Amerivest customers?

[BobTheHawkHater]

Anybody using Amerivest for your investments? https://www.tdameritrade.com/investment-products/amerivest-portfolios.page

I recently started using TD Ameritrade and they set me up with a "personal advisor" and he's always talking about the merits of using Amerivest. I'm trying to figure out if it's right for me.

I don't have time (or the desire) to educate myself to make wise investments so the idea of maybe paying 1% per year to have my portfolio managed for me seems like it might be good in my case.

I read through the giant thread here on CF recently that talked about avoiding fees and just putting money in index funds and letting it ride, but up until this past year when the markets went crazy, were those index funds (such as the Vanguard Total Market fund) really that much better than something like Amerivest? In other words, are the index funds gains so skewed by this last year that they aren't really a good comparison to Amerivest?

My advisor's main pitch is that while you may not earn as much in a good year like 2013, when things go south you also won't lose nearly as much as you would in the index funds. Also, if I can spend more time doing things I want to do rather than constantly trying to study and worry about my investments, is that worth the 1% annual management fee to me? I'm having a tough time answering that.

I really enjoy reading some of the insights from you fanatics that are heavily into investing, so let me know what you think.

Thanks in advance.

 

[FarminCy]

Here is a link that has parts of Warren Buffett's letters to BH shareholders sent out this week. This may help you with your choice.

Warren Buffett Pitches Vanguard Index Funds for Mom-and-Pop Investors - TheStreet

 

[FarminCy]

Another article summarizing Buffett's letter to his investors.

Warren Buffett stock tip: DON'T try to pick winners

 

[CyFan03]

Anybody using Amerivest for your investments? https://www.tdameritrade.com/investment-products/amerivest-portfolios.page

I recently started using TD Ameritrade and they set me up with a "personal advisor" and he's always talking about the merits of using Amerivest. I'm trying to figure out if it's right for me.

I don't have time (or the desire) to educate myself to make wise investments so the idea of maybe paying 1% per year to have my portfolio managed for me seems like it might be good in my case.

I read through the giant thread here on CF recently that talked about avoiding fees and just putting money in index funds and letting it ride, but up until this past year when the markets went crazy, were those index funds (such as the Vanguard Total Market fund) really that much better than something like Amerivest? In other words, are the index funds gains so skewed by this last year that they aren't really a good comparison to Amerivest?

My advisor's main pitch is that while you may not earn as much in a good year like 2013, when things go south you also won't lose nearly as much as you would in the index funds. Also, if I can spend more time doing things I want to do rather than constantly trying to study and worry about my investments, is that worth the 1% annual management fee to me? I'm having a tough time answering that.

I really enjoy reading some of the insights from you fanatics that are heavily into investing, so let me know what you think.

Thanks in advance.

That statement, in your own words, should answer your question. You shouldn't feel guilty because you would rather spend your free time doing things you enjoy. The only question to answer is whether or not the 1% fee is a big deal to you, and only you. Some people can justify it, and others can't, but don't let other people influence what you already know about yourself. I'll even pick one word that sums it all up....desire. You don't have the desire to follow up quarterly, semi-annually, or annually. If you don't have the desire now, it won't magically appear once you have to start paying attention to statements various times throughout the year.

 

[00clone]

I really have nothing much to add, other than when I see "Amerivest"...I think this:

 

[LostinIowaCity]

I'm a big believer in index funds and Vanguard. I'm much more comfortable handling my investments myself, but I'm in the field. Having said that, I also believe that if you're not going to keep track of your investments and rebalance them on an annual basis, then it's probably best to pay a profession to do it for you. I took a quick look over that Amerivest stuff and was not impressed, especially with the portfolio that would be right for me.

If you're local and are looking for recommendations, send me a PM. I'll let you know who I think is good.

 

[dmclone]

I get a free financial advisor at work and I thought it would be a waste but I learned a few helpful things. I didn't buy anything from him and it reinforced that I was doing most things right. He did get me thinking about an umbrella policy to protect myself. After 3 or 4 1/2 hour sessions I felt like I was in good shape. Principal is also good about offering free classes about retirement based on your age.

As far as investing, I like to have about 50% in a low cost S&P index fund, 20% international, 10% individual stocks, and in times like this I keep about 20% liquid so I can buy it cheap when the market goes down.

 

[CyCy]

I am not familiar with Amerivest, but you should really dig into the fees. You mention a 1% fee. Many managed mutual funds have annual internal fees of up to 1.5%. Is that 1% on top of the built-in mutual fund fee. By comparison the SPY EFT has an internal fee of .09%.

 

[ruxCYtable]

I'm a big believer in index funds and Vanguard.

Agree. I have a finance degree and yet I really don't enjoy researching stocks and mutual funds. Go figure. For that reason I also love Vanguard Index Funds. Instant and very wide diversification and low fees since they aren't being traded all the time. I love throwing money at it and just letting it ride without worry.

 

[Rabbuk]

Agree. I have a finance degree and yet I really don't enjoy researching stocks and mutual funds. Go figure. For that reason I also love Vanguard Index Funds. Instant and very wide diversification and low fees since they aren't being traded all the time. I love throwing money at it and just letting it ride without worry.

sounds like the relationship I have with blackjack.

 

[dirtyninety]

I would be selling by the end of April. Just saying.