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Old 01-23-2021, 03:12 PM   #41
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This is true , I did ask about 5 years ago because I was so uncertain as to what to do . I ended up moving it into a Vanguard Money Market Acct where it sits today. I'm sorry if this bothers you but I am still so uncertain as to what to do ,realizing I need to adjust for inflation and with the state of the country and uncertainty of the Stock Market.
I have received so many good answers and I thank those who gave them to me ,it is truly appreciated!
Maybe I misunderstand your timing. If so, I apologize. I am trying to understand the psychology of letting some of the best years of market performance blow by, and then with the market at or near all time highs, thinking it's time to invest this money.

I don't mean to sound like a wise guy but after the market has made a historic run up, Up and UP, you are now thinking of getting into some type of stock fund. Again, I implore you to start reading Humbledollar.com before it's too late.

My fear is you will dump it all into the market at the present time, and then we will see a good correction or even a BEAR market that lasts for a few years. Please be careful. Dollar cost average and spread it out of at least a year, maybe two or three years if you have a substantial amount to invest.

The saying is By Low, Sell High. Today one buys very high.
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Old 01-23-2021, 03:23 PM   #42
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"been sitting in a money market for a few years with my retirement fund" is a financially unwise decision. You are losing money every day.
You say you are going to withdraw $36K/year.
So, put $100K in a very low-cost money market fund.
$200K in a short/medium term low-cost bond fund.
And $600K in a low-cost stock index fund.
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Old 01-23-2021, 03:24 PM   #43
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Had to stop listening to it. Unacceptable language for me.

Obviously, YMMV.
Yes, I cringe a little too though I do watch it from time to time. Here is one that is a little less cringe-worthy while making a similar point. It was created by Nobel winner Dr. William Sharpe:
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Old 01-23-2021, 03:37 PM   #44
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I have already paid the front load fees and was told the account was grandfathered and there are no Fee or charges on the old money. My monthly statements dont show any fees. I have them send me a check when i take my RMD.

Like i said I would not put any NEW money @ EJ. EJ maybe charging me something but i have been able to find it.
Please read your annual statement/report extremely carefully. You may find a fee amounting to 1%->2% buried in the 35 pages of the statement.
It's not a fee on the money, it's a fee on the account.
Maybe they don't even send you the annual statement ?
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Old 01-23-2021, 03:46 PM   #45
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I have already paid the front load fees and was told the account was grandfathered and there are no Fee or charges on the old money. My monthly statements dont show any fees. I have them send me a check when i take my RMD.

Like i said I would not put any NEW money @ EJ. EJ maybe charging me something but i have been able to find it.
Your account is grandfathered from front end loads but not the ~1% 12-b1 fees. Look up the fund name and class to check it out. That, if changed, fee comes out of the fund, Jones has no say.

Jones most likely charging you a 1% account fee as well.

They intentionally make it difficult to find their fees.
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Old 01-23-2021, 04:35 PM   #46
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EJ is probably costing you in three ways, maybe four.

1. 12b1 fees are almost ubiquitous on load funds and they don't show up on statements. Just in the salesperson's paycheck. https://www.investopedia.com/terms/1/12b-1fees.asp

2. Load funds usually have high management fees because they are sold to people who don't know to ask and because of inclusion of the 12b1 fees.

3. High management fees are positively correlated with poor fund performance. https://www.morningstar.com/articles...r-failure.html

4. Funds may have back-end loads.

A little on-line research at Morningstar or other independent analysis sites may help you find the hidden costs in each of your funds. Your worst hit is almost certainly fund underperformance. I just reviewed a portfolio that was 100% in Franklin-Templeton load funds and the unwary nonprofit was losing $30K-$60K a year on $4M.
A friend of mine invested with EJ, and I was surprised to see they charged her to reinvest dividends on mutual funds.

I’m not sure whether they still do so.
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Old 01-23-2021, 05:23 PM   #47
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Yes, I cringe a little too though I do watch it from time to time. Here is one that is a little less cringe-worthy while making a similar point. It was created by Nobel winner Dr. William Sharpe:
That one is excellant (and informative).
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Old 01-23-2021, 10:43 PM   #48
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I suggest a VTC with a Vanguard rep, a Fidelity rep and a Schwab rep ...
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Old 01-24-2021, 05:39 AM   #49
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NO NO NO NO to EJ!!!

Quote:
From your $900K account:
At 1.5% EJ will be taking a minimum of $13,500 from you.
While you are taking out $36,000
In total there will be a taking out $49,500 /yr

After a year or so at Vanguard, you may find you don't need an advisor, as perhaps you will be invested in broad funds that just remain constant, then you can not pay for the advisor. At EJ, you pay all the time, even if they just put you in Vanguard funds
EJ would be taking 27% of the $49.5K/yr, or looking at it another way, 37.5% of what you are spending. That is insane!
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Old 01-24-2021, 06:53 AM   #50
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DO NOT EVEN TALK to EJ. They will bottle you nice and tight.
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Old 01-24-2021, 12:01 PM   #51
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Yes, I cringe a little too though I do watch it from time to time. Here is one that is a little less cringe-worthy while making a similar point.
Thanks.

This gives some good explanations of why to avoid some of these advisors, or at least what to expect to really pay for there services.

The first one, by bringing up non-financial issues, muddies the waters. It's sort of like telling ones spouse "Dear, we can't make it to the family dinner party tonight because we both have Covid. And your brother is a nasty, self-centered jerk." KISS.
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Old 01-24-2021, 12:06 PM   #52
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EJ is a shyster.
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Old 01-24-2021, 12:11 PM   #53
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... This gives some good explanations of why to avoid some of these advisors, or at least what to expect to really pay for there services. ...
Yes, but to me the biggest message is that this video was created and is promoted by one of the most prominent and most respected people in the pantheon of investment gurus. https://web.stanford.edu/~wfsharpe/bio/vitae.htm
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Old 01-24-2021, 12:42 PM   #54
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Here's another couple of perspectives:


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Old 01-24-2021, 05:55 PM   #55
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Come on in! The water's fine. In investing, analysis paralysis can be hazardous to your wealth, particularly where it involves paying unnecessary fees. (Hint: You can move your EJ account to VG or another broker without ever talking to EJ. You just fill out a form and the receiving broker takes care of the transfer. If your EJ guy calls, don't take the call. If he catches you, say "Sorry I'm tied up. I'll call you back." then don't do it.)

Here is a piece not aimed at you but well worth a read: "If You Can" by William Bernstein https://www.etf.com/docs/IfYouCan.pdf (free 16 page download)

Here is a book aimed at people who are somewhat intimidated by all this: "The Coffee House Investor" by Bill Schultheis https://www.coffeehouseinvestor.com/

also, a little more advanced: The Bogleheads Guide to Investing" by Taylor Larimore et al https://www.amazon.com/Bogleheads-Gu.../dp/0470067365

I would also add “The Little Book of Common Sense Investing” by John Bogle, the founder of Vanguard Invesments....

https://www.amazon.com/Little-Book-C...n+bogle&sr=8-3
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Old 01-26-2021, 06:25 PM   #56
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Yes, but to me the biggest message is that this video was created and is promoted by one of the most prominent and most respected people in the pantheon of investment gurus. https://web.stanford.edu/~wfsharpe/bio/vitae.htm
OMG, that self-promoting list of personal accomplishments is obnoxious.
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Old 01-27-2021, 10:00 AM   #57
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OMG, that self-promoting list of personal accomplishments is obnoxious.

Academic bios tend to be like that - the convention is to include absolutely everything. You can’t blame him for that, it is the way the profession expects it.
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Old 01-27-2021, 12:21 PM   #58
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Our local EJ advisor dropped off a can of black eyed peas at our front door with a "Happy New Year!" note attached. VG hasn't done that...
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Old 01-27-2021, 03:24 PM   #59
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Our local EJ advisor dropped off a can of black eyed peas at our front door with a "Happy New Year!" note attached. VG hasn't done that...
Yep, we have accounts a VG, no holiday cards, no birthday cards, nothing. Except much better returns. I'll take those.
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Old 01-27-2021, 03:32 PM   #60
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Yep, we have accounts a VG, no holiday cards, no birthday cards, nothing. Except much better returns. I'll take those.
Without a doubt.
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