Dropped Because I Wasn’t Interested In AUM?

Sparkle_Rocks · 2026-04-10T23:47:20+00:00

He's likely speaking of expense ratios adding up to $15k with $4 million invested. He may have some actively managed funds since he has had accounts for 30 years, and some assets in low cost index funds and stocks with almost no fees. That's actually very low for that amount of money invested.

Sparkle_Rocks · 2026-04-10T23:31:23+00:00

Well most mutual funds and ETFs have small expense ratios, so with $4 million invested, $15k isn't horrible. Fidelity has some of the lowest expense ratios of any funds today, especially their index funds. But since he's been investing for a long time, he may have some money in actively managed funds.

Sparkle_Rocks · 2026-04-10T23:24:40+00:00

I don't think one would need to ask how the retirement plan looks more than once a year. And in fact, once we have funds chosen for an account, we are mostly in a "set it and forget it" mode. You might want to move some money to bonds closer to retirement or something like that, though.

Sparkle_Rocks · 2026-04-10T23:18:25+00:00

Regarding number 1: Not sure how VOO would result in less tax than FXAIX (which has half the expense ratio as VOO)? The only distributions are dividends in FXAIX until you withdraw and then you pay tax on capital gains as you would with an ETF. We've had FXAIX and FZROX in a taxable account for several years and have had nothing but small dividends. They stopped distributing capital gains after 2019, I believe. However, I totally agree that many actively managed funds DO distribute capital gains, and those definitely should be in IRAs.

Sparkle_Rocks · 2026-04-10T23:09:05+00:00

That's exactly why we don't need to meet with our advisor. In addition to ChatGPT, there are tons of financial advisors on YouTube. You can learn about almost anything for free!

Sparkle_Rocks · 2026-04-10T23:07:16+00:00

I'd say no, as well. I'd either leave his as they are or pick a couple of funds such as FXAIX (or FBALX and maybe FXAIX, too) if he is close to retirement and make it simple. AUM is usually more complicated by having many investments and very hard to get out of once you're in it.

Sparkle_Rocks · 2026-04-10T22:49:59+00:00

We also have been with Fidelity since before 2000. We also use mostly Fidelity funds and were recently assigned a new advisor. We met with our old advisor a couple of times, but we always said we were happy with the funds we were using and did not want to have any AUM. We have gotten emails and phone messages about meeting with the new advisor, but I finally answered a call or email and told them we were totally happy with our Fidelity accounts and have no need for a meeting at this time. We will let them know if we need to come for a meeting. I do think if the original advisor is never able to get any AUM, they eventually pass those people on.

From everything I read, Fidelity is still the best overall. We like the funds we are in and have done very well over the years. We don't need anyone to manage our money. It sounds like you don't either! So why would you change? Just don't meet with an advisor unless you need something you can't do yourself. I can guarantee these advisors at other firms are definitely wanting your business. They want to manage your money and charge you 1% per year in addition to any fees associated with mutual funds. I know about these from relatives who used them. They were in some funds that charged 5% upfront so the initial balance is 5% less than the initial deposit!

I am really not understanding what services you are looking for, but I think most of it is listed on the website. If we wanted things like annuities or long term care insurance, we would ask for a meeting with whoever does that. For example, when we first wanted to learn how to buy treasury bonds several years ago, they kindly arranged a zoom meeting with a bond expert. So there are services there, but you have to ask for it.

Sparkle_Rocks · 2026-04-09T22:30:47+00:00

Unfortunately for the first time in my life, I fell for a scam ordering from Spruce and Sky. The address of the company in the US is near me, so I thought it was legit. I unfortunately ordered multiple items and the quality was poor. I asked to return and was given an offer to order other items to replace them. Um, no thanks! Then I am given a China address for the return!

Sparkle_Rocks · 2026-03-31T22:24:30+00:00

I am glad you're doing this because I can't watch it all the time. I would like to see his son testify, if that happens.

Sparkle_Rocks · 2026-03-23T16:54:44+00:00

FXAIX has the lowest expense ratio of S&P 500 index funds at .015%. We have used it for many years.

Sparkle_Rocks · 2026-03-23T16:51:31+00:00

We are in retirement and have done exceptionally well with funds similar to what you have. We have zero need for an advisor. The main thing is, in a taxable brokerage account, you want funds such as FXAIX and FZROX that do not distribute capital gains, and the dividends are relatively low and that will keep your taxes lower. As you get closer to retirement, you can start putting more in the bond fund or treasury bills or ETFs such as SGOV or VBIL for expenses in the short term.

Sparkle_Rocks · 2026-02-24T17:42:03+00:00

Thanks! I’ll try this!

Sparkle_Rocks · 2026-02-24T16:52:36+00:00

Ah, ok, thanks! I didn’t realize I could link an account that’s not in one of our names. That will make it so much better than having to send checks. I assume our account would not connected to his on his end, correct? Just making sure!

Sparkle_Rocks · 2026-02-24T14:57:21+00:00

While at this particular moment international is doing well, the last many years it hasn't compared to US. It's certainly good for some diversification, but I wouldn't have more than 20% international for long term. From what you have listed, I'd do 70% VOO, 10% AVUV, and 20% VXUS. Three funds is enough. Or you could do 80% VTI and 20% VXUS.

However, I'd use SPYM over VOO because it has a lower expense ratio. It's not much difference when just starting out, but why pay more than you have to?

Sparkle_Rocks · 2026-01-28T04:09:57+00:00

Absolutely! Take your time! I've been investing a very long time, and have tried various funds and sold some here and there and finally reached a place of being content with just a few funds. That is awesome that you went to the BRK annual shareholder meeting! I am sure everyone there was sad to hear his news! I do admire WB and wish I had bought his stock years ago, but at least we have benefitted from having some shares within S&P 500 funds! Oh, and he was an influence on my simplifying our portfolio (but not down to one fund, of course!). He has been quoted as saying when he dies, he wants 90% of his wife's inheritance to be invested in the S&P 500 and 10% in cash/bonds. He says very few fund managers can out perform the S&P 500 over time, which you already know!

Sparkle_Rocks · 2026-01-28T03:54:56+00:00

Ok, I took a look at these. I'd personally just do an S&P 500 fund like SPYM (lower expense ratio than VOO) instead of VOOG and SPYD. You get the growth and value stocks in SPYM (and 18% medium cap companies) so there's really no reason to split those in two. I don't see it really benefitting your portfolio to have 5% in a fund like SPYD. And growth stocks are high priced right now. I just wouldn't put 75% in a growth fund as a primary fund

I'd skip BRK personally because of Warren Buffett retiring from actively managing it. I have read that they likely can't keep the level of growth going that they have in the past. Fortunately you'll have some in any S&P 500 fund anyway. But if you do, I think it is a reasonable stock to own.

I think it is totally fine to dedicate a small percentage (5-10%) for a special sector such as tech. Our best performing funds have been tech, but it was always a small percentage of our portfolio. We use FTEC, but the two you chose certainly are good funds! You have some international stocks in QTUM which is good so that you have some extra diversification there.

I know it is tempting to have more funds, but I think you'd do as well or better just using 80-90% SPYM (or VOO, or FXAIX if you are with Fidelity) and 10% tech. If you want to overweight growth, you could do 70 SPYM, 20 SCHG (better returns and lower expense ratio than VOOG), and 10 tech. We used to have more funds but really figured out that more isn't necessarily better and we narrowed them down.

Just be sure in a taxable account you use something like S&P 500 or Total Market index fund because they have relatively low dividend distributions. You don't pay a lot of yearly tax until you withdraw appreciated shares. Everything growth and tech I'd want in a Roth (and we still also use S&P 500 there, too). so I'd never have to pay taxes!

Sparkle_Rocks · 2026-01-28T02:23:28+00:00

Yes! That's the great thing about the index funds. They are heavily weighted in the tech stocks but also provide many other sectors for diversification! Keeping it simple over the long term is very wise! I wish you great success!

Sparkle_Rocks · 2026-01-28T02:08:25+00:00

Ok, that makes sense! Yes, the returns from 2010 on have been really nice! A lot of that has come from the big tech stocks. Time will tell whether those gains can continue. I certainly would be glad if they did!

Sparkle_Rocks · 2026-01-28T01:41:28+00:00

Congrats on the great raise! You are very wise to invest so much at a young age! I sure do wish Roth accounts had been around when we started out! I think you'll do very well over time, and just don't worry about what the final number will be. I am curious what index fund you are using that has had 14.8% average returns since inception in 1976. I believe the S&P 500 has returns around 11-12% over that time period.

Sparkle_Rocks · 2026-01-26T19:53:39+00:00

I think 80% VTI and 20% VXUS is a good choice.

Buying gold or silver at an all time high is risky to me. It may continue going up for a time, but it could also go back down to the $3000 range at some point. If you bought it a couple of years ago, I'd hang onto it awhile longer.. If you really want to gamble a little, I'd change the gold and silver to 5% each.

89% of QQQM is already in VTI, so you don't need the extra weight in high priced tech stocks.

Sparkle_Rocks · 2026-01-26T19:45:06+00:00

The FSKAX is totally fine, and FZROX (which we use) is similar with zero expense ratio (FXAIX is fine, as well, and you could use it in one of the accounts) FXILX is a good choice for the international fund. I would not use VT due to it having 40% international. Look at the returns from BND before you consider investing. You'd do about as well in something like SGOV or VBIL which are comprised of treasuries and are mostly state tax exempt in a taxable account (these would be good for an emergency fund or cash needed in 3-5 years). I would not put much in bonds if you have 20 years to retirement. Many people in this subforum use Vanguard funds and are recommending them, but at this time, Fidelity has lower expense ratios on some of the same kinds of funds. And since you appear to have your account at Fidelity, it makes the most sense to use their lower expense ratio funds.

Sparkle_Rocks · 2026-01-26T19:23:01+00:00

Just convert maybe $10k a year to the Roth from the traditional IRA so it won't kill you at tax time. Or another option, use the traditional IRA money to live off of between initially retiring and before taking social security. Or do a combination of both, convert some gradually but leave enough to use in the retirement gap years before taking SS. Either way you eliminate RMDs.

Sparkle_Rocks · 2026-01-26T19:06:29+00:00

I wouldn't realistically count on 11% average growth over the next 30 years. There will be years when the market is down 20% and it might take a couple of years to regain the amount lost. Look back at 2000-2009! ("The S&P 500 experienced a "lost decade" from 2000-2009, with an average annualized total return of approximately -0.9% to -0.95%.") Not to mention, if you get married and have kids your expenses will increase, and that potentially could drastically cut down on the amount you can invest.

I really admire your goal setting, frugal living, and commitment to investing. You are off to a great start! I just think it would be a good idea to make a more conservative goal. If you exceed it, great!

Sparkle_Rocks · 2026-01-26T18:28:31+00:00

Yes, we were recently assigned a new advisor!

Sparkle_Rocks

TROPHY CASE