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I am fairly uneducated in the world of investing, but the lack of performance in my existing IRA accounts is forcing me to learn more. I want to start by dumping my lowest performing account and open a new account. From my research it seems like either Fidelity, Vanguard or T Rowe Price is the way to go. It also sounds like most people prefer a self managed accounts over a managed account. I'm already retired so obviously want to keep the risk low, but of course I still need a decent return. Ideally I’d like $100K to return a minimum of 6% so I can draw a little off each month to supplement my income without dipping into the principal. Any suggestions or advice on accounts & funds would be greatly appreciated.
it will really matter how you invest as far as that . very different plan pulling in good and bad times as well as what about inflation adjusting ?
it matters what your plan is since you don't want to be liquidating equities at a loss in a down market in which case you would have to treat this as a retiree would who wants a secure consistant income off their investments.
very different plan and allocations then just some spending money when we are up would require..
Last edited by mathjak107; 03-10-2015 at 02:25 PM..
Ideally I’d like $100K to return a minimum of 6% so I can draw a little off each month to supplement my income without dipping into the principal.
Basically like mathjack is saying you can't get 6% without dipping into principal without taking on stock market risk, which has wide swings. You can probably get 4-5% at most from bonds. If you want 6% plus, then you'd better be able to deal with a multi-year down market.
My current IRA is a managed account and they are just not cutting it. Poor return, terrible web site and no customer support. My research shows most people rate Vanguard pretty high because of their low fees and well performing funds. My thought right now is to transfer everything to a Vanguard self managed account. I can start with their Vanguard Target Retirement 2015 Fund (VTXVX) to move things around as I gain more knowledge.
My current IRA is a managed account and they are just not cutting it. Poor return, terrible web site and no customer support. My research shows most people rate Vanguard pretty high because of their low fees and well performing funds. My thought right now is to transfer everything to a Vanguard self managed account. I can start with their Vanguard Target Retirement 2015 Fund (VTXVX) to move things around as I gain more knowledge.
when you say managed account , are they controlling your money and doing all the asset allocation or do you mean just managed funds vs index funds ?
Good morning mathjak107 ... as I said before .... I'm not that financially savvy, so I was letting them do all the asset allocation ... extra fees with that of course. There's a balance of different funds (with lots of buys & sells) but none are performing very well. I know, not the best way to do it. But they assured me I could get my target 6% return after all the fees ... and like cars salesmen ... they didn't do what they said they could. So they had their chance and now it's time for me to take better control and get my feet wet doing it myself. But still taking the conservative approach, as much as I can, and possibly get a little guidance here. Thanks.
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Poor performing managed acct vs self managed acct
