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2 votes
A.J. Blackstone Level 14
Larry- Short answer: Yes. It all has to with CONTROL. In bond mutual funds and EFT's you are investing with fund managers that you cannot control. Also, you have no control of the public investors cash inflow and outflows within the funds (when the public ...(more)
1 vote
Larry, I would add that you may want to consider staying away from bonds with a longer time to maturity. The longer the bond duration (or in terms of a bond fund, the longer average maturity of the fund) the more interest rate sensitive they are, which ...(more)
3 votes
Ken Krausman Level 9
1. Let your current advisor know that your unhappy with the current fee arrangement and see if he can reduce those fees. He will likely have to reduce his compensation to do so and may not be willing. If you are still not satisfied, contact another ...(more)
3 votes
Adam, it is a difficult situation when a small business owner wants to provide an employee benefit of a retirement plan. Every 401(k) has to undergo non-discrimination testing, that is, testing to be certain that highly compensated employees and owners ...(more)
0 votes
Alex Bentley Level 18
Buying by the Fed lowers interest rates. At some point rates will rise, and have already started to do so. But that does not mean you shouldn't own bonds. Bonds act as a hedge against your stock holdings. If there is a 30% drop in your stock holdings, ...(more)
1 vote
Alex Bentley Level 18
Just say no!!!!
4 votes
A.J. Blackstone Level 14
Adam- A lot of the fees you are paying come from the 12b-1 fee which go to the broker of record on your plan as a commission. And yes, you are paying way too much in fees for what you are receiving. Take a look at yahoo.finance.com, and type in the ticker ...(more)
2 votes
Alex Bentley Level 18
Contact the HR department at Federal Express to get the phone number of the plan administrator. Call them to get info on your individual account. You might consider rolling your balance out to an IRA Rollover or Roth IRA.
2 votes
Hi Adam, It is unlikely that you can find lower expense options within the 401(k). Keep in mind that the company match more than doubles the average expense ratio for the American funds, so you are receiving a greater benefit despite the expenses associated ...(more)
2 votes
Alex Bentley Level 18
I'm not an expert in 401Ks, but I believe you are limited to the options selected by the plan. Is there a brokerage account option that would allow you to buy ETFs? If so you can construct a fully diversified and very low cost portfolio with VT, BND ...(more)
1 vote
Alex Bentley Level 18
I wouldn't say they are safer. Stepping back and looking at the big picture, a bond portfolio should be diversified by credit quality and maturity. You should have bonds of varying credit quality and different maturities. My idea of a well diversified ...(more)
1 vote
Rich Winer Level 20
Larry, individual bonds are not necessarily safer than bond funds, just different. When interest rates rise, the value of individual bonds and bond funds will both decline. When interest rates decline, both with increase in value. If you want or need ...(more)
2 votes
Alex Bentley Level 18
Before I became an advisor myself I had my own advisor. He was not local and I never met him face to face. It worked out great so my answer would be no.
2 votes
Alex Bentley Level 18
How much do you charge? Is my account big, small or just about the right size for your practice? Are you an active or passive investor? My personal philosophy is that you can't beat the market, so your focus should be on things you can control: paying ...(more)
1 vote
Alex Bentley Level 18
Don't be sold a "product" you don't understand. If you are promised some kind of return that seems too good to be true, it probably is. Stick to publicly traded stocks, bonds, ETFs and mutual funds. Keep it simple and don't be afraid to ask stupid ...(more)
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