By Terry Savage on July 23, 2020 | Investments

All my retirement saving is with vanguard and is managed by a portfolio manager. I am 71 years old and have about $400,000. I have agreed with him about putting my money into these funds
VBTLX and VTSAX. I am concerned with this upcoming election and am wondering if I should move my money into a money market or a safer bet for a time. I also have a firefighter pension of about $60,000. Should I move my money? We have been watching you on WGN for years and think your great. Thank you

Terry Says

You are 71 years old. You’re getting worried about losses. It’s a personal thing, but I think you should have 1/3 of your assets in a money market fund — earning NOTHING! That will let you sleep at night if there is another big market decline.

By the way, Vanguard is a great place. But they don’t have ‘money managers’ for individuals. So you are probably working with an independent money manager who uses Vanguard funds. Please ask him/her how much you pay every year for his or her advice. And ask whether you paid extra annual fees on this funds — a “class” of funds that are sold by advisors. AND ask for a full disclosure of how much you paid in fees for the first 6 months of this year!

Tell him you know that under the new SEC Regulation BI (Best Interests) he must divulge this information to you! And if he/she won’t answer, please write back to me. No sense in paying huge hidden management fees. You could do it yourself in Vanguard funds!



a personal
finance question