Self directed IRA commision fee

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Topic Author
wilsonj434
Posts: 77
Joined: Sat Aug 06, 2022 4:40 pm

Self directed IRA commision fee

Post by wilsonj434 »

I am retired and currently my IRA is with Ameriprise and has a manager that I speak to in person locally semi annually. They charge 1.25% annual commission to manage the IRA. Hypothetically if I were to transfer it to a Charles Schwab or similar brokerage firm into a self directed IRA account would I completely avoid the 1.25% annual management fee correct? I realize I would be managing it on my own, but they have only been getting me 4.25% average annual return over the last 13 years they have manged it so i feel like I could do at least that good at a minimum plus save the 1.25% commission on top
toddthebod
Posts: 5600
Joined: Wed May 18, 2022 12:42 pm

Re: Self directed IRA commision fee

Post by toddthebod »

Correct. An IRA at any of the major brokerages will be completely free.
Topic Author
wilsonj434
Posts: 77
Joined: Sat Aug 06, 2022 4:40 pm

Re: Self directed IRA commision fee

Post by wilsonj434 »

toddthebod wrote: Mon Aug 08, 2022 10:09 pm Correct. An IRA at any of the major brokerages will be completely free.
I read today that the retirement money management industry is a 6 trillion dollars a year industry and I believe it, that 1.25% commission to manage someone's 401k or IRA really adds up
LookinAround
Posts: 888
Joined: Tue Mar 27, 2018 5:41 am

Re: Self directed IRA commision fee

Post by LookinAround »

Get out of it ASAP. Even the management fees, if you wanted them, at Fidelity, Schwab and Vanguard are far less. Vanguard Personal Advisor Fee is 0.3%! Almost 1% less in itself. In full disclosure: Vanguard does have some account fees probably waived for your account.

See https://investor.vanguard.com/client-be ... count-fees
Topic Author
wilsonj434
Posts: 77
Joined: Sat Aug 06, 2022 4:40 pm

Re: Self directed IRA commision fee

Post by wilsonj434 »

LookinAround wrote: Mon Aug 08, 2022 10:17 pm Get out of it ASAP. Even the management fees, if you wanted them, at Fidelity, Schwab and Vanguard are far less. Vanguard Personal Advisor Fee is 0.3%! Almost 1% less in itself. In full disclosure: Vanguard does have some account fees probably waived for your account.

See https://investor.vanguard.com/client-be ... count-fees
I kinda feel stupid not doing this 15 years ago. I have really cost myself a small fortune
LookinAround
Posts: 888
Joined: Tue Mar 27, 2018 5:41 am

Re: Self directed IRA commision fee

Post by LookinAround »

wilsonj434 wrote: Mon Aug 08, 2022 10:24 pm
LookinAround wrote: Mon Aug 08, 2022 10:17 pm Get out of it ASAP. Even the management fees, if you wanted them, at Fidelity, Schwab and Vanguard are far less. Vanguard Personal Advisor Fee is 0.3%! Almost 1% less in itself. In full disclosure: Vanguard does have some account fees probably waived for your account.

See https://investor.vanguard.com/client-be ... count-fees
I kinda feel stupid not doing this 15 years ago. I have really cost myself a small fortune
P.s. when moving accounts arrange for the new broker to do it. They're the one motivated to get it done quick as possible and done right
Topic Author
wilsonj434
Posts: 77
Joined: Sat Aug 06, 2022 4:40 pm

Re: Self directed IRA commision fee

Post by wilsonj434 »

LookinAround wrote: Mon Aug 08, 2022 10:40 pm
wilsonj434 wrote: Mon Aug 08, 2022 10:24 pm
LookinAround wrote: Mon Aug 08, 2022 10:17 pm Get out of it ASAP. Even the management fees, if you wanted them, at Fidelity, Schwab and Vanguard are far less. Vanguard Personal Advisor Fee is 0.3%! Almost 1% less in itself. In full disclosure: Vanguard does have some account fees probably waived for your account.

See https://investor.vanguard.com/client-be ... count-fees
I kinda feel stupid not doing this 15 years ago. I have really cost myself a small fortune
P.s. when moving accounts arrange for the new broker to do it. They're the one motivated to get it done quick as possible and done right
wont the new broker have to wait for the old broker to essentially "hit the send button" tho?
LookinAround
Posts: 888
Joined: Tue Mar 27, 2018 5:41 am

Re: Self directed IRA commision fee

Post by LookinAround »

wilsonj434 wrote: Mon Aug 08, 2022 10:57 pm wont the new broker have to wait for the old broker to essentially "hit the send button" tho?
Apparently not.

Understanding the Brokerage Account Transfer Process

"To best prevent the unauthorized transfer of an account, delivering firms will reject any transfer request where certain data (for example the customer’s name and/or Social Security number) provided by the receiving firm does not match the information on the delivering firm’s records. If the account request is rejected, the new firm may correct the data from that which it originally entered or it may have to contact the customer to make sure the information on the TIF form is correct. Once the customer account information matches, the transfer request is considered to be validated. In most cases, the validation process will take about three business days to complete once the new firm enters the request into ACATS"
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