I’m 62 years old. I had a few 401ks from different companies. I rolled them over into a IRA with Fidelity. Right now everything is in cash. I know very little if not any about investments. The Fidelity representative is wanting to handle my account and is wanting to charge me .85%. What do you guys think? It seems to me, he is going to make money off me even if I don’t make any. What should I be asking this rep? I’m plan on working until at least till 67 if I can.
Do you change your own spark plugs on your truck? Do you add gas and oil to your boat, or have someone else do it for you? If you don't want to mess with your money, then paying someone to do it might make sense, depending on what they are offering. At your age, with a plan to work to 67, you probably need a more comprehensive plan than a digital fidelity rep for .85% fee. Pay a financial planner a flat fee of $600-$800 for a full plan and do what they say. Way better than .85% forever.....
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As stated above I’d sit down with a financial planner. There are two sides to this equation. You have to figure out the amount of money you will need each year in retirement and then you have to figure out what investments you need to hit that target. Retirement planning is like an art rather than a science. You are trying to plan years without knowing what the market will do, what life brings and the exact time period you are talking about.
Thanks, I am a guy that does everything myself but I don’t know investments. I didn’t know if .85% was steep. I will take your advice
That does seem high to me but I guess the question is what are you getting for that price? Does it give you access to certain mutual funds with no loads, or no commissions on trades etc. If so it may not be too high. If you sit down with an independent financial advisor that is a good question to ask. It also depends on how you are investing. If you are going to have a lot of bonds, cash etc. then that .85% will eat into your returns given the low rates today.Originally Posted by larryhyco
I have mine in Vanguard. Wife wanted a expert so we went with their Advisor Services. While not an apple to apple comparison, they are making about 2% above what I was doing myself in Voya (different funds available) I also subscribe to a Vanguard Independent Advisor newsletter which gives me advise.
I believe there is a Fidelity Independent Advisor newsletter also by the same group.
I also have had other firms quote me up to 3% of my assets as a yearly cost to manage my money. My Vanguard advisor has me in 4 basic funds and rebalances at least quarterly. If you are a contribute and forget it, go with an advisor. If you like research and are comfortable, you can do it yourself (unless it is a wife deal breaker) Feel free to PM me if you want.
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