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  #1  
Old 03-02-2015, 06:55 AM
jazzeoneaj jazzeoneaj is offline
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Default funds for IRA

Has anyone heard of these funds that recently were suggested for my IRA... MMUCX MFS Utilities C

and LHYCX Lord Abbett High Yield C?

Also, I have conservative portfolio and 59% is in stock...good or not so good. My "adviser' didn't say anything of the contrary but I'm not sure this is too good being 68. If the market goes south..I do too.

What is the best ratio in a small portfolio? Maybe a new advisor?

Thanks.
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Old 03-02-2015, 07:35 AM
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http://quotes.morningstar.com/fund/mmucx/f?t=MMUCX
Above is a link to information about the MFS fund in Morningstar, the largest database of mutual fund information. Overall, it's quite expensive. You pay 1.72% per year just to own this fund. It's a sector fund, concentrated in stocks of the utilities sector.
I can't tell you whether your advisor is good or not. I use Vanguard for my mutual funds. The weighted average expense ratio for my portfolio is about 1/3 of 1%. Vanguard has the lowest expenses and some of the highest rated funds in the industry. But here's the thing: you do everything online. You can talk to an advisor, but it's on the phone. That's why costs are so low. If you need an advisor you can meet with face to face, you will pay (in most cases a lot) for that privilege.
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Old 03-02-2015, 08:11 AM
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http://quotes.morningstar.com/fund/lhycx/f?t=LHYCX
And here's the Lord Abbett fund.
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Old 03-02-2015, 09:24 AM
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If you have a small portfolio that does not need monitoring an d expert advice I would suggest you go with Vanguard Funds. You can research on their site and see what would be best for you. They have lots of diversified fund groups. Me I would end my relationship with the advisor.
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Old 03-02-2015, 12:00 PM
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Quote:
Originally Posted by TNLAKEPANDA View Post
If you have a small portfolio that does not need monitoring an d expert advice I would suggest you go with Vanguard Funds. You can research on their site and see what would be best for you. They have lots of diversified fund groups. Me I would end my relationship with the advisor.
Agree. Go to Vanguard.com and take a look at some index funds that have built in diversification. For example, their Balanced Index Fund has an expense ratio of .09 I think. If you're willing to spend a little time on their site, you'll learn a lot. Good luck.
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Old 03-02-2015, 03:39 PM
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Does not sound good. How is your adviser paid? Fee for time or for what you buy. Is your adviser a financial planner or a stock broker. A broker is a salesman and works for his best interest. Very good that you are asking questions.
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Old 03-02-2015, 06:42 PM
jazzeoneaj jazzeoneaj is offline
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...financial adviser with a major company here in the villages...only charges
1% I think for what I buy which isn't too often as portfolio is small..few mutual and an IRA with several funds. But still..its a nest egg.
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Old 03-02-2015, 07:13 PM
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1% Is a lot what % can he return.
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Old 03-02-2015, 08:02 PM
tommy steam tommy steam is offline
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Quote:
Originally Posted by jazzeoneaj View Post
...financial adviser with a major company here in the villages...only charges
1% I think for what I buy which isn't too often as portfolio is small..few mutual and an IRA with several funds. But still..its a nest egg.
Remember he charges you 1% . The funds you may buy from him will also have a fee. Two funds and his 1 % may cost you more than you think. Those two charge 1.7 and 1.59 plus you 1% you will pay him .Take the advice of others on here and contact Vangard funds or go to their web site for information.
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Old 03-03-2015, 06:41 AM
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You are paying your advisor 1% annually plus those funds are very expensive so your cost is slightly over 2.5%. On 100K that is $2500. You have to earn 10% return to match a 7.5% return from a very basic index fund. There is only one way to do that and that is to take more risk.

Personally I would fire that advisor and manage my money my self. Vanguard, Fidelity and Schwab all have very low cost funds. There are several web sites that can help you. lazytraders.com and match one of there very simple portfolios. boogleheads.org, lots of simple excellent investment advice, all for free. I use all 3 investment firms, but have most everything with Vanguard. Using Morningstar xray, my total expense is .11%, just over 1/10th of 1%.

Your expenses are about 25 times what mine are. Are you getting that much value? And that is not counting any trading cost or front end loads you may also be paying. Go to Vanguard and put 40% of your money in TBM (total bond market) 42% in TSM (total stock market) and 18% in TI (total international) Then study those sites and make adjustment to that mix once you learn more about asset allocation and tilts and expense ratios. But that 3 fund simple mix will give you better returns with much lower risk.
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Old 03-03-2015, 08:30 AM
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Quote:
Originally Posted by l2ridehd View Post
You are paying your advisor 1% annually plus those funds are very expensive so your cost is slightly over 2.5%. On 100K that is $2500. You have to earn 10% return to match a 7.5% return from a very basic index fund. There is only one way to do that and that is to take more risk.

Personally I would fire that advisor and manage my money my self. Vanguard, Fidelity and Schwab all have very low cost funds. There are several web sites that can help you. lazytraders.com and match one of there very simple portfolios. boogleheads.org, lots of simple excellent investment advice, all for free. I use all 3 investment firms, but have most everything with Vanguard. Using Morningstar xray, my total expense is .11%, just over 1/10th of 1%.

Your expenses are about 25 times what mine are. Are you getting that much value? And that is not counting any trading cost or front end loads you may also be paying. Go to Vanguard and put 40% of your money in TBM (total bond market) 42% in TSM (total stock market) and 18% in TI (total international) Then study those sites and make adjustment to that mix once you learn more about asset allocation and tilts and expense ratios. But that 3 fund simple mix will give you better returns with much lower risk.
"Every dollar paid for management fees or trading commissions is simply a dollar less earning potential return. The key point is that—unlike the markets—costs are largely controllable."

https://personal.vanguard.com/us/ins...uth-about-cost
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  #12  
Old 03-03-2015, 12:43 PM
jazzeoneaj jazzeoneaj is offline
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I sent you a PM..with info. Not self investor. You had good information

Last edited by jazzeoneaj; 03-03-2015 at 12:56 PM. Reason: too long information
  #13  
Old 03-03-2015, 03:31 PM
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As always, Todd has provided excellent information and advice and a more complete answer than mine. If you really do want and need an advisor he would be a good one to consider.
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Old 03-03-2015, 08:48 PM
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Thank you. I'm calling him tomorrow.
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