I’m new to the community on here but have been a follower of Jeremy for a while. I had money invested with EJ for a while, at a 1.1% fee. Back in January 20’, I transferred to vanguard, and have my investments managed with a 0.3% fee plus individual costs of funds (around 175k in managed, Trad IRA + Roth IRA) + 6k self managed ( IRA, no fee except fund fee)
I am thinking of transferring from managed to self managing and am interested in the target index funds. Most of the funds are in VTI (100k) and VXUS (63k) with remaining in bonds (international and US) across my managed Trad and Roth. .
Would you suggest selling these funds and just going 100% into a retirement index fund.
I am currently 30 yr old so I am looking into VFFVX .
Thanks in advance,
When you say you have the Vanguard Managed, are you referring to the “Personal Advisor” a.k.a Financial Advisors? if so these are Fiduciary Advisors and you should ask them the same question, they are “obligated” to give you the advice that is best for you and since they can see your portfolio and have knowledge of their other products, you might get a better advice.
I also believe @thberry10 was in the process of making a similar move from PA to Self Managed, maybe he’s got a better opinion.
Thanks for the tag Fernando
@cloch if you do decide to switch to self-managed I would not sell the funds. I would continue to self implement the 3-fund portfolio strategy that they’ve set up for you, or keep the existing funds as is and contribute all future funds to a target date index fund.
@FernandoN is correct, I am in the process of opting out of VPAS (nothing wrong with the service, just think i can do it myself) and the advice I’ve gotten is to not sell my current holdings, but just adjust future contributions according to if I want to self-manage a 3FP or TDIF
I’m currently on my intro call with Vanguard Professional Advisor Services
Yes, I meant the financial advisors that charge 0.3% management fee. I originally did this when I moved funds from EJ to Vanguard. But now after listening to Jeremy’s advice as well as more research, I am going to be switching to self managed. Thanks !
@thberry10 Ya I am in the same boat. When I transferred my funds to vanguard, I was coming from EJ with poor returns and a higher management fee. I transferred over back in Feb 20’. So after dealing with the uncertainty in the market with COVID, and some free time to research “FI” , I am looking forward to managing my own money feeling confident.
They have me allocated in a 90/10 split stocks / bonds composed of VTI (ETF equivalent of vtsax) and VTSUX International along wth the bonds. I like the ease of target date index and am looking into going that route for both me and my wife for our Roth contributions.
My man! Hope you enjoy their perspective even if you don’t opt to use them
Oh forsure. If you’re in a 90/10 split with VPAS anyway then I would def just opt out and do the TDIF strategy. All of the TDIF’s in your retirement range right now are 90/10 for about the next 10+ years anyway https://institutional.vanguard.com/VGApp/iip/site/institutional/investments/TargetDate
If you wanted to be more aggressive or save some additional money on expense ratios you could manage your own 3 fund portfolio which is what I am going to do. It’s some extra work to rebalance and figure out your asset allocation though, so TDIF’s higher expense ratio is worth it imo