Ameriprise vs Vanguard PAS vs Three fund approach

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MarkAT
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Ameriprise vs Vanguard PAS vs Three fund approach

Post by MarkAT » Fri May 22, 2020 9:59 pm

Hi, brand new to the forum and grateful for some advice.
My company Roth 401K is with Vanguard but all of the $$ is in the Money Market. I have been interviewing several financial advisors as I am not feeling particularly confident in choosing the correct asset allocation. I was shocked by the fees being tossed around by Ameriprise and in browsing the web came across your site as well as some of the books by John Bogle. I know I can't use PAS for 401K money but am getting a sense that reading up on the three fund approach I could save my self the crazy fees and potentially earn more than I would have with the advisor. Should I consider PAS to start or read up on allocating funds myself?

Would appreciate your thoughts.

Thanks, Mark

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dogagility
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Re: Ameriprise vs Vanguard PAS vs Three fund approach

Post by dogagility » Sat May 23, 2020 6:44 am

If you're willing to read and inform yourself of the Boglehead investing style, then my vote is for doing it yourself.

I recommend starting here with your reading: https://www.bogleheads.org/wiki/Main_Page

Your biggest hurdle to sound investing will not be choosing your investments; it will be overcoming your mind's desire to change course (aka market timing and panic selling).
"The stock market is a device for transferring money from the impatient to the patient" -- Warren Buffett

retiredjg
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Re: Ameriprise vs Vanguard PAS vs Three fund approach

Post by retiredjg » Sat May 23, 2020 7:11 am

Even if you use Vanguard's PAS, you should do some reading yourself.

You can also post your information here and get suggestions about how to set up your portfolio. See the link at the bottom of this message for how to do that.

dbr
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Re: Ameriprise vs Vanguard PAS vs Three fund approach

Post by dbr » Sat May 23, 2020 7:48 am

You are absolutely correct that Ameriprise will take away a lot of your money and you don't need to let that happen. They can also leave you with a complicated array of investments that will be hard to unwind later. They are salesmen, not advisors. Signing up with VPAS for a period of time and then going on your own when you know more is an option. FWIW VPAS uses what amounts to a three fund portfolio for your investments. The difference is they tend to put some money in international bonds, but that is not an important difference nor are most variations in the bond allocation actually that important.

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grabiner
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Re: Ameriprise vs Vanguard PAS vs Three fund approach

Post by grabiner » Sat May 23, 2020 10:25 am

If your company's 401(k) is with Vanguard, the simplest thing to do would be to put the whole thing in the Target Retirement fund which matches your planned retirement date, and do the same thing in your IRA. This is equivalent to the three-fund portfolio (Vanguard also uses international bonds as a fourth fund, but that doesn't make much difference).
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retired@50
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Re: Ameriprise vs Vanguard PAS vs Three fund approach

Post by retired@50 » Sat May 23, 2020 10:32 am

dogagility wrote:
Sat May 23, 2020 6:44 am

Your biggest hurdle to sound investing will not be choosing your investments; it will be overcoming your mind's desire to change course (aka market timing and panic selling).
^^^--- THIS --- ^^^
Use a target retirement date fund or just follow the Three-Fund Portfolio guidance. Save a lot. Trade rarely, or never.

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

Regards,
This is one person's opinion. Nothing more.

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Stinky
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Re: Ameriprise vs Vanguard PAS vs Three fund approach

Post by Stinky » Sat May 23, 2020 10:53 am

retired@50 wrote:
Sat May 23, 2020 10:32 am
dogagility wrote:
Sat May 23, 2020 6:44 am

Your biggest hurdle to sound investing will not be choosing your investments; it will be overcoming your mind's desire to change course (aka market timing and panic selling).
^^^--- THIS --- ^^^
Use a target retirement date fund or just follow the Three-Fund Portfolio guidance. Save a lot. Trade rarely, or never.
Excellent advice.

Stay far away from Ameriprise, Edward Jones, etc. Their fees will kill your returns.
It's a GREAT day to be alive - Travis Tritt

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Steelersfan
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Re: Ameriprise vs Vanguard PAS vs Three fund approach

Post by Steelersfan » Sat May 23, 2020 11:23 am

Ameriprise, hands down, is the worst alternative of those three.

NBSteel7
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Re: Ameriprise vs Vanguard PAS vs Three fund approach

Post by NBSteel7 » Sat May 23, 2020 11:35 am

I had my Roth IRA with an Ameriprise financial advisor - worst decision I ever made. I thank this website every single day for really making me get away from the fees that Ameriprise has and how high their expense ratios are. The Boglehead way of investing is quite simple for me being 21 years old and I am SO glad that I can put my investments on an "autopilot" and just relax all the way to my retirement in many years. I think everyone should stay away from Ameriprise. Best of luck on your journey.

NB

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abuss368
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Re: Ameriprise vs Vanguard PAS vs Three fund approach

Post by abuss368 » Sat May 23, 2020 12:22 pm

Over a lifetime of investing I have learned that the simple portfolios win hands down.

Keeping it simple will result in an investor having less opportunity to tinker and alter when the markets inevitably go down (and they always do).
John C. Bogle: Two Fund Portfolio - Total Stock & Total Bond - “Simplicity is the master key to financial success."

Barkingsparrow
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Re: Ameriprise vs Vanguard PAS vs Three fund approach

Post by Barkingsparrow » Sat May 23, 2020 1:45 pm

Steelersfan wrote:
Sat May 23, 2020 11:23 am
Ameriprise, hands down, is the worst alternative of those three.
Absolutely agreed. I had them at one time due to a mistaken belief that I needed a financial advisor. In no time, he had my IRAs spread across something like 12 funds, including one dubious hedge fund that was actually under investigation for fraud. I came to my senses and moved everything to Vanguard, much to the ire of the advisor, who actually came to my house and demanded an explanation. His attitude was like he was entitled to managing my money.

livesoft
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Re: Ameriprise vs Vanguard PAS vs Three fund approach

Post by livesoft » Sat May 23, 2020 1:48 pm

The OP has already passed the biggest hurdle to investing: Registering at bogleheads.org and starting a thread.
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dbr
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Re: Ameriprise vs Vanguard PAS vs Three fund approach

Post by dbr » Sat May 23, 2020 1:53 pm

livesoft wrote:
Sat May 23, 2020 1:48 pm
The OP has already passed the biggest hurdle to investing: Registering at bogleheads.org and starting a thread.
Yes, and given that, the actual question is VPAS vs DIY from the start. I suggested the might be how much one just wants some actual structured advice and management to get started. VPAS is unlikely to put anyone in a place they have to get out of and it can be dropped.

I also mentioned that three-fund is not in opposition to VPAS as VPAS for all practical purposes uses a three fund investment scheme.

Topic Author
MarkAT
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Re: Ameriprise vs Vanguard PAS vs Three fund approach

Post by MarkAT » Mon May 25, 2020 8:50 am

Thank you all for your feedback...will most likely go with the Three Fund Approach.

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