|
Posted by Mike on June 11, 2008, 3:11 pm
I have maybe $50k spread amongst a couple of 401k accounts and an IRA.
I'm considering moving all the money into an American Funds account
and letting a financial adviser manage it and future contributions for
me. With the dollar being kind of low right now, though, is it a bad
idea to sell my current holdings so I can move the money into a new
fund -- particularly since it'll cost me about $2250 in a one-time fee
to do so?
Thanks for any help.
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
|
|
Posted by Default User on June 11, 2008, 4:27 pm
Mike wrote:
> I have maybe $50k spread amongst a couple of 401k accounts and an IRA.
> I'm considering moving all the money into an American Funds account
> and letting a financial adviser manage it and future contributions for
> me.
American Funds is pretty expensive, as they usually come with a hefty
load one way or the other.
As it looks like you don't want to manage the account, ou'd be miles
ahead with a Vanguard account and pick a representative Target
Retirement fund. That will have an asset allocation that is
automatically rebalanced and adjusted as time goes by.
> With the dollar being kind of low right now, though, is it a bad
> idea to sell my current holdings so I can move the money into a new
> fund
I'm not sure what the dollar has to do with it. Without knowing what
your current holdings are, it's hard to say much about selling them.
> -- particularly since it'll cost me about $2250 in a one-time fee
> to do so?
Where is this fee coming from? Is your prospective manager going to
charge that for a few rollovers?
Brian
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
|
|
Posted by on June 11, 2008, 5:24 pm
> Mike wrote:
>
> > I have maybe $50k spread amongst a couple of 401k accounts and an IRA.
> > I'm considering moving all the money into an American Funds account
> As it looks like you don't want to manage the account, ou'd be miles
> ahead with a Vanguard account and pick a representative Target
> Retirement fund.
Probably very good advice, though there are certain assumptions
going with it (ie. it doesn't take into consideration any other
assets/investments he may have). In theory, his 'advisor'
is taking all that into consideration. Perhaps the OP would
post more details about his situation here.
> > -- particularly since it'll cost me about $2250 in a one-time fee
> > to do so?
>
> Where is this fee coming from? Is your prospective manager going to
> charge that for a few rollovers?
If he's buying American Funds mutual funds, he's paying a
load. American Funds class A shares carry a 5.75% sales
fee. That's money right out of the OP's pocket, and that's
a lot of money.
I'd rather see him spend some cash out of pocket on a real
financial planner - a full-blown financial plan, or at least
a few hours of consultation with a planner - should cost a lot
less than that (actually on $50k, it'd be $2875), and should
give the OP advise that he can use in the future for future
contributions, too.
--
Plain Bread alone for e-mail, thanks. The rest gets trashed.
No HTML in E-Mail! -- http://www.expita.com/nomime.html
Are you posting responses that are easy for others to follow?
http://www.greenend.org.uk/rjk/2000/06/14/quoting
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
|
|
Posted by Default User on June 11, 2008, 6:17 pm
BreadWithSpam@fractious.net wrote:
> > As it looks like you don't want to manage the account, ou'd be miles
> > ahead with a Vanguard account and pick a representative Target
> > Retirement fund.
>
> Probably very good advice, though there are certain assumptions
> going with it (ie. it doesn't take into consideration any other
> assets/investments he may have). In theory, his 'advisor'
> is taking all that into consideration.
Maybe, but I wouldn't bet on a guy pushing American Funds. A good idea
would be for the OP to go over his situation. That includes time until
retirement, breakdown of current investments, approximate portfolio
size, debt, dependents, etc. etc.
> Perhaps the OP would
> post more details about his situation here.
That's definitely what we need.
> > Where is this fee coming from? Is your prospective manager going to
> > charge that for a few rollovers?
>
> If he's buying American Funds mutual funds, he's paying a
> load. American Funds class A shares carry a 5.75% sales
> fee. That's money right out of the OP's pocket, and that's
> a lot of money.
I know, that was in my original message. However, I don't know if the
fee the OP was talking about was the fund loads or additional
management fee to do the rollovers. Important information.
> I'd rather see him spend some cash out of pocket on a real
> financial planner
That's worth considering. If there are significant assets, a manager
working for a percentage of AUM is a possibility. There are also hourly
planners that work up a plan that the client has to implement (might
not be what is needed here though).
Brian
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
|
|
Posted by PeterL on June 11, 2008, 4:35 pm
> I have maybe $50k spread amongst a couple of 401k accounts and an IRA.
> I'm considering moving all the money into an American Funds account
> and letting a financial adviser manage it and future contributions for
> me. With the dollar being kind of low right now, though, is it a bad
> idea to sell my current holdings so I can move the money into a new
> fund -- particularly since it'll cost me about $2250 in a one-time fee
> to do so?
>
> Thanks for any help.
>
What's your current holdings in? What does the dollar have anything
to do with it?
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
|
| Similar Threads | Posted | | Is now a good time to invest in Bond Funds? | July 4, 2007, 8:36 am |
| May 2008 (EBITDA) Is that a good time TO INVEST in R.E. ? | May 20, 2008, 3:08 pm |
| US to eventually tax tax-free IRAs, 401ks says noted national columnist | April 24, 2008, 5:53 pm |
| IRA and Roll Over IRA | August 30, 2007, 4:21 pm |
| whether to buy a tax time IRA | April 6, 2007, 5:03 am |
| one-time IRA to HSA | April 28, 2007, 2:10 pm |
| 401K Roll over question | April 6, 2007, 11:58 am |
| What to do with time shares? | February 8, 2007, 1:01 pm |
| One-time rollover from IRA to HSA | June 3, 2008, 5:30 pm |
| can I roll over 403b funds to open an IRA | April 6, 2007, 9:25 am |
|
|
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap