Graduating MS4. I have a small Roth IRA (~$6k) that has been managed by a financial advisor at what I consider a mid-cost firm. I have not contributed during med school. The IRA account costs $29 a year. The FA likes to choose from americanfunds. Specific funds I'm in now are CAPITAL WORLD GROWTH & INCOME FUND CL A, GROWTH FUND OF AMERICA CL A, NEW WORLD FUND CL A. I've read WCI and now reading Bogleheads Guide to Investing. Now that I am becoming more literate thanks to WCI, I am not thrilled about the fees: 5% load plus .77% ER, .65% ER, and 1.04% ER respectively. In addition to the fees, they have all underperformed relative to comparable index funds in the last 3 years and as long as I have owned them.
All that to ask, what should I do with the Roth during residency since I hope to start contributing once again?
I realize this will not be my main source of retirement, but I want to make the most of it, especially early in my career.
Also, my wife has a Roth in the same situation. She just started working as a nurse, so we hope to contribute to hers as well (if there is money left after putting enough in 401k to get all of employer match). I'm hoping the same advice would apply to her account as well. Sorry for the lengthy post.
All that to ask, what should I do with the Roth during residency since I hope to start contributing once again?
- Should I keep contributing to that Roth and those recommended funds?
- Should I keep contributing to that Roth, but ask for lower cost funds, maybe specific ones?
- Is it possible to leave that Roth there and start another one with a lower cost company as long as I only contribute to the new one?
- Some other option I haven't thought of?
- Any companies you like best for Roth IRA specifically?
- Any different diversification strategy in a Roth vs. larger retirement accts (401k, 403b ...)
I realize this will not be my main source of retirement, but I want to make the most of it, especially early in my career.
Also, my wife has a Roth in the same situation. She just started working as a nurse, so we hope to contribute to hers as well (if there is money left after putting enough in 401k to get all of employer match). I'm hoping the same advice would apply to her account as well. Sorry for the lengthy post.
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