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|Subject: Re: Investing ideas for rollover 401k into ira||Date: 9/8/2012 3:22 PM|
|Author: Rayvt||Number: 70898 of 74536|
A financial advisor told me to put my whole 401k into this simple and moderate combination (for a 40year old) recently:
LSBRX 33% (bond)
WWNPX 33% (stock fund)
FMIEX 33% (stock fund)
Never heard of these. Let's take a look....
E/R's: 1.1%, 1.64%, and 0.9% for a bond fund. [[rude comment about this advisor deleted]]
How about VCSH (0.15% ER) or BND (0.10%)?
For stocks, how about FCNTX or VTI?
Looking at a comparison chart of WWNPX, FCNTX, IWM, FMIEX, and VTI, WWNPX shoots the lights out. http://finance.yahoo.com/echarts?s=FCNTX+Interactive#symbol=...
Which means that WWNPX is taking on a very large amount of risk. Which is evident from the 67% loss from Oct'07 to Feb'09. That's a loss of 2/3rds of your money. Can you stomach that kind of loss? I sure can't.
You don't need to pay anything to manage your investments. Not even 0.5% that Schwabs wants. Go back in this thread and read the links I posted.
If you want somebody to manage your money for free or almost free -- it ain't gonna happen. The FA's that will do it for "free" will put you in crappy funds that pay them a commission on the side.
If you want to do zero effort on your part, use one of the portfolios I linked to, or just buy 60% FCNTX orVTI and 40% VSCH or BND.
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