Current Young Investor - Need Advice

[AugustBurnsRed1]

Hello everyone,

I recently stumbled across this blog about 3 weeks ago and it's been an eye opener in some aspects. I am currently 24 years old and have been investing since I was 21 but after reading various topics/discussions on here I have several questions.

Right now I am investing in a subdivision of Raymond James:

Roth IRA - 22k
-Split between Ivy Science & Technology Fund Class A M/F (WSTAX) and Ivy International Core Equity Fund Class A M/F (IVIAX)

Taxable Account - 30k (Split between the three funds below)
-American Funds Growth and Income Portfolio Class A M/F (GAIOX)
-American Funds Growth Portfolio Class A M/F (GWPAX)
-American Funds Balanced  Portfolio Class A M/F (BLPAX)

For the taxable account, I signed a letter of intent to pay 50k total over the course of a year so that my fees would be 4.5% instead of 5%. I could have invested the entire amount then, but I didn't want to lump the entire amount then. I have till about July to complete the letter of intent, otherwise the fees will raised to 5% instead of the 4.5%.
EDIT: Sorry I should have worded this part a little better. The funds have front load fees which would be the 4.5% if I invested 50k versus 5%. Based off the paperwork on the purchase it shows a firm commision of 3.75% and a fund retention of 0.76%, so it comes out to a total sales charge of 4.51% versus 5%.

401k - Recently started a new company so I will have to wait a year before I can start using their 401k program.

Cash - Roughly 110k.

With that being said, I've seen that many people on this forum favor index funds, ex: VTSAX, etc. due to the low expense ratios.

-Should I complete the letter of intent? ( I really don't see the point in completing it) Or invest else where, such as index funds with Vanguard?
-If I were to invest that money in index funds, is there specific one? Or stick with the basic around here, VTSAX?
-Roth IRA - Any recommendations of mutual funds? Or keep investing in those two, mainly the Ivy Science and Technology fund.
-Any recommendations in general?

Thanks

[forummm]

OMG, 5% fees! Get out now! Just put all your money in Vanguard. Open an account directly with Vanguard and buy the funds directly from them.

[thd7t]

Yes, get all of your money out of there ASAP. Paying people exorbitant amounts for subpar returns is not acceptable.

[AugustBurnsRed1]

Yes, get all of your money out of there ASAP. Paying people exorbitant amounts for subpar returns is not acceptable.

OMG, 5% fees! Get out now! Just put all your money in Vanguard. Open an account directly with Vanguard and buy the funds directly from them.

Sorry guys I should have worded that section a little different. Those mutual funds in the taxable account have front load fees which equate to 4.5% if I invest 50K+ or 5% if I invest less than 50K.

[thd7t]

This doesn't change that these are horrible funds. American Funds price their product very high. You are left paying ongoing high prices for poorly performing funds.

[Cwadda]

Not only do they have insanely high load fees (why should a company skim off anything you add in the first place?) but they have high expense ratios. Something like .70% compared to Vanguard's .05%. This makes me sick to know they're taking advantage of so many people. Get out now, don't feel bad about it, and don't look back.

[MustacheAndaHalf]

You can setup an account with Vanguard or Scottrade and purchase "Vanguard Total Stock Market ETF (VTI)" at either place.  Scottrade will charge you $7/trade, while it's free at Vanguard.  But here's the key point: at Vanguard or elsewhere, having $10,000 of VTI will only cost you $5/year in fund expenses.  It's like starting the year with $9,995 and getting the market return after that.

Compare that to a load fund, where you start with $9,500 and still have to pay the fund expenses (which are often 1%).  You could easily $600 behind VTI.

Personally I'd rather invest at Vanguard, but you can buy Vanguard's low cost funds elsewhere.  Just avoid load funds and high expense ratios.  Just doing that will dramatically help your returns.