Originally Posted by Shaw5_28
As I mentioned I just turned 27 and currently have a Roth IRA with Edward Jones and American Funds. I am frustrated with their fees and lack of returns and am considering moving to Vanguard index funds. Is this a smart move? Should I move the 17k I currently have or start with a fresh account? I also have a standard 401k with T.Rowe and am trying to diversify my account types with the Roth.
Your comments are appreciated.
well lets see...
If Edward Jones fees are 1% greater than Vanguards are (for example). Then over the next 30 or 40 years until you retire you'll have (repectively) 35% (30 years) or 49%(40 years) less money at Edward Jones than you could have at Vanguard.
This seems like a no-brainer to me.
Costs really matter over the long term even though they seem small over a given year.