rolling it over into an ira might be a good idea, you can go to ameritrade/etrade/etc and just stick it in bonds/s&p 500 (spy)/etc without any fees
the 401k managers are usually going to underperform the s&p 500 AND take fees in doing so, over time that 1.5% is going to amount to a lot of money
the 401k managers are usually going to underperform the s&p 500 AND take fees in doing so, over time that 1.5% is going to amount to a lot of money
Some of my guys were in a no risk fund, kinda like a savings/money market fund and they were getting a negative return. I called em up and said wtf? They said the fund was earning around 1% but after their fees it was like -1%. They were losing 1% by keeping their money in a no risk fund. That's when I called em up and told them to go screw themselves.
Some companies pay for the broker fees of their qualified plan.
If you have a good advisor may be worth staying with them....especially cause they hopefully avoid the bulk of disasters when shit hits the fan...maybe if you like the rooftop method...just roll over 90% into an ira and mimic the advisor in your ira account.
If you have a good advisor may be worth staying with them....especially cause they hopefully avoid the bulk of disasters when shit hits the fan...maybe if you like the rooftop method...just roll over 90% into an ira and mimic the advisor in your ira account.
This isn't true from my experience at all. Most managers (even "good ones") do just as bad when pigs are led to slaughter as everyone else, especially in the Mutual Fund industry. Most mutual fund managers aren't very knowledgeable when it comes to macroeconomics, especially on a global scale which is what we have today.
What they are good at is assessing a company's business environment and then through fundamental valuation assessing if a stock is undervalued.
As far as advisors, most know nothing besides being good salesmen. If they truly knew anything, they would know selling people load funds with 1.5% fees is like referring them to a bookie with -120 juice.
I guess i don't have much experience with different advisors. The company i'm with pays for 95% or so of the broker fees. (I think the amount that gets charged to the employees is a flat $75/quarter or $300/year). They are actually not at all salesmen. We used to have the option of Morgan Stanley or Merrill Lynch (which were both salesmen type advisors) and switched about 5 years ago to our current guys. Current guys are a small group that actually do not hold the money, they keep it in Schwab and both we and they have access to move the money around. They have been very good at predicting the market on the whole and moving funds to less risk (no load) type funds when they feel uncertainty in the near future (i.e. around election time they tend to ease off on the risk with the uncertainty).
The bigger problem I have with the bigger brokerage firms is that they try to push their own funds. Which can be good but can be bad. I just don't like the limited options they are allowing your money to be invested in.
Yeah that is a problem with bigger brokerage firms (Fidelity is the biggest culprit for this)
Advisors of 401k/403b trying to time the market is something I haven't heard much of, potentially disastrous as well given whats at stake.
The problem with a lot of these 401k plans are the options are so limited, why opening a SDB and then just buying mutual funds through there is best for people that can actually pick superior funds (I know this seems hard but if you just go low expense ratio/dividend concentrated/no load you will do better than 90% of people) This is if 401/403 allow it but most do now.
One could argue , why even use an advisor/broker ? Very individualistic. As others have pointed out that 1.5% adds up Bigtime . Some don't have the 'knowledge' to care of it (even with passive investing ), not comfy . Okay . Let an 'expert ' take care of it. Just do ur homework. With that said , this profession's usefulness dramatically increases with rise of assets for the investor . To have large funds and not use an advisor? Nuts . Privy to investment vehicles you cannot get thru a discount brokerage firm (ex , debenture offerings , etc).
Like any profession there's good , not so good , bad...
Like any profession there's good , not so good , bad...
VANGUARD
VANGUARD
VANGUARD
i don't use them, but i own some of their products.
their products are top notch and the fees are some of the lowest in the industry.
i'm totally DIY on all my investments.
using an adviser is like having a post up account with an offshore book that charges you a % on your balance while at the same time charging you juice on the games.
go to the vanguard website, research and find a fund that has a low expense ratio and also fits your risk tolerance. I think they'll let you roll over any IRA, 401k to them and you can manage it yourself.
my advise is to find one fund and stick to it, no reason to buy multiple funds
vwinx is a nice one
good luck
