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Where to invest my rollover IRA funds?
1/3/2012 2:37:30 PM
Looking for some advice on where to invest my rollover IRA funds. I'm by no means anything close to an expert. It isn't much, but I'd rather not put it in a place with a high probability of losing it all. However, I am also not looking to be ultra conservative with it either. I am looking to take some type of risk.
I have my accounts with Schwab. I was just online in my account looking to move some of it to PRWAX (Where it was when it was in the old 401k) & they wanted a $76 transaction fee. Should I expect this type of insane fee for all mutual etc fund trades?
I have my accounts with Schwab. I was just online in my account looking to move some of it to PRWAX (Where it was when it was in the old 401k) & they wanted a $76 transaction fee. Should I expect this type of insane fee for all mutual etc fund trades?
1/3/2012 2:43:27 PM
Originally Posted By Never-Enough:
Looking for some advice on where to invest my rollover IRA funds. I'm by no means anything close to an expert. It isn't much, but I'd rather not put it in a place with a high probability of losing it all. However, I am also not looking to be ultra conservative with it either. I am looking to take some type of risk.
I have my accounts with Schwab. I was just online in my account looking to move some of it to PRWAX (Where it was when it was in the old 401k) & they wanted a $76 transaction fee. Should I expect this type of insane fee for all mutual etc fund trades?
Looking for some advice on where to invest my rollover IRA funds. I'm by no means anything close to an expert. It isn't much, but I'd rather not put it in a place with a high probability of losing it all. However, I am also not looking to be ultra conservative with it either. I am looking to take some type of risk.
I have my accounts with Schwab. I was just online in my account looking to move some of it to PRWAX (Where it was when it was in the old 401k) & they wanted a $76 transaction fee. Should I expect this type of insane fee for all mutual etc fund trades?
I've never paid that sort of a fee with Vanguard. Their mutual funds also have some of the lowest expense ratios in the biz.
Fidelity is also supposed to be excellent, though I've never held an IRA with them.
1/3/2012 2:51:15 PM
+1 for Vanguard. They have some good target retirement funds as well which is what I have my Roth invested in. Their website is extremely helpful and easy to use, and when I had a problem transferring my old Roth to them it was easy to get ahold of a real person on the phone and he was able to get me going in a matter of minutes.
1/3/2012 2:52:06 PM
Originally Posted By castiel:
+1 for Vanguard. They have some good target retirement funds as well which is what I have my Roth invested in. Their website is extremely helpful and easy to use, and when I had a problem transferring my old Roth to them it was easy to get ahold of a real person on the phone and he was able to get me going in a matter of minutes.
+1 for Vanguard. They have some good target retirement funds as well which is what I have my Roth invested in. Their website is extremely helpful and easy to use, and when I had a problem transferring my old Roth to them it was easy to get ahold of a real person on the phone and he was able to get me going in a matter of minutes.
Would there be any fees and/or tax penalties if I move this $ from the Schwab account to another place?
1/3/2012 3:09:21 PM
Originally Posted By Never-Enough:
Would there be any fees and/or tax penalties if I move this $ from the Schwab account to another place?
Originally Posted By castiel:
+1 for Vanguard. They have some good target retirement funds as well which is what I have my Roth invested in. Their website is extremely helpful and easy to use, and when I had a problem transferring my old Roth to them it was easy to get ahold of a real person on the phone and he was able to get me going in a matter of minutes.
+1 for Vanguard. They have some good target retirement funds as well which is what I have my Roth invested in. Their website is extremely helpful and easy to use, and when I had a problem transferring my old Roth to them it was easy to get ahold of a real person on the phone and he was able to get me going in a matter of minutes.
Would there be any fees and/or tax penalties if I move this $ from the Schwab account to another place?
It depends, is your IRA with Schwab a Roth or traditional? Roths can be transferred penalty and tax free (Schwab may charge a fee though)
1/3/2012 3:40:16 PM
Originally Posted By castiel:
It depends, is your IRA with Schwab a Roth or traditional? Roths can be transferred penalty and tax free (Schwab may charge a fee though)
Originally Posted By Never-Enough:
Would there be any fees and/or tax penalties if I move this $ from the Schwab account to another place?
Originally Posted By castiel:
+1 for Vanguard. They have some good target retirement funds as well which is what I have my Roth invested in. Their website is extremely helpful and easy to use, and when I had a problem transferring my old Roth to them it was easy to get ahold of a real person on the phone and he was able to get me going in a matter of minutes.
+1 for Vanguard. They have some good target retirement funds as well which is what I have my Roth invested in. Their website is extremely helpful and easy to use, and when I had a problem transferring my old Roth to them it was easy to get ahold of a real person on the phone and he was able to get me going in a matter of minutes.
Would there be any fees and/or tax penalties if I move this $ from the Schwab account to another place?
It depends, is your IRA with Schwab a Roth or traditional? Roths can be transferred penalty and tax free (Schwab may charge a fee though)
The fund in question is a rollover IRA.
1/3/2012 4:00:22 PM
I've never paid a fee to Vanguard when rolling an IRA or 401k into my IRA there. I have no idea if Schwab will charge you a fee to move your money out.
1/3/2012 6:10:55 PM
I would suggest you invest in houses and lots, whore houses and lots of liquor
1/3/2012 6:22:09 PM
It may be worth a call to Schwab to discuss your options... usually brokers will not charge you a fee to purchase a "no-load" fund if they can avoid it. If they have a selling agreement with the fund, the fund actually will pay schwab or Fidelity or whomever, part of their existing fee to promote distribution of the fund's shares... The funds who don't want the money coming and going, created by the marketing of the schwabs and fidelitys of the world are the ones you will pay the freight on...
Ask Schwab what they would suggest that is similar to the fund you tried to buy but stopped because of the fee...
Also, You are able to transfer your IRA (rollover, regular, Roth) to another custodian without tax consequence, the place you are leaving may charge you $50 to $200 as a close-out fee to cover the cost of them maintaining the records of your account until they are no longer required to... usually 7 years. (just in case you thought there was an incentive for them to gouge you... it usually costs them more in overhead than they collected in closeout fees...)
Fidelity has a large network of funds, theirs and other fund companies that you can trade with no fees... as long as you dont sell them/switch too often... I think you have access to like 3000 funds in their network, most of those are free... read their rules and you'll be fine...
As far as where to put the money, I think you should buy (depending on how much money it is) a minimum of 5 funds... spread the risks and get a balance mix of equity (large, small and intl) fixed income, (i know boring) and funds that look at precious metal, oil, natural resources etc... 4 or 5 funds max and then look at them a couple times a year.
I know you can "talk to chuck" so call them and ask for help... they are your broker.
Your milage may vary
Ask Schwab what they would suggest that is similar to the fund you tried to buy but stopped because of the fee...
Also, You are able to transfer your IRA (rollover, regular, Roth) to another custodian without tax consequence, the place you are leaving may charge you $50 to $200 as a close-out fee to cover the cost of them maintaining the records of your account until they are no longer required to... usually 7 years. (just in case you thought there was an incentive for them to gouge you... it usually costs them more in overhead than they collected in closeout fees...)
Fidelity has a large network of funds, theirs and other fund companies that you can trade with no fees... as long as you dont sell them/switch too often... I think you have access to like 3000 funds in their network, most of those are free... read their rules and you'll be fine...
As far as where to put the money, I think you should buy (depending on how much money it is) a minimum of 5 funds... spread the risks and get a balance mix of equity (large, small and intl) fixed income, (i know boring) and funds that look at precious metal, oil, natural resources etc... 4 or 5 funds max and then look at them a couple times a year.
I know you can "talk to chuck" so call them and ask for help... they are your broker.
Your milage may vary
