Author Topic: Ok I think I need a face punch  (Read 5230 times)

ECrew28

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Ok I think I need a face punch
« on: August 28, 2014, 11:13:31 PM »
So I have been chugging along working with the financial guy at the bank where I work.  He has my Roth IRA at Fidelity and my wife's Roth at Putnam.  As I looked at the funds, for mine (50/50 split between FNICX and FIGCX), I was happy with the returns until I looked at the expense ratios.  One is at 1.69% and the other is at 2.19%.  My wife's is invested in PVFCX and PYSCX (1.76% and 2.21% respectively).  Should I be doing something about this?  Moving over to Vanguard or another lower cost option?  I mean he also manages my Rollover IRA so I am hoping that I am not getting killed there as well.  I will have to go through all of those options 1 by 1 in the morning.  Just up working late and decided to check on things while on a stupid conf call. 

Perhaps time for a change???

milesdividendmd

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Re: Ok I think I need a face punch
« Reply #1 on: August 28, 2014, 11:32:17 PM »
Fire the adviser.

Plenty of low cost index funds available through fidelity. Look for "Spartan" funds.

I have no insight about Putnam.

Good luck

mxt0133

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Re: Ok I think I need a face punch
« Reply #2 on: August 28, 2014, 11:33:41 PM »
Looking at FNICX which is large cap growth with an expense ratio of 1.69% you could compare that to VIGRX with a .24% expense ratio.  Looking that their individual returns over the past 10 years using the following tool http://apps.finra.org/fundanalyzer/1/fa.aspx.

Starting with 10K with FINCX your 10k invested 10 years ago would now be $21,964.60 with total fees of $2,569.83 vs with VIGRX your 10k invested 10 years ago would now be $22,865.79 with total fees of $140.01.

In this case the Fidelity fund had superior returns but the fees ate up the difference vs the Vanguard fund.  However you never mentioned the fees your adviser is charging you either through a percentage of assets under management or through front-end load.  That would even make the self-manged Vanguard fund superior.

My personal preference would be lower fees vs actively manged funds that might slightly perform better.
« Last Edit: August 28, 2014, 11:36:24 PM by mxt0133 »

TomTX

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Re: Ok I think I need a face punch
« Reply #3 on: August 29, 2014, 04:49:06 AM »
You are being ripped off.

Fire the "adviser."

Get into low cost stock funds, preferably index funds.

RapmasterD

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Re: Ok I think I need a face punch
« Reply #4 on: September 03, 2014, 02:18:53 PM »
You are being ripped off.

Fire the "adviser."

Get into low cost stock funds, preferably index funds.

+1 ... and Putnam is a joke as well.

shotgunwilly

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Re: Ok I think I need a face punch
« Reply #5 on: September 03, 2014, 02:27:27 PM »
I need to go get paid to throw peoples money into two funds, sit back, and call it financial advising...

GGNoob

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Re: Ok I think I need a face punch
« Reply #6 on: September 03, 2014, 04:44:08 PM »
I need to go get paid to throw peoples money into two funds, sit back, and call it financial advising...

Wouldn't that be the life?

You could easily just roll that over into Vanguard and do the same 50/50 split between VTSAX and VTIAX and save a ton on fees! Even a "robo" advisor like Betterment is way cheaper if you didn't want to manage it yourself.

Frankies Girl

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Re: Ok I think I need a face punch
« Reply #7 on: September 03, 2014, 05:35:53 PM »
Chiming in... fire the adviser. Tell them that you want to self manage, they'll roll your accounts to a new self managed with a new account number possibly (that's what happened to me at Fid), shift your wife's Roth over to either Fid or Vanguard, and look for the Spartan fund series (if going to Fid with both). They're low cost and have selections that match up with most of the Vanguard funds... it's easy.

http://www.bogleheads.org/wiki/Fidelity

Bob W

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Re: Ok I think I need a face punch
« Reply #8 on: September 04, 2014, 10:07:10 AM »
PUNCH!  You do realize that so called "advisors" are really sales people, right?   Seems their "advice" always ends up with money in their pockets.  Funny how that works.     Unless you find a "fiduciary" fee based advisor you are dealing with a sales person.   

PUNCH, PUNCH,  run, don't walk!  Either that or just send me 2% every year and I'll tell you where to stick your money.   

milesdividendmd

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Re: Ok I think I need a face punch
« Reply #9 on: September 04, 2014, 10:14:27 AM »
I need to go get paid to throw peoples money into two funds, sit back, and call it financial advising...

"I've noticed that good people sleep better at night, but bad people have much more fun during waking hours."

-Woody Allen

MMM4life

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Re: Ok I think I need a face punch
« Reply #10 on: September 04, 2014, 11:09:25 PM »
Well seeing how I went through the same thing (VHIAX- front-end load 5.25%, expense 1.26% and IAAAX front-end load 5.5%, expense 1.45%), it forced me to do extensive research into low cost funds and I am now in the process of transferring those funds.

It could be worse. You could be one of the millions of people who let it sit there for the next 30-50 years...

Chuck

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Re: Ok I think I need a face punch
« Reply #11 on: September 05, 2014, 03:22:13 PM »
Good thing you caught it early. Fire the adviser. Move to the "Spartan" funds.

TomTX

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Re: Ok I think I need a face punch
« Reply #12 on: September 05, 2014, 08:47:03 PM »
Is he fired yet?