Search found 31 matches

by iguaniagu
Sun Apr 21, 2019 1:40 pm
Forum: Personal Investments
Topic: Selling Business - Requesting advice on how to invest proceeds
Replies: 15
Views: 2123

Re: Selling Business - Requesting advice on how to invest proceeds

Hedgefundie, Your comment on finding alternative investments that are not correlated with the market struck a chord with me. At this point, I would gladly lower my return to reduce volatility. I don't think I'm ready to go all treasuries though. That might be a little too boring. :happy In my portfolio range, can you comment on what would be a reasonable advisor fee? Most I have spoken to start out close to 1% of AUM. I would love to find an advisor who is fee-for-service. Someone I can simply ask questions of and then do the investment work myself. Do such advisors exist and do you feel they are worth it? It seems to me if you are good at what you do and a smart businessman, you would utilize the % of AUM model. That has to provide a super...
by iguaniagu
Sun Apr 21, 2019 1:29 pm
Forum: Personal Investments
Topic: Selling Business - Requesting advice on how to invest proceeds
Replies: 15
Views: 2123

Re: Selling Business - Requesting advice on how to invest proceeds

Stinky, As you point out, I guess there is no reason I shouldn't put more in the 529s. I just have to decide how much. I suppose the only error I could make would be to put more in than my kids will spend on college, thereby running the risk of a penalty. From what I understand, if I do overcontribute I could still transfer the excess to another person (grandchild, nephew, etc.) and avoid the penalty? At my age, I have felt that maybe my AA was a little conservative. I think my mindset has changed after the sale of my business from growth to conservation. Prior to the sale, I felt my income could buttress me against any investment losses. With that gone, my risk tolerance for investments will definitely decrease. So a shift out equities to ...
by iguaniagu
Sun Apr 21, 2019 1:12 pm
Forum: Personal Investments
Topic: Selling Business - Requesting advice on how to invest proceeds
Replies: 15
Views: 2123

Re: Selling Business - Requesting advice on how to invest proceeds

Thanks LFS1234, With regards to the Net Investment Income Tax (NIIT), I am hopeful it will not apply to me. In section 10d of the link you sent it states that only the following gains are included in the NIIT: Gains from the sale of interests in partnerships and S corporations (to the extent the partner or shareholder was a passive owner). See section 1.1411-7 of the 2013 proposed regulations. My business is an S Corporation and I was not a passive owner, I personally generated the revenue. I will be reviewing this with my accountant. If you have another take on this, let me know. I'm glad you concur on paying off the loans. While the interest is deductible and I suppose I might earn a higher return investing the money elsewhere, it will be...
by iguaniagu
Sat Apr 20, 2019 9:28 pm
Forum: Personal Investments
Topic: Selling Business - Requesting advice on how to invest proceeds
Replies: 15
Views: 2123

Re: Selling Business - Requesting advice on how to invest proceeds

Thanks, Brad.

I am definitely in close contact with my CPA and attorneys. I'm confident they will help me optimize the tax implications of the sale. Their help throughout my career has been well worth their fees. I am hopeful our fellow Bogleheads can help me with the investing piece as I have found investing advice seldom worth the associated fees of financial advisors. My questions regarding taxes were intended to focus on ways to reduce the tax burden through investments. I have a feeling there won't be much I can do to significantly alter the tax I'll owe this year.

I hope you are enjoying life after your transition!
by iguaniagu
Sat Apr 20, 2019 8:43 pm
Forum: Personal Investments
Topic: Selling Business - Requesting advice on how to invest proceeds
Replies: 15
Views: 2123

Selling Business - Requesting advice on how to invest proceeds

I have been a Boglehead convert for about 5 years. I have proudly broken free from my previous "investment advisors" and their return-crippling fees. It's been liberating. I am fortunate in that I will receive a large sum soon and I am anxious to get your investment advice. I am 48, a business owner, and I have decided to partner with private equity. As a result of the transaction, I expect to receive approximately $9.5M in proceeds. My cost basis for this sale is ~$2M, leaving a ~$7.5M capital gain subject to long-term capital gains (LTCG) taxes. I live in Ohio (LTCG Tax = 5%), so I expect taxes to take 25% or ~2M. I have business-related debt of $650,000. Below, I outline my current financial situation: Summary of Business Sale ...
by iguaniagu
Thu Feb 12, 2015 12:48 am
Forum: Personal Investments
Topic: What to do with 350K. Plop it in a 529?
Replies: 36
Views: 5898

Re: What to do with 350K. Plop it in a 529?

clutchied wrote:FYI if it hasn't been mentioned the $2000 state tax deduction is per beneficiary and it rolls over indefinitely.

so maybe in 50 years you'll have it all deducted.

Ohio!
Wow! I didn't realize that. Unlimited carryover seemed too good to be true but I looked it up and sure enough you're right. Got to love Ohio!

So in other words, if I invest $300,000 ($100,000 in 3 separate accounts) in an Ohio 529 after 50 years I'd potentially get $300,000 * 5.5% = $16,500 back. That's a long time to get the money back (I'd be 94 by then) but $16,500 is nothing to sneeze at. Earlier in this discussion I had dismissed this portion of the tax deduction as insignificant. Perhaps I should not have been so quick to do so.
by iguaniagu
Wed Feb 11, 2015 3:35 am
Forum: Personal Investments
Topic: What to do with 350K. Plop it in a 529?
Replies: 36
Views: 5898

Re: What to do with 350K. Plop it in a 529?

I'm laughing about the doctor/med school card. Everybody has been awfully busy for 20 years. Do you think others sit on their butts? It is a bad excuse. It is not even an excuse. :) Ha, you're right! You got me there. Agreed, we are all busy for different reasons. Of course, we would all like to think our lives are harder/busier than the next guy. I guess I was attempting to convey my misguided rationale for being too complacent for too many years. In essence, a poor excuse. The one thing med school and residency did was to make sure I had plenty of debt and little or no income until I was about 35. I assumed that I really couldn't start investing until I got my $350,000 of school loans paid off. Probably a wrong assumption but I think I'm...
by iguaniagu
Wed Feb 11, 2015 1:57 am
Forum: Personal Investments
Topic: What to do with 350K. Plop it in a 529?
Replies: 36
Views: 5898

Re: What to do with 350K. Plop it in a 529?

Assume you make 8% average return over 5 years, that's 40% gain on each $100k that's taxable at LTCG which may be around 25% (more/less depending on your tax bracket and state), so that's around $10k. YMMV If you use a 50/50 allocation with 4% average return, it become a $5k question. Thanks. That is helpful. I really should have done that calculation myself as it's quite simple. It really puts things into perspective. What your example shows me is that we aren't talking about really big tax savings. In other words, livesoft has it right when he said: Bottom line: It is just not an important decision whether you put $200K, $250K, $300K, or $350K into 529 plans. I think I'll go a step further and do the same calculation for all three kids t...
by iguaniagu
Mon Feb 09, 2015 9:19 pm
Forum: Personal Investments
Topic: What to do with 350K. Plop it in a 529?
Replies: 36
Views: 5898

Re: What to do with 350K. Plop it in a 529?

... it really is a no brainer to use a 529 plan for the OP for college expenses. I cannot believe the financial salesrep kept the OP out of 529 plans. That is worth looking into a lawsuit I would think. Well, being a doctor, I really don't like to get lawyers involved! However, I look back and think I should have been wiser. It goes to show you that you have to look out for yourself. The FA's incentives don't always align with the client's. It's a bad excuse but I've been awfully busy for 20 years in medical school and building a busy practice. I was either too busy, too complacent or too lazy to research and question the "advice" I was given. So you say it's a no-brainer to use a 529. How much of my $350k would you allocate to 5...
by iguaniagu
Mon Feb 09, 2015 11:49 am
Forum: Personal Investments
Topic: What to do with 350K. Plop it in a 529?
Replies: 36
Views: 5898

Re: What to do with 350K. Plop it in a 529?

So it is possible to front load the contribution and put in $70k (or, as I've just learned from this post, $140k for married couples) and then not contribute for five years; but what then happens if someone else (a grandparent or uncle for example) wants to give money for college? Is the 529 account considered 'fully funded' for those five years, or can someone else contribute towards it just not the donor of the $140k? Instead of asking all the questions, I think I can answer this one. :happy This is a quote from investopedia's site : "an individual may be able to contribute a lump sum that covers five years, giving a total of $70,000 ($140,000 for married couples), provided the individual makes no additional gifts to that designated...
by iguaniagu
Mon Feb 09, 2015 10:36 am
Forum: Personal Investments
Topic: What to do with 350K. Plop it in a 529?
Replies: 36
Views: 5898

Re: What to do with 350K. Plop it in a 529?

If you believe in the concept of money being fungible, then theoretically your entire portfolio is your retirement savings account. I hate to admit it but I had to look up the term "fungible." Yet without even knowing it, I subscribe to the belief my money is fungible and I absolutely I see my entire portfolio as my savings account. My goal is to pay for college and in the end have the maximum possible still residing in my retirement accounts. I really don't care in which accounts the money resides while I'm working my way through this process. It's from this fungibility concept that my question arises of whether to put a large chunk in 529s vs. leaving it in my taxable account. I'm going to have to fork over money for college in...
by iguaniagu
Mon Feb 09, 2015 10:08 am
Forum: Personal Investments
Topic: What to do with 350K. Plop it in a 529?
Replies: 36
Views: 5898

Re: What to do with 350K. Plop it in a 529?

Thanks for the response niceguy7376! 2k per kid tax benefit is nothing compared to your big picture. 5.5%*2k*3 = $330. So dont do it just for tax break. I agree, it's pocket change. I was mostly referring to the tax break offered by the growth-free earnings which I suspect could add up to something significant for my 13 and 10 year-olds. As for 529 Vs Taxable, with your income, you are guaranteed to receive any need based aid. So forget about that. I wasn't expecting much or any financial aid. So I imagine I'll be dishing out a bundle to the colleges. That leaves you with tax free growth concept for using 529. How much do you think you can get tax free for your first kid that starts college in 2.5 years? I don't expect much growth from the ...
by iguaniagu
Mon Feb 09, 2015 9:26 am
Forum: Personal Investments
Topic: What to do with 350K. Plop it in a 529?
Replies: 36
Views: 5898

Re: What to do with 350K. Plop it in a 529?

Some of the answer depends on other options available to you: -Pay off mortgage? -Are you maxing 401ks/IRAs? (Did you for 2014?) Yes. I think I am maxing out my 401k/IRA at $18,000. My wife has no earned income so she can only contribute $5,500 to a backdoor Roth which I am doing also. Are there any other inventive ways to get more money in a retirement account (401k/IRA) for my wife? If so, I'd love to hear how. I don't know the exact calculus on financial aid, but I've heard house/retirement often count less against you, and that in general those are always a higher priority. If you and spouse could move 36,000/year into retirement I think that would be a good move. If the 529s are a tax deduction, at least fund them partially. I don't e...
by iguaniagu
Mon Feb 09, 2015 2:07 am
Forum: Personal Investments
Topic: What to do with 350K. Plop it in a 529?
Replies: 36
Views: 5898

What to do with 350K. Plop it in a 529?

Hello, I am a relatively new Boglehead convert and I am in the process of reorganizing my portfolio after several years with an adviser. I just broke up with the adviser and his 1% AUM fee -- very liberating! I had a confusing portfolio of high expense ratio funds that I have sold and I am now preparing to invest through Vanguard and Ohio's 529 plan. Thanks to my fellow bolgeheads, I think I have a solid retirement savings plan and asset allocation, but I am wondering how much of my newly freed up money should be allocated to 529 plans. Here is an overview of my situation: Family: Me 44, wife 44, kids 15,13,10. Income tax bracket 39.6%. Reside in Ohio (State tax 5.5%) My current portfolio consists of the following (~$1 mil) 35% Cash (Recent...
by iguaniagu
Thu Jan 29, 2015 6:35 pm
Forum: Personal Investments
Topic: Advice with my allocation and bonds in a taxable account
Replies: 4
Views: 904

Re: Advice with my allocation and bonds in a taxable account

Thank you for the information. In particular, stlutz does make a strong argument that the higher "hidden" duration of the Ohio fund along with its greater default risk and relatively low state tax savings seem to make it a less attractive choice. I certainly like the idea of simplicity. Given all the other complicated things in my life the idea of one fund makes me smile. Perhaps I will go with IT-TE and call it a day. stultz -- may I ask why you suggest IT-TE over LT-TE? There is a chance I may have the opportunity to direct investments in the 401k sometime in the future. If so, there may no longer be a need for municipal bonds in my taxable account. If this comes to pass, I would potentially sell the municipal bonds. Is there an...
by iguaniagu
Wed Jan 28, 2015 8:34 pm
Forum: Personal Investments
Topic: Advice with my allocation and bonds in a taxable account
Replies: 4
Views: 904

Advice with my allocation and bonds in a taxable account

I am a relatively new Boglehead convert and I am in the process of reorganizing my portfolio after several years with an adviser. I just broke up with the adviser and his 1% AUM fee -- very liberating! I had confusing portfolio of high expense ratio funds that I have sold and I am now preparing to invest through Vanguard. Here is an overview of my situation: Family: Me 44, wife 44, kids 15,13,10. Income tax bracket 39.6%. Total portfolio value ~$1Mil. Will have between $50,000-$150,000 to invest annually. At this point I have nearly 65% of my portfolio in cash ready to reallocate within my Roth (22%) and taxable accounts (78%). My 401k is a pooled balanced investment in which I do not control the asset allocation so unfortunately I have to ...
by iguaniagu
Mon Jan 26, 2015 4:29 pm
Forum: Personal Investments
Topic: Should I sell My American Funds?
Replies: 51
Views: 13036

Re: Should I sell My American Funds?

A quick addendum to better illustrate my final asset allocation:

52% Taxable
---- 22% VTSAX US Total Market
---- 13% VTMGX International - Developed
---- 03% VEMAX International - Emerging
---- 07% VOHIX Municipal Bond (Ohio long-term tax exempt)
---- 07% VWSTX Municipal Bond (Short-term National tax exempt)

34% his 401k (fixed allocation)
---- 07% US Stocks
---- 05% Int Stocks
---- 11% Short-term debt
---- 07% Global Bonds
---- 02% REITs
---- 02% Commodities

07% his Roth
---- 03% VTSAX US Total Market
---- 04% VSIAX US Small-Cap Value

07% her Roth
---- 04% VSIAX US Small-Cap Value
---- 03% VGLSX (REIT index)
by iguaniagu
Sun Jan 25, 2015 2:07 pm
Forum: Personal Investments
Topic: Should I sell My American Funds?
Replies: 51
Views: 13036

Re: Should I sell My American Funds?

Hey guys, I'm back after spending a lot of time transferring funds from all my various and sundry accounts. It's been a long process. The American Funds are sold and gone and I had a liberating "break-up" with my financial adviser - glad that's over! Thank you all for the inspiration to make the necessary changes. At this point, my situation is as follows (I will summarize again to make it easier): Family: Me 44, wife 44, kids 15,13,10. Income tax bracket 39.6%. Total portfolio value ~$1Mil. Will have between $50,000-$150,000 to invest annually. 52% Taxable (I have about $7,500 of short-term cap gains in the funds within my taxable account) --------- 02% VFIAX (Vanguard 500 Index) --------- 01% VMGMX (Vanguard Mid-Cap Growth Index...
by iguaniagu
Sat Jan 03, 2015 1:28 pm
Forum: Personal Investments
Topic: Should I sell My American Funds?
Replies: 51
Views: 13036

Re: Should I sell My American Funds?

I have a question about the municipal bond I should purchase in my taxable account. Laura Said: Make sure to compare apples to apples. You should use either an intermediate term or a short term fund. Depending on whether there is a state specific fund available that might be an option as well. I live in Ohio and Vanguard offers: Ohio Long-Term Tax-Exempt State Municipal Bond (VOHIX) ER: 0.16%, SEC yield:2.28% A, YTD:11.20%, 1-yr:11.20%, 5-yr:5.21%, 10-yr4.66%, Since inception:6.12% The Ohio upper income tax rate is 5.33%. I looked at the Bond Calculator you suggested and it seems like the Ohio fund would be advantageous given the state tax break. However you had suggested short to intermediate term bonds. I'm not sure I understand the impli...
by iguaniagu
Thu Jan 01, 2015 10:31 am
Forum: Personal Investments
Topic: Should I sell My American Funds?
Replies: 51
Views: 13036

Re: Should I sell My American Funds?

Thank you again Laura! Sorry for the delay in my response but I have not been able to get back to the computer for a few days. I did realize that my 401k is very bond heavy. It turns out that ~70% of the assets in the 401k are owned by individuals in their 60s, only about 10% by individuals less than 40. So I suppose a higher bond percentage may be reasonable?? Obviously, this is not as beneficial for the younger contributors. The asset allocation is set by the fiduciaries, my senior partner and myself. I will work to make sure it is in line with what is appropriate for our investors. Would you agree that having a larger bond allocation in the 401k is preferable, at least for me, due to its tax deferred status (as long as I reach my target ...
by iguaniagu
Sat Dec 27, 2014 10:58 pm
Forum: Personal Investments
Topic: Should I sell My American Funds?
Replies: 51
Views: 13036

Re: Should I sell My American Funds?

Wow, that is overwhelming so I can see the problem. Surprisingly this isn't going to be that hard to fix. Let me give you a little homework. Laura Yes. It is overwhelming. Glad to hear you don't see it as too difficult a fix. :happy 1. Figure out gains and losses in all of your taxable holdings. This will tell us the cost to get this cleaned up. Your UBS guy may be helpful in some ways but he is not helping you with this portfolio setup. It is not tax efficient and it is very high cost. In addition to the 1% fee he has you in high cost funds. Bonds and dividend funds should certainly not be in a taxable account for someone in a high tax bracket who has room for these in retirement accounts. This is just one example. Also, you have a millio...
by iguaniagu
Sat Dec 27, 2014 8:19 pm
Forum: Personal Investments
Topic: Should I sell My American Funds?
Replies: 51
Views: 13036

Re: Should I sell My American Funds?

If you want to go through and edit your initial post and include your 401k and other investments and remove dollars and use percentages, we can help here. Laura Thanks Laura for your advice on the UTMAs. As you suggested, I will post my entire portfolio for comment and analysis. I had avoided doing this initially because I thought it would be too complicated for anyone to dare delve into. However, all you Bogleheads have been so giving of your time and advice I figure ... what the heck. Instead of trying to type it all out in the forum I am including a link to an Excel file with my portfolio (~ $1mil) here: https://drive.google.com/file/d/0Bz8kFDrnM5AMekI1ZTBOWmtQZWc/view?usp=sharing I think it will be easier to digest in this format. As y...
by iguaniagu
Sat Dec 27, 2014 1:33 pm
Forum: Personal Investments
Topic: Should I sell My American Funds?
Replies: 51
Views: 13036

Re: Should I sell My American Funds?

You can take this step by step. I would probably just start by working with Vanguard to transfer all the accounts over "in-kind". This keeps you with the same investments you are familiar with but gets you set up at Vanguard. Then you can build a plan to change your overall portfolio to the lower cost, easier to manage index option. I would keep the UTMA accounts separate since they aren't yours and belong to your children really. You can invest them in a way that works for the kids and the goal you have established for the money. If it is to buy the first car, for example, you invest differently than if you are planning to help with a house down payment or something like that. Laura Thanks Laura. Do you have any idea how much a ...
by iguaniagu
Sat Dec 27, 2014 1:25 pm
Forum: Personal Investments
Topic: Should I sell My American Funds?
Replies: 51
Views: 13036

Re: Should I sell My American Funds?

Steelersfan wrote: If some of the funds don't have large capital gains, why not sell those?
My biggest tax hit will come from selling the Traditional IRA. I would only owe taxes on the capital gains and not the basis because the contributions were all non-deductible. I'd be interested to know if the consensus would be to go ahead an convert the Traditional IRAs to Roth after an in-kind transfer to Vanguard. The total in the traditional non-deductible IRAs is ~$40,000 with ~$17,500 as capital gains. This would incur a tax liability on $17,500 in capital gains at 39.6% rate. It seems like a bitter pill to swallow but perhaps the advantages of a Roth IRA at my age (44) might outweigh the immediate tax liability.
by iguaniagu
Sat Dec 27, 2014 12:01 pm
Forum: Personal Investments
Topic: Should I sell My American Funds?
Replies: 51
Views: 13036

Re: Should I sell My American Funds?

Think through your decision, give it time, help establish the habit pattern of acting slowly and being satisfied with "good enough." Oh, and things like your broad asset allocations (U.S. stocks, international stocks, bonds) are more important than the brand name of the fund family. I like the advice about acting slowly. Sometimes I get an itch and I think it needs to be scratched right away. I have had these investments for years a few more months of methodical and prudent change is, I think, wise. Agreed - the broad asset allocation is the important thing. Part of my reasoning for moving from American Funds to Vanguard is to simplify my portfolio - thereby making asset allocations and re-balancing a simpler task. I will also sl...
by iguaniagu
Sat Dec 27, 2014 11:49 am
Forum: Personal Investments
Topic: Should I sell My American Funds?
Replies: 51
Views: 13036

Re: Should I sell My American Funds?

dbr wrote:
iguaniagu wrote:Great advice again. Thank you.

With a UTMA, should I try to realize up to $1000 of capital gains every year for each child? I suppose I could sell one fund then repurchase another, thereby realizing the gain. This way I am continually erasing the capital gains in the account because the kid pays no tax on cap gains less than $1000. In the end, if I have less than $1000 of cap gains each year, I could theoretically pay no taxes at all. Is my thinking correct?
Yes, that works but not if you pay a load each time you repurchase. A mutual fund account at Vanguard or other broker where there is no cost to buy and sell would work.
Thanks dbr. Not planning on buying another AF Fund. Gonna go with Vanguard.
by iguaniagu
Sat Dec 27, 2014 11:47 am
Forum: Personal Investments
Topic: Should I sell My American Funds?
Replies: 51
Views: 13036

Re: Should I sell My American Funds?

For Seattlenative who asked: What American Funds am I invested in? Unfortunately, not a quick answer. I am invested in several AF funds, they are: Taxable account: AIVSX $10,815 Trad IRA (non-deductible) #1: ANEFX $19,530 Trad IRA (non-deductible) #2: CWGIX $1,335, ANCFX $1,560, AIVSX $1,457, ANEFX $12,616, SMCWX $1,349 Roth IRA #1: AEGPX $11,723, ANCFX $12,821, AGTHX $6,798, ANWPX $9,840 Roth IRA #2: ANEFX $7,395, ANWPX $4,441, NEWFX $6,004, SMCWX $8,410, AWSHX $7,352 UTMA #1: AGTHX $7,149 UTMA #2: AGTHX $6,043 UTMA #3: AGTHX $4,002 AIVSX = The Investment Company of America AGTHX = The Growth Fund of America ANEFX = The New Economy Fund CWGIX = Capital World Growth and Income Fund ANCFX = Fundamental Investors SMCWX = SMALLCAP World Fund A...
by iguaniagu
Sat Dec 27, 2014 10:25 am
Forum: Personal Investments
Topic: Should I sell My American Funds?
Replies: 51
Views: 13036

Re: Should I sell My American Funds?

Great advice again. Thank you.

With a UTMA, should I try to realize up to $1000 of capital gains every year for each child? I suppose I could sell one fund then repurchase another, thereby realizing the gain. This way I am continually erasing the capital gains in the account because the kid pays no tax on cap gains less than $1000. In the end, if I have less than $1000 of cap gains each year, I could theoretically pay no taxes at all. Is my thinking correct?
by iguaniagu
Fri Dec 26, 2014 9:20 pm
Forum: Personal Investments
Topic: Should I sell My American Funds?
Replies: 51
Views: 13036

Re: Should I sell My American Funds?

Thanks again for the advice. I'm really excited to move ahead with your suggestions. I really appreciate the altruistic nature of this forum. It's heartwarming to get help from strangers. It has motivated me to liquidate my taxable account by making charitable donations. Trying to pay it forward. Saving$ said that I should "transfer in kind". I'm not sure what you mean by that. Do you mean I should stay invested in the American Funds but transfer control to a Vanguard brokerage account? Then go about selling the AF mutual funds within the Vanguard account? I have another question about my traditional IRA. It was funded completely with non-deductible contributions. I guess that's a good thing because I have already paid the income ...
by iguaniagu
Wed Oct 22, 2014 5:40 pm
Forum: Personal Investments
Topic: Should I sell My American Funds?
Replies: 51
Views: 13036

Re: Should I sell My American Funds?

Thanks for all the replies. I have found them quite helpful. It's a relief to know the IRA can be transferred without any tax consequences. I appreciate the insight into the UTMAs, which luckily are spread among three children. It sounds like a good move to transfer them over a couple years to avoid the kiddie tax which would rob them of half their capital gains. Somebody asked about how my funds had performed against the index funds. The honest answer is the majority of the AF funds seemed to outperform S&P 500 over my investment period of 12 years. Of course, that's without accounting for additional fees and the front end load. I imagine these fees probably erased much of the difference.
by iguaniagu
Tue Oct 21, 2014 10:31 pm
Forum: Personal Investments
Topic: Should I sell My American Funds?
Replies: 51
Views: 13036

Should I sell My American Funds?

I am 44 and I invested, rather naively, in American funds when I was in my 20s. After a couple years I realized the front end load was clearly for suckers so I stopped investing and just decided to leave what I had there since I had already paid the load. Over time they have grown but I'm sure they would have done better in some other low-cost ETF or index fund. The American Fund ERs are still exorbitant, even after the front-end load, and I am certainly not interested in padding the pockets of the folks at AF anymore. At some point I saw the light and now I'm a boglehead convert and I invest solely in low-cost funds. I am looking for advice on whether I should transfer my AF accounts over to another fund family (most likely Vanguard). I am...