John Hancock IRA Review

John Hancock Roth IRA, Traditional IRA, Rollover IRA, SEP IRA, SIMPLE individual retirement accounts review, promotion offer, rating, fees and commissions. Is John Hancock IRA good and safe way to invest?

John Hancock IRA Review

John Hancock is a well-known financial services provider with over 150 years of industry experience. They offer both Traditional and Roth IRA accounts, which can be opened with a minimum $1,000 investment. Other IRA offerings include: Inherited IRAs, Inherited Roth IRAs, and Rollover IRAs. Each of these plans is administered similarly, with the exception of their withdrawal requirements and subjection to tax ramifications.

The following is an assessment of the advantages and potential setbacks of John Hancock’s IRA account services.

High Performing Investment Options

JH Investments provides clients with access to a large selection of domestic equity, global/international, income, alternative/specialty, and asset allocation funds. Experienced investors will find a diverse set of high performing funds to meet their needs, while less experienced investors can take advantage of lifestyle or retirement living portfolios, which seek to balance asset allocation on the consumers' behalf, based on factors such as their age, comfort level with risk, and their investment goals.

Fund performance reports are readily available online for account holders and prospective investors to review. In reviewing the performance of John Hancock’s funds, consumers will find that several have been recognized among the world’s top performing funds through the Lipper Fund Awards. Additionally, John Hancock’s portfolio of offerings reveals 4 and 5 Morningstar ratings across asset classes. These ratings are calculated by an independent party and factor in performance history, performance consistency, the fund manager’s skills, and returns, with the ultimate goal of helping investors quickly identify funds they might want to invest in.

Valuable Tools and Resources

When it comes to tools and resources, John Hancock offers award-winning digital technology to help consumers: understand the fundamentals of investing, set goals, formulate plans for achieving their goals, and monitor their accounts. They are recognized by the Mutual Fund Education Alliance for their electronic newsletters, their online services, and their mobile web apps. The website alone offers tons of information on investing, risk, and the importance of diversification, all of which is written in a manner that can be understood by any level of investor. Additionally, there are several calculators available to help investors understand which type of IRA is right for them and plan for their retirement.

Top Notch Customer Service

Customer service is accessible Monday through Friday during extended business hours (as late as 7 pm Eastern Time). There is generally very little wait time involved and the representatives are pleasant and helpful. Prospective investors can call for information and obtain a basic understanding of investing, as well as a step-by-step demonstration of where to locate pertinent information on the website, without feeling pressured to open an account or rushed off the phone because they aren’t an existing client.

John Hancock IRA Fees

The potential downfall of a John Hancock IRA account lies within their fees and a prospective investor would be smart to assess these fees prior to opening an account. The two types of fees that should be considered are the annual and investment fees.

The annual fee is a small, flat fee charged to clients to cover the cost of John Hancock’s fiduciary responsibilities, such as preparing tax documents for account holders. This fee is currently set at a reasonable $15.00 per year and is disclosed in the forms' booklet.

The investment fees, on the other hand, vary by investment selections and require more research and analysis. However, investors at any level can access the information needed to compare the investment fees to similar funds within John Hancock’s portfolio or to similar funds of other service providers.

In order to analyze the investment fees, consumers can visit the Mutual Funds section on the JH Investments web page and select the Performance option underneath Products and Performance. From there, they can select any of the funds they want to compare and be taken to a page that provides a link to the selected fund’s prospectus. The very first page of each fund’s prospectus covers shareholder fees and annual fund operating expenses. Additionally, a standard example is provided to simplify comparison between other funds within and outside of John Hancock’s portfolio.

Unfortunately, a quick comparison between John Hancock’s “Retirement Living through 2050 Portfolio” and T. Rowe Price’s “Retirement 2050 Fund” leaves the average investor wondering why there is such a significant disparity. Similar disparities are found when comparing John Hancock’s “Retirement Living through 2030 Portfolio” against T. Rowe Price’s “Retirement 2030 Fund.” Ironically, in the latter case, T. Rowe Price’s option has a 5-star Morningstar Rating, while John Hancock’s only has a 3-star Morningstar Rating.

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John Hancock IRA Review Conclusion

John Hancock Investments is certainly a decent option for anyone looking to open an IRA account to invest in mutual funds. However, consumers should do their homework and compare investment fees to ensure they’re maximizing their return on investments and minimizing unnecessary charges.


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