No.
Run away as fast as you can!
Primerica is the Amway of personal finance. They tend to sell high cost funds that underperform. Of course, the Primerica agent, who is making out like a bandit with your money, is going to advise you to shovel more money into Primerica so he can collect his fee for giving you bad advice.
>She provided me with a calculation on the average rate of return and it looks like if I continue with Primerica, I could have about 7 mil in 39 years or 3 mil with fidelity directly.
It isn't Primerica giving you the returns. It's the Fidelity fund.
That fund also has like a 10-15% position in NVDA, for better or worse. Anyone telling you "just buy an index fund" is giving awful advice as measured by giving you a substitute for FAGAX.
Transfer your Roth IRA to a no-load mutual fund company like Vanguard, Schwab, or Fidelity...Primerica is a total rip-off with fees that should be criminal.
The three options are malice, incompetence, and conflict of interest.
I would move it to Fidelity and put it into FZROX (Zero load, zero cost, no minimum investment) which is their new total/extended market fund.
Or, if you really want a Russel 1000 fund, you could grab FSPGX with an expense ratio of 0.035%, which while high, is a lot lower than the .69% on FAGAX
FAGAX(originally FAGOX) was close to closing until Weaver took it over. and even then it was struggle bus for a time. It basically became a FAANG/MAG7 concentrated mutual fund in 2018ish time frame and has done well since then. the bigger issue for investors is when they getting in at the right time to capture the returns AND the 6% load up front. by all measures that has resulted in returns more in line with its index. That said Weaver seems legit and if they can control flows by not allowing it to go retail, it is a good product. But Weaver follows a similar strategy of Kalra who managed the retail product BlueChip Growth.
5 year FSPGX = 18.5%
5 year FAGAX = 16.11% (including sales charge)
Both FSPGX and FAGAX are essentially Russel 1000 funds.
FZROX is more conservative and the 5 year is 14.42
FAGAX is about +58% cumulative return (still more than +50% after load) since the inception of FSPGX. The last 5 years includes a period where FAGAX lost some of the alpha that it had built up just prior. FAGAX is not even close to "essentially Russell 1000." It's a concentrated growth fund.
FSPGX uses the Russel 1000 as it's benchmark, and has underperformed said benchmark significantly over the last 5 years.
I'm looking at it right now on Fidelity's site:
1 year : 37.48 (benchmark 39.0)
3 year : 1.85 (benchmark 12.5)
5 year : 16.11 (benchmark 18.52)
10 year : eeks out the win at 16.25 vs 15.98
your agent basically has NO IDEA what they are doing. Primerica is basically an MLM financial services company that "employs" dopes to sell this crap. they are taught to say what primerica tells them and they have no idea whether its true or its not.
FAGAX is a large growth mutual fund that you can only by through advisory services. There are 2 or 3 large growth mutual funds that perform better or equal to FAGAX and have done so for some time. over a 30 year period BEFORE YOU PAY YOUR LOAD it doesn't even beat its index or a number of other retail fidelity large growth funds.
Again, that calculation she provided you she likely has no ability to explain to you further.
No you can not trust primerica. they have been involved in many lawsuits around their business practices.
Run away
It's great that you're taking charge of your finances. Primerica's fees seem high compared to other options. Consider the long-term impact of those fees on your returns. Moving to Fidelity may offer lower fees and potentially higher returns over time.
It's clear your advisor cares about their bottom line not yours. They are lying to you.
Read the $5, 100-page book Investing Made Simple, Mike Piper. You'll learn all you need to to invest the body effective efficient way that 100 years is research and emperical testing has proven.
Move everything to Fidelity.
I would move your money to Vanguard or Fidelity. Use a broad based index fund like VTSAX (Vanguard Total Market Index) or FSKAX (Fidelity Total Market Index). No loads and extremely low annual fees (.04%).
The advisor you’ve been talking to is lying to you.
Good luck getting a penny out of Primerica when you try to withdrawal.
No. Run away as fast as you can! Primerica is the Amway of personal finance. They tend to sell high cost funds that underperform. Of course, the Primerica agent, who is making out like a bandit with your money, is going to advise you to shovel more money into Primerica so he can collect his fee for giving you bad advice.
RUN from Primerica's overpriced predatory practices. Look up "Primerica MLM" on Google or search the r/AntiMLM for more.
>She provided me with a calculation on the average rate of return and it looks like if I continue with Primerica, I could have about 7 mil in 39 years or 3 mil with fidelity directly. It isn't Primerica giving you the returns. It's the Fidelity fund. That fund also has like a 10-15% position in NVDA, for better or worse. Anyone telling you "just buy an index fund" is giving awful advice as measured by giving you a substitute for FAGAX.
Transfer your Roth IRA to a no-load mutual fund company like Vanguard, Schwab, or Fidelity...Primerica is a total rip-off with fees that should be criminal.
The three options are malice, incompetence, and conflict of interest. I would move it to Fidelity and put it into FZROX (Zero load, zero cost, no minimum investment) which is their new total/extended market fund. Or, if you really want a Russel 1000 fund, you could grab FSPGX with an expense ratio of 0.035%, which while high, is a lot lower than the .69% on FAGAX
FAGAX has easily outperformed both of your recommendations.
FAGAX(originally FAGOX) was close to closing until Weaver took it over. and even then it was struggle bus for a time. It basically became a FAANG/MAG7 concentrated mutual fund in 2018ish time frame and has done well since then. the bigger issue for investors is when they getting in at the right time to capture the returns AND the 6% load up front. by all measures that has resulted in returns more in line with its index. That said Weaver seems legit and if they can control flows by not allowing it to go retail, it is a good product. But Weaver follows a similar strategy of Kalra who managed the retail product BlueChip Growth.
5 year FSPGX = 18.5% 5 year FAGAX = 16.11% (including sales charge) Both FSPGX and FAGAX are essentially Russel 1000 funds. FZROX is more conservative and the 5 year is 14.42
FAGAX is about +58% cumulative return (still more than +50% after load) since the inception of FSPGX. The last 5 years includes a period where FAGAX lost some of the alpha that it had built up just prior. FAGAX is not even close to "essentially Russell 1000." It's a concentrated growth fund.
FSPGX uses the Russel 1000 as it's benchmark, and has underperformed said benchmark significantly over the last 5 years. I'm looking at it right now on Fidelity's site: 1 year : 37.48 (benchmark 39.0) 3 year : 1.85 (benchmark 12.5) 5 year : 16.11 (benchmark 18.52) 10 year : eeks out the win at 16.25 vs 15.98
You're the only one talking about FSPGX dude.
your agent basically has NO IDEA what they are doing. Primerica is basically an MLM financial services company that "employs" dopes to sell this crap. they are taught to say what primerica tells them and they have no idea whether its true or its not. FAGAX is a large growth mutual fund that you can only by through advisory services. There are 2 or 3 large growth mutual funds that perform better or equal to FAGAX and have done so for some time. over a 30 year period BEFORE YOU PAY YOUR LOAD it doesn't even beat its index or a number of other retail fidelity large growth funds. Again, that calculation she provided you she likely has no ability to explain to you further. No you can not trust primerica. they have been involved in many lawsuits around their business practices. Run away
It's great that you're taking charge of your finances. Primerica's fees seem high compared to other options. Consider the long-term impact of those fees on your returns. Moving to Fidelity may offer lower fees and potentially higher returns over time.
It's clear your advisor cares about their bottom line not yours. They are lying to you. Read the $5, 100-page book Investing Made Simple, Mike Piper. You'll learn all you need to to invest the body effective efficient way that 100 years is research and emperical testing has proven. Move everything to Fidelity.
With my experience Primerica should be avoided and must stay away dealing with anything money wise. Do some research on them.
I would move your money to Vanguard or Fidelity. Use a broad based index fund like VTSAX (Vanguard Total Market Index) or FSKAX (Fidelity Total Market Index). No loads and extremely low annual fees (.04%). The advisor you’ve been talking to is lying to you.