I’m getting a payout on ESOP of approximately $3300.00 for each of the next five years I need to roll over. Being a good former soldier I called USAA and set up an Brokerage account waiting for it to get funded on the August 15th,2014. My initial plan was to go with VTSMX until I could build it over 10K and then change it to the VTSAX. Upon talking to one of the “advisors” he suggested the USAA Cornerstone Aggressive fund aka UCAGX. Having just a peach fuzzy pencil thin mustache I’m biting on the bate and feeling a 1.86% ratio before and reimbursement and 1.26% after is sounding OK if the return is above the S&P Index like he states. Of course this is compared to Vanguards low fees. My gut is telling me he is just trying to sell his loaded Mutual Fund.
I already have my 401K at work fully funded and have switched those to a Vanguard Index, Black Rock Index fund and a small percentage in a Vanguard Bond Index after seeing all the fees I was paying via Personal Capitol. I kind of looked at this ESOP as house money that I wasn’t counting on. Mrs. Peach Fuzz gave me the Vanguard speech of Financial Freedom Through Dadassity (Bless her) so that is why I figured this might be a moment to ask the opinion of the forum. I have no debt except the house and my wives small clown car which is my tradeoff for Mustacheian ways.
Bottom line; VTSMX or UCAGX?