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10-01-2020, 12:41 PM
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#1
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Full time employment: Posting here.
Join Date: Oct 2017
Posts: 973
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New FA
It's me.
I just mailed the signed documents to Vanguard to move the remaining funds I hold with a FA. About $200k.
I was paying them 1.5% to "manage" 5 expensive mutual funds which also have internal fees up to 1.8%. This alone will save me about $6,000 a year. Not to mention the higher returns I am anticipating. (The portfolio I'm in is 100% stock and has a 10 year average of 4.3% after fees and taxes)
I'm going to put invest it in VG Total Stock Index and forget about it. This is the current fund I have been using for the past few years on my own. Over the past 10 years this fund has beat the pants off every one of the 5 funds my former FA had me in and it got me to thinking "why am I not doing this with all my investments ?
Over 23 years and not one single update, rebalance or recommendation from the original plan the FA put together for me. Not even a call. I'll bet I get a call now. 
Part of me is mad at myself for waiting so long, but a bigger part of me is  happy I made the jump.
My next questions that I post here will be what to do with the VUL and VA he set me up with..... 
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10-01-2020, 12:52 PM
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#2
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Apr 2004
Location: South Texas~29N/98W Just West of Woman Hollering Creek
Posts: 6,640
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 Quote:
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I just mailed the signed documents to Vanguard
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Smart move. Any plans for the extra $6K?
__________________
Part-Owner of Texas
Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx
In dire need of: faster horses, younger woman, older whiskey, more money.
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10-01-2020, 01:44 PM
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#3
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Recycles dryer sheets
Join Date: Dec 2007
Posts: 364
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Congrats!!! You have made the right move. Keeping the $ in your pocket instead of the FA's
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10-01-2020, 01:50 PM
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#4
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,095
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New FA
Congrats. Great Move. Does old FA have any excuses for high fees and underperformance? So they even care?
If you are 100% VG Total Stock do you really even need a management contract with VG?
Maybe I mis read. Do you actually an FA at VG?
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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10-01-2020, 02:12 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Jul 2011
Posts: 1,245
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I made the move about a year ago. While my fees were lower and performance was good, I am still happy to have made the move. The commission savings have been nice. And, performance is fine.
I am still getting things in order and I do spend more time but that was expected. My Fidelity contact has been helpful answering some questions so I still have that support.
Good Luck!
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10-01-2020, 02:20 PM
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#6
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 10,910
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Better late than never. Congrats.
__________________
TGIM
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10-01-2020, 02:53 PM
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#7
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Full time employment: Posting here.
Join Date: Apr 2014
Location: Houston
Posts: 955
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Good move.
Vul and Va - what are those and what was the reason you got those in the first place? Vulcan and Virgin America?
__________________
"Learn everyday, but especially from the experiences of others. It's cheaper! " - John Bogle
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10-01-2020, 02:55 PM
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#8
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Recycles dryer sheets
Join Date: Aug 2018
Posts: 107
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Great move. Sounds like you had highway robbery for years. So many people are in the same situation and too afraid to change.
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10-01-2020, 03:57 PM
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#9
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Dryer sheet wannabe
Join Date: Nov 2017
Posts: 23
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Quote:
Originally Posted by Whisper66
Good move.
Vul and Va - what are those and what was the reason you got those in the first place? Vulcan and Virgin America?
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Variable Universal Life and
Variable Annuity
They are sold so the salesman can make their yacht payments.
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10-01-2020, 08:08 PM
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#10
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Sep 2005
Location: Northern IL
Posts: 26,538
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Quote:
Originally Posted by SALTedOut
Great move. Sounds like you had highway robbery for years. So many people are in the same situation and too afraid to change.
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True for some, but I would guess that the majority don't even know that they are paying all these fees/commissions for no improvement in performance (and most likely paying for under-performance). For something they can do for themselves with less effort than dealing with the FA.
-ERD50
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10-01-2020, 11:37 PM
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#11
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Full time employment: Posting here.
Join Date: Apr 2014
Location: Houston
Posts: 955
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Quote:
Originally Posted by Filetmerlot
VUL/VA = Variable Universal Life and Variable Annuity ....
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LOL - my guess was way off! You asked what to do with these. I can't offer anything as I've always stuck to term life insurance and no purchased annuities. But others here have discussed these things and have knowledge. For example here's a similar question as yours on variable universal life insurance ... https://www.early-retirement.org/for...ion-94241.html . You might want to start a new thread with appropriate title if you don't get answers on this one. Good luck.
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10-02-2020, 02:34 AM
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#12
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 16,789
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Yep, been down the FA road myself. I found it unfair that they got paid the same whether I lost money or made money. If I'm responsible for my own results, I might as well make all the decisions. It's actually worked out much better for my portfolio, but YMMV.
__________________
Ko'olau's Law -
Anything which can be used can be misused. Anything which can be misused will be.
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10-02-2020, 05:40 AM
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#13
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Thinks s/he gets paid by the post
Join Date: Dec 2015
Location: Michigan
Posts: 4,651
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Well done.
__________________
"The mountains are calling, and I must go." John Muir
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10-02-2020, 06:13 AM
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#14
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Thinks s/he gets paid by the post
Join Date: Feb 2009
Location: Cville
Posts: 1,558
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I did this several years ago. Had a FA that "managed" my IRAs but didn't want to even advise on the 401K which was with Fidelity. I compared my return from 401K and IRAs and found 401K return was better so moved the IRAs to Fidelity. Now no sales charges for funds and no fee to FA. Perhaps those that manage your own investments should take a 2% fee each year to the blow-this-cash fund as compensation ?
__________________
FIRE 31 Aug, 2018 - Always leave every place better than you found it, always give more than expected or Due
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10-02-2020, 06:53 AM
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#15
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Full time employment: Posting here.
Join Date: May 2007
Posts: 870
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Quote:
Originally Posted by RetireBy90
... Perhaps those that manage your own investments should take a 2% fee each year to the blow-this-cash fund as compensation ?
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Great idea! Finally, I can own a yacht, too! 
__________________
"It is better to have a permanent income than to be fascinating". Oscar Wilde
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10-02-2020, 07:36 AM
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#16
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,095
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Yeah I like that too, but maybe I’m only worth 1.5% and just need a Porsche.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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