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Started By
Message
re: Move my IRA to vanguard?
Posted on 8/25/23 at 3:33 pm to RoyalWe
Posted on 8/25/23 at 3:33 pm to RoyalWe
quote:
quote:
FAs advising 10+ funds is just bullshite to make you think they have special knowledge.
Meh, that's a flippant and inadequate summary.
quote:
No need to disparage me because you don't share my risk tolerance or intestinal fortitude.
To clarify, you made a blanket statement about all financial advisors who recommend asset allocation do so in order to deceive the investing public. I said that your comment was disparaging, certainly was not intended to be disparaging. You can't go pull an "I'm rubber, you're glue" card
I very much appreciate your commentary and my comment was not to belittle your contributions, only to point out that most people don't have your ability to handle/manage risk and find value in someone doing it for them.
1
Posted on 8/25/23 at 3:46 pm to Sir Saint
I am. You're wrong. Rebalancing is crucial. Tweaks are possible without a crystal ball.
Give me an upvote if you "knew" XOM would go UP when oil was negative after covid. Downvote if you thought oil stocks were a dumb idea at that point. You don't have to be a rocket surgeon to figure out it'd be a good idea to take a 9-10% dividend while you waited for oil stocks to come back up.
eta. I am a dumass enough to sell NVDA prior to earning 3 months ago. So stupid
Give me an upvote if you "knew" XOM would go UP when oil was negative after covid. Downvote if you thought oil stocks were a dumb idea at that point. You don't have to be a rocket surgeon to figure out it'd be a good idea to take a 9-10% dividend while you waited for oil stocks to come back up.
eta. I am a dumass enough to sell NVDA prior to earning 3 months ago. So stupid
This post was edited on 8/25/23 at 3:50 pm
Posted on 8/25/23 at 4:03 pm to UpstairsComputer
quote:
Give me an upvote if you "knew" XOM would go UP when oil was negative after covid
Funny you say this, I made this exact trade and still hold a bunch of XOM at a $44 cost basis. Using this same rationale, I also bought LUV in low 30s after Covid crash and it’s been flat since. Theres a number of other asset classes that have not recovered (commercial RE for example). Hindsight is 20/20. XOM is a convenient and cherry picked example.
I don’t mean to knock the industry as a whole, and I’m sure you’re solid at your job, but I doubt you’re beating VTI YOY. I tend to agree with Royal that FAs hold a bunch of random ETFs on a hunch and the overly complicated approach just leads to underperformance in my personal experience.
Posted on 8/25/23 at 4:24 pm to Sir Saint
Funny you say that, commercial real estate was going to be my rebalancing example. Huge runup in 2021, huge drop in 2022. Same thing with Qs. Anyone who didn't rebalance lost everything they made the year before. Call that "taking one for the team".
It's one I happen to know very well though. We're talking about tweaks, not 20% exposures in client accounts.
Not even close, but I have very few people that want 100% stock. Most of those people don't hire FA's. Which is cool, I don't really want to be judged only by performance as there are quite a few other topics I advise on that get assigned a value of $0 if that's what my scorecard is limited too. My last meeting was a little old lady who lost her husband and needed to figure out her bank account, how to sell his car, her budget, dealing with the state retirement system, and how to get an estate planner to rewrite her documents. All for $0.
Again, asset allocation isn't a hunch, it's a strategy to minimize risk. To the OP's point, at the beginning of my career international was by far the best place to put your money coming out of dot com bust. And to your point, how the hell can we possibly know it won't be the best place for the next 5 years? We don't. All we can do is have exposure, reduce exposure if it lags, and increase exposure if it outperforms (the tweaks), rebalancing along the way.
quote:
Hindsight is 20/20. XOM is a convenient and cherry picked example
It's one I happen to know very well though. We're talking about tweaks, not 20% exposures in client accounts.
quote:
I doubt you’re beating VTI YOY.
Not even close, but I have very few people that want 100% stock. Most of those people don't hire FA's. Which is cool, I don't really want to be judged only by performance as there are quite a few other topics I advise on that get assigned a value of $0 if that's what my scorecard is limited too. My last meeting was a little old lady who lost her husband and needed to figure out her bank account, how to sell his car, her budget, dealing with the state retirement system, and how to get an estate planner to rewrite her documents. All for $0.
Again, asset allocation isn't a hunch, it's a strategy to minimize risk. To the OP's point, at the beginning of my career international was by far the best place to put your money coming out of dot com bust. And to your point, how the hell can we possibly know it won't be the best place for the next 5 years? We don't. All we can do is have exposure, reduce exposure if it lags, and increase exposure if it outperforms (the tweaks), rebalancing along the way.
Posted on 8/25/23 at 4:57 pm to UpstairsComputer
quote:My point was that you don't need 10+ securities to be diversified as long as you hold diversified securities (index funds). So, a FA recommending those things to achieve that goal is recommending unnecessary securities. Add into that any Custodian relationships influencing the funds selected and it's best avoided. The threshold to prove behaving as a fiduciary is low. The price for suboptimal use of investment capital is high.
To clarify, you made a blanket statement about all financial advisors who recommend asset allocation do so in order to deceive the investing public.
Posted on 8/25/23 at 5:03 pm to RoyalWe
quote:
Add into that any Custodian relationships influencing the funds selected and it's best avoided.
Couldn’t agree more.
I was able to incorporate I'm rubber, you’re glue into a comment and didn’t even get an upvote? Tough crowd.
Posted on 8/25/23 at 5:06 pm to UpstairsComputer
quote:LOL. Okay, have your upvote...
I was able to incorporate I'm rubber, you’re glue into a comment and didn’t even get an upvote? Tough crowd.
Posted on 8/25/23 at 5:12 pm to UpstairsComputer
quote:
there are quite a few other topics I advise on that get assigned a value of $0 if that's what my scorecard is limited too.
I get this. And that service/advice is invaluable for a lot of people.
quote:
Again, asset allocation isn't a hunch, it's a strategy to minimize risk.
Agreed. All I’m saying is you can accomplish this by adjusting your ratio with 2 ETFs - VTI and (insert preferred fixed income/bond fund here). No need for 10-20 random ETF positions.
quote:
All we can do is have exposure, reduce exposure if it lags, and increase exposure if it outperforms (the tweaks), rebalancing along the way.
Maybe I’m wrong but I’d bet dollars to donuts that this leads to underperformance. I’m sure if you separate out your equity positions in the portfolios you manage, VTI still wins. Even with all the rebalancing and “managing risk.” The reality is it’s incredibly hard for an individual to beat the market. Few people in history have been able to do this consistently year over year.
Posted on 8/25/23 at 5:12 pm to RoyalWe
quote:
Add into that any Custodian relationships influencing the funds selected and it's best avoided. The threshold to prove behaving as a fiduciary is low. The price for suboptimal use of investment capital is high.
Well said
Posted on 8/25/23 at 5:53 pm to AuburnCPA
Vanguard has a reputation for bad customer service, hard to withdraw money from, and their website is clunky. Go with Fidelity or Schwabb.
Full disclosure I use Vanguard and will switch at some point down the line. Website is mediocre. Customer service is crap. I had a big hassle trying to move another retirement account there. Haven't had to withdraw yet, but I heard they have issues.
Full disclosure I use Vanguard and will switch at some point down the line. Website is mediocre. Customer service is crap. I had a big hassle trying to move another retirement account there. Haven't had to withdraw yet, but I heard they have issues.
Posted on 8/25/23 at 9:48 pm to AuburnCPA
quote:
Well I called him today and had the talk. Initiated the transfer to Fidelity where I already have accounts. He was cool with it.
In kind? Or you liquidated going to reinvest?
Posted on 8/25/23 at 11:04 pm to AuburnCPA
quote:
I'd be buying at a high point.
Possibly. But you won’t know that until the future. Could be the lowest you see for the next 3 years.
Posted on 8/26/23 at 6:15 pm to AuburnCPA
Vanguard retirement funds with the decade after it are fantastic deals with almost no fees. It's basically US market index, smaller percent of international and some bonds that increase the closer you are to retirement. Basically same as the Boglehead strategy. I can't see why someone would need 10-20 different funds. Surely some must overlap.
Posted on 8/26/23 at 10:46 pm to AuburnCPA
Good move to Fidelity. I have been with them for 4 years. I have been with Vanguard 30 years. Fidelity has better service.
Posted on 8/28/23 at 12:06 pm to AuburnCPA
Fidelity, Vanguard and Schwab are all good low cost options.
Posted on 8/31/23 at 11:24 am to roadkill
quote:
Where would you move it?
I’m still not certain.
But probably Schwab.
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