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No Admiral Shares in Simples

May 18th, 2012 at 01:59 pm

This morning, I discovered that Admiral shares are not available in Simple IRAs! Hmmmmph. So I am just sticking with the Target Retirement fund. Oh well, it isn't as if the TR fund is expensive. At .21, it is one-fifth the cost of the American Funds TR I had at Edward Jones. And of course, I have escaped that nasty front-end load. All in all, still very pleased to have moved my Simple to my beloved Vanguard. Now to get my contributions (via payroll deduction) flowing into my new Simple regularly. My boss still has not cut a check to Vanguard. I didn't want to have to ask, but here we are. I know he does payables on or near the 15th. I am all set up, so I want my contributions deposited promptly.

Remember when I cancelled my land line a few months back? Remember my saying I must have overpaid my last bill because AT& T sent me a check for $.05? Well, I have receieved another check marked "overpayment refund", this time for $3.99. I'm not complaining, but I really don't know how that is possible. I have added it to CurveBall.

3 Responses to “No Admiral Shares in Simples”

  1. ruth Says:

    Hello, been following your blog for about six months. First time poster. Not sure I am following your fist paragraph right. So you have both a simple IRA and a Target Retirement Fund? I am not sure what that is...without researching it I would get it's those 2020, 2030, 2040 retirement funds (I am in one). So it sounds like you're pleased with the Target Retirement fund; then the topic seems to switch from that to your Vanguard Simple IRA account. Or are is the Simple IRA and your Target Retirement fund one in the same?

    Secondly I was wondering what is the difference between the Edward Jones Target Retirement Fund and the Target Retirement Fund you did end up going with? Was it the markup that I presume Edward Jones has, or is it something more. I am not savvy on Edward Jones, but I have heard from a former Merrill Lynch employee to stay away from Merrill Lynch so I have.

    As you can see I am a newbie investor. Admiral shares are over my head, but the other 2 questions I think I can handle. Thanks in advance.

  2. Petunia 100 Says:

    Hi Ruth,

    Simple IRAs are employer plans, similar to a 401k. Inside my Simple IRA, I have a Target Retirement Fund. Yes, you have it right, it is one of those 2020, 2030 types. Smile
    Edward Jones is a commisioned brokerage house. The Target Retirement Fund I had there wasn't so much bad as it was too expensive. Over time, those expenses can take a huge bite out of your investment. Also, it was an actively managed fund. I prefer index funds.

    Vanguard has very low costs on all of their funds. The regular shares are called Investor shares. Some of their funds have another share class called Admiral shares, and those are even cheaper. You must have at least 10k in the fund to qualify for Admiral. I didn't know that Admiral shares are not available at all for Simple IRAs. But alas, that has turned out to be the case.

    Thanks for reading! And remember, we are all newbies at some point.

  3. patientsaver Says:

    Hmm, i didn't know that either about Simple IRAs and Admiral funds. I'm guessing it's becus it would be too easy for people to accumulate sizeable assets in an IRA account, so maybe the Admiral status only applies to taxable accounts? No, that can't be right, because most of my IRA money is with Vanguard, and most are Admirals. Hmmm, someday i'll call to get clarification.

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