not good to have all your eggs in one basket, your advisor has the best intrests of his account,you dont need loaded funds with that amount of money you are investing,look at opening an account at schwab and buy no load five star funds.

Hi Susan,

 

Welcome to the forum.  No apologies necessary, It is a pleasure to “bear” with anyone who is taking responsibility to save for there future.  If only more would get a clue!

 

Here are my thoughts, and that’s all they are and please take them as such.  I am far from an expert in any of this and just hope to stimulate some thought for you.

 

First, I don’t necessarily agree with previous poster about that being too much money to invest in loaded funds.  Most everyone on these boards wont invest in loaded funds, despise them, and will always advise against them.  However, many forget that some people need/want an advisor.  The more money, the less load you will pay.  So IF, and this is a big IF, you are getting valuable advice from your advisor, advice you feel you need and is working well for you, then I say there is no problem investing with American Funds.  We don’t know your situation and this advisor could be spending a good deal of time with you and providing valuable guidance, or perhaps NOT!  If you feel you have an interest in investing and financial planning, willing to take the time to learn about investing and the history of the market so you can “handle” this market, then you MAY be much better off becoming a DIY’er and avoiding the load.  You must decide this for yourself. 

 

I also would not hesitate to place great trust in American Funds.  For loaded funds they are IMO, the most respected and well managed fund family with a relatively conservative long term outlook.  Ofcourse, your advisor may be urging you to stay with only AF, because that may be all he sells.  Your advisor has an inherent conflict of interest by working on commission.  Not a show stopper, just something to keep in mind.  Don’t be afraid to ask him any tough questions.  With that said, I don’t think it is strange or silly to stay solely with AF.  Your young, have many many years ahead of you, If I were you I would learn and yearn, because NO ONE is going to look after your pile like you will! 

You need to possess the time, willingness and patience though, because if you screw it up, it could cost you much more than that pesky load!

 

I assume this money is all taxable and AF’s are not necessarily managed with tax efficiency in mind.  Has this advisor set up any tax deferred accounts ROTH/TIRA outside of 401k, if eligible?

 

IMO, strictly from a mathematical viewpoint it may make sense to hold some debt, but I would pay down all that debt as fast as you can.  Debt is a bad thing!  Your on track with your savings, you have a cash cushion, pay off that debt yesterday!

 

Don’t be rushed into anything, take your time.  Ask some more questions here.

 

So…..what has your advisor done for you?  And how inclined are you to do it yourself?  You’re here asking questions so that offers a small clue!

 

Many smart folks here to help you, but you will have to take the reigns yourself.

 

I will shut up for now with my diatribe, since you really only asked one simple question, and my answer was NO!

 

I will look for your reply.

 

Brian

 

Susan,

No..but you can also use other Fund families...I have a few AF funds and I am vested in other Fund families as well.

I do find it a bit odd that for a growth and income strategy which he counsels, he uses three growthy funds to place all your invested funds in...I would have thought maybe an injection of either Capital World Growth or Fundamental Investors into the mix would have tilted it to the income side a bit...hmm...just me musing...

Nevertheless there are other shops that could do some of the lifting without you having to pay a load that is if you want to get into the grist of things!

Keep asking questions...there a lot of folks here to offer their persepectives...the funds you are currently in have been proven to be solid offerings over the course of their lives so no fears here!

Keep asking questions of him/her and get a clear understanding of fees, strategy and so forth.

Wayne.

 

If you don't want to take the time to research funds yourself and educate yourself about asset allocation, tax efficiency, etc., then a financial advisor can be helpful.

 For someone your age, my favorite American Funds are a mix of NEWFX, AEPGX, CWGIX, AGTHX, ANCFX, SMCWX. 

Kcallie,

I agree...I would toss a small slug of CWBFX (say 5-7%) into that mix...it has been a consistent performer where world bond funds are concerned.

Wayne.