Your Survival Guy is not thrilled about the announcement of Vanguard’s new CEO, Salim Ramji. As one of the kings at BlackRock, Ramji helped put them on the ETF map. If you follow the money, you know that BlackRock has made a huge push into the advisory business.
You know from here that index ETFs have raced to zero fees and are a commodity. Now, they need to make money selling advice and stuffing portfolios with annuity-like (read high fees) products.
I’m sure Ramji is a nice guy. Maybe he isn’t. After all, he’s used to getting his way, seeing he was a debate champ who could probably talk a dog off a meat wagon. Is that who you want running your money?
Jack Bogle would be rolling in his grave. My father-in-law, Richard C. Young, taught many of you about the importance of keeping fees low, how to eschew 12b-1 fees, front and back-end loads, and the like. The Vanguard of today is not the Vanguard he recommended to you back then. Act accordingly, or steel yourself to ignore the onslaught of solicitations for your money.
Action Line: Your Survival Guy favors Fidelity Investments and has a long history with the firm. Consolidate your assets to greener pastures. When you’re ready to talk, I’m here.
