Author Topic: Transfer Assets to Personal Capital  (Read 3203 times)

Rollin

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Transfer Assets to Personal Capital
« on: June 25, 2015, 02:11:35 PM »
I have a variety of funds with different entities and in an effort to simplify and better understand all that I have I went to Personal Capital and logged them all in.  I really like the easy interface and snapshot of each account.  Actually, it is eye opening to see it all in one place and that there are so many accounts (banking and credits cards along with investments), and I thought I was simplified!

Anyway, they contacted me and identified a few places where I am paying way too high of fees, and that although on the surface I was invested very close to my asset allocation, underneath it all I was unbalanced.  Lastly, they have offered to get inside my 457K to let me know what their advice on that would be, and it may very well show that as unbalanced as well.

So my question is have any of you transferred your assets to them to manage?  Their fee is 0.89 (that's it, no other fees added to each fund etc.).  I am currently paying a fee for each fund I am in, plus a fee to my broker to manage those.  I know there are other ways to go for lower fees than PC, including Vanguard, but I may not be the right person for those index accounts since I am not really sure of what I'm doing and feel I need a little guidance.  I'd hate to try and save .5% going to Vanguard, but loose site of the big picture and loose much more whole percentage points by making an investment mistake.

Aside from the little higher fee that might get some of you to cringe, I have a more basic (and primal) fear of letting my assets go to this entity (Personal Capital) with just a few clicks of the mouse.  I want to hear if some of you have done this and if you feel it is a safe thing to do.

BTW - I started down this road in the first place after reading about PC here, so I do think it is safe, but need a little reassurance.

Thanks!

SuperSecretName

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Re: Transfer Assets to Personal Capital
« Reply #1 on: June 25, 2015, 02:24:33 PM »
You can link your accounts without transferring assets. 

They are not worth it.

If you need the extra hand-holding, go to Vanguard.  You can still view everything in PC.

BarkyardBQ

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Re: Transfer Assets to Personal Capital
« Reply #2 on: June 25, 2015, 02:31:44 PM »
Take Personal Capital's own advice from their Retirement Fee Analyzer, which suggests you shouldn't pay more than .50% in expenses... their management fee is almost twice their own recommendation. Our portfolio's expense ratio is .08%, that's 91% lower than Personal Capital and it takes me a few hours a quarter to manage.

Transfer your assets to Vanguard, you will pay less per fund and no commissions or brokerage fees. This is your money, having the excuse of 'I don't really know what's under the hood' is kinda weak. This forum can guide you through anything you don't understand and then some. Don't make excuses.

We have 11 pretax and brokerage accounts linked in PC... the number of accounts doesn't mean anything if you are utilizing each one for it's individual and combined advantage.

Besides... it's fun, make it fun for yourself :)
« Last Edit: June 25, 2015, 02:34:32 PM by zdravé »

Rollin

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Re: Transfer Assets to Personal Capital
« Reply #3 on: June 25, 2015, 04:34:32 PM »
You can link your accounts without transferring assets. 

They are not worth it.

If you need the extra hand-holding, go to Vanguard.  You can still view everything in PC.

I am starting to se that - thanks.  I'll look into the Vanguard brokerage for the "hand holding."

Rollin

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Re: Transfer Assets to Personal Capital
« Reply #4 on: June 25, 2015, 04:39:33 PM »
Take Personal Capital's own advice from their Retirement Fee Analyzer, which suggests you shouldn't pay more than .50% in expenses... their management fee is almost twice their own recommendation. Our portfolio's expense ratio is .08%, that's 91% lower than Personal Capital and it takes me a few hours a quarter to manage.

Transfer your assets to Vanguard, you will pay less per fund and no commissions or brokerage fees. This is your money, having the excuse of 'I don't really know what's under the hood' is kinda weak. This forum can guide you through anything you don't understand and then some. Don't make excuses.

We have 11 pretax and brokerage accounts linked in PC... the number of accounts doesn't mean anything if you are utilizing each one for it's individual and combined advantage.

Besides... it's fun, make it fun for yourself :)

Are you with Vanguard getting that?  You say "our portfolio" but it isn't clear who you are with.

As far as having a weak argument about no knowing "what is under the hood," I drive a car but am not a mechanic :)

However, on that note, I know where my comfort level is at this point in my investing career and my size doesn't fit all.  So, until I learn more I feel more secure with some hand holding.

I'd also like to think it is fun, but when you are six months from FIRE (and have a family depending on you) I like to have someone look over my shoulder.

Thanks for the respond.  I will look further into Vanguard.  It sounds to me like Vanguard can do the same thing as Personal Capital, only for significantly less.  Correct?
« Last Edit: June 25, 2015, 04:42:26 PM by Rollin »

thedayisbrave

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Re: Transfer Assets to Personal Capital
« Reply #5 on: June 25, 2015, 04:46:50 PM »
If you absolutely need hand holding, Vanguard just launched their Personal Advisory services for 0.3%.


BarkyardBQ

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Re: Transfer Assets to Personal Capital
« Reply #6 on: June 25, 2015, 04:52:51 PM »
We have IRA's and a taxable brokerage account at Vanguard, 403b/457's at Fidelity or invested in Vanguard funds or ETFs. Our portfolio refers to my wife and I, we selected an asset allocation, and chose funds with the lowest ER and broadest diversification, those are usually Vanguard and Fidelity Spartan funds.

You are not a mechanic, neither am I, but would you pay someone thousands of dollars to change a flat tire? :D

I'm sure it can be a bit scary. Maybe the first thing you should do is write up a case study thread and list your accounts, current asset allocation and your age, and everyone here will be willing to guide you through it. The people at Vanguard are extremely helpful as well and they don't charge you a ton of money.

https://about.vanguard.com/what-sets-vanguard-apart/
Typical investment management companies are owned by outside stockholders. These companies have to charge fees to pay their owners, which can reduce investors' returns.

At Vanguard, there are no outside owners, and therefore, no conflicting loyalties. The company is owned by its funds, which in turn are owned by their shareholders—including you, if you're a Vanguard fund investor. Our unique client-owned structure allows us to return profits to our fund shareholders in the form of lower expenses. Low costs help our clients keep more of their returns, which can help them earn more money over time.
« Last Edit: June 25, 2015, 04:55:16 PM by zdravé »

Rollin

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Re: Transfer Assets to Personal Capital
« Reply #7 on: June 25, 2015, 05:17:38 PM »
If you absolutely need hand holding, Vanguard just launched their Personal Advisory services for 0.3%.
On the phone with them now and it is .3 + the fund's expense ratio of .18, or a total of .48.  Still better than .89, or my current at LPL of the high expense ratios Plus .85% for the broker!  Luckily it was only for a short period of time.

I went ahead and did the transfer to Vanguard.  I can use the advisory service if I want (and add the .3%), or not.  Also, I can put $50K in the service and do the rest myself, at least until I feel comfortable "under the hood."

zdarve I'll get the $$ over and sort it out and then probably do what you suggest and start a case study thread.  Thank you.
« Last Edit: June 25, 2015, 06:25:12 PM by Rollin »