ekphora wrote:3. I know we could do a 3 fund portfolio, but I've been quite happy with my sliced and diced portfolio and I think giving her exposure to small/value is suitable for her profile.
Will she be presumably managing these investments going forward? If she doesn't have strong financial literacy and interest in active management of her portfolio, I don't think a tilted portfolio is a good idea. Better to move to a 3-fund solution or even target date portfolios.
Target fund or 3 fund portfolio should work for her.
Those expense ratios are brutal though. You should calculate those in real dollar terms so she understands what she is paying every year for those funds.
It's her money at the end of the day, so you need to find a way to convince her of the wisdom of passive index investing - then let her deal with the adviser. If you want to help, you can explain to her how an in-kind transfer over to Vanguard would work, then set her up with a Vanguard financial adviser who can complete the rest of the transactions.
She's new at doing it herself. Just because you like to tinker doesn't mean it's suitable for her, at least at first. I also recommend the Three-fund portfolio. An AA of 70% stocks, 30% bonds, and 35% of stocks in international breaks down to 45% US stocks, 25% international stocks, and 30% bonds. Here is a possible retirement portfolio:
ekphora wrote:Between the two options (moving to a Solo 401k in her case to facilitate a backdoor vs. transfer the SEP to VG), which would you choose?
Duckie wrote:I prefer Vanguard to Fidelity, but given the backdoor Roth IRA issue, I would choose Fidelity.
Default User BR wrote:There's no need to "deal" with the current adviser unless he has some sort of contract that would allow blocking a move. Initiate transfers from the receiving institution. When he calls, have your friend tell him, "I have made my decision, please respect it." Refuse further discussion.
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