It's official. Vanguard now has my money and it's all in their Target Retirement 2040 fund. The best part is, the transition was smooth and painless.
If you've been hesitating to move those old 401(k)'s and Roth IRA's, stop procrastinating and just do it.
Why did I chose Vanguard?
Because the expenses are low and the fees are waived if you sign up for their online statement delivery. Any index fund can match the markets, however the expenses you incur will determine your actual return. It's basic math.
My old company, Edward Jones, drove me crazy with their mailings. They just recently got online statements. Even though I signed up for electronic delivery, I would still get prospectuses in the mail constantly. And because both my wife and I had the same funds, and I owned a fund in both my traditional and Roth IRA, I ended up with 3 prospectuses from the same fund. And they are the big heavy glossy paper kind. Not real great for the environment if you're into that type of thing.
Expenses Matter
I'm paying Vanguard .21% of my assets every year for them to manage my account. This is one of the lowest expense ratios in the industry. For that I get exposure to the Total US stock and bond markets and also the international and developing markets.
In the long run, expenses and portfolio allocation (diversification) are really all that matter. With one fund I'm getting the best of both worlds.
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[...] while back I told you I dumped Edward Jones for Vanguard. So far I couldn't be happier (well, I could be if the market was down so much, but that just [...]