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Old 09-05-2018, 06:31 AM   #21
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Lot of good advice here. I would reinforce the point of calling the FA and making certain that either no account was opened on you behalf or, if it was, that it is closed immediately. I’m sure there would be some State regulator that you could file a complaint to if he does not comply immediately and completely.

The other thing I totally agree with is to take you time. There is no need to move your money out and no value in moving it out until you are completely comfortable with what your doing and how you want to do it.

I did notice the comment about retirement year funds (2030 or 2040 target dates) and the thought to maybe put half in each year. If you look at the asset allocation of those types of funds, there is not enough difference in them to worry about splitting your funds. Just pick one if you want to go with a target fund and call it good.
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Old 09-05-2018, 06:36 AM   #22
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OP: You mention that you want to look into Bogleheads for advice. If you want a simple, low cost index fund approach consistent with the BHeads advice, I think the TSP is the best place you can be. I rolled my external tIRA into the TSP. They offer a decent selection of index funds that covers the simple but diversified approach most of us here espouse. The G Fund is one of the best cash/bond alternatives on the planet. They will be instituting a wider set of options for withdrawals next year. Run, do not walk, away from your FA. Follow your inclination to read up on Bogleheads. Spend some time here learning the ropes. Read Jane Bryant Quinn's, How to Make Your Money Last, and other books recommended in various threads her.
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Old 09-05-2018, 11:50 AM   #23
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If you move out of TSP have some very good reasons. One of those reasons used to be limited withdraw options, however that recently changed, although the change wasn't fully implemented the last time I checked. The flexibility and limited number of options cry is called by many financial advisors. If you aren't trying to beat the "market" some C, S, I mix will do you just fine for growth. G fund is great for wealth preservation. And the fees are much lower than most options, although there are a handful of lower fee options available that offer similar investment strategies. Possibly a good reason to rollover is if you are going to do conversions. Another may be if you want to take advantage of some of the flexibility of a Roth IRA (spending the basis, etc...). Another would be if you think you are among the minority of people who can beat the market for the long term (1 to 10%) or that your FA is one of those people who can do it after subtracting his fees and the costs of the managed funds he will likely recommend. I recommend reading A Simple Path to Wealth by JL Collins before moving any money. As well as maybe at least 5 or 6 other books to get different perspectives. As a military financial counselor I have had many clients who were not happy with the performance of their FA managed investments that they had either because the FA convinced them to do it instead of TSP or that the FA convinced them to transfer it to them. The two top causes: the FA and the service member never had a conversation about goals and a real assessment and discussion of risk and 2, the FA was making good money for the FA and not the service member.
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Old 09-05-2018, 12:21 PM   #24
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Originally Posted by MikeTN View Post
I know they don't have as many options as others, but the TSP funds have extremely low costs. ... Stay with TSP until you are really sure you have found something better.
IMHO you don't need a lot of funds. Nothing wrong with TSP, plenty wrong with 'salesmen.' If you're not a trader, you need 3 funds MAX. (1) low cost total market (2) low cost bond - fixed income (3) standard money market to dump those dividends into. You're just trying to figure out the ratio. If a trader then 90% to those ETFs / funds & 10% to trade. So that puts you with Fidelity or Schwab, whichever office is closest for your 1st meeting and annual free review. Yep, the farther I get from employed / the simpler it becomes (currently ETFs average 0.03% expense ratio)
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Old 09-05-2018, 12:45 PM   #25
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The TSP offers some of the cheapest funds out there. You are fine where you are. Moving money out of the TSP to what this slimy salesman is pushing would be a huge mistake.
+1
They are very good funds, and yes, very inexpensive. In fact the G fund would be a very safe place to park $$ while you figure it out.
Having the FA* push you out of them, tells me he either knows very little about the TSP, or doesn't care. Either way, I'd run, not walk away.
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Old 09-05-2018, 02:31 PM   #26
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It has been said many times here that nobody will ever care as much about your money as you do, and learning to manage it yourself is nowhere near as hard as most people think it is.

Why not just dip your toe into the water and start reading a book or two on the subject?

One of my favorites for beginners is Millionaire Teacher by Andrew Hallam.

+1
I managed to get my neighbor (construction foreman) into investing and he had never owned a computer in his life and had 100k cash sitting in his checking account when I met him DOH!



Now he's off buying semi-conducters, asking me about emerging markets...he's gone wild lol.



it's all about your goals and your risk appetite. When those two align, you can sleep well at night. For me, not knowing anything was too much of a risk and believe me when I say I wasn't sleeping very well at night.

The first question I asked myself was "what do I own?" Not understanding and knowing that simple answer was scary but it all worked out once I gained the knowledge.

I was deathly scared of Vanguard but have grown to love and respect them.

Many on the ER forum rely on an asset allocation strategy, followed by an optimized withdrawal strategy.
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Old 09-06-2018, 10:25 AM   #27
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Thanks! I appreciate the advice. I know the TSP has the lowest fees, so I'll probably leave it in the TSP a while longer and read up more on TSP investment advice and the Boglehead strategy. I've heard the Lifecycle funds in the TSP are on the conservative side, so may split between the 2030 and 2040 funds, with maybe 20% in the G Fund (unless the rumor I'd heard of the govt cutting its interest rates pans out). I'm not planning to touch the money for another 10 to 15 years anyway.

The FA didn't tell me what funds they plan to put my money in; and I just received a Thank You from Ameritrade for choosing to get all my notifications electronically. I've never even logged in to Ameritrade - my comfort level with this whole idea has been exceeded...


I think you see the overwhelming opinion here is that TSP is a great place for simple low cost index investing. I am still having trouble with your logic. If you believe the Lifecycle funds are conservative, why split between 2030,2040, and G fund? Adding G makes it more conservative and you say you wonít need the funds for over 10 years so using 2030 for more than a small allocation makes the overall strategy more conservative. Donít sleep on the Lifecycle Income find. Have you seen the Lifecycle fund tool that shows how the makeup of each fund (except Income) adjusts over time? As for FA, not telling you which funds they are using is a huge red flag.
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Old 09-13-2018, 07:43 AM   #28
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I do not have a TSP, but TSP is AWESOME.


The G Fund is free money, no risk of losing principal. DO NOT GIVE THIS OPPORTUNITY UP.


And the C Fund is just the S&P 500. You literally do not need anything else.


G + C Funds in proportion.


I wish I had a TSP.
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Old 09-15-2018, 07:24 AM   #29
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Originally Posted by KimL View Post
I'm 57, single, retired last year and have the majority of my funds in the Thrift Savings Plan. My new FA (I decided to get one since I'm nervous about this market and not sure what's the best thing to do for investing) wants me to move all my money out of the TSP and put it into Ameritrade funds. I'd told them I just wanted advice, didn't want them to have hands-on to my cash, but they've sent up an Advisery account at Ameritrade for me and want me to move the funds, and they'll arrange it all... (Sounds pretty hands-on to me.)

I'm leery (I know; paranoid much?); it's a small firm; don't know how good the adviser is. I'd tried Vanguard but didn't have a good experience with the two guys I talked to there. Hadn't gotten around to trying Fidelity yet. I have a beneficiary IRA being handled by another small firm my parents used, but they tell me they can't advise on the TSP. I don't think the TSP offers a broad enough selection - no Large Cap funds for one - and I'm not very knowledgeable on investing overall. Wish the darned crystal ball worked!

Any suggestions? Try Vanguard again?
A fee-only RIA can advise you on TSP.
Many brokers can only give advice on assets at that brokerage

series 7- could not give advice on assets outside of that brokerage (that is a brokerage license)
Series 65 or 65 or 63 (state registered RIA) could give advice on any assets regardless of custodian as long as they are independent of a brokerage.
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Old 09-15-2018, 08:21 AM   #30
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Quote:
Originally Posted by KimL View Post
I'm 57, single, retired last year and have the majority of my funds in the Thrift Savings Plan. My new FA (I decided to get one since I'm nervous about this market and not sure what's the best thing to do for investing) wants me to move all my money out of the TSP and put it into Ameritrade funds. I'd told them I just wanted advice, didn't want them to have hands-on to my cash, but they've sent up an Advisery account at Ameritrade for me and want me to move the funds, and they'll arrange it all... (Sounds pretty hands-on to me.)

I'm leery (I know; paranoid much?); it's a small firm; don't know how good the adviser is. I'd tried Vanguard but didn't have a good experience with the two guys I talked to there. Hadn't gotten around to trying Fidelity yet. I have a beneficiary IRA being handled by another small firm my parents used, but they tell me they can't advise on the TSP. I don't think the TSP offers a broad enough selection - no Large Cap funds for one - and I'm not very knowledgeable on investing overall. Wish the darned crystal ball worked!

Any suggestions? Try Vanguard again?
No way I would move my funds to an aggressive Ameritrade FA... recipe for disaster.

I don't understand the whole thing about not being able to advise on TSP... there is no magic there.... perhaps they just don't care to do it and that is an excuse.

You're sort of putting the cart before the horse however. Your first step should be deciding an AA that you are comfortable with and can sleep at night.... then select the TSP funds to fit that AA. That small firm should be able to help you select an AA that you are comfortable with and even advise on how TSP funds would fit into that AA... but you might offer to pay them for their time for helping you do that.... if they won't help you, you can ask here.

The TSP C Fund covers large cap.

If it were me, I would go with 27% C Fund, 15% S fund, 18% I Fund, 20% G Fund and 20% F Fund.... it is 60/40 overall and covers all US stocks and some international stocks and government and corporate bonds.
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Old 09-15-2018, 09:24 AM   #31
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No way I would move my funds to an aggressive Ameritrade FA... recipe for disaster.

I don't understand the whole thing about not being able to advise on TSP... there is no magic there.... perhaps they just don't care to do it and that is an excuse.

You're sort of putting the cart before the horse however. Your first step should be deciding an AA that you are comfortable with and can sleep at night.... then select the TSP funds to fit that AA. That small firm should be able to help you select an AA that you are comfortable with and even advise on how TSP funds would fit into that AA... but you might offer to pay them for their time for helping you do that.... if they won't help you, you can ask here.

The TSP C Fund covers large cap.

If it were me, I would go with 27% C Fund, 15% S fund, 18% I Fund, 20% G Fund and 20% F Fund.... it is 60/40 overall and covers all US stocks and some international stocks and government and corporate bonds.
In the investment advisor world, a brokerage (by law, by securities and exchange act of 1933??) can only advise on assets in their custody.

A RIA (a state registered investment advisor) which is fee only, and not tied to a brokerage can advise on assets at any custodian.
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Old 09-15-2018, 09:20 PM   #32
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Originally Posted by jIMOh View Post
In the investment advisor world, a brokerage (by law, by securities and exchange act of 1933??) can only advise on assets in their custody.



A RIA (a state registered investment advisor) which is fee only, and not tied to a brokerage can advise on assets at any custodian.


So could a broker advise on a generic AA to offer a prospective client a sense of how he would invest for the clients situation? If the advisor must have custody of the assets before advice is offered how exactly does that work? Sounds like a black hole.
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Old 09-16-2018, 03:01 AM   #33
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I agree with others that the TSP expense ratios are very low and the C and G are great funds. However, there are weaknesses in the I and S fund. The I fund is heavily slanted to large caps and Great Britain and Japan with no emerging markets. The S fund is almost entirely mid caps but no small caps. The other issue is the lack of TSP withdrawal options that are not conducive to Roth conversions or accessing monies for unexpected expenses.

So after retiring last year, I did a partial rollover of about 25% of my TSP so that I could better manage my investments. But I would never close my TSP account.
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Old 09-16-2018, 07:56 AM   #34
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I had a similar experience with ML when my wife was trying to start a 403B. They wanted control of her money to invest and sell/reinvest in loaded funds as the market fluctuated. Fortunately I understood the word "churning" and passed on their offer.


Educate yourself. Read and study a few of the recommended books suggested in this website. Search and read posts about topics that are appropriate for your situations. Eventually you will recognize those members that appear to be knowledgeable and that give the best advice.


I have no background or formal education in finance yet have found it fairly easy to make investment selections that worked for me to be financially independent for life while working for a modest salary. Just don't get bogged down with the high level math and fancy calculations to squeeze out pennies. I leave that to those with the background that enjoy that kind of challenge.


Cheers!
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Old 09-16-2018, 10:37 AM   #35
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I have been doing business with Edward Jones since a couple of pension buyouts from past companies about 7 years ago. The retirement accounts recently switched over to advisory types.
The EJ FA seems to not study the companies or funds he recommends, but follows an easy checklist based on age and years until retirement. Recommended so much in long term bond funds...why, when interest rates are rising?? Recommended Tesla stock since Tech is cool. Tesla market valuation was higher than GM & Ford combined but company was not making money; where have we seen this before? We had some intense discussions, but ultimately the Customer is in charge of his/her destiny. Keep an eye on market conditions, know the companies you invest in, ultimately you are accountable for the results.
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Old 09-16-2018, 10:54 AM   #36
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I have been doing business with Edward Jones since a couple of pension buyouts from past companies about 7 years ago.
FYI, almost nobody on this forum has anything good to say about EJ.
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Investment advice wanted
Old 09-16-2018, 04:53 PM   #37
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Investment advice wanted

I do know some folks that seem to be well served by their EJ advisors. I think it really depends on the advisor but recommending TSLA in anything other than a speculative account sounds scary to me and several other comments about DaveInMiís guy at EJ donít inspire confidence either.
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Old 09-16-2018, 06:00 PM   #38
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Originally Posted by jIMOh View Post
In the investment advisor world, a brokerage (by law, by securities and exchange act of 1933??) can only advise on assets in their custody.

A RIA (a state registered investment advisor) which is fee only, and not tied to a brokerage can advise on assets at any custodian.
Can you provide some support for that assertion? I'm skeptical that what you wrote is correct.

Since many people will have employer 401k's as part of their overall portfolio... if a brokerage that holds their taxable account assets can only advise on assets in their custody that makes them pretty useless.

I recall many years ago I had Vanguard do a plan for me and it included everything.
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Old 09-16-2018, 06:10 PM   #39
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FYI, almost nobody on this forum has anything good to say about EJ.
Got a $100 gift card to a steak restaurant once for listening to an EJ advisor.
His advice and newsletters are filled with many errors.
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