I 36 and wife 39 have some money in 2 IRA's. I have roughly $120k and she has just about $42k. Back in 2020, I crossed the $50k threshold and got a Personal advisor. I'm not sure if I really need one right now. I feel like we are paying fees for our money to sit in the accounts. The biggest reason the account went from $50k to $120k was i was moving the money from T rowe to Vanguard in 2020 and had the money in cash when the market tanked due to covid. (Pure luck). Put it back into the market when it was around 19,000 and it has gone up with the market. Any help would be greatly appreciated.
Do we need a Vanguard advisor?
byu/xtreamist9 inpersonalfinance
Posted by xtreamist9
7 Comments
You absolutely do not need an advisor.
Vanguard has Target Retirement funds for every target retirement year. You don’t need to pay an advisor if you can handle just putting all your money into one of those Target Date funds. Because that’s all the advisor is likely doing anyway.
Just sitting in a broad mutual fund untouched is exactly what that money should be doing.
That service is bull don’t do it they have all there plans based of algorithms I used them and they lost me 57 k in a year and a half ,
You almost defintiely do not need an advisor.
Just curious – what do they charge?
You don’t have enough money invested to need an advisor.
It kinda depends on why you want an advisor.
**To beat the index funds**
You are investing over the long term. No advisor beats the total market over the long term.
https://www.spglobal.com/spdji/en/research-insights/spiva/
https://finance.yahoo.com/news/dont-pay-investment-adviser-beat-144400899.html
https://stockanalysis.com/article/can-you-beat-the-market/
Even if they beat the market in an individual year, you have to compare fees and make sure the fee doesn’t eat up the delta. You are also not guaranteed to be in the small percentage of funds that will beat the market in a given year, so you’re gambling for a small or no win and a big loss.
**To rebalance your portfolio**
Target date funds exist that do that automatically.
**To help tell you you’re on track**
It’s much better to find an advice only financial advisor, not one to manage your funds.
https://advice.xyplanningnetwork.com/
https://hellonectarine.com/
No, decide your allocation, rebalance annually. Despite what the financial Industry will lead you to believe this stuff is pretty simple. As long as you don’t feel the need to fiddle with things you’ll b fine. Most important thing is to determine your risk tolerance.
You could read 2-3 short books on this topic and learn everting you need to know, if you look at the fees you’ll pay over your investing life, the ROI on getting some education on the subject is insane.