Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
I am 54 & hoping to retire at 55, questions about Fidelity
Old 04-20-2019, 10:33 PM   #1
Dryer sheet wannabe
 
Join Date: Apr 2019
Location: fairlawn
Posts: 13
I am 54 & hoping to retire at 55, questions about Fidelity

One of my retiremnt accounts is a PROFESSIONALLY MANAGED IRA with Fidelity worth around $400,000. I am considering pulling the plug on this Managed IRA becuase of the fees, last year they were $4000. My research leads me to believe the IRA would probably do just as well if I put it in a low cost index fund and left it alone. Also, I have three mutual funds seperate from Fidelity that my Fidelity financial advisor suggested I sell and let Fidelity manage. She said if I do it by April 30th there is a 40% discount on fees. I am a little suspicious of this offer, is she getting commission on this? Any thoughts about either of my concerns would be greatly apreciated.

Thanks,

Tim
__________________

murphearlyretirement is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-20-2019, 10:58 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Sunset's Avatar
 
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 7,212
I have done this for 2 relatives, they are old and were getting soaked for fees.
It's simple to open a new brokerage account (example Vanguard) and have the new account transfer "IN KIND" everything.
Of course IRA -> IRA, ROTH -> ROTH, and regular taxable -> regular taxable.

Imagine if you don't do it, in 10 year you will have paid them $40,000 in fees.

I'm thinking these fees are the extra fees taken probably each quarter, and not counting the fund fees which are present everywhere but never seen in dollar amounts.
__________________

__________________
Fortune favors the prepared mind. ... Louis Pasteur
Sunset is offline   Reply With Quote
Old 04-21-2019, 12:35 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 11,536
Just move it to a regular account. Fidelity has some very low, even zero % fee funds. If you know what asset allocation you want, we can help you choose the funds.
__________________
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Old 04-21-2019, 02:02 AM   #4
Full time employment: Posting here.
 
Join Date: Mar 2012
Posts: 981
What kind of returns has the Fidelity advisor been generating for you after fees? Better than the indexes? Ask why you should continue using her when Fidelity now offers the zero fee funds?
njhowie is offline   Reply With Quote
Old 04-21-2019, 04:00 AM   #5
Thinks s/he gets paid by the post
DrRoy's Avatar
 
Join Date: Dec 2015
Location: Michigan
Posts: 2,683
I like Fido, but will not pay anyone a FA fee.
__________________
"The mountains are calling, and I must go." John Muir
DrRoy is offline   Reply With Quote
Old 04-21-2019, 05:22 AM   #6
Thinks s/he gets paid by the post
JoeWras's Avatar
 
Join Date: Sep 2012
Posts: 4,607
Quote:
Originally Posted by murphearlyretirement View Post
. My research leads me to believe the IRA would probably do just as well if I put it in a low cost index fund and left it alone.
Welcome!

What you say above, you will find affirmed thousands of times on this site in thousands of threads. Many of us (not all, and that's OK) are doing just that.

I really don't like what I'm hearing about a 40% discount on fees. How about this? Just don't use their FA, implement the strategy you describe above, and then you have 100% discount on extra fees. (Of course, the funds themselves all have fees.)

FIDO (without the FA) is absolutely fine, so I'm not saying you should switch to Vanguard, but consider them too. If you want active management, instead of an FA, you can use a fund like Vanguard Wellesley or Wellington. Plenty of threads about that too.
JoeWras is offline   Reply With Quote
Old 04-21-2019, 07:15 AM   #7
Thinks s/he gets paid by the post
 
Join Date: Jan 2018
Location: Tampa
Posts: 4,162
Quote:
Originally Posted by travelover View Post
Just move it to a regular account. Fidelity has some very low, even zero % fee funds. If you know what asset allocation you want, we can help you choose the funds.
+1
Many Fidelity users on this site who pay zero in FA fees and close to zero or zero in fund fees.
If your total funds are >1mm with Fidelity if you move the other accounts, you can qualify for Private Client status and effectively still receive general advice from them for zero FA fees.
__________________
TGIM
Dtail is offline   Reply With Quote
Old 04-21-2019, 10:14 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2009
Posts: 5,103
Quote:
Originally Posted by Dtail View Post
+1
Many Fidelity users on this site who pay zero in FA fees and close to zero or zero in fund fees.
If your total funds are >1mm with Fidelity if you move the other accounts, you can qualify for Private Client status and effectively still receive general advice from them for zero FA fees.
You may not even need $1M to qualify for Private Client status. I have had an Account Executive with Fido since 2007 and I was nowhere near $1M. Same for my (snake-bit friend who was in 6-figures but not near $1M.

I also had another AE try to poach me from my existing one and take control of my portfolio for the 1% fee. "No thanks!" I replied, and complained to his boss, the office manager.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
scrabbler1 is offline   Reply With Quote
Old 04-21-2019, 10:33 AM   #9
Thinks s/he gets paid by the post
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 3,324
Quote:
Originally Posted by murphearlyretirement View Post
... I am a little suspicious of this offer, is she getting commission on this? ...
Of course. She probably gets paid, at least partially, based on the assets she manages. She also probably gets paid a spiff for bringing in assets. Nothing nefarious about this, IMO. Fido is motivating her to do what is in the company's best interests.

Re running your own money, of course! The likelihood that any FA can beat a broad index over a long period of time is very close to zero. We are pretty gung-ho on the broad index concept and basically hold VTWSX.

An FA must necessarily hold a number of stocks and/or funds just to make the client believe that investing is complicated. Holding one or two broad funds and never making a trade is not a strategy for retaining clients.
OldShooter is offline   Reply With Quote
Old 04-21-2019, 12:01 PM   #10
Dryer sheet wannabe
 
Join Date: Apr 2019
Location: fairlawn
Posts: 13
Thank you all, in the short turn I am going to cancel the professionally managed IRA. At that point of cancellation what happens to the fund allocation? does is just stay where it was the day of cancellation? This is what I gained on my IRA in 2018: -7.99 How did INDEX FUNDS do on average?

My historical return as posted on my Fidelity account.

Calendar Year Your Account
2018 -7.99%
2017 +15.54%
2016 +5.80%
2015 -1.45%
2014 +4.14%
2013 +18.32%
2012 +12.53%
2011 -4.46%
murphearlyretirement is offline   Reply With Quote
Old 04-21-2019, 01:47 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 22,741
What is your asset allocation (AA)?

If 100% stocks, then VTSAX is a good benchmark:

2018..... -5.17%
2017..... 21.17%
2016..... 12.66%
2015....... 0.39%
2014..... 12.56%
2013..... 33.52% that should be enough to compare
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...60/35/5 AA
pb4uski is offline   Reply With Quote
Old 04-21-2019, 01:53 PM   #12
Dryer sheet wannabe
 
Join Date: Apr 2019
Location: fairlawn
Posts: 13
About your strategy: Growth
Domestic Stock 49% Foreign Stock21% Bonds25% Short Term5%
murphearlyretirement is offline   Reply With Quote
Old 04-21-2019, 01:55 PM   #13
Dryer sheet wannabe
 
Join Date: Apr 2019
Location: fairlawn
Posts: 13
Is there a Fidelity Fund similar to VTSAX? that anyone would recommend? I would like to leave my money with Fidelity.
murphearlyretirement is offline   Reply With Quote
Old 04-21-2019, 02:45 PM   #14
Thinks s/he gets paid by the post
JoeWras's Avatar
 
Join Date: Sep 2012
Posts: 4,607
Quote:
Originally Posted by murphearlyretirement View Post
is there a fidelity fund similar to vtsax? That anyone would recommend? I would like to leave my money with fidelity.
fskax
JoeWras is offline   Reply With Quote
Old 04-21-2019, 02:58 PM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 22,741
Quote:
Originally Posted by murphearlyretirement View Post
Thank you all, in the short turn I am going to cancel the professionally managed IRA. At that point of cancellation what happens to the fund allocation? does is just stay where it was the day of cancellation? This is what I gained on my IRA in 2018: -7.99 How did INDEX FUNDS do on average?

My historical return as posted on my Fidelity account.

Calendar Year Your Account
2018 -7.99%
2017 +15.54%
2016 +5.80%
2015 -1.45%
2014 +4.14%
2013 +18.32%
2012 +12.53%
2011 -4.46%
Quote:
Originally Posted by pb4uski View Post
What is your asset allocation (AA)? ....
Quote:
Originally Posted by murphearlyretirement View Post
About your strategy: Growth
Domestic Stock 49% Foreign Stock21% Bonds25% Short Term5%
Ok, using that 49%/21%/25%/5% AA and Fidelity index funds:

2018 -5.54%.... 2.45% better
2017 +18.81%.... 3.27% better
2016 +8.03%.... 2.23% better
2015 -0.01%.... 1.44% better
2014 +6.43%.... 2.29% better
2013 +20.77%.... 2.46% better
2012 +13.73%.... 1.20% better

https://www.portfoliovisualizer.com/...al2=0&total3=0

Mind you, I'm not very familiar with Fidelity funds so I just picked them based on names.

TickerNameAllocation
FSKAXFidelity Total Market Index49.00%
FSPSXFidelity International Index21.00%
FTBFXFidelity Total Bond Fund25.00%
FSHBXFidelity Short-Term Bond5.00%
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...60/35/5 AA
pb4uski is offline   Reply With Quote
Old 04-21-2019, 03:44 PM   #16
Thinks s/he gets paid by the post
JoeWras's Avatar
 
Join Date: Sep 2012
Posts: 4,607
Tim, look at that! PB4 did the work for free. Isn't this a great site?
JoeWras is offline   Reply With Quote
Old 04-21-2019, 03:53 PM   #17
Recycles dryer sheets
 
Join Date: Apr 2017
Location: SF East Bay
Posts: 58
Quote:
Originally Posted by pb4uski View Post

Mind you, I'm not very familiar with Fidelity funds so I just picked them based on names.

TickerNameAllocation
FSKAXFidelity Total Market Index49.00%
FSPSXFidelity International Index21.00%
FTBFXFidelity Total Bond Fund25.00%
FSHBXFidelity Short-Term Bond5.00%
FYI

FTIPX is the Fidelity Total International Stock Index Fund (premium class), which includes emerging markets. The International Index Fund does not. FZILX is Fidelity Zero SM International Index Fund charges no annual expenses and includes emerging markets, but tracks a proprietary Fidelity index.
GoBears is offline   Reply With Quote
Old 04-21-2019, 03:57 PM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 22,741
Quote:
Originally Posted by JoeWras View Post
Tim, look at that! PB4 did the work for free. Isn't this a great site?
I don't get paid? When did that start? I must have missed the memo!
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...60/35/5 AA
pb4uski is offline   Reply With Quote
Old 04-21-2019, 04:03 PM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 22,741
Quote:
Originally Posted by GoBears View Post
FYI

FTIPX is the Fidelity Total International Stock Index Fund (premium class), which includes emerging markets. The International Index Fund does not. FZILX is Fidelity Zero SM International Index Fund charges no annual expenses and includes emerging markets, but tracks a proprietary Fidelity index.
Interesting but since that fund has such a short history (established June 2016) is it not useful to the analysis looking at historical performance.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...60/35/5 AA
pb4uski is offline   Reply With Quote
Old 04-21-2019, 07:12 PM   #20
Thinks s/he gets paid by the post
 
Join Date: Jan 2018
Location: Tampa
Posts: 4,162
Quote:
Originally Posted by pb4uski View Post
I don't get paid? When did that start? I must have missed the memo!
Trying to keep your taxable income lower for your own benefit.
__________________

__________________
TGIM
Dtail is offline   Reply With Quote
Reply

Tags
managed ira


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Hi, I'm hoping to retire in early 2010 powerplay Hi, I am... 9 01-27-2009 08:37 AM
49 year old from the Great Northwest hoping to retire soon! hakuna matata Hi, I am... 11 08-02-2008 11:34 AM
29 and hoping to retire by 50.... dorikin_86 Hi, I am... 17 07-29-2008 08:20 PM
41 and Hoping to Retire by 50 retiringby50 Hi, I am... 6 12-05-2007 07:02 AM

» Quick Links

 
All times are GMT -6. The time now is 01:52 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.