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Expense ratios question…

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  • Avatar deanyar 
    Participant
    Status: Physician
    Posts: 26
    Joined: 03/06/2019

    So, I am ever so close to switching my funds from my advisor to doing it on my own thru Vanguard.

    There are several funds that I am currently invested in, courtesy of my advisor – including Schwab mutual funds, Dodge & Cox, etc…

    I am trying to decide which ones I should liquidate and reinvest the money into Vanguard index funds (I have a plan), and which ones I should transfer in kind (for now).

    Part of my decision is based on the cost basis and how much in cap gains I will have to pay.

    The other variable will be expense ratios.

    MY QUESTION: If I were to transfer some of the nonVanguard funds in kind to Vanguard, how do I determine what the expense ratios for each of these funds will be once they are in Vanguard?  (I have not needed to pay attention to this in the past, since I was charged an AUM fee).  This info will also help me decide what to liquidate and what to keep for now…

    Do I look at Morningstar and look up each individual fund, and that will tell me the expense ratio that I should expect to pay if I keep the fund within Vanguard?

    Any other thoughts?

    As always, thanks!!

    #228787 Reply
    CordMcNally CordMcNally 
    Participant
    Status: Physician
    Posts: 3047
    Joined: 01/03/2017

    The actual expense ratios won’t change based on the brokerage.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #228792 Reply
    CordMcNally CordMcNally 
    Participant
    Status: Physician
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    Joined: 01/03/2017

    Also, you always need to pay attention to expense ratios. Expense ratios and AUM fees are different and unrelated.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #228793 Reply
    Liked by DCdoc, jz, Hober Mallow
    Avatar deanyar 
    Participant
    Status: Physician
    Posts: 26
    Joined: 03/06/2019

    Thanks.

    I guess to clarify, up to now, because I have paid an AUM fee (as my only fee) to an advisor, the expense ratios for the funds were irrelevant from my perspective.  Now that my plan is to divorce with my advisor,  I may be transferring some of the funds in kind, so the expense ratios are now becoming absolutely relevant.  (That was my only point with my expense ratio and AUM fee comment).

    So, is there a good place to easily look up expense ratios for funds?

    #228794 Reply
    Avatar Peds 
    Moderator
    Status: Physician
    Posts: 4679
    Joined: 01/08/2016

    Prospectus.

    #228795 Reply
    Avatar Hober Mallow 
    Participant
    Status: Other Professional, Spouse
    Posts: 41
    Joined: 01/01/2018
    I guess to clarify, up to now, because I have paid an AUM fee (as my only fee) to an advisor, the expense ratios for the funds were irrelevant from my perspective.

    Click to expand…

    This would be unusual and I doubt it is true.  Up to this point, you have most likely been paying the AUM fee to your advisor, in addition to the expense ratio that is automatically deducted from the fund returns.  If you transfer those same funds to Vanguard, your advisor’s AUM fee goes away but the expense ratio is unchanged.

    #228796 Reply
    Avatar deanyar 
    Participant
    Status: Physician
    Posts: 26
    Joined: 03/06/2019

    Oh boy – I was under the impression that I was only paying the AUM fee and really never paid too close of attention…well, at this point, I will have better control and knowledge of the expenses…

    #228810 Reply
    Vagabond MD Vagabond MD 
    Participant
    Status: Physician
    Posts: 3486
    Joined: 01/21/2016

    Yup, you were paying expense ratios all along. You can look them up on Morningstar or in the funds’ perspectuses.

    #228832 Reply
    Avatar ZZZ 
    Participant
    Status: Spouse
    Posts: 729
    Joined: 06/18/2018

    “Oh boy – I was under the impression that I was only paying the AUM fee and really never paid too close of attention”

    Yep, you paid them all along. Motivated to learn even more about personal finance, now, aren’t you! A little bit of knowledge can save you a ton of $.

    #228844 Reply
    Avatar jhwkr542 
    Participant
    Status: Physician
    Posts: 1335
    Joined: 02/15/2016

    Unfortunately, you may be stuck with the expense ratios if they have substantial gains.

    #228845 Reply
    Avatar deanyar 
    Participant
    Status: Physician
    Posts: 26
    Joined: 03/06/2019

    So, I thought I would pass this along in case anyone finds this useful…

    I was able to answer my initial question (although I am thankful for the additional revelations from the responses in this thread…)

    Anyway, I was able to find that thru the site Yahoo Finance, one can easily look up quick snapshots of fund info, including expense ratios.  Just enter the ticker symbol (upper right on the website), and boom, there it is…This was helpful for me to look up a list of funds in an efficient manner (as opposed to accessing each individual prospectus, although this is fine too).  I am sure that there are other ways/websites that are just as easy – this is what I happened to find…

    Dean

    #229815 Reply
    CordMcNally CordMcNally 
    Participant
    Status: Physician
    Posts: 3047
    Joined: 01/03/2017

    So, I thought I would pass this along in case anyone finds this useful…

    I was able to answer my initial question (although I am thankful for the additional revelations from the responses in this thread…)

    Anyway, I was able to find that thru the site Yahoo Finance, one can easily look up quick snapshots of fund info, including expense ratios.  Just enter the ticker symbol (upper right on the website), and boom, there it is…This was helpful for me to look up a list of funds in an efficient manner (as opposed to accessing each individual prospectus, although this is fine too).  I am sure that there are other ways/websites that are just as easy – this is what I happened to find…

    Dean

    Click to expand…

    Morningstar is also your friend.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #229834 Reply
    Liked by Hank, Peds
    Avatar Peds 
    Moderator
    Status: Physician
    Posts: 4679
    Joined: 01/08/2016

    So, I thought I would pass this along in case anyone finds this useful…

    I was able to answer my initial question (although I am thankful for the additional revelations from the responses in this thread…)

    Anyway, I was able to find that thru the site Yahoo Finance, one can easily look up quick snapshots of fund info, including expense ratios.  Just enter the ticker symbol (upper right on the website), and boom, there it is…This was helpful for me to look up a list of funds in an efficient manner (as opposed to accessing each individual prospectus, although this is fine too).  I am sure that there are other ways/websites that are just as easy – this is what I happened to find…

    Dean

    Click to expand…

    Morningstar is also your friend.

    Click to expand…

    couldnt pay me to go to yahoo sites.

    #229842 Reply
    Lordosis Lordosis 
    Participant
    Status: Physician
    Posts: 2165
    Joined: 02/11/2019
    couldnt pay me to go to yahoo sites.

    Click to expand…

    I have not been on yahoo since google took over but if someone paid me I would certainly switch back.  What do you have against yahoo?

    “Never let your sense of morals prevent you from doing what is right.”

    #229847 Reply
    Avatar Peds 
    Moderator
    Status: Physician
    Posts: 4679
    Joined: 01/08/2016
    What do you have against yahoo?

    Click to expand…

    just terribly optimized site, full of unnecessary junk.

    #229850 Reply
    Liked by Lordosis

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