Ameritrade Amerivest Discussion

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Topic Author
babarock
Posts: 3
Joined: Mon Jun 29, 2020 7:58 am

Ameritrade Amerivest Discussion

Post by babarock » Mon Jun 29, 2020 8:04 am

Have been with TD Ameritrade for many years going back to the Waterhouse days. In 2014 they convinced me to consolidate several accounts (other firms) into a single Amerivest Core Mutual Fund Moderate Growth account.

It appears that I've returned about 3.5%/year since inception. Right now I'm still down about 4.5% from the beginning of the year while my Vanguard, Personal Capital, Etrade, 401k accounts are up 1% to 3.5%. I can assure you that the other accounts are moderate growth or more conservative (e.g. Vanguard 2025 Target Date fund).

I've pretty much made up my mind to at least bail from the Amerivest account and do something else to a) get rid of the fees they are charging (for little benefit), b) try for the same returns I'm getting elsewhere, and c) avoid the potential fun of the Schwab takeover.

I'm 64 and have a couple more years before I officially retire (may pick up some consulting). There's about $400k in the account. I've got about $1.3m in other accounts so this is about a quarter of my retirement money (don't want to mess [implied vulgarity removed by Mod Misenplace] it up).

Your opinions please - Do nothing, move to Ameritrade's roboinvestor, move it to Vanguard/eTrade/Schwab and allocate it myself, open a Wealthbuilder/Betterment account and go there, or ???

Thank you for your comments and suggestions.

livesoft
Posts: 72123
Joined: Thu Mar 01, 2007 8:00 pm

Re: Ameritrade Amerivest Discussion

Post by livesoft » Mon Jun 29, 2020 8:27 am

First, Vanguard 2025 Target Retirement fund is down -2.72% YTD and not up.

My opinion is that I would never pay a fee to have someone invest my money for me. I'm a long-term TDAmeritrade client and have never ever considered using Amerivest. So if you want confirmation to ditch Amerivest, here it is: You should ditch Amerivest.

Do not repeat what you did with Amerivest by going to Betterment or Wealthbuilder or other place that charges any fees to keep your money for you. If you like Vanguard Target Retirement funds, then go to Vanguard and use a Target Retirement fund or a LifeStrategy fund or the Balanced Index fund.

However, did you say this was in a tax-advantaged account? If this money is in a taxable account, then you might wish to consider the tax consequences of what you do in the future.

You may also benefit from following this 'Aksing Portfolio Questions" format: https://www.bogleheads.org/wiki/Asking_ ... _questions
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Topic Author
babarock
Posts: 3
Joined: Mon Jun 29, 2020 7:58 am

Re: Ameritrade Amerivest Discussion

Post by babarock » Mon Jun 29, 2020 9:29 am

You are correct re the 2025 fund. I failed to take into account the $7000 contribution. Still doing better than Amerivest. I'll double check my spreadsheet calculations.
These are IRA accounts.
I'll check the link you recommended.

Jack FFR1846
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Re: Ameritrade Amerivest Discussion

Post by Jack FFR1846 » Mon Jun 29, 2020 9:38 am

You can also shed the management portion and buy Vanguard ETFs at TDAmeritrade for free. I do exactly that, holding VEA in an IRA and VTI in a taxable.

Any of the good brokers can work out fine if you stay away from the alligator infested shark pond filled with poisonous snakes and spiders. I'd say this about TDA, Fidelity, Schwab and eTrade, all of which I hold accounts at.
Bogle: Smart Beta is stupid

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ruralavalon
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Location: Illinois

Re: Ameritrade Amerivest Discussion

Post by ruralavalon » Mon Jun 29, 2020 9:56 am

babarock wrote:
Mon Jun 29, 2020 8:04 am
Have been with TD Ameritrade for many years going back to the Waterhouse days. In 2014 they convinced me to consolidate several accounts (other firms) into a single Amerivest Core Mutual Fund Moderate Growth account.

It appears that I've returned about 3.5%/year since inception. Right now I'm still down about 4.5% from the beginning of the year while my Vanguard, Personal Capital, Etrade, 401k accounts are up 1% to 3.5%. I can assure you that the other accounts are moderate growth or more conservative (e.g. Vanguard 2025 Target Date fund).

I've pretty much made up my mind to at least bail from the Amerivest account and do something else to a) get rid of the fees they are charging (for little benefit), b) try for the same returns I'm getting elsewhere, and c) avoid the potential fun of the Schwab takeover.

I'm 64 and have a couple more years before I officially retire (may pick up some consulting). There's about $400k in the account. I've got about $1.3m in other accounts so this is about a quarter of my retirement money (don't want to F it up).

Your opinions please - Do nothing, move to Ameritrade's roboinvestor, move it to Vanguard/eTrade/Schwab and allocate it myself, open a Wealthbuilder/Betterment account and go there, or ???

Thank you for your comments and suggestions.
babarock wrote:
Mon Jun 29, 2020 9:29 am
You are correct re the 2025 fund. I failed to take into account the $7000 contribution. Still doing better than Amerivest. I'll double check my spreadsheet calculations.
These are IRA accounts.
I'll check the link you recommended.
If you like Vanguard Target Retirement Funds, Vanguard LifeStrategy Funds or Vanguard Balanced Index Fund then rollover the TDAmeritrade IRA to to an IRA at Vanguard. Those funds are not available as ETFs at TDAmeritrade or anywhere else.

As livesoft mentioned you might get better advice if you give more information in this format: "Asking Portfolio Questions".
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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