Just a quick idea to save you some money and help you avoid Enemy #1.

If you own a Large Cap US mutual fund, swap it for the exchange traded fund Vanguard Total Stock Market (symbol: VTI). If you have an overseas/europacific fund, try the Vanguard All-World ex-US ETF (symbol: VEU) instead. You’ll likely save a lot on annual expenses and you may even increase your returns substantially. Plus you won’t have to deal with that icky brokerage firm anymore.

Here’s a comparison of VTI vs. the Growth (or gross) Fund of America (AGTHX). Note that the 5.75% broker commission is not taken out of the chart.

Click for larger view.

Here’s VEU vs. Europacific Growth Fund, also from American Funds, and a favorite high-commission product of brokers.

Click for larger view.

You can do this through Vanguard very cheaply. Just remember to keep a close eye on your portfolio manager to make sure they’re working hard. By the way, YOU are the portfolio manager.

Of course you always have the choice of hiring an independent fee-only manager. But I digress…

Instead of buying and holding these ETFs, you may also want to try something tactical to improve your results or reduce your volatility. Here are few ideas from Morningstar.

Good luck with whatever you choose!

If your money is with Edward Jones, Ameriprise, Morgan Stanley Smith Barney, Merrill Lynch, or any other memeber of SIFMA, you already have.

These firms continue to fight tooth and nail against the fiduciary standard of care, i.e. doing what it’s their clients’ best interests.

Does that make you angry? Then do something about it, like move to another firm…

Here’s more:
Lobbying May Kill Fiduciary-Rules Plan for Brokers