Hello everyone,
I need a little help analyzing my current investment before I go talk to my account manager and make changes. Here's a little summary of my situation. My wife and I are shoveling ourselves out of debt we incurred over 10+ years before I found MMM and he facepunched a lightbulb on in my head in regards to focusing on our finances. My employer offers 2% matching in a SIMPLE IRA, which I contribute to at the 2% to get the match. Wells Fargo manages the IRA and charges my account $40/yr in management fees.
The WF investment manager visits our office every couple years to talk to people about their investment goals and answer questions. When he and I talked, I wasn't up to date on understanding funds and their fees, so I went with his recommendation of THORNBURG INV INC BLDR C (TIBCX).
It's time to revisit my current portfolio and determine how to maximize my meager investments. The fund has the following fee characteristics:
Deferred load of 1%
Prospectus net fee ratio of 2.13%
If I understand correctly, 1) after my 1-year anniversary for purchases, the 1% load is waived; 2) I should expect a 2.13% fee on my market value annually; 3) that's high and really hinders my growth.
I am not entirely sure what my options are in regards to different funds. I like the looks of VISGX and VMGIX and can meet those 3k minimum investment requirements.
Does it seem reasonable to bail early and lose the 1% load fee to avoid any other expenses and move into the Vanguard funds if that's possible? I need to get in contact with my advisor because the only fee I've seen taken from my account is the WF management fee. If I can pay 1% to avoid a 2% fee, it seems like a no brainer to cash out of this fund and investigate other options. Anyone have any thoughts or corrections to point out?