Author Topic: FeeX recommends moving from American Funds  (Read 2788 times)

Lifeblood

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FeeX recommends moving from American Funds
« on: September 02, 2014, 05:36:02 PM »
I signed up for www.feex.com which identifies high investment fees and suggests alternatives. I specifically looked at a Roth IRA I have with American Funds (AF). My AF investments are listed below, followed by the recommendations from FeeX. I included the first recommended replacement fund, and also a Vanguard alternative:

AMCPX (to be replaced by SCHG Schwab US Large-Cap Growth ETF) (VG alt: VUG Vanguard Growth ETF)
AMRMX (to be replaced by SCHV Schwab US Large-Cap Value ETF) (VG alt: VTV Vanguard Value ETF)
ANCFX (to be replaced by SCHX Schwab US Large-Cap ETF) (VG alt: VOO Vanguard S&P 500 ETF)
AGTHX (to be replaced by SCHG Schwab US Large-Cap Growth ETF)  (VG alt: VUG Vanguard Growth ETF)
AMECX (to be replaced by VBIAX Vanguard Balanced Index Adm)
SMCWX (to be replaced with VT Vanguard Total World Stock ETF)

If I follow the recommendations, the number of funds will fall from 6 to 5, though I would need to have some funds with two different companies.

The MMM community tends to point people toward Vanguard, and I assumed that Vanguard was the absolute least expensive. Yet each of the Schwab recommendations comes in cheaper, though only by a dollar or so a year. Given the similar performance and lower fee, why don't I hear more about Schwab in the forums? Am I missing something?

Generally speaking, I would love to hear thoughts and encouragement regarding this move. Would you do it? Do you think FeeX provides good advice?

See attachment for more details.
« Last Edit: September 02, 2014, 05:39:27 PM by Lifeblood »

GGNoob

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Re: FeeX recommends moving from American Funds
« Reply #1 on: September 02, 2014, 05:46:59 PM »
Very interesting. I didn't know there were ETFs cheaper than Vanguard! Then as long as you have an account at Schwab.com, you can trade the Schwab ETFs for free. That's not bad at all.

Scandium

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Re: FeeX recommends moving from American Funds
« Reply #2 on: September 02, 2014, 05:55:43 PM »
yeah if you can use schwab I don't see a reason to stay with AF. But why all those funds? I'd just use:
SCHB
SCHF

Total US and international, done. If you want a bit wider in small cap and emerging add (10% of each?)
SCHA - US SC
SCHC - Intr. SC
SCHE - emerging

Don't have bonds in Roth, put those in 401k (if you have one).

I use Schwab and like them.  All ETFs here except emerging is my taxable portfolio. Their ETFs are as cheap as vanguard (although a slightly different index, if you want to get into the weeds. It's a broad market index, not total market. I have not seen difference in performance I worry about)

Lifeblood

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Re: FeeX recommends moving from American Funds
« Reply #3 on: September 03, 2014, 02:51:39 PM »
Thanks for the response. So, Schwab appears to be as good as Vanguard. I kind of like the idea of having our retirement funds with two companies, rather than all in one place. I also like fewer funds. I'm wondering if you have thoughts on how the recommended mix compares to a Vanguard Fix Date Retirement Fund.