Hi! Ameriprise client needing advice...

[2B]

Good for you. Now read Millionaire Teacher; and if that's too simple, read Investor's Manifesto. Reading Scott Burns' column is always a good idea too. Don't feel like you need to overwork the education process. I think that knowing too much actually works against some people.

[ERD50]

Quote:

Originally Posted by cucumber I just want to thank everyone for their feedback and support!!! I'm almost Ameriprise-free!!!!!

Sounds good!

Funny how these threads all seem to end the same?

I have yet to see one end with "OK, thanks everyone for enlightening me on how to properly bench-mark my Ameriprise account against a simple, DIY portfolio of low cost, (mostly) index funds. I found my Ameriprise FA has me at an appropriate risk level, and is significantly outperforming the relevant DIY benchmarks after fees/expenses. So I will stay with them. Thanks, this was a valuable exercise. I feel so much better now."

Quote:

I decided to just put it in the target retirement fund for now until I figure out where I want it. I figured its a safe place to put it until I learn more and decide how to invest it.

Sounds good to me. I wouldn't be in any big rush to move it. Take your time to read up, and you very well may decide that the target fund is just fine after that reading.

You are on a great path! Congrats!

-ERD50

[Animorph]

According to its Fidelity listing, MGICX has a 1% 12b-1 fee (distribution and/or service fee). 1.89% total fees (normal fund management plus that 1%). And the 1% back-end load. The back end load usually goes to the fund share holders and is used to keep people from trading quickly in and out of the fund and raising its management expenses, so that is not a bad thing. The 1% 12b-1 fee however is humongous, and some of it goes to your FA each year, if I understand it correctly.

There are a ton of different share classes for this fund. The A shares (MGIAX) have only 1.14% total expenses, but have the bad old 5.75% front load. The I shares (MINIX) list your 0.89% expense ratio without the 12b-1 fee or loads. But I don't see a minimum investment amount.

The performance comparison is valid, and it is Vanguard's best fund in that class, though it is not an index fund and a total international index fund is more their style. MGICX's 10 year annualized return is 8.83%. (The class A shares return is 9.59%, all due to the extra expenses you pay.) VTRIX's return is 6.99%, even with its 0.43% expense ratio. MFS has been doing a good job, so far. But they have to have investment gains of 1.46% above whatever Vanguard makes just to stay even with them. That is actually fairly difficult to do. So future results are not guaranteed to be this good. It is really easy to pick the fund with the best past performance (and this is one of them). It is really difficult to pick the fund with the best future performance.

I use DODFX and ARTKX as my foreign value funds, though they are currently listed as blend instead of value. Both have done better than the MFS fund and have reasonable expenses.

[cucumber]

Update: My funds are transferring from Ameriprise to Vanguard today. I'm very upset though because Ameriprise charged me $100 per transfer type!! So in total I'll probably be charged $600. $100 for 3 of the Roth IRA's that our advisor set up separately which I don't understand why and $100 for 2 of my other traditional IRA's which she did separately as well and $100 for our taxable account. It makes me sooo mad!! I think it's ridiculous especially since I just rolled over my IRA accounts and Fidelity didn't charge me anything. If I knew about the fee, I wouldn't have rolled it over to Ameriprise. Good riddance Ameriprise!!!!!!!

[aja8888]

Quote:

Originally Posted by cucumber Update: My funds are transferring from Ameriprise to Vanguard today. I'm very upset though because Ameriprise charged me $100 per transfer type!! So in total I'll probably be charged $600. $100 for 3 of the Roth IRA's that our advisor set up separately which I don't understand why and $100 for 2 of my other traditional IRA's which she did separately as well and $100 for our taxable account. It makes me sooo mad!! I think it's ridiculous especially since I just rolled over my IRA accounts and Fidelity didn't charge me anything. If I knew about the fee, I wouldn't have rolled it over to Ameriprise. Good riddance Ameriprise!!!!!!!

Nice folks, aren't they.

[powerplay]

Quote:

Originally Posted by cucumber Update: My funds are transferring from Ameriprise to Vanguard today. I'm very upset though because Ameriprise charged me $100 per transfer type!! So in total I'll probably be charged $600. $100 for 3 of the Roth IRA's that our advisor set up separately which I don't understand why and $100 for 2 of my other traditional IRA's which she did separately as well and $100 for our taxable account. It makes me sooo mad!! I think it's ridiculous especially since I just rolled over my IRA accounts and Fidelity didn't charge me anything. If I knew about the fee, I wouldn't have rolled it over to Ameriprise. Good riddance Ameriprise!!!!!!!

Congratulations! It is frustrating to see the fees they are charging you, however this should be the LAST time. I hope you are happy with Vanguard. I have a couple of IRA accounts with Vanguard and am happy with them and the help they gave to move the accounts. I recently had to pay quite a bit to move an inherited IRA from EJ to Vanguard (annual IRA fee, fees to sell stocks). They get their money, but not any longer.

[braumeister]

On the bright side, you've had a valuable lesson in investment management.
And since you paid $600 for that lesson, it will stick with you forever.

[travelover]

Quote:

Originally Posted by cucumber .......... Ameriprise charged me $100 per transfer type!! So in total I'll probably be charged $600.......

Very classy of Ameriprise. Be sure to post this on their Facebook site, Yelp and anywhere elsewhere they might have a presence.

[cucumber]

Quote:

Originally Posted by travelover Very classy of Ameriprise. Be sure to post this on their Facebook site, Yelp and anywhere elsewhere they might have a presence.

Great idea!!!!!

[easysurfer]

Quote:

Originally Posted by cucumber Update: My funds are transferring from Ameriprise to Vanguard today. I'm very upset though because Ameriprise charged me $100 per transfer type!! So in total I'll probably be charged $600. $100 for 3 of the Roth IRA's that our advisor set up separately which I don't understand why and $100 for 2 of my other traditional IRA's which she did separately as well and $100 for our taxable account. It makes me sooo mad!! I think it's ridiculous especially since I just rolled over my IRA accounts and Fidelity didn't charge me anything. If I knew about the fee, I wouldn't have rolled it over to Ameriprise. Good riddance Ameriprise!!!!!!!

Consider the $600 very well spent for your freedom.

Another way to look at it, in the future when someone has the same question to stick with Ameriprise or DIY, when you tell them to RUN, by them listening to you will cost Ameriprise more than the $600 .

Congrats on your independence day!

[karluk]

A blood sucking leech doesn't stop being a blood sucking leech just because you spot it and remove it from your skin. This sort of outrageous transfer fee is only to be expected from a sleazy operator like Ameriprise. The good news is that you're now free of the leech and it won't be feeding on you any longer.

[Chuckanut]

Quote:

Originally Posted by cucumber Update: My funds are transferring from Ameriprise to Vanguard today. I'm very upset though because Ameriprise charged me $100 per transfer type!! So in total I'll probably be charged $600.

I am sorry you have to go through this, but, like most bad things, it will pass and you will be much happier two years from now.

Consider yourself the opposite of the Flash Boys Chiselers. They spend their money so they can cheat people a little bit here and a little bit there. That's the way Chiselers work.

You on the other hand have spent $600 of your hard earned cash, not to cheat anybody, but, instead you turned it into an educational opportunity for others. No doubt your loss will help others many times over. I hope that helps.

[pb4uski]

Unless there was a good reason for three separate Roths to be set up and two IRAs I would object and make a stink just for the fun of it and to harass them. Slimy bastards!!!

[Coolius]

Congrats on the transfer. A good lesson learned, adding to your experience, which will probably benefit your kids, relatives and friends in the long run.

I have been with Vanguard for many years and am satisfied.

[Rothman]

Congrats on making the move, don't let this last rip off distract your positive focus on managing your investing. You will make up for this many times over. Have you set your AA and fund choices?

[Meadbh]

Good for you, cucumber. You can now rest assured that more of your money is working for you. The saga in this thread could be very useful to others. I am not sure it belongs in the FAQ section, but perhaps the moderators might consider a link to it from the FAQ. I am presuming that this would incur no risk of legal action by Ameriprise, since it is all part of free speech and the discussion has not been libelous.