $80k, and she is planning on using part of it in about 5-7 years for a trip to Paris (she is 60 now, so no early withdrawal penalties). The Edward Jones advisor is recommending a portfolio of 22 mutual funds!!
The expenses aren't horrible (weighted average of 59bps), but when you add the EJ fee and the "administrative expense" that total 1.44%, the total cost is over 2%! He also is trying to get my BIL to start an IRA with $15 per paycheck. That's $390 of contributions per year with a minimum fee of $10 per month!
I am going to have her set up a Vanguard account for her IRA and buy a single fund (maybe 2). I think that vanguard 500 index (VFIAX) for her IRA, and have BIL just up his contribution to the Deferred Comp plan ($10-15 per paycheck isn't worth the trouble to open another account). Any thoughts?
The next project for them is to look at the life insurance proposals!