Self directed IRA commision fee
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Self directed IRA commision fee
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
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Re: Self directed IRA commision fee
Correct. An IRA at any of the major brokerages will be completely free.
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Re: Self directed IRA commision fee
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 uptoddthebod wrote: ↑Mon Aug 08, 2022 10:09 pm Correct. An IRA at any of the major brokerages will be completely free.
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Re: Self directed IRA commision fee
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
See https://investor.vanguard.com/client-be ... count-fees
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Re: Self directed IRA commision fee
I kinda feel stupid not doing this 15 years ago. I have really cost myself a small fortuneLookinAround 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
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Re: Self directed IRA commision fee
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 rightwilsonj434 wrote: ↑Mon Aug 08, 2022 10:24 pmI kinda feel stupid not doing this 15 years ago. I have really cost myself a small fortuneLookinAround 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
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Re: Self directed IRA commision fee
wont the new broker have to wait for the old broker to essentially "hit the send button" tho?LookinAround wrote: ↑Mon Aug 08, 2022 10:40 pmP.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 rightwilsonj434 wrote: ↑Mon Aug 08, 2022 10:24 pmI kinda feel stupid not doing this 15 years ago. I have really cost myself a small fortuneLookinAround 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
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Re: Self directed IRA commision fee
Apparently not.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?
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"