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I'm 65 and have invested all of my Retirement Account in JP Morgan Chase's OGIAX and all of my life savings in OICAX. My question is how safe are both of these funds?
Thank you!
Thank you!
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diversify
I'm not a financial adviser, but putting all of your eggs in one basket seems the most risky thing. I would consult with someone you trust and diversify your portfolio.
Good luck. -
why? What is your risk tolerance? What other assets? If there was a repeat of the 2008-09 meltdown, where would that leave your net worth? liquidity?Comment
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These are very expensive funds. They are "funds of funds," which means a management fee of 0.41 percent is added to the expenses of the underlying funds. They also have a front end "load," or sales commission. My guess is you were sold these funds by a financial "advisor," who does not have your best interests at heart. In my opinion, this is tantamount to legal theft.
You can duplicate this portfolio and pay much lower fees at a Vanguard or Fidelity. Want a balanced fund at very low cost? You could do a lot worse than Vanguard's Wellington (VWELX) or their balanced fund. The TOTAL annual expense for this fund is 0.26 percent, and there is no sales commission. Vanguard Wellesley (VWINX) is a little heavier in bonds, similar operating expenses of 0.25 percent. Both have long track records and extremely low expenses for managed funds.
If this "advisor" is charging you a fee on top of the fees charged by these overpriced funds, fire him or her immediately. Heck, fire this person anyway and go to Vanguard or Fidelity. You are being ripped off. A couple of percentage points in fees will severely undermine your investment performance over time. And the sales commission is obscene.Comment
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