How are my Rate of Return in my Roth IRA?

[disneysteve]

Quote:

Originally Posted by Sunset People think 1% is only 1 out of 100 so that's low.

Yeah, $1 from $100 doesn't sound so bad. $10 from $1,000 isn't much either. They don't think about what happens when it starts being $1,000 from $100,000 or $10,000 from $1,000,000.

[Whisper66]

@F.I.R.E. - am curious where you ended up on your thinking. You are currently in relatively expensive funds (see attached) provided by a relatively expensive financial advisor company. But reading this discussion thread, you possibly seem to be uncomfortable working numbers and managing your assets yourself?

[OldShooter]

Quote:

Originally Posted by disneysteve Yeah, $1 from $100 doesn't sound so bad. $10 from $1,000 isn't much either. They don't think about what happens when it starts being $1,000 from $100,000 or $10,000 from $1,000,000.

Here's a chart I use in my Adult-Ed investing class:

[pb4uski]

Quote:

Originally Posted by F.I.R.E User I started to invest in Roth IRA in early 2007 with Edward Jones. I know EJ has a bad reputation in the F.I.R.E community because of their loaded funds and some high expense ratios. I have invested $54k so far till present day and my balance is at $141,192.74. Is this considered as good as if I were to buy low cost index funds? My MF’s are actively managed so fund managers are suppose to beat the average index market. Should I stay with EJ or go to something like Vanguard?

Based on the investments that you made as outlined in post#25, I ran Portfolio Visualizer assuming a deposit as of Jan 1 of each year through April 2021 invested in VTSAX with dividends reinvested. I came up with a total of $160,844... almost 14% higher. I'm actually pleasantly surprised that it was so close.

2007.... https://www.portfoliovisualizer.com/...ocation1_1=100

2008... https://www.portfoliovisualizer.com/...ocation1_1=100

You get the idea.

[MRG]

OP, I know is Ed should be able to get you your return and if they can't American Funds can. One thing I know about AFS/Capital Group is they support their customers.

[OldShooter]

Quote:

Originally Posted by MRG ... I know is Ed should be able to get you your return and if they can't American Funds can. ...

Sorry, to me this is equivalent to simultaneously believing in the Easter Bunny and in Bigfoot. If you have statistical study data to support your assertion, please provide it.

[F.I.R.E User]

Quote:

Originally Posted by Whisper66 Ask yourself why you are with EJ. They provide you something you value. Only you can answer what that is. But you allow them to manage your money without understanding the real monetary returns they are providing. If you understand why you’ve stayed with them this long, you will understand why they are keeping their jobs. They fill a need for some people.

Front load decreases with account value.

[F.I.R.E User]

Quote:

Originally Posted by Sunset People are bad at math. People want someone to handle the "complex stuff". People have no interest in saving or investing, often don't even know what the interest rates are of loans, savings, etc. People don't read EVERY page of the annual report that the brokerage sends them so they never see the 1%->2% fee. People think 1% is only 1 out of 100 so that's low.

Which category do I fall into?

[F.I.R.E User]

Quote:

Originally Posted by disneysteve Yeah, $1 from $100 doesn't sound so bad. $10 from $1,000 isn't much either. They don't think about what happens when it starts being $1,000 from $100,000 or $10,000 from $1,000,000.

Are you talking about the ER?

[F.I.R.E User]

Quote:

Originally Posted by Whisper66 @F.I.R.E. - am curious where you ended up on your thinking. You are currently in relatively expensive funds (see attached) provided by a relatively expensive financial advisor company. But reading this discussion thread, you possibly seem to be uncomfortable working numbers and managing your assets yourself?

I am not very good at complex stuff. I still have not gotten any comparison to the index market vs the MF I am invested in.

[F.I.R.E User]

Quote:

Originally Posted by OldShooter Here's a chart I use in my Adult-Ed investing class:

He helps with what will my expenses will be in retirement and checks out my 401K to see if any re balancing is needed.

[F.I.R.E User]

Quote:

Originally Posted by pb4uski Based on the investments that you made as outlined in post#25, I ran Portfolio Visualizer assuming a deposit as of Jan 1 of each year through April 2021 invested in VTSAX with dividends reinvested. I came up with a total of $160,844... almost 14% higher. I'm actually pleasantly surprised that it was so close. 2007.... https://www.portfoliovisualizer.com/...ocation1_1=100 2008... https://www.portfoliovisualizer.com/...ocation1_1=100 You get the idea.

I invested in random days throughout the year so it was not on first of January for those years.

Appreciate your assistance.

You mean I could have had almost $20K more in my Roth IRA if I invested only in VTSAX from 2007 compare to the funds that I listed that I am invested in now? Taking into the account the Front load/ER fees for EJ.

[F.I.R.E User]

Quote:

Originally Posted by MRG OP, I know is Ed should be able to get you your return and if they can't American Funds can. One thing I know about AFS/Capital Group is they support their customers.

It does not go back more than 5 years in the app.

[F.I.R.E User]

Quote:

Originally Posted by OldShooter Sorry, to me this is equivalent to simultaneously believing in the Easter Bunny and in Bigfoot. If you have statistical study data to support your assertion, please provide it.

AF would not have my info. EJ would right?

[MRG]

Quote:

Originally Posted by F.I.R.E User AF would not have my info. EJ would right?

Both. Jones holds your total picture, they push six fund families so they have to aggregate the statements for some customers. Your funds are likely registered in your name, not Jones, so AFS knows you as a Jones customer. I think it works like this but have never tested that theory.

Now will AFS answer your questions? I'm not sure, obviously they want you to love their products and they have all the data if the account is registered in your name. You'll have to call and go fishing, I'm sure you're not the first Eddie Jones guy to call. You pay a premium for American Funds might as well ask for their premium services. Your question is very basic, the data exists albeit it may need interpretation.

[F.I.R.E User]

I know I have gotten advice before to switch to Vanguard before.

Is it really possible to transition to VTSAX at Vanguard Roth IRA from EJ without fees?

[Whisper66]

Quote:

Originally Posted by F.I.R.E User ......I still have not gotten any comparison to the index market vs the MF I am invested in.

Don't know why you say that. I provided exactly that comparison in my 4/30 post. Others have provided their input as well.

I see you asking lots of questions witiout seeming to put in the effort to understand the answers or doing any research on your own. I think I will therefore bow out of this discussion. Good luck to you.

[MRG]

Quote:

Originally Posted by F.I.R.E User I know I have gotten advice before to switch to Vanguard before. Is it really possible to transition to VTSAX at Vanguard Roth IRA from EJ without fees?

You can call Vanguard and they'll move the money for free. Jones will charge you various account closure fees, they're in the TOS.

[F.I.R.E User]

Quote:

Originally Posted by MRG You can call Vanguard and they'll move the money for free. Jones will charge you various account closure fees, they're in the TOS.

I have multiple funds in the Roth at EJ. Does this mean all the funds will be sold and then bought at Vanguard? Won’t I lose value by selling and buying again?

[target2019]

On average you're losing a minimum of 2% average return in fees to the advisor and fund companies over longer periods of time.

If you do decide to move your investments, then the new company should be able to provide a complete analysis of what you must sell, what can be transferred, and the impact of fees.

The new company (Fidelity, Schwab or Vanguard) will charge nothing to accept your money. The prior company always charges fees when you leave, and that is listed in your agreement with them.