Want to switch from managed USAA

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
coy9901
Posts: 1
Joined: Thu Oct 19, 2017 5:47 pm

Want to switch from managed USAA

Post by coy9901 » Thu Oct 19, 2017 6:00 pm

Good evening Bogleheads, I am 35 years old. I am currently active duty military, and thus have USAA. They have managed my Roth IRA for the past 5 years, Mutual Fund Store prior to that. I want to jump into Vanguard Boglehead mindset, but am not informed enough to choose funds. I've been googling 'Boglehead funds' and such, but would rather just ask real Bogleheads instead. Please help. What three funds should I put my $84,XXX into? Thanks everyone in advance! Be easy on me, this is my first post. Ask any questions that need to be asked!


dbr
Posts: 27207
Joined: Sun Mar 04, 2007 9:50 am

Re: Want to switch from managed USAA

Post by dbr » Fri Oct 20, 2017 9:33 am

What is USAA charging you to manage your account? You don't have to pay them anything whether or not you keep your investments there, so you want to fix that. You might be better off buying Vanguard funds at Vanguard so you aren't paying transaction fees to buy at USAA. If you have USAA funds they are probably too expensive in expense ratio to continue holding.

Three fund approach is a good idea, but you still have to decide on an asset allocation. You said Roth, but you must have investments elsewhere. You have to consider everything as a whole.

I would suggest going here: https://www.bogleheads.org/wiki/Getting_started

navyitaly
Posts: 238
Joined: Fri Jun 13, 2014 7:18 am

Re: Want to switch from managed USAA

Post by navyitaly » Fri Oct 20, 2017 10:39 am

If you want to stay at USAA, you can buy most Fidelity Index Funds for no charge there..i use USAA..but I use them to hold my Fidelity funds...

Olemiss540
Posts: 583
Joined: Fri Aug 18, 2017 8:46 pm

Re: Want to switch from managed USAA

Post by Olemiss540 » Fri Oct 20, 2017 1:59 pm

Purchase an all in one target date fund that matches your planned asset allocation. They do the work for you! KISS...

Oh, and thanks for your service!
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.

jchris
Posts: 85
Joined: Sun Sep 21, 2014 5:55 pm

Re: Want to switch from managed USAA

Post by jchris » Fri Oct 20, 2017 2:21 pm

Well I'll tell you what I did when I switched my and my wife's IRAs (Trad and Roth) from USAA to Vanguard. I put them into the Vanguard Total Stock Market Index fund (Admiral shares) (VTSAX). It's about the lowest expense ratio fund at Vanguard, and at your age, all or nearly all of your IRAs should be in a stock fund. The transfer itself was fairly painless. Vanguard will send you the forms and handle the transfer.

I still use USAA for banking & insurance and I have some taxable funds there that I haven't switched to Vanguard because I don't want to incur any cap gains tax.

jchris

User avatar
mickeyd
Posts: 4629
Joined: Fri Feb 23, 2007 3:19 pm
Location: Deep in the Heart of South Texas

Re: Want to switch from managed USAA

Post by mickeyd » Fri Oct 20, 2017 2:30 pm

I moved all of my investment accounts from USAA to Vanguard about 15 years ago mainly because they have better funds and they are cheaper to own. I consider that move one of my better financial moves, but time will tell.
Part-Owner of Texas | | “The CMH-the Cost Matters Hypothesis -is all that is needed to explain why indexing must and will work… Yes, it is that simple.” John C. Bogle

dbr
Posts: 27207
Joined: Sun Mar 04, 2007 9:50 am

Re: Want to switch from managed USAA

Post by dbr » Fri Oct 20, 2017 5:46 pm

I hold some assets at USAA. It works fine for me. I never had a managed account there.

Post Reply