Sale of my business about to go through -- Where do I park the money?

[PatsFan1283]

The asset allocation is fine but a few of those funds I'm just not a fan of because of the load fees and/or the expense ratios associated with them.

Vanguard has funds that will do similar for you with less expense ratios.

If you invest 6M and 3% into a fund with a 1.3 expense ratio/5.75% load fee compared to .3% here is the math

6M x 3% = 180k into that fund...With a load of 5.75% and an expense ratio of 1.3% you are paying like 13k off the bat in fees when with a lower fees/no load fund you can cut that # to like 400 bucks.


https://personal.vanguard.com/us/funds/snapshot?FundId=0502&FundIntExt=INT

This simple vanguard index fund has a 60/40 split like you are looking for. 5400 different bonds/3400 stocks so is well diversified.

It is US centric....If you want to add international bond/equity exposure toss in some VTMGX (developed market bond fund) VGAVX (emerging market bond fund) would work.

Probably just saved you like 50-80k a year in load fees and fund expenses. Although your advisor will be pissed.

 

[Grog]

My advisor is charging me .75 basis points.

It's going to be about 45K a year for his fee.

 

[CHOPTALK]

Hey Grog.
I will trade you David Wilson and New Orleans team defense for your portfolio.

 

[PatsFan1283]

My advisor is charging me .75 basis points.

It's going to be about 45K a year for his fee.

That actually has nothing to do with the expense ratios of the funds though. What he is charging is just right off the top regardless of what funds you use. Doesn't include the load fee for those type of funds either (not all the funds he said to invest in had load fees, and some had low expense ratios as well, but still overall it is significantly more than it needs to be)

This would probably be too bold or too much of a leap at this point but your basically paying him 45k to click about 10 buttons on a computer. Just simple vanguard indexing will give you better results since you will save a ton in commissions. I'd personally tell him you're set and just call Vanguard/Blackrock/etc yourself but I realize mindset wise that is just too much of a departure from the norm/unchartered territory. If you got some time just google fees and their historic impact on fund returns.

Good luck with it though

 

[PatsFan1283]

or google/youtube John Bogle (founder of Vanguard) he has a lot of good audio and print interviews on indexing

 

[CHOPTALK]

Bogle also has a great posting forum that he owns that you should sign up for.
If you read that place long enough you will start learning how to invest your money.

 

[PatsFan1283]

yeah just tell the advisor instead of 45k a year for doing nothing, you'll give him denarius moore and david wilson for leveon bell and call it a day

 

[CHOPTALK]

yeah just tell the advisor instead of 45k a year for doing nothing, you'll give him denarius moore and david wilson for leveon bell and call it a day

Hey man. I enjoyed you being in the league last year.
I know you don't really like the draft format but I believe you came out ahead last season with all your side bets.
I think you could turn it into to +/even situation if you play.

All we need is one more player for 12.

 

[Grog]

yeah just tell the advisor instead of 45k a year for doing nothing, you'll give him denarius moore and david wilson for leveon bell and call it a day

Totally deserved this.

 

[rolltide]

Bogle also has a great posting forum that he owns that you should sign up for.
If you read that place long enough you will start learning how to invest your money.

assuming you're talking about bogleheads so i just checked it out. this is worse than the rxforum's rubber room

54	t	What to tell friends who think "it's all a scam" page: 2	08/04	InvestorNewb	07:47	Boglegrappler
67	c	average American eats out 203 times per year page: 2	10:35	Go Blue 99	07:44	lolbatross
22	c	"Russan Gang Amasses Over A Billion Stolen Passwords"	17:27	Taylor Larimore	07:44	jchef
9	p	Bank Asking me Questions	21:30	Saving$	07:43	spectec
126	t	International investing. A good call by our mentor. page: 2 3	07/30	Taylor Larimore	07:42	JoMoney
10	h	Rolling in/out of a government 457b	09:20	asif408	07:42	asif408
48	c	Solar Farm, anybody buy in?	07/30	dbCooperAir	07:40	dbCooperAir
0	t	Finding Smart Beta in the Factor Zoo	07:40	Beliavsky
0	c	Recently Engaged	07:40	Ody
32	c	Attitudes toward inheritances.	16:00	mojave	07:38	scrabbler1
3	h	VG PA long term or intermed tax exempt for EF?	10:02	pulcinella	07:37	pulcinella
25	c	Will global entry or TSA Precheck help me?	08/04	newkidontheblock	07:37	spectec
11	t	Risk and Return of Tilted and Market Balanced Funds	08/05	asset_chaos	07:37	larryswedroe
79	p	Should i Buy a new car page: 2

 

[CHOPTALK]

Bro you must be in the wrong section.

Go to the main forum

 

[PatsFan1283]

Hey man. I enjoyed you being in the league last year.
I know you don't really like the draft format but I believe you came out ahead last season with all your side bets.
I think you could turn it into to +/even situation if you play.

All we need is one more player for 12.

ehh just not into the draft really, if it doesn't fill the last few spots I'll maybe stake someone or take a piece of their team so their buy-in is less if you guys need it.

@RT http://www.bogleheads.org/forum/index.php?sid=6f4732ae108d0278844b3c183b4a4cad that is the site, not sure how good/informative it is though

 

[CHOPTALK]

ehh just not into the draft really, if it doesn't fill the last few spots I'll maybe stake someone or take a piece of their team so their buy-in is less if you guys need it.

@RT http://www.bogleheads.org/forum/index.php?sid=6f4732ae108d0278844b3c183b4a4cad that is the site, not sure how good/informative it is though

Just like any other forum on the internet it has good threads and bad threads.
Good posters and bad posters.

 

[Grog]

Its going to be really hard to trade David Wilson now...

 

[PatsFan1283]

assuming you're talking about bogleheads so i just checked it out. this is worse than the rxforum's rubber room

54	t	What to tell friends who think "it's all a scam" page: 2	08/04	InvestorNewb	07:47	Boglegrappler
67	c	average American eats out 203 times per year page: 2	10:35	Go Blue 99	07:44	lolbatross
22	c	"Russan Gang Amasses Over A Billion Stolen Passwords"	17:27	Taylor Larimore	07:44	jchef
9	p	Bank Asking me Questions	21:30	Saving$	07:43	spectec
126	t	International investing. A good call by our mentor. page: 2 3	07/30	Taylor Larimore	07:42	JoMoney
10	h	Rolling in/out of a government 457b	09:20	asif408	07:42	asif408
48	c	Solar Farm, anybody buy in?	07/30	dbCooperAir	07:40	dbCooperAir
0	t	Finding Smart Beta in the Factor Zoo	07:40	Beliavsky
0	c	Recently Engaged	07:40	Ody
32	c	Attitudes toward inheritances.	16:00	mojave	07:38	scrabbler1
3	h	VG PA long term or intermed tax exempt for EF?	10:02	pulcinella	07:37	pulcinella
25	c	Will global entry or TSA Precheck help me?	08/04	newkidontheblock	07:37	spectec
11	t	Risk and Return of Tilted and Market Balanced Funds	08/05	asset_chaos	07:37	larryswedroe
79	p	Should i Buy a new car page: 2

There is a wiki on the site that is filled with good info.

http://www.bogleheads.org/wiki/Main_Page

 

[Grog]

My investment guy wants to put 1 M in equities and so far has purchased $50,000 worth of the following:

United Technologies UTX
Boeing (BA)
Novartis (NVS)
Siemens (Siegy)
Unilever (UL)
Marriot (MAR)
Disney (DIS)

 

[CHOPTALK]

You payed that guy about 8k per click.

 

[barnstorm]

Got to put some of it in gold as insurance, just in case. What caused 2008 has not gone away - it has only been bandaged up.

Market is at all-time highs. That's a scary time to be sinking a big chunk of cash in.

GL!

 

[Grog]

You payed that guy about 8k per click.

I did Chop? How? Are you certain?

I ask because the fees are listed as a flat $500 for each of the stock transactions. He is taking a management fee of .075% on the rest of the portfolio but not on the 1M worth of straight stocks, on those there is a flat $500 fee. Am I missing something?

He also bought another 50K worth of Boeing yesterday.

 

[CHOPTALK]

That .075% is a lot of money.
It does not sound like he is doing anything special to me.
Looks like all he is doing is buying you a bunch of blue chip stocks that his brokerage is probably invested in.