Author Topic: Finally Took The Leap!  (Read 3528 times)

OneDogGP

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Finally Took The Leap!
« on: February 16, 2017, 12:52:47 PM »
I'm not sure why it took me so long to do this, but I'm guessing it's because I'm not a big fan of change.  BUT, today I emailed my Ed Jones Adviser and initiated the sell on all of my investments and told him I was moving everything over to Vanguard!  I have already transferred my Roth, and hopefully the two IRAs will be done in a week.  I kick myself for not doing this sooner, but it wasn't until I did a little research on the funds and their past performance did I realize how much I had given up in fees and poor performance.  Sad thing is that I'm 48 and just can't imagine the grand total that I've given up over 25 years of investing.  Anyway, the real kicker is that I've been with Ed Jones for about 9 years and I didn't get so much as a phone call from my FA when I gave him the order to sell off everything.  All I got was an "okay" response email.  I guess it just shows me that they really don't give a dang after they've made the sale and collected their commission.

Now all I've got to do is figure out the right mix of index funds.  Any suggestions would be appreciated!  (Currently leaning towards a 3 or 4 fund mix, but I'm not a big fan of International funds due to past experiences)  Oh, and hopefully I can retire at 55, as I started this game late and only have about $400K in my Roth/IRAs/401K.

Thanks,

OneDogGP



tarheeldan

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Re: Finally Took The Leap!
« Reply #1 on: February 16, 2017, 01:09:08 PM »
Congrats on dumping EJ! :-)

Not sure what your retirement spending level plan is, but if your savings rate is high enough, 7 years to go with 400k already saved sounds pretty hopeful to me!

OneDogGP

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Re: Finally Took The Leap!
« Reply #2 on: February 16, 2017, 01:17:12 PM »
Thanks tarheeldan.  Spending level for retirement is pretty standard $24K/year.  I've got a house that's paid for that will be sold when I get ready to retire. ($180-200K) So I feel good that I'll be ready to go by 55.  Unless there's been another recession, I'll cash in my chips and go live down at the lake and be a professional fisherman and camp fire maker.  Can't wait!!!  :)


cheapass

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Re: Finally Took The Leap!
« Reply #3 on: February 16, 2017, 01:38:35 PM »
As far as your fund selection goes, VTSAX is frequently recommended as a total market index. Personally, I like to mix it with some VDC (consumer staples) as it has a slightly higher dividend and doesn't get hit as badly in a recession. Long-term performance is approx. equal to VTSAX or a little more depending on the horizon.

A useful tool I've found for comparing funds is Perfcharts. They assume reinvesting of dividends which most stock growth charts will not include.

http://stockcharts.com/freecharts/perf.php?vtsax%2C%20vdc

Aunt Petunia

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Re: Finally Took The Leap!
« Reply #4 on: February 17, 2017, 01:40:03 PM »
Would it be worth it to switch from Wealthfront to Vanguard in order to save on fees?
Currently I get the first 15k managed free and they charge 0.25% for anything beyond that.
Does Vanguard charge commissions?
What would be the best way to execute the switch?

I have about 20k in IRAs and 80k in taxable accounts. My taxable accounts seem to be growing much faster than the IRAs, and I get the tax loss harvesting. I am thinking of moving the IRAs and some of the taxable money, leaving about 30k in Wealthfront.

 I have read elsewhere on this forum that the Vanguard interface can be a PITA, and that it takes a while to withdraw funds. I like the user experience with Wealthfront but am willing to move in order to save $$.
« Last Edit: February 17, 2017, 01:45:08 PM by MrsWolfeRN »

LAGuy

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Re: Finally Took The Leap!
« Reply #5 on: February 17, 2017, 02:30:49 PM »
Heh. They were probably just busy with all of the other rollovers they've been processing. Welcome to the club.

PhysicianOnFIRE

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Re: Finally Took The Leap!
« Reply #6 on: February 18, 2017, 11:05:57 AM »
Would it be worth it to switch from Wealthfront to Vanguard in order to save on fees?

Currently I get the first 15k managed free and they charge 0.25% for anything beyond that.
Does Vanguard charge commissions?

No. They do have an advisory service(0.3% AUM)  if you choose not to DIY, but there are no commissions or loads with Vanguard.

What would be the best way to execute the switch?

Call Vanguard and they'll walk you trough the steps.

I have about 20k in IRAs and 80k in taxable accounts. My taxable accounts seem to be growing much faster than the IRAs, and I get the tax loss harvesting. I am thinking of moving the IRAs and some of the taxable money, leaving about 30k in Wealthfront.

You can TLH on your own. THe growth shouldn't be much different in the two accounts, though, unless they have different asset allocations.



redrocker

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Re: Finally Took The Leap!
« Reply #7 on: February 18, 2017, 11:29:37 AM »
...today I emailed my Ed Jones Adviser and initiated the sell on all of my investments and told him I was moving everything over to Vanguard! ...  Anyway, the real kicker is that I've been with Ed Jones for about 9 years and I didn't get so much as a phone call from my FA when I gave him the order to sell off everything.  All I got was an "okay" response email.  I guess it just shows me that they really don't give a dang after they've made the sale and collected their commission.


I had a similar abrupt lapse in communication when I left Ameriprise. IMO, when EJ/Ameriprise/etc hear the word "Vanguard" I think they realize the jig is probably up and it's time to look for more under-informed prey.

Honestly, I'd prefer that rather than persistent attempts to persuade me otherwise because the FAs I've encountered are pretty slick at concealing their racket and making active investing "make sense" to the layman.

Captain Cactus

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Re: Finally Took The Leap!
« Reply #8 on: February 19, 2017, 05:59:13 AM »
I got this mini-tirade from the folks at Fidelity when I moved my 401k from a previous employer to Vanguard.  I don't remember the exact wording but it sounded like he was reading from a script, something about a Vanguard lawsuit, etc...pathetic.

Retire-Canada

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Re: Finally Took The Leap!
« Reply #9 on: February 19, 2017, 07:39:33 AM »
Congrats. I'm 48 and just got the last of my $$ moved away from my old FA/high MER funds last year. I also try not to think about how much that cost me over the years. The important thing is putting things on a better path and having a plan to hit your FIRE goals.



Maizeman posted this ^^^ chart in a 4%SWR thread to illustrate that for a 50yr old retiree at 4%WR dying was a far bigger concern than going broke. I'm not waiting until I hit the classic 4%SWR to pull the plug. My life is too precious to me. In most cases my stash will grow such that I am well below a 4%WR and if I get unlucky in one of the few few % chances where I need to earn $10K/yr PT and cut back a bit during a crash that seems a worthwhile risk to be able to FIRE a couple years earlier at my age.

Prior to full FIRE I am going to downshift to part-time work for a couple years. That will let my stash do its thing without taking money out and give me a couple years with a lot of extra free time to enjoy while I transition to full FIRE. For folks our age I think that's a great alternative if it means you get to start tackling your bucket list several years earlier than working FT until you hit your FIRE $$ target.

OneDogGP

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Re: Finally Took The Leap!
« Reply #10 on: February 19, 2017, 07:14:05 PM »
Thanks for the well wishes everyone.  I'm pretty sure I'm just going to do a pretty standard allocation with VTSAX and VBTLX being the majority positions.  Unfortunately, I did do some calculations on what I missed out on versus just doing a 60/40 mix with Vanguard and the number was over $40K and that was not including any dividends!  And this was for only the time I was with Ed Jones.  Again, I feel like a fool for not figuring this out sooner, but I guess I can't cry over spilled milk.

And as far as having a solid plan goes, that's probably not going to happen any time soon.  Lots of question marks pertaining to chosen career, selling the house and the timing of it, (got a nephew living with me now - long story) and other what if's.  I think in the next 7-8 years things will become clearer.  As for now, we'll just continue to sock $$$ away.

Onward and upward!

OneDogGP

aspiringnomad

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Re: Finally Took The Leap!
« Reply #11 on: February 19, 2017, 11:28:39 PM »
Congrats! Every time someone leaves EJ an angel gets his wings.

Mr Mark

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Re: Finally Took The Leap!
« Reply #12 on: February 20, 2017, 05:14:09 AM »
As far as your fund selection goes, VTSAX is frequently recommended as a total market index. Personally, I like to mix it with some VDC (consumer staples) as it has a slightly higher dividend and doesn't get hit as badly in a recession. Long-term performance is approx. equal to VTSAX or a little more depending on the horizon.

A useful tool I've found for comparing funds is Perfcharts. They assume reinvesting of dividends which most stock growth charts will not include.

http://stockcharts.com/freecharts/perf.php?vtsax%2C%20vdc

We all have our 'flavour' / spice preference when it comes to the mix I guess. You can go pure vanilla with 100% VTSAX or add a bit of variety with dashes of international and / or big dividend dogs/ some treasuries ad infinitum. 

Congrats on the main move to the oasis of vanguard.

Your preferred seasoning blend most importantly needs to be yours. If you don't have a preference yet, then keep it basic and err on the side of whole market and low fee.
« Last Edit: February 20, 2017, 08:21:36 AM by Mr Mark »

MightyAl

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Re: Finally Took The Leap!
« Reply #13 on: February 20, 2017, 05:41:41 AM »
Congrats.  I am finally finishing the move with a 529 that has remained at EJ.  Calculated that we had lost ~$2500 on a $5000 initial investment in 8 years.  It should be at $9k and is at $6.5k.  I wanted to face punch somebody.  I completed the move out of the crappy American Funds also and got into low cost index funds.  There were 10 different American Funds in this portfolio.  10.  This is my wife's IRA and I told her this is what happens when we don't want to invest the time to find out what is happening to our money. 

Oh and the best part is that the EJ advisor is my wife's best friend's sister.   

Mr Mark

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Re: Finally Took The Leap!
« Reply #14 on: February 20, 2017, 08:29:03 AM »
Congrats. I'm 48 and just got the last of my $$ moved away from my old FA/high MER funds last year. I also try not to think about how much that cost me over the years. The important thing is putting things on a better path and having a plan to hit your FIRE goals.



Maizeman posted this ^^^ chart in a 4%SWR thread to illustrate that for a 50yr old retiree at 4%WR dying was a far bigger concern than going broke. I'm not waiting until I hit the classic 4%SWR to pull the plug. My life is too precious to me. In most cases my stash will grow such that I am well below a 4%WR and if I get unlucky in one of the few few % chances where I need to earn $10K/yr PT and cut back a bit during a crash that seems a worthwhile risk to be able to FIRE a couple years earlier at my age.

Prior to full FIRE I am going to downshift to part-time work for a couple years. That will let my stash do its thing without taking money out and give me a couple years with a lot of extra free time to enjoy while I transition to full FIRE. For folks our age I think that's a great alternative if it means you get to start tackling your bucket list several years earlier than working FT until you hit your FIRE $$ target.

Nice chart Canada. Really helps focus things for the sky falling visitors.