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Has anyone taken the Dimensional Funds plunge? I find myself wondering if I should go that route? The data for passive funds continues to mount but i am pretty happy with the cheap, superior funds that are out there now. Any thoughts?
Has anyone taken the Dimensional Funds plunge? I find myself wondering if I should go that route? The data for passive funds continues to mount but i am pretty happy with the cheap, superior funds that are out there now. Any thoughts?
mike
How would you do that? These funds are primarily available to people who pay advisors to manage their accounts. And maybe some employer retirement plans. Most people on MFO don't have access.
RJB, You raise a good point. There are some ways to get in. Scott Burns at Asset builder is one way. I think he charges 50 basis pts for 50k accounts. Flat fees portfolio charges 200 dollars-ish/month for the smaller accounts. I guess part of taking the plunge is hiring an advisor with access. Best, Mike
I would love to have access to DFA funds. Would definitely invest in them. But I'm not willing to pay an advisor for access to them, even if that is the 50 basis points you mention. And the 200 dollars a month that you mention.....seems outrageous just to get access to DFA funds.
Getting in DFA funds (with an advisor and paying fee) is one thing. Getting out of DFA funds (getting rid of advisor and moving on) is something else. You will never hear Swedroe or other pro-DFA talking heads talk about the difficulty (and tax consequences) of getting out.
Getting in DFA funds (with an advisor and paying fee) is one thing. Getting out of DFA funds (getting rid of advisor and moving on) is something else. You will never hear Swedroe or other pro-DFA talking heads talk about the difficulty (and tax consequences) of getting out.
@varmint: Can you elaborate? Don't know what you are referring to. What's the difficulty in getting out of the funds and dropping the advisor? What special tax consequences are you referring to, other than those you would have if you sold a Vanguard index fund and had to pay capital gains taxes on the previously unrealized/newly realized gains?
I've never worked with an advisor, but you should be able to end the relationship, stop paying fees, and get your money back. Hopefully you have the account at a brokerage like Fidelity, Schwab or TD Ameritrade, which I understand are popular for advisor accounts.
Comments
These funds are primarily available to people who pay advisors to manage their accounts. And maybe some employer retirement plans. Most people on MFO don't have access.
You raise a good point. There are some ways to get in. Scott Burns at Asset builder is one way. I think he charges 50 basis pts for 50k accounts. Flat fees portfolio charges 200 dollars-ish/month for the smaller accounts. I guess part of taking the plunge is hiring an advisor with access.
Best, Mike
Like front loads.
Ultimately indefensible.
Sad too that they use famous academics as shills.
Just do not believe it will persist in current form.
Bottom-line: shareholder unfriendly.
c
Regards,
Ted
What's the difficulty in getting out of the funds and dropping the advisor?
What special tax consequences are you referring to, other than those you would have if you sold a Vanguard index fund and had to pay capital gains taxes on the previously unrealized/newly realized gains?
I've never worked with an advisor, but you should be able to end the relationship, stop paying fees, and get your money back. Hopefully you have the account at a brokerage like Fidelity, Schwab or TD Ameritrade, which I understand are popular for advisor accounts.