Thread: Roth IRAs

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  1. #1
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    Roth IRAs

    My wife and I have Roth IRAs with State Farm and thinking about moving them. I met with a Edward jones rep but seems like the fees are expensive. Do y'all have a recommendation on where to move this money. We would like to keep the iras in something with a moderate risk. Any help would be greatly appreciated.

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  3. Stocks/Investments Moderator boneil's Avatar
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    #2
    You could always move into one of the many online brokerages and mange it yourself and simply buy SPY and outperform the vast majority of managers. There's an ETF for every market, every currency, every sector and they can be bought with the click of a button.
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    #3
    Quote Originally Posted by mustanggtr View Post
    My wife and I have Roth IRAs with State Farm and thinking about moving them. I met with a Edward jones rep but seems like the fees are expensive. Do y'all have a recommendation on where to move this money. We would like to keep the iras in something with a moderate risk. Any help would be greatly appreciated.
    Don't move them to Jones. You can move them to a low cost broker like Fidelity and buy a completely allocated portfolio with one ticker. Cheap and easy.

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    #4
    second, no Edward Jones,,,,way too expensive and use your money for their profit ,not yours.

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    #5
    Vanguard has some of the lowest fees in the industry. Take a look at their index funds or their target date funds if you want it to automatically move your asset allocation over time.
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    #6
    If you want simple easy and CHEAP, go with Vanguard. You can set it up yourself online super easy and roll over to that. If you're not one to trade stocks and take an active roll in management then go with a target date fund based on the year closest to the year you'd like to retire. That's what I suggest to my family and friends asking the same question.

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    #7
    You can go look at the funds Vanguard or Fidelity offer and see what looks good. Either one of these are great choices. I have Fidelity through my employer and Vanguard for personal accounts.

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    #8
    Vanguard or Fidelity would do a better job for less cost. My old 401k and IRA accounts were with FIDO, and I just left them there when I retired and rolled them all into a traditional IRA with 5 different style funds.

    My new money (taxes paid) went into five ETFs which I later cashed in to pay cash for a house. ETFs are essentially index funds of index funds which come with very low expenses. It is very easy to buy 4-5 of them and be completely diversified. That is where I would go today.

  10. Natalie Gulbis tdt91's Avatar
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    good info coming out here.
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    #10
    One of the Vanguard target funds. Simple and cheap

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    #11
    Quote Originally Posted by Bamaman View Post
    Vanguard or Fidelity would do a better job for less cost. My old 401k and IRA accounts were with FIDO, and I just left them there when I retired and rolled them all into a traditional IRA with 5 different style funds.

    My new money (taxes paid) went into five ETFs which I later cashed in to pay cash for a house. ETFs are essentially index funds of index funds which come with very low expenses. It is very easy to buy 4-5 of them and be completely diversified. That is where I would go today.
    What if a person is already retired, with a CFP and has stocks, bonds, mutual funds, index funds, with both stocks and bonds. If that person put it into five Vanguard funds, would they be less or more diversified? I do have one Vanguard fund that mirrors the S&P.

  13. Natalie Gulbis tdt91's Avatar
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    Quote Originally Posted by Bassin08 View Post
    What if a person is already retired, with a CFP and has stocks, bonds, mutual funds, index funds, with both stocks and bonds. If that person put it into five Vanguard funds, would they be less or more diversified? I do have one Vanguard fund that mirrors the S&P.
    Go to Vanguards website and look at the funds they offer. Find the index funds and open them then read about it. You will find one that states in mimics the S&P
    "The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants" - Thomas Jefferson
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    #13
    Quote Originally Posted by tdt91 View Post
    Go to Vanguards website and look at the funds they offer. Find the index funds and open them then read about it. You will find one that states in mimics the S&P
    I do have that one. I am wondering if a person should be 100% in Vanguard Funds?

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    Quote Originally Posted by Bassin08 View Post
    I do have that one. I am wondering if a person should be 100% in Vanguard Funds?
    I always keep accounts split between at least two different brokerages in case there is some type of system issue (i.e hack, system outage etc.). With regards to diversification though you could be incredibly diversified just within the Vanguard family. They have a few funds which actually own several of their own mutual funds including bond funds, so you could get a mix among market caps and domestic and international. The target funds also do this but I don't like the automatic movement into bonds on set timetables.

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    #15
    Quote Originally Posted by Bassin08 View Post
    I do have that one. I am wondering if a person should be 100% in Vanguard Funds?
    It depends on how much money you're investing and how much you want to babysit that money. All vanguard funds are index funds which are broad based investments without any investment strategy. If you use index funds it doesn't matter which fund family you use. They should all be almost exactly the same so the focus is on lowest cost possible. If you're talking a couple hundred grand or less I would keep it simple (if it were my money). If you were talking anything more than 200k then it makes sense to use an advisor, diversify and use an active management strategy, but that will take some additional involvment on your end.

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    #16
    Quote Originally Posted by Bassin08 View Post
    What if a person is already retired, with a CFP and has stocks, bonds, mutual funds, index funds, with both stocks and bonds. If that person put it into five Vanguard funds, would they be less or more diversified? I do have one Vanguard fund that mirrors the S&P.
    There is strong following on the bogleheads forum advocating a three fund portfolio
    https://www.bogleheads.org/forum/vie...p?f=10&t=88005
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    #17
    Quote Originally Posted by Bassin08 View Post
    What if a person is already retired, with a CFP and has stocks, bonds, mutual funds, index funds, with both stocks and bonds. If that person put it into five Vanguard funds, would they be less or more diversified? I do have one Vanguard fund that mirrors the S&P.
    If you are already retired and have a CFP you are working with, stay there. Vanguard is a good cheap fund family but if not allocated properly you will still be open to market risk. They are not the end all be all that some want them to be.

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    #18
    Quote Originally Posted by janky View Post
    If you are already retired and have a CFP you are working with, stay there. Vanguard is a good cheap fund family but if not allocated properly you will still be open to market risk. They are not the end all be all that some want them to be.
    Every year I take my RMD, but I have been just putting them into a CD at about 1.8% or so. Last year I put it into a Vaguard Admiral fund in my brokerage account. It did very well with about a 20% return. I know that last year was not the normal, but even if I could average a 7% return from year to year I would be happy. My CFP seems to not like VANGUARD FUNDS, as he told me that it doesnít fit his business model. The mutual funds and index funds that I am in have high expense fees, so Iím trying to figure out what to do. I really like the CFP that I have, but this is business to me. He works strictly on commissions from sales. He has a buy and hold them mentality, so he is not flipping investments just for commissions. I have four accounts with him, so he does give me all the time I need when I call him.

    Outside of him I have a substancial amount sitting in CDís, plus a fixed annuity that is paying 3%.

    I donít feel comfortable handling my own investments, but I donít want to move to a different CFP. Any suggestions?

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    #19
    A CFP charging commissions? That is the first I have heard of that. 100% equity is not the place to be found if you are retired. Personally, I would find a fee only advisor and have him build you an allocated etf portfolio.

    Also, I would stray away from the big name brokerage houses like Merrill, Sachs and Morgan Stanley. Find a fee based independent advisor in my opinion.

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    #20
    I am at Disney with the family so I may be slow to respond, but feel free to ask any questions.

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