Researching a Roth IRA Advice

**disneysteve** · 01-02-2010, 12:21 PM

You want my advice? Get a new financial advisor. That one is a scam artist. I don't care if he is related to you or not. You need to dump him as soon as you possibly can. Anybody who can sit there with a straight face and recommend a fund with a 2+% ER over a fund with a 0.19% ER is a crook, plain and simple. He is purely interested in HIS earnings, not yours.

**CubsFan23** · 01-02-2010, 02:01 PM

that's what I was thinking...but how do I prove it without comparing the past performance of the two funds?

**disneysteve** · 01-02-2010, 02:12 PM

Originally posted by CubsFan23 View Post

that's what I was thinking...but how do I prove it without comparing the past performance of the two funds?

First, why do you need to prove anything? It is your money. You can invest it as you see fit. If you think the Vanguard fund is the better option, that's where you should put your money. Don't ever let anyone talk you into anything else.

Second, why not compare past performance? That's the perfect way to prove your point. The two funds have pretty comparable YTD, 1-year and 3-year numbers. Considering the returns are similar, it makes perfect sense to choose the one with lower expenses because that gives it an automatic edge that is tough to beat.

**kv968** · 01-03-2010, 06:49 AM

I agree with Steve...get a new advisor and dump the funds. Especially the Old Mutual Growth Class A Fund (OMGAX). That fund is very similar to Vanguard's Total Stock Market Index (VGSTX). However the Vanguard fund has an expense ration of 0.18% as compared to OMGAX's of 1.62%

And that's not even taking into consideration that the Old Mutual Fund has a 5.75% load on it which means that for every $100 you invest, only $94.50 actually gets invested and the rest goes as commission.

Granted there are years where OMGAX has marginally outperformed (most likely due to its somewhat smaller market cap exposure) Vanguards', but over time you're just paying too much in fees for them to be competative.

**disneysteve** · 01-03-2010, 07:01 AM

Originally posted by CubsFan23 View Post

I can't find the history of Vanguard's performance.

I missed this comment. Go to Vanguard.com and you can pull up a list of all of their funds and get any details you want including performance data, expense ratios, holdings, etc. Either that or you can just go to Morningstar.com and type in a particular fund symbol and get a nice summary.

**CubsFan23** · 01-03-2010, 04:44 PM

THANK YOU...for the research advice. I will be pulling my $ out of the Old Mutual funds soon and investing with Vanguard. Thanks again!

**jefffou** · 01-08-2010, 07:59 PM

Ole Mutual.....

"The best way in my view is to just buy a low-cost index fund and keep buying it regularly over time, because you'll be buying into a wonderful industry, which in effect is all of American industry," Warren Buffett.

The next time your family member recommends anything outside of an index fund, remind him who he disagrees with.....Mr. Buffett Himself.

Mutual fund fees have burdened millions of investors....all the while lining the pockets of mutual fund "managers".

Jeff

Researching a Roth IRA Advice