Pretty new and looking for easy to understand help

[bmephdinco]

Hi all,

So I have recently become interested in taking more control of my investments.

I have:
~$11k with Wells Fargo - divided between CAIBX and TEPLX funds
~$6,400 with Rollover Systems in Fidelity Advisor Asset Manager 85%
~$12,500 in RothIRA with USAA - Target 2050 (I'm ok with this one right now)

I'm 28, married, and we're both in grad school earning next to nothing. Let me know if you need any other background here.

I have been thinking of moving the WF and RS money into some new place. I'm not happy with the expense ratio for any of those funds or with the return performance .... in 2 years with RS, I've lost $300 and in around 5 years with WF (since I took control of the account from my mother), I've really gained/lost nothing - it's right around where it was then (going up and down of course but no net gains of obvious amounts).

I want my money to work for me, especially since I don't have a lot to work with. Right now, I'm putting all I have available into the RothIRA (to meet the max - also funding DH's RothIRA to the max) so these accounts would just be sitting there/getting less than $100 a month added to them. We don't have anything from the school (other than <$200 in a TIAA-CERF account that I have no control over). Thus, I want them to move upwards on their own, not cost me much, and be easy to manage.

So can anyone recommend the best thing for me to do?

I have been looking into Vanguard's index funds, some of those are appealing but I'm not sure how easy they are to use...and I don't know if that's a good option for me, or if I should diversify to dividend funds as well. Ideally, a fund for me would have:

expense ratio of <= 0.30
Return since Inception >7.5%
Return last 5 years >= 5%
general exposure (ie, not all Apple stock)
Moderate risk (3 or 4)
Morning Star Rating of 4 or 5

I realize that I can find all this myself, but the problem is I'm not sure if what I am looking for is reasonable and I don't really trust the "advisers" with the companies to be unbiased. Also, I don't want to be actively trading (ie, daily), and I don't want to spend a lot of money switching between funds.

So can anyone help with my issues?

Thanks so much!

[The Virginian]

Personally I think you should consider dumping all but the the Funds recommended by WXYZ and buy Big Name Iconic Dividen Stock - Look on the Long Term Investor thread for WXYZ's excellent safe list. Why pay the fees associated with the funds?

[bmephdinco]

Thanks y'all! I put a question on the LTI thread...

Even though I'll have to pay a penalty to take the money out of the WF account, do you still think it's a good idea? (Selling the stock + closing account fee)

I'll try and be active, but I'm afraid my idea of active is questions right now

[Deleted]

Bmeph -

The way to answer the question of the "penalty" is IMO fairly easy.

You have to decide if spending some money now. to allow yourself to go somewhere where you are comfortable with the Fees is worth it.

It sounds like (to me) you are bothered by the fees and that you are also a bit bothered by the Markets. To the worries over the Fees, really the only thing you can do is find somewhere else that has lower fees, even though that means spending some money. As to the Markets, yeah they are messed up BUT (and this is Important) there are 3 things you should ponder -[1] You are 28, you have 37 years before you are 65 - that is a looooong time before "average" retirement [2] There are actions that you can take that will build things out for you in a meaningful way --AND-- [3] There is an interesting "quirk" in the Markets right now --- The last time Equities were as unloved as they are now was 1956 - Which turned out to be the best buying opportunity since 1932...

This is an Environment in which Fortunes can and are being forged. It is not inconceivably that you could and can lay the groundwork to become a Multi millionaire in this environment, if (as WXYZ points out) you take a Long Term Measured View.

AS for fretting over asking questions - Don't fret. Ask questions, ask a hundred, ask a thousand, ask a million questions - The More you know the more power you have and the more power you have the better equipped you will be.

Folks here are the proverbial "boots on the ground", many of us don't ascribe to half of the shineola' shoveled by the "professionals". And we bounce ideas off of one another, many times finding an idea that is very profitable.

WXYZ is the LTI Guy, with years of battle scars and a ton of perseverance, Virginian is the Dividend Stock Guy. if it pays a Dividend he can find and dissect it, MOD E is the Wise Sage he knows what is what, Rovo is the curmudgeon he will argue points in your thinking to make you think just a bit harder, I (DI) am the guy with a Strange Plan and a list of 300+ of the most consistent Dividend Payers - And there are many, many other folks here with lots of good information.

The Group here has near as I can figure a combined 500 years of Investing knowledge, wisdom and Ideas. Everyone is willing to help out, the key is for you to ultimately decide what is in your best interest by what you think and feel.

And hey there was a Study done not too long ago that proved that by and large - Gals tended to be better at investing over the long term than Guys. The Reason ? Gals Tended to not be as apt as Guys to Panic at ever little scary blurb from the "professionals" and they tended to be more focused on the End Result..

Welcome to IBB.

[ModE98]

wxyz .... can verify that from personal experience. Listened to far too much "street noise" from ao-called anylists who are really out to drag you into the trading net of the brokerage houses. The professionals then "eat you up" and spit you out. They have made their day. The "little guy" on Main Street has limited chances and the odds are far against him Money goes "poof" most of the time. Leave the high risk to the pros.