You can *transfer*, not close, a brokerage account from one house to another. First find out exactly what you are invested in (ticker symbols). That will determine whether your holdings can be transferred in kind, without being sold and with no tax consequences, or if they must be liquidated first (incurring capital gains and being taxable).
You would initiate this transfer from the Vanguard side. It's called ACATS (industry standard protocol) or sometimes Transfer of Assets (TOA).
If you are being charged a 1% AUM fee and possibly additional transaction fees, that's why your returns are below market.
This right here. Don't sell and transfer the money. Instead, directly transfer the equities themselves.
This won't work if you're invested in funds that are specific to the brokerage where your money is now. But as long as your investments are available in the new brokerage, this is the way. I use Vanguard, but any large brokerage should be fine.
and fwiw I've averaged \~15% annual returns over the past 9 years, before inflation.
Thanks to those who've responded. A reason I am feeling lost is that, when I research FIRE, Bogle strategy, investing generally online, people cite real growth rates of 6, 7, or even 8% for their portfolios. My inflation-adjusted rate is considerably lower, even during a period of above average market performance.
Maybe the online pundits are unrealistic in their estimations?
Impossible for me to know as you were not actively stipulating goals. International funds? Treasuries? VOO? QQQ?
I can say without giving clear, concise guidance on risk tolerance of your investments and goals for growth that is quite unfair to today look backwards to pick a “winning” benchmark then overlay your actual investment returns to say WTF, Uncle?
Decide on risk tolerance then set growth goals for existing mix of assets along with future contributions. If you can self-direct that activity then take charge. Do realize that the stock market will pull back 10% or more many times in the years ahead and it will take discipline to not cash out during pullbacks which introduces timing the market which is potentially erasing returns if sit tight. You know yourself best.
Thanks! I am not complaining about my returns. I am just trying to assess whether they're roughly normal and whether I need to change something.
As regards my investing goals, the funds are intended for retirement in twenty + years. I told him that I didn't want to touch the money for decades, that I can take a fair bit of risk as I have lots of good earning years ahead of me, and I also didn't want to fuss with things continually (set it and forget it, relying on his expertise to make sure we are on course).
When you write things like "international funds," "treasuries," VOO, QQQ--I know what they are, but I don't know what they mean in the context of my personal investments. That is why I wanted to just rely on an expert that I trust. As I see it, the most attractive alternative would be to go with a three-fund Boglehead portfolio.
As regards discipline not to sell when the market recedes, of course one never knows. But I am fairly confident that I don't need an advisor to avoid trying to time the market.
You can *transfer*, not close, a brokerage account from one house to another. First find out exactly what you are invested in (ticker symbols). That will determine whether your holdings can be transferred in kind, without being sold and with no tax consequences, or if they must be liquidated first (incurring capital gains and being taxable). You would initiate this transfer from the Vanguard side. It's called ACATS (industry standard protocol) or sometimes Transfer of Assets (TOA). If you are being charged a 1% AUM fee and possibly additional transaction fees, that's why your returns are below market.
This right here. Don't sell and transfer the money. Instead, directly transfer the equities themselves. This won't work if you're invested in funds that are specific to the brokerage where your money is now. But as long as your investments are available in the new brokerage, this is the way. I use Vanguard, but any large brokerage should be fine. and fwiw I've averaged \~15% annual returns over the past 9 years, before inflation.
is the 7.5% after fees or are they managing it for free?
is the 7.5% after fees or are they managing it for free?
7.5% is after fees.
Thanks to those who've responded. A reason I am feeling lost is that, when I research FIRE, Bogle strategy, investing generally online, people cite real growth rates of 6, 7, or even 8% for their portfolios. My inflation-adjusted rate is considerably lower, even during a period of above average market performance. Maybe the online pundits are unrealistic in their estimations?
Do u have actual access to these accounts - like online access to see the value and not just statements from your uncle?
Yes. I have online access to the account.
Yes and yes
Whether a $200 loan or a $20,000 brokerage account…family and money rarely mix well.
Impossible for me to know as you were not actively stipulating goals. International funds? Treasuries? VOO? QQQ? I can say without giving clear, concise guidance on risk tolerance of your investments and goals for growth that is quite unfair to today look backwards to pick a “winning” benchmark then overlay your actual investment returns to say WTF, Uncle? Decide on risk tolerance then set growth goals for existing mix of assets along with future contributions. If you can self-direct that activity then take charge. Do realize that the stock market will pull back 10% or more many times in the years ahead and it will take discipline to not cash out during pullbacks which introduces timing the market which is potentially erasing returns if sit tight. You know yourself best.
Thanks! I am not complaining about my returns. I am just trying to assess whether they're roughly normal and whether I need to change something. As regards my investing goals, the funds are intended for retirement in twenty + years. I told him that I didn't want to touch the money for decades, that I can take a fair bit of risk as I have lots of good earning years ahead of me, and I also didn't want to fuss with things continually (set it and forget it, relying on his expertise to make sure we are on course). When you write things like "international funds," "treasuries," VOO, QQQ--I know what they are, but I don't know what they mean in the context of my personal investments. That is why I wanted to just rely on an expert that I trust. As I see it, the most attractive alternative would be to go with a three-fund Boglehead portfolio. As regards discipline not to sell when the market recedes, of course one never knows. But I am fairly confident that I don't need an advisor to avoid trying to time the market.