New FA

[Stormy Kromer]

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.....

 

[mickeyd]

I just mailed the signed documents to Vanguard

Smart move. Any plans for the extra $6K?

 

[ut2sua]

Congrats!!! You have made the right move. Keeping the $ in your pocket instead of the FA's

 

[jazz4cash]

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?

 

[savory]

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!

 

[Dtail]

Better late than never. Congrats.

 

[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?

 

[SALTedOut]

Great move. Sounds like you had highway robbery for years. So many people are in the same situation and too afraid to change.

 

[Filetmerlot]

Good move.
Vul and Va - what are those and what was the reason you got those in the first place? Vulcan and Virgin America?

Variable Universal Life and

Variable Annuity

They are sold so the salesman can make their yacht payments.

 

[ERD50]

Great move. Sounds like you had highway robbery for years. So many people are in the same situation and too afraid to change.

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

 

[Whisper66]

VUL/VA = Variable Universal Life and Variable Annuity ....

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/forums/f30/variable-universal-life-insurance-question-94241.html . You might want to start a new thread with appropriate title if you don't get answers on this one. Good luck.

 

[Koolau]

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.

 

[DrRoy]

Well done.

 

[RetireBy90]

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 ?

 

[racy]

... Perhaps those that manage your own investments should take a 2% fee each year to the blow-this-cash fund as compensation ?

Great idea! Finally, I can own a yacht, too!

 

[jazz4cash]

Great idea! Finally, I can own a yacht, too!

Yeah I like that too, but maybe I’m only worth 1.5% and just need a Porsche.