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Managed Accounts....are they worth the money?

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raemart
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Managed Accounts....are they worth the money?  Reply with quote  

Hello, I need to move a 401K to an IRA. I was offered a managed account but thought the % was way to high. What is a good percentage for a managed IRA? Is there a formula to follow for each, say, $100,000.00 monies? I have about $200,000 in my 401K. I feel I can manage it myself almost as well, less the hundreds of dollars per year. And I have the time now. Their offer was a large aray of every facet of mutual funds(within the IRA) but very few moves and changes per year. Are managed accounts really worth the money? Thanks.
Post Fri Mar 01, 2013 12:06 am
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slasher
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Just get an index fund from Vanguard and forget about it until you retire. Rarely do managed funds beat the market.
Post Fri Mar 01, 2013 2:02 am
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raemart
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Thank you for all the good information here!
Post Fri Mar 01, 2013 2:48 am
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coaster
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I'd suggest a Vanguard target fund, dated to the year nearest your retirement age.

~Tim~
Post Fri Mar 01, 2013 6:55 am
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raemart
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Load or No Load Funds  Reply with quote  

Thanks for your help. My company 401K just moved from one provider to
another provider. This latest move was to Fidelity. Under the Fidelity mutual funds tab, it shows a Vanguard 500 Index Fund Investor Class (VFINX). <<<< Is this the one I want? It shows an expense ratio of 0.17%. It shows there is a load fee of $75.00. Don't I want no-load fee funds?

Also, Fidelity only offers 3 Vanguard target funds; Retirement Income, Target 2015 and Target 2060. All 3 are load funds of $75.00. I always been told not to pay load fees. Do I really have to pay load-fees? or is there something comparable without the fees? Thank You!
Post Mon Mar 04, 2013 9:38 pm
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oldguy
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quote:
Vanguard 500 Index Fund Investor Class (VFINX). <<<< Is this the one I want? It shows an expense ratio of 0.17%. It shows there is a load fee of $75.00. Don't I want no-load fee funds?


rae, Vanguard & Fidelity are both no-load providers, they are the two 'majors' and they are in direct competition with each other. So when you ask one of them to buy funds in the other company for you they need to charge for that service. But don't do that - ir you want a Vanguard fund, buy it from Vanguard - and coversely. Yes, the VFINX costs 0.17% but no fee. And the Target Funds go from 2015 to 2060 in 5 yr increments, many to choose from.
Post Mon Mar 04, 2013 11:26 pm
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raemart
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Thanks, Pretty sure I want a Target Fund. Fidelity sponsors several target funds but they belong to other companies, Schwab, Well Fargo, Franklin Templeton, etc. They all
have a fee of $75.00.

Vanguard does have many choice Target Funds with no fees. This would be my choice.

I looked at the Mutual Funds as a whole and the returns from inception(older), many of these are never more than 6%. Lots of 5% (older inception) returns. It DOES beat inflation(for now)? but that really is not very good when one have has their money tied up for 30 years. The Vanguard target fund I am looking at has made 6.11% since 2003 inception. We all may be able to 'beat the system' with all the good information on here. Thanks!
Post Tue Mar 05, 2013 4:02 am
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gilbertholdings
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vanguard funds are always pretty good expense ratio, that's what they're selling point is. I'd definitely manage it yourself, if you don't want to pick stocks, just pick specific index funds / etf's and go from there. there's no reason to give 1 ro 2 % of your funds away to someone who likely won't be the index average even before fee's.
Post Fri Mar 08, 2013 6:48 pm
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