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Dave,

You say the $300k is in mutual funds and your advisor is making more than you are. What funds is the money invested in? What are the expense ratios? How much are you being charged? What are your funds yielding now? And how much would you owe in taxes if you sold everything in one go to invest it in something else? These are some questions that will help others get a handle on your current situation.

Have you compared the return and yield you’re getting in your collection of mutual funds to what you’d get in a simple, very low expense S&P 500 index fund or total stock market index fund? At the minimum your stock funds should be matching the index return over time since you can get the index return for (almost) free. The S&P 500 index is yielding 1.78% now, which would give you about $5,300 on your $300k. Are you making at least that much?

You talk about selling your mutual funds to invest in “quality dividend stocks.” This assumes though that you know how to pick stocks, know what quality is, know when there’s a sale price on those quality stocks, do the research and have the temperament necessary in order to hold on to those stocks during the inevitable gyrations of the market, and know when it might be worth selling. Unless these are things you know how to do and enjoy doing, you may want to stick with a low cost fund.


Mike
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