I am 54 & hoping to retire at 55, questions about Fidelity

[GoBears]

Quote:

Originally Posted by pb4uski Interesting but since that fund has such a short history (established June 2016) is it not useful to the analysis looking at historical performance.

Yes, but it is what Fidelity offers as a true international total index mutual fund. An alternative would be the commission-free ETF from iShares, IXUS.

[VanWinkle]

Nice work pb4, it appears that the managed account lost on this one..... imagine that!!

VW

[murphearlyretirement]

Monday I am going into Fidelity to meet with my financial advisor and end my Fidelity Portfolio Advisory Service. I appreciate all of the advise I have received on this thread, I now have the courage to do this. My managed IRA's current positions are listed below. Once I cancel the ADVISORY SERVICE can I leave the allocations as they are or do I have to move it?
FDRXX**
AMFAX
AQMNX
EGRAX
FAUDX
FCSAX
FERGX
FILFX
FIONX
FLCPX
FPCIX
FPIOX
FRGXX
FSAMX
FSCFX
FSGFX
FVSAX
PCRI

[OldShooter]

Wow. 18 funds! I guess that they want you to think investing is complicated.

[scrabbler1]

Unless you have a gazillion dollars to invest, I can't see why you would need that many funds. I can't see needing more than 3-6 funds. Way too much to keep track of.

[Stonewalker]

Quote:

Originally Posted by murphearlyretirement My research leads me to believe the IRA would probably do just as well if I put it in a low cost index fund and left it alone. Tim

Your research does you credit. Paying fees is the way for them to make your money into their money, and I've (personally) found the benefits minimal. Right after I retired I spoke with a number of financial advisors, thinking I would let someone else manage my accumulated IRA, Roth and a bit more. After all, they were the professionals. What did I know.

They saw me coming. One charming fellow at a bank I won't name (but starts with C and ends with 1) talked me into letting him manage our funds. He convinced me the profits hugely outweighed the fees.

Big mistake. Huge.

In six months he managed to decrease the value by over $50K - around 10% of what I let him manage. Part of that was market downturn. At first he ignored my concerns about the market, but then I repeatedly called him and got no answer. Turns out he left the company and they neglected to tell me I had a new representative.

Took me years to recoup that loss.

Ranting again!

Here's my opinion for what it's worth.

You're retired. Study investing. Look at what smart people do (like the good folks on this board). Be cautious. Never over-extend. Invest what you can afford to lose and don't let emotion rule your decisions. I have a hard and fast rule to sell if anything drops 5% (that's a little subjective).

Don't pay someone fees. If they really were as good as they say, they'd charge you a percentage of the money they make, not a percentage of what you invest with them.

[OldShooter]

Quote:

Originally Posted by scrabbler1 Unless you have a gazillion dollars to invest, I can't see why you would need that many funds. I can't see needing more than 3-6 funds. Way too much to keep track of.

Three, maybe just two.. Regardless of the amount of money.

[scrabbler1]

Quote:

Originally Posted by OldShooter Three, maybe just two.. Regardless of the amount of money.

Two is fine.

[Dtail]

3 funds for me for now.

[skipro33]

Quote:

Originally Posted by murphearlyretirement One of my retiremnt accounts is a PROFESSIONALLY MANAGED IRA with Fidelity worth around $400,000. I am considering pulling the plug on this Managed IRA becuase of the fees, last year they were $4000. My research leads me to believe the IRA would probably do just as well if I put it in a low cost index fund and left it alone. Also, I have three mutual funds seperate from Fidelity that my Fidelity financial advisor suggested I sell and let Fidelity manage. She said if I do it by April 30th there is a 40% discount on fees. I am a little suspicious of this offer, is she getting commission on this? Any thoughts about either of my concerns would be greatly apreciated. Thanks, Tim

I did exactly that; I had Fidelity manage an IRA about $400,000. They lost me so much more than a simple 60/40 index plus their fees, I would be broke if I allowed it to continue. I put it 50% in an S&P 500 index fund and a Dow index fund, the rest in simple savings as I dollar cost average in 10% of it each month. Did this in December and I'm up over $30K.

Not only are the fees ridiculous, but they invest in their proprietary funds that are nearly impossible to compare to the rest of the world.
To answer your question; no, you will not be able to leave in those funds. Those funds are only for managed accounts.

[OldShooter]

Quote:

Originally Posted by Dtail 3 funds for me for now.

To be clear for the OP we should probably say what we are counting.


In my case I am counting only equity funds. For a single fund portfolio, VT or VTWSX. For a two fund portfolio, one total US market and one total International market with proportions to suit the investor's chosen degree of home country bias. (Note: 50/50 is approximately zero home country bias.)

[Dtail]

Quote:

Originally Posted by OldShooter To be clear for the OP we should probably say what we are counting. In my case I am counting only equity funds. For a single fund portfolio, VT or VTWSX. For a two fund portfolio, one total US market and one total International market with proportions to suit the investor's chosen degree of home country bias. (Note: 50/50 is approximately zero home country bias.)

True.
Only counting equity funds too. All low cost or no cost index funds.
One total US Market, one International market and one small cap fund.

[targatom2019]

Look into Fidelity zero funds !

[murphearlyretirement]

I met with my Fidelity financial advisor today to cancel my Portfolio Advisor account on my IRA. The meeting did not go well, I didn't cancel. My advisor of course strongly advised against it and by the end of our 90 minute meeting I believe she was insulted. For several months I have been meeting with her to formulate an early retirement strategy. I believe she might think she has been wasting her time. She wants to sell my three mutual funds and move the assests into a managed fund or funds to better manage the taxes. I let her open the account today to get the 20 percent discount on the fees, which will apply to my IRA as well, but did not do anything else. In regards to the Managed IRA she made the point that the reported yearly return includes the management fee. On one hand I think she has invested a lot of time analyzing my wealth and isn't that worth something, on the other hand, my money will still be with fidelity and she owes me the financial planing anyway. Instead of asking me to come in for another meeting she wants to do it over the phone, this is when I wil tell her if I want to move the mutual funds into the new managed account she set up. I think she is dissapointed and does not want to wast anymore time with me in a formal meeting. I have mixed emotions over this and need some more adivse. Thank You.

[rpguy4]

I would tell her this : Fidelity has managed my account since 2011. I've paid for your advice. I want to do it myself. Plus, I'm keeping my accounts here. If I screw it up, I can always come back. Keeping in mind too, the folks on this forum will help you if you just ask.

[OldShooter]

Quote:

Originally Posted by murphearlyretirement I met with my Fidelity financial advisor today to cancel my Portfolio Advisor account on my IRA. The meeting did not go well, I didn't cancel. My advisor of course strongly advised against it and by the end of our 90 minute meeting I believe she was insulted. For several months I have been meeting with her to formulate an early retirement strategy. I believe she might think she has been wasting her time. She wants to sell my three mutual funds and move the assests into a managed fund or funds to better manage the taxes. I let her open the account today to get the 20 percent discount on the fees, which will apply to my IRA as well, but did not do anything else. In regards to the Managed IRA she made the point that the reported yearly return includes the management fee. On one hand I think she has invested a lot of time analyzing my wealth and isn't that worth something, on the other hand, my money will still be with fidelity and she owes me the financial planing anyway. Instead of asking me to come in for another meeting she wants to do it over the phone, this is when I wil tell her if I want to move the mutual funds into the new managed account she set up. I think she is dissapointed and does not want to wast anymore time with me in a formal meeting. I have mixed emotions over this and need some more adivse. Thank You.

One of you is the customer and one of you is not the customer. Which one do you think you are?


Ditch her! In addition to being ineffective she is also manipulative. While you are at it, complain to her manager. Under no circumstances should you continue to do any business with her. Frankly, unless you have a special love for Fido, you should consider just going to Schwab and filling out the transfer paperwork--you will not have to have any further contact with her.

[HI Bill]

I wouldn't EVER talk to her again. Just call Fidelity, and request to cancel the service. If they don't willingly oblidge, just put in tranfer paperwork from Vanguard (IMHO).

Good luck!

[murphearlyretirement]

Is she getting commission on the $90,000 If I move it from the Individual account that contains the mutual funds to a managed account that she opened today? The account was created today, but nothing was moved into it. The account had to be created today to get the 20% discount.

[Johanson]

Quote:

Originally Posted by murphearlyretirement Thank you all, in the short turn I am going to cancel the professionally managed IRA. At that point of cancellation what happens to the fund allocation? does is just stay where it was the day of cancellation? This is what I gained on my IRA in 2018: -7.99 How did INDEX FUNDS do on average? My historical return as posted on my Fidelity account. Calendar Year Your Account 2018 -7.99% 2017 +15.54% 2016 +5.80% 2015 -1.45% 2014 +4.14% 2013 +18.32% 2012 +12.53% 2011 -4.46%

Uhmm, my return in 2014 was 46.2%. I've been pretty much 100% equities for almost 30 years.

[bushpilot]

Remember, she has been paid already. If you choose to move on, she has lost nothing.