Edward Jones [Looking for alternatives]

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fiverus
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Edward Jones [Looking for alternatives]

Post by fiverus » Mon Jan 23, 2017 4:48 pm

Hello, To be honest I don't have a lot of knowledge about investing. I found this site by accident. I have Roth IRA and other investments with Edward Jones. I thought I was in good hands and my adviser is working for my best interest but after reading all the posts about Edward Jones I'm afraid I want to get out and go elsewhere. What is your opinion of other choices and alternatives other than EJ? I would definitely need an advisor since I am not too knowledgeable about investing. Any expert opinion would be highly appreciated.

likegarden
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Re: Edward Jones [Looking for alternatives]

Post by likegarden » Mon Jan 23, 2017 5:24 pm

In a few months you could do it DIY. When I retired in 2005 I wanted to roll over my 401k into an IRA, but did not know how to do it. Some former colleagues from work told me about Vanguard, Bogle and index funds. This led me to to join the Bogleheads (then at Morningstar) and I bought several DIY financial books. I learned enough, rolled over my 401k to Vanguard and designed a simple portfolio.

You have it much easier today, have the Wiki at the Bogleheads site, which I would read in detail. Then I would buy and read 1 or 2 of the suggested financial books and go from there. As described in other posts, Vanguard would transfer your assets from EJ, do not need to speak to an EJ 'advisor'.

Nate79
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Re: Edward Jones [Looking for alternatives]

Post by Nate79 » Mon Jan 23, 2017 5:24 pm

I would suggest that you look into Vanguard's PAS passive investment advisory service. It will be one of the best low cost advisory services.

kenner
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Re: Edward Jones [Looking for alternatives]

Post by kenner » Mon Jan 23, 2017 5:45 pm

fiverus wrote:Hello, To be honest I don't have a lot of knowledge about investing.
The first question is: Do you want to learn more in order to save the prohibitive costs of EJ?

First lesson: EJ is a bad choice.

What investments has EJ recommended to you? What are the total costs to you of those recommendations?
Last edited by kenner on Mon Jan 23, 2017 6:18 pm, edited 1 time in total.

NotWhoYouThink
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Re: Edward Jones [Looking for alternatives]

Post by NotWhoYouThink » Mon Jan 23, 2017 6:04 pm

Knowing you need to leave E Jones is a great first step, and one that many people take years longer to make.

Knowing where to move the money TO, and how to invest it takes a little bit of time, but you don't have to do it today or this week. The fees in the typical E Jones portfolio will eat seriously into your earnings over the decades, but not so much in the next 90 days. Take your time to figure out your destination, then move. If you move first without knowing what you are moving to or why, you won't have learned enough to prevent future mistakes.

mhalley
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Re: Edward Jones [Looking for alternatives]

Post by mhalley » Mon Jan 23, 2017 11:37 pm

If you really want to pay an advisor, the you could do vanguard pas for .3%.
Other options would include fidelity go or schwab intelligent portfolio.

https://investor.vanguard.com/financial ... mpgn=PS:PA

https://dpcs.fidelity.com/prgw/dpcs/dma ... &gclsrc=ds


https://intelligent.schwab.com/public/i ... placement=

radiowave
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Re: Edward Jones [Looking for alternatives]

Post by radiowave » Mon Jan 23, 2017 11:45 pm

fiverus welcome to the forum. If you post your portfolio, you can get better feedback from the group.
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page

Green_98
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Re: Edward Jones [Looking for alternatives]

Post by Green_98 » Tue Jan 24, 2017 9:40 am

I switched from Edward Jones about 6 weeks ago, after several weeks of reading on Bogleheads. I sat down with my advisor and asked him to show me where all of my fees were. Long story short, they will not show you where they make money off of you, even when confronted and specifically asked for full disclosure. They had me set up with MFS Allocation funds with a 5.75% front load and a 1.35% yearly expense ratio :oops: .

I moved my entire Roth into Fidelity's Total Market fund FSTVX. Within a week, I received a dividend check, which I re-invested. (I never saw any dividend from EJ's fund)

I am still learning about Bogle and the "3-fund" portfolio, but from what I see, it seems to be a great long-term strategy for retirement accounts.

My overall advice, since you're just starting out, is to do nothing until you read and learn and decide on a definite strategy. You won't find any support for Edward Jones around this forum, and for good reason. Also another tip, when you do decide on a plan and are ready to take action, make sure not to tell your EJ advisor about your switch. Let your online broker (Fidelity, Vangaurd, etc) do the transfer of assets for you.

pqwerty
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Re: Edward Jones [Looking for alternatives]

Post by pqwerty » Tue Jan 24, 2017 10:16 am

I was also a victim of EJ . I wouldn't say you definitely need an advisor, I would poke around the forum and the wiki for a couple months and then reevaluate. A portfolio can be pretty easy to setup and maintain, for many it is picking a single retirement date fund and plowing money into it for 30 years.

I would stop making any new contributions to EJ as you are likely paying a front load fee. I would make that change today. Meanwhile gather the rest of your portfolio data and post it to the forum.

sschullo
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Re: Edward Jones [Looking for alternatives]

Post by sschullo » Tue Jan 24, 2017 10:57 am

If you are serious about finding an adviser rather than learning from this site, take a look at National Association of Personal Financial Advisers or Garrett Planning Networks.
http://www.garrettplanningnetwork.com/
Reflections on Garrett from this forum by Rick Ferri: viewtopic.php?t=62197

https://www.napfa.org/

Any adviser you hire, you will have to pay a fee (hourly fee, assets under management, and/or retainer).

The lengthy discussions about the decision to hire an adviser usually conclude with a conundrum: by the time you learn how to find a fiduciary, fee-only adviser that looks after your best interest, you know enough about investing to do this yourself.

best of fortunes,
Steve
Last edited by sschullo on Tue Jan 24, 2017 1:09 pm, edited 1 time in total.
Public School K-12 Educators: "Ask NOT what your annuity sales person can do for you, ask what you can do to be a Do-It-Yourselfer (DIY)."

fiverus
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Re: Edward Jones [Looking for alternatives]

Post by fiverus » Tue Jan 24, 2017 11:54 am

Thank you all for your comments. With Edward Jones I have Traditional IRA and Roth IRA. I will send a copy of my portfolio shortly.
I would definitely need an advisor. I am thinking Schwab or Vanguard pas for .3%. I would like to set an account where I contribute each month like I do now.

I am a bit concerned because I have been with EJ or a long time I don't have a lot invested but I have been preparing for retirement since I am close to 60 yr old. At the time, way back I thought EJ was a good choice so I went with it about 20 years ago.. I am clueless about investing and really appreciate good support I hope to do the right thing after discussing on this site.

fiverus
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Re: Edward Jones portfolio

Post by fiverus » Tue Jan 24, 2017 1:31 pm

How do I post my portfolio? I have a copy but what information do you need?

RadAudit
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Re: Edward Jones [Looking for alternatives]

Post by RadAudit » Tue Jan 24, 2017 1:36 pm

fiverus wrote:How do I post my portfolio? I have a copy but what information do you need?
Welcome to the forum

Look here.

viewtopic.php?t=6212
FI is the best revenge. LBYM. Invest the rest. Stay the course.

fiverus
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Re: Edward Jones [Looking for alternatives]

Post by fiverus » Tue Jan 24, 2017 2:58 pm

With Edward Jones, I have Traditional IRA, Roth IRA. contribute $75 per month. EJ buys every 3 months.
My employment 401k company matches 6%

Mortgage 4.375% 30 year. Loan was established 6 1/2 yr ago
credit card 14.40% APR owe 9k
car loan 5% 72 months. this is new as of January

I do not have a savings I live pay check to pay check. I'm scared I'm with EJ after reading posts on this site.

I was married for 25 years, divorced for 2 when my ex-husband passed away. I understand I will receive his social security benefit since we we're married for 25 yrs if I don't re-marry.

I have a copy of my portfolio with EJ and I have access to my 401k at my employment.

What other information do I need to post?

Green_98
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Re: Edward Jones [Looking for alternatives]

Post by Green_98 » Tue Jan 24, 2017 3:45 pm

fiverus wrote:With Edward Jones, I have Traditional IRA, Roth IRA. contribute $75 per month. EJ buys every 3 months.
My employment 401k company matches 6%

Mortgage 4.375% 30 year. Loan was established 6 1/2 yr ago
credit card 14.40% APR owe 9k
car loan 5% 72 months. this is new as of January

I do not have a savings I live pay check to pay check. I'm scared I'm with EJ after reading posts on this site.

I was married for 25 years, divorced for 2 when my ex-husband passed away. I understand I will receive his social security benefit since we we're married for 25 yrs if I don't re-marry.

I have a copy of my portfolio with EJ and I have access to my 401k at my employment.

What other information do I need to post?
Not trying to sound like Dave Ramsey, but if you are living paycheck to paycheck, I would say your best strategy right now would be:

1. Pay off the credit card. Now. ASAP.
2. Start a savings account. First milestone being $10,000 cash money in your account. This is for daily expenses and "emergency fund" money (for car repairs, unexpected hospital visit, etc)
3. Focus on finding a new retirement strategy by reading and learning on this site. Perhaps an annuity would be a great option to consider in the next 5-10 years. I am no expert, but I know these provide stable income.
4. Do you have to have a brand new car? If not, why not sell it and pay cash for a good used car. Use the extra cash to pay off the credit card and start your emergency fund.
5. Read anything and everything you can. Work with more educated investors on this site to analyze your 401k and how you might best utilize it once you retire.

fiverus
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Re: Edward Jones [Looking for alternatives]

Post by fiverus » Tue Jan 24, 2017 4:02 pm

I have 2nd job to pay off my debt of 9k
I purchased used car. but took out a loan for 72 months.


Who can analyze my 401k? What is your suggestion I have Trad IRA and Roth IRA with EJ? Where should I move this?

Green_98
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Re: Edward Jones [Looking for alternatives]

Post by Green_98 » Tue Jan 24, 2017 4:05 pm

fiverus wrote:I have 2nd job to pay off my debt of 9k
I purchased used car. but took out a loan for 72 months.


Who can analyze my 401k? What is your suggestion I have Trad IRA and Roth IRA with EJ? Where should I move this?
If you post what your 401k is, who it is with, the expense ratio, and the symbol of the fund(s), people will weigh in and help.
I wouldn't do anything right now until you learn more and know exactly what move to make. Don't be in a rush.

fiverus
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Re: Edward Jones [Looking for alternatives]

Post by fiverus » Tue Jan 24, 2017 4:09 pm

I'm sorry I'm so ignorant about investing. I am scared and trying my best. I am thankful I found this site.
Who can I discuss my 401k and and Trad IRA and Roth IRA with Edward Jones?

Green_98
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Re: Edward Jones [Looking for alternatives]

Post by Green_98 » Tue Jan 24, 2017 4:15 pm

fiverus wrote:I'm sorry I'm so ignorant about investing. I am scared and trying my best. I am thankful I found this site.
Who can I discuss my 401k and and Trad IRA and Roth IRA with Edward Jones?
I know you're scared, but don't panic. The guidance you receive here is free, no one is trying to make a dollar off of you.

To better know your situation, post the following for each Roth IRA, Trad IRA, and 401k in a format such as this example below:

My 401k: BlackrockLifepath Index 2055. Symbol LPVIX. Expense ratio 1%. Balance $20,000
My Roth IRA: Fidelity Total Market. Symbol FSTVX. Expense ratio 0.05%. Balance $20,000
My Trad IRA: Edward Jones MFS Allocation fund. Symbol MAGWX. Expense ratio 5.75%. Balance $20,000

All of this information can be found on statements about your accounts. If you have online account access, look there. Once you provide this information, people will start weighing in and assisting with educating you.

livesoft
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Re: Edward Jones [Looking for alternatives]

Post by livesoft » Tue Jan 24, 2017 4:20 pm

Since you have only IRA, Roth IRA, and 401(k), my suggestion is to make investing simple and uncomplicated.

In all 3 of these accounts, invest in a so-called Target Retirement fund or Targe Date fund. Vanguard has them at a very very low expense ratio. You only need to own one single fund in each account. For instance, the Vanguard Target Retirement 2020 fund. Very simple. No extra costs. Plus once you get into such a fund, it would cost you nothing extra to change to something else if you wanted to, but I doubt you will want to.
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fiverus
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Re: Edward Jones [Looking for alternatives]

Post by fiverus » Tue Jan 24, 2017 4:41 pm

401k is with Transamerica The Safe Harbour 2.71% rate of return

and the symbol of the fund(s) What does this mean?

I'm concerned where to move IRA's.

my 401k $61,958.13 balance
my Trad IRA $16,531.07 balance
my Roth IRA $11,931.90 balance

Where do I find Symbol and expense rate? I have access to all accounts online.

fiverus
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Re: Edward Jones [Looking for alternatives]

Post by fiverus » Tue Jan 24, 2017 4:42 pm

Thank you for your advice. Do I call Vanguard and discuss with advisor both of your suggestions?

Target Retirement fund or Targe Date fund

Green_98
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Re: Edward Jones [Looking for alternatives]

Post by Green_98 » Tue Jan 24, 2017 4:51 pm

Get on your Edward Jones online account, and look up a report or summary of your accounts. There should be a name and/or a ticker symbol that indicates the name of the fund. Edward Jones likes MFS funds and American funds, more than likely you are set up on one of these.

Do you get monthly statements in the mail? If so, find your last one and look on it.

fiverus
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Re: Edward Jones [Looking for alternatives]

Post by fiverus » Tue Jan 24, 2017 4:56 pm

I will go on Edward Jones site tomorrow. I have to leave now from my day job and go to my night job.

livesoft
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Re: Edward Jones [Looking for alternatives]

Post by livesoft » Tue Jan 24, 2017 5:01 pm

When you come back: I think it just doesn't matter at all what are the funds and investments that you hold at EJ, so there is really no need to research them since you are leaving them.

The same can not be said of your 401(k) choices, so rather than waste time checking your EJ stuff online, just check your 401(k) online.
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Tal-
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Re: Edward Jones [Looking for alternatives]

Post by Tal- » Tue Jan 24, 2017 5:12 pm

You've got good advice above. Here are my thoughts:

Who should you go with?
Vanguard is the gold standard. They will offer you custom advising fees for a very small fee. We personally have our investments through Fidelity, but if you only want one name, Vanguard is that name.

How do I move money over?
Talk with Vanguard first. They should walk you through the process, and let you know any challenges that may be in the way.

How much should you be investing?
For now, i'd focus on paying off your debt and getting an emergency fund. Those will take some time, but are probably the best short-term goals. This may also mean making some tough decisions about your new car.

Were you wrong to go with Edward Jones?
Edward Jones has an appealing sales pitch. They make money because they are good at the selling part of their jobs. Don't beat yourself up.
Debt is to personal finance as a knife is to cooking.

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CAsage
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Re: Edward Jones [Looking for alternatives]

Post by CAsage » Wed Jan 25, 2017 1:44 am

You don't need to solve everything at once. Moving both your IRA and your Roth IRA to either Vanguard or Fidelity, and putting them each in a single Target date fund would be a very simple, good solution with no real downside. Both companies would have customer service reps to help you, without paying more for an advisor. You can work the debt problems and the 401k analysis later!
Salvia Clevelandii "Winifred Gilman" my favorite. YMMV; not a professional advisor.

captpete
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Re: Edward Jones [Looking for alternatives]

Post by captpete » Wed Jan 25, 2017 2:56 am

My wife and I went to Raymond James, another high fee brokerage, and were with them for about two years. We had sold a house and had about 150k to invest. A well respected and well intended family member said "Call Raymond James", so we did. I had taken a proactive approach to investing and read a few books either by or about John Bogle and learned so much. The little book of common sense investing was a God send, I am grateful that men like Mr. Bogle still exist in the very suspicious financial services industry. I hope that Vanguard remains as He established it.
As I learned about investing I started to compare and back-test and project using excel and online tools. We were doing really well at RJ, but not nearly as well as we would have if we were invested in the 3 fund portfolio at VG. I still have the portfolio ticker symbols from our old acct at RJ and like to look at them every once in a while to see how much better off I am without them. I've also invested with Fidelity, but am now 100% VG.
Thank you Mr. Bogle is all I can say. Knowing that the very hard earned fruits of my labor are invested in a way that I understand through a company with integrity is a massive weight off my mind.

fiverus
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Re: Edward Jones [Looking for alternatives]

Post by fiverus » Wed Jan 25, 2017 10:19 am

First off, thank you all for your comments.

I understand to move both IRA's to Vanguard. I'd like to do this ASAP. But I have question about my 401k. As you know my 401k is through my employment and they match 6%. From what I have read from comments it sounds like all 3 should be moved to Vanguard. right? Is my understand correct? I will not have 401k through my employment if I move all 3 accounts to Vanguard. Don't I lose my company matching 6%? Is your suggestion to roll over my 401k to IRA?

I can post my 401k analysis here but do I post ticker symbol and expense ratio of what I have now? or what's available?

I'm currently working 2 jobs to pay off my credit card debt. However, I have a new used car I purchased this month but had to take out a loan. I'm trying to have a saving as well. I just opened a money market account with ALLY bank.

livesoft
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Re: Edward Jones [Looking for alternatives]

Post by livesoft » Wed Jan 25, 2017 10:24 am

You should not move your 401(k) anywhere while you are still working for that employer. So if you got that idea from this thread (or anywhere else), then it is the wrong idea.
I can post my 401k analysis here but do I post ticker symbol and expense ratio of what I have now? or what's available?
You do both following the recommended format: viewtopic.php?f=1&t=6212
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pkcrafter
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Re: Edward Jones [Looking for alternatives]

Post by pkcrafter » Wed Jan 25, 2017 10:55 am

fiverus, welcome to the forum. The first thing you need to do is SLOW DOWN. Before you do anything you need to have a good understanding of the reasons and the mechanics, then you need a workable plan. So, the first thing to do is list all your investment holdings. This would include 401k plus IRAs and Roths at EJ. Livesoft's comment about not listing EJ is OK too since we are not going to recommend you keep anything they have.

You can't move the 401k, but you can tell us what options you are using and what low cost options (funds) are available. Are you adding enough to get that full 6% match?

Provide name, ticker symbol if any, and expense ratio of lower-cost options and include any target retirement funds that are offered.

Go easy, getting up to speed will take a little time.

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

fiverus
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Re: Edward Jones [Looking for alternatives]

Post by fiverus » Wed Jan 25, 2017 11:52 am

I would like to move EJ accounts to VG soon, say 1-2 month. I can talk with advisor from VG about putting each in a single Target date fund.
All my investment holdings are Trad IRA, Roth IRA, and 401k. That's it.

fiverus
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Re: Edward Jones [Looking for alternatives]

Post by fiverus » Wed Jan 25, 2017 11:59 am

I posted analysis of 401k name, symbol, expense ratio but I don't see it.

fiverus
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Re: Edward Jones [Looking for alternatives]

Post by fiverus » Wed Jan 25, 2017 1:29 pm

401k outline

now:

American Funds Fundamental Invs R6 RFNGX, expense rate 0.31%,9%allocation
JPMorgan Large Cap Growth R6 JLGMX,0.59%, 20%allocation
Vanguard Mid Cap Index I VMCIX,0.07%,24%allocation
American Funds EuroPacific Gr R6,RERGX,0.50%, 17%allocation
Vanguard Total Intl Stock Index Admiral, VTIAX, 0.12%,10% allocation
T. Rowe Price Retirement TRRHX,0.69%,20% allocation

available:

Stable Pooled Fund c 0.55%
PIMCO Total Return Instl PTTRX expense rate 0.46%
Vanguard Total Bond Market Index I VBTIX 0.05%
PIMCO Real Return Instl PRRIX 0.45%
PIMCO High Yield Instl PHIYX 0.55%
Vanguard Equity-Income Adm VEIRX 0.17%
American Funds Fundamental Invs R6 RFNGX 0.31%
Vanguard Institutional Index I VINIX 0.04%
JPMorgan Large Cap Growth R6 JLGMX 0.60%
Lord Abbett Value Opportunities I LVOYX 0.92%
Vanguard Mid Cap Index I VMCIX 0.07%
Victory Integrity Small-Cap Value R6 MVSSX 1%
Vanguard Small Cap Index I VSCIX 0.07%
Franklin Small Cap Growth R6 FSMLX 0.62%
Nuveen Real Estate Securities I FARCX 1.05%
American Funds EuroPacific Gr R6 RERGX 0.50%
Vanguard Total Intl Stock Index Admiral VTIAX 0.12%
Fidelity Emerging Markets FEMKX 1.01%
T. Rowe Price Retirement Balanced TRRIX 0.57%
T. Rowe Price Retirement 2005 TRRFX 0.60%
T. Rowe Price Retirement 2010 TRRAX 0.59%
T. Rowe Price Retirement 2015 TRRGX 0.62%
T. Rowe Price Retirement 2020 TRRBX 0.66%
T. Rowe Price Retirement 2025 TRRHX 0.69%
T. Rowe Price Retirement 2030 TRRCX 0.72%
T. Rowe Price Retirement 2035 TRRJX 0.74%
T. Rowe Price Retirement 2040 TRRDX 0.76%
T. Rowe Price Retirement 2045 TRRKX 0.76%
T. Rowe Price Retirement 2050 TRRMX 0.76%
T. Rowe Price Retirement 2055 TRRNX 0.76%

Green_98
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Re: Edward Jones [Looking for alternatives]

Post by Green_98 » Wed Jan 25, 2017 1:46 pm

fiverus,
Check your private messages. Scroll up to the top, and look in the top right.

livesoft
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Re: Edward Jones [Looking for alternatives]

Post by livesoft » Wed Jan 25, 2017 1:56 pm

fiverus wrote:Stable Pooled Fund c 0.55%
Vanguard Total Bond Market Index I VBTIX 0.05%
Vanguard Institutional Index I VINIX 0.04%
Vanguard Mid Cap Index I VMCIX 0.07%
Vanguard Small Cap Index I VSCIX 0.07%
Vanguard Total Intl Stock Index Admiral VTIAX 0.12%
Your 401(k) seems excellent with a number of low-expense-ratio, passively-managed index funds from Vanguard.

What is the "yield" of the stable pooled fund c?

For more help with the Vanguard funds you can read these two boglehead wiki articles:

https://www.bogleheads.org/wiki/Three-fund_portfolio

and

https://www.bogleheads.org/wiki/Approxi ... ock_market
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fiverus
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Re: Edward Jones [Looking for alternatives]

Post by fiverus » Wed Jan 25, 2017 8:23 pm

I need some help, I'm retiring in 7-9 years and I need some advise.

Does this sound good:
Vanguard 2 fund portfolio 50/50 split 1/2 bonds, 1/2 stocks
1. total stock market index fund * stock index VG s & P 500 VTSAX
2. total bond market index fun

Green_98
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Re: Edward Jones [Looking for alternatives]

Post by Green_98 » Wed Jan 25, 2017 9:00 pm

fiverus wrote:I need some help, I'm retiring in 7-9 years and I need some advise.

Does this sound good:
Vanguard 2 fund portfolio 50/50 split 1/2 bonds, 1/2 stocks
1. total stock market index fund * stock index VG s & P 500 VTSAX
2. total bond market index fun
Be sure to clarify that the (2) fund approach would only be for your Roth and/or Trad IRA's. Not your 401k.

Also, just for clarification, VTSAX is a "Total Stock Market" Index, not a "S&P500" Index. No biggie, but just wanted to clarify.

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indexfundfan
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Re: Edward Jones [Looking for alternatives]

Post by indexfundfan » Thu Jan 26, 2017 9:19 am

I like livesoft's suggestion earlier.

Move your IRAs at EJ to Vanguard and put the funds into a target retirement fund. Based on your planned retirement time frame, I would suggest putting the funds into Target Retirement 2025 (currently approx 65% equity/35% bonds). This fund has an expense ratio of 0.15%. And this is all you need to pay.

As for your 401(k), I suggest the following three funds

Vanguard Total Bond Market Index I VBTIX 0.05%
Vanguard Institutional Index I VINIX 0.04%
Vanguard Total Intl Stock Index Admiral VTIAX 0.12%

Say 40% in VBTIX, 40% in VINIX and 20% in VTIAX.
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livesoft
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Re: Edward Jones [Looking for alternatives]

Post by livesoft » Thu Jan 26, 2017 3:12 pm

I think the above suggestion for the 401(k) is fine. Yes, just have the iRAs in target retirement 2025 is fine.

Here's the deal: Because these are all tax-advantaged accounts, there are no consequences to make changes in them. So switch the 401(k) today. If you don't like it later because you have learned more, then switch it again later.

But I could say: Make the 401(k) mimic the Vanguard Target Retirement 2025 fund as much as you like. That might be too much for you right now to figure out what that means, but it is really rather simple. So the previous suggestion is just fine.
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fiverus
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Re: Edward Jones [Looking for alternatives]

Post by fiverus » Thu Jan 26, 2017 3:21 pm

Thank you for your suggestions, I highly appreciate.

Best Regards,

fiverus
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Re: Edward Jones [Looking for alternatives]

Post by fiverus » Thu Jan 26, 2017 3:39 pm

for 401k Do I make the change to existing money in the accounts and future money going in? right?

livesoft
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Re: Edward Jones [Looking for alternatives]

Post by livesoft » Thu Jan 26, 2017 3:40 pm

fiverus wrote:for 401k Do I make the change to existing money in the accounts and future money going in? right?
Yes to both. Right.
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fiverus
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Re: Edward Jones [Looking for alternatives]

Post by fiverus » Fri Jan 27, 2017 9:12 am

I got this is my messages, any comments are welcome


Your two fund idea is fine--Vanguard total stock market and total bond. If you use Vanguard's PAS robo system they may also add total international. You can check with them to find out.

I also think your asset allocation of 50/50 is good, but Vanguard might suggest something higher which you should refuse. Also be aware that the market might take a significant drop in the next 7-10 years so you don't want to be much higher than 50% stock. If the market does drop, be sure you will not get scared and sell. Worse thing you could do.

Another idea is to use Fidelity Go, which is very similar to Vanguard PAS. I'm suggesting Fidelity because of huge inflows of new money into Vanguard, which has made customer service less than adequate.

You would use Fidelity total market index, FSTVX and Fidelity Total Bond, FSITX. Again, don't let them use more than 50% equity. You must be able to sustain a big market drop without really big losses. A 50% equity allocation should moderate your drop to about half of what the market drops and give you time to recover.

You can look at fund information here. Just put the ticker in the box at the top of the page that says Quote.

http://portfolios.morningstar.com/fund/ ... ture=en-US

Check out Fidelity Go here

https://dpcs.fidelity.com/prgw/dpcs/dma/

livesoft
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Re: Edward Jones [Looking for alternatives]

Post by livesoft » Fri Jan 27, 2017 9:25 am

I'll comment. I have accounts at Vanguard and Fidelity.

1. Your portfolio and situation does not need Vanguard PAS nor Fidelity GO nor any other roboadvisor service. Your 401(k) would not go into such a service anyways while you are working and it is the largest account you have.

2. Since you have Vanguard funds in your 401(k), I think you should stick to Vanguard for your IRAs, too.

3. Your IRAs are one-fourth or one-sixth of the value of your 401(k). They will be fine in a Target Retirement fund with no extra fees.

4. Most of the growth in your portfolio over the next 9 years will come from your contributions and not because of any returns in the stock and bond markets. In that sense, it really won't matter that much what the performance of the stock and bond markets will be in that time frame.

5. Asset allocation is personal decision. Whether one chooses 40/60, or 50/50, or 60/40 or SS/BB s a personal decision. For myself, I am already retired, I like something close to 60/40, but I am unconcerned about losing money. For others who are risk averse (NOT adverse), they sometimes choose 20/80 or 30/70, but they still lose money when bond funds go down. My advice is to use the Vanguard Target Retirement 2025 fund asset allocation seen here: https://personal.vanguard.com/us/funds/ ... =INT#tab=2 because of my point #4 above.

6. Contribute as much as you can to your 401(k) and Roth IRA going forward.
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fiverus
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Re: Edward Jones [Looking for alternatives]

Post by fiverus » Fri Jan 27, 2017 9:55 am

Thank you for your comment. I agree.

as for 401k I am contributing 6% company matches 5%. I am thinking of changing to contributing 8% company matches 5%. Sound good?

livesoft
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Re: Edward Jones [Looking for alternatives]

Post by livesoft » Fri Jan 27, 2017 9:59 am

What sounds good to me is that you should contribute $18,000 a year if you will be less than 50 at the end of 2017 or $24,000 a year if you will be 50 by then. I realize that you may not be able to do this. Such a large contribution may save you some income taxes, too, but I don't know.

If you pay no income taxes already, then let me know as that would suggest getting the full match of the 401(k), then contributing to a Roth IRA.
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fiverus
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Re: Edward Jones [Looking for alternatives]

Post by fiverus » Fri Jan 27, 2017 10:24 am

I'm close to 60 and I am not able to contribute those contributions you suggested.

What does this mean? If you pay no income taxes already, then let me know as that would suggest getting the full match of the 401(k), then contributing to a Roth IRA. Income taxes are taken out of my paycheck.

livesoft
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Re: Edward Jones [Looking for alternatives]

Post by livesoft » Fri Jan 27, 2017 10:28 am

Based on what I have read about your financial situation, when you retire, you will be paying expenses mostly from your Social Security checks and not from withdrawals of your portfolio. As such, you will be paying no income taxes in retirement if you withdraw money from your 401(k). Therefore, a Roth IRA has a disadvantage to you because you pay taxes now to contribute to a Roth IRA. Therefore, instead of paying taxes now, just contribute to the 401(k) and pay no taxes on that contribution which also reduces your taxable income now and in the future. By paying less in taxes, you may even be able to adjust your budget to put more into the 401(k).
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fiverus
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Re: Edward Jones [Looking for alternatives]

Post by fiverus » Fri Jan 27, 2017 10:45 am

So, is my understanding correct? Once I transfer both IRAs from EJ to Vanguard do not continue to contribute to either of those? Increase my percentage of contribution with 401k lets say from 6% to 9% or 10%.

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