I have some money in a 457 FICA Alternative plan and 403B from my teaching days… I have been told I should roll these into an IRA account since I'm not contributing to those accounts anymore, which is what I'm in the process of doing.

My question is regarding the fees for the IRA account… does below account fee schedule seem reasonable? Any suggestions or recommendations before I sign?

Fidelity has basically no fees if you are not using advisory services and if you aren't trading in the account.

Quote:

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There are no opening, closing or annual fees for Fidelity's Traditional, Roth, SEP, SIMPLE, and rollover IRAs. Fund investments held in your account may be subject to management and short-term trading fees, as described in the offering materials.

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https://www.fidelity.com/building-savings/learn-about-iras/401k-rollover-options

https://www.fidelity.com/why-fidelity/pricing-fees

https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/Brokerage_Commissions_Fee_Schedule.pdf

My opinion (as someone who is a CFP) is that fee schedule is reasonable (maybe slightly higher than average) but I would say it's all about what you are getting for it.

Are they advising you on taxes and maybe even doing your tax return for example?

Those fees are for using an advisory service where they basically invest for you. You have some say in what they do but they invest, rebalance, buy and sell, at their discretion. If you decline that and just buy yourself an index fund there should be no fees whatsoever aside from the internal fund fees.
I have 5 Merrill accounts, 2 of them are not managed at all and I can buy and sell for free. One of them is my largest account FWIW

I'm thinking there should be no significant
Fees for moving from one tax deferred retirement
vehicle to another. As above poster suggested, if
You are moving into a managed Ira the fees kick in at end
Of first Quarter after transfer Of assets under management

It's high for actively managed strategies that come with financial planning, custom portfolio management, and all other services that typically come from a wealth management perspective.

It's very high if nothing else is provided.

create a Vanguard IRA account for $0, and then roll your accounts over into Vanguard for $0. There should be no fees for what you are doing here. No one time fees and definitely no recurring fees. Thats a red flag.

I wouldn't call it a red flag, but definitely should generate more questions before signing.

Being in the business, OP simply provided their fee breakdown for what I hope is their actively managed platform. While I think they're a bit higher than industry standard, we have no clue what type of services are included.

If tax management (direct indexing/hedged strategies), financial planning, advisory services, banking, etc. are all included, that's a totally different story.

MemphisAg1 said:

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I would run like hell from an arrangement where they want to charge me roughly 1% advisory fee, plus manager fees for a fund which can be in that same neighborhood.

Pick a good (or a few index) funds and save all of that money expect for a very small (<0.1%) fund fee.

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Run like hell from someone managing your money for you and getting compensated for it….you people. Not everyone is a DYI investor.

Do you know how I know not everybody is cut out to be a DIY investor? By regularly reading this forum.

Surely true but I'd venture there are a number of people that are either a) capable but don't have adequate time but perhaps would in retirement, or b) capable but prefer to use their time in other ways .

I like having a portion managed and a portion not managed if for no other reason than I can grade how I'm doing on the diy side. If I am consistently outperforming the managed side then I may adjust the fractions. I don't consistently outperform them tho.