I have a 401K from a former employer that I wish to roll over to an IRA.The desire to rollover is due to a disproportional amount of my total net worth being in the stock of my former employer. Part of this 401K was funded with after tax contributions.I have had many hours of discussions about this with the local Edward Jones representative. He has almost persuaded me to roll it into their "Advisory Solutions" product. Does anyone out there have any money in "Advisory Solutions"? Does anyone know of any reasons that this would be a stupid thing to do? I am going to meet with a CPA to see what the possibilities are with regard to doing a Roth conversion, either with just the after tax portion or by using the after tax contributions to pay the taxes for converting the rest of it.
How much money is in the 401k?I would personally avoid the "Advisory Solutions" product. If I was interested in investing, I would manage the investments myself. If I was not, I would put it in an appropriately asset-allocated set of index funds or a target date fund and not worry about it.
There is 400K in the 401K.I have heard some bad things about Target Date funds but I am still interested in them.I am surprised that there is so litte mention of Edward Jones here. Maybe the kind of people here are the kind that avoid Edward Jones.Any particular Target Date fund that you like?
"I am surprised that there is so litte mention of Edward Jones here. "^^^^^^^^^^^^^^^^^^^^^^I've talked with Edward Jones reps - good folks who did not try tosell me things - but they were pushing to get funds from me.Course, you want them to help if you go that route - a lot depends onthe individual you work with and their history - ability tocommunicate and listen.Howie52They have to listen to your needs - not theirs.
I've heard some bad things about "full service brokerages" but to each their own.I won't go so far as to recommend a specific target date fund. They're not all the same - two "Target: 2040" funds can have pretty different mixes. You do have to do some research to identify one with low expenses and an asset allocation that matches your goals and risk profile. But the good news is that you only have to do that research once.If you want individualized advice, that's OK too, you'll just pay for it, but that's a reasonable choice. You still have to watch out that the adviser is making decisions/recommendations in your best interest and not your own. (Which would also be true of target date funds.)
I have also heard bad things about full service brokerages, most of them here on Motley Fool. My original plan was just to roll everything into a Fidelity Brokerage IRA. I already have a tradtional IRA at Fidelity and they are also the "holders" of the 401K in question.The reason I haven't proceeded with that plan is that I had no idea of how to handle the after tax portion of the 401K.The concept of Roth Conversion was introduced and I was going down that route for a while but the more I read about Roths, the less I could see that they would benefit me.Now I am back to square one, not too sure about "Advisory Solutions", not too sure that I would do better picking my own funds in a brokerage IRA. I was hoping someone on here had a very strong opinion of "Advisory Solutions", good or bad. Failing that, I was hoping for strong opinions on Edward Jones, good or bad.If you search the Internet for Advisory Solutions, most of what you find is brokers talking to other brokers. The Edward Jones brokers seem to think that it is a good product, the other brokers accuse them of drinking the "kool-aid".
Edward Jones Advisory Solutions has been a good stable program in the year and a half that I have had it. I'm sure that other options earn more but this program has earned me 10-13% in a bad economy. The managers can't predict the future but with 18-20 investments of different kinds, they can cut my losses by switching my investments into types that are least affected by a down turn.
What I previously stated has been correct for my Balanced Toward Growth portfolio but there are other portfolios based on one's attitude toward risk-return. These portfolio's are managed but one can manage the contents himself if he prefers to do so. Based on the funds that are emphasized in other categories that I have, the other categories are probably doing pretty well currently too.
Edward Jones Advisory Solutions has been a good stable program in the year and a half that I have had it. I'm sure that other options earn more but this program has earned me 10-13% in a bad economy.In the year and a half ending on the date of your post, the S&P500 was up nearly 80%. I don't think that either 10%-13% was acceptable, or that we were in a bad economy (at least as far as stock prices go - clearly the employment & housing areas are train wrecks).Byron
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