What would be a reasonable brokerage fee for a diversified IRA account at a large brokerage house?
My most recent quarterly statement showed a fee of 0.28%. This fee is assessed quarterly
The account is over $1Million, so he definitely can negotiate the fees.FWIW, there are places where one can get $1.4million managed for a flat fee of around $3000 a year and places where the fee is 0.25% of assets under management (AUM) or less per year. However, I think a 1% annual fee is fairly typical for assets under 7-figures from large brokerage places.
In 2006, a simple all-equities index fund strategy returned about 20%. When the divorcee mentions an 11% return, we would need more info to really characterize that as good, bad, or indifferent. For example, if any trading in the account created taxable events and you ended up paying the taxes out of salary, then things could be quite different. But if the account did significant tax-loss harvesting, then that would be a benefit.
In 2006, a simple all-equities index fund strategy returned about 20%. When the divorcee mentions an 11% return, we would need more info to really characterize that as good, bad, or indifferent. For example, if any trading in the account created taxable events and you ended up paying the taxes out of salary, then things could be quite different. But if the account did significant tax-loss harvesting, then that would be a benefit.
If he moves more than 250K to vanguard he'll get a free advise from one of the planners. No tax consequence in taxadvantaged account. He doesn't have to know much to move this money. It's a no brainer to me.
I found an article by Richard Ferri called "The Price of Advice".
He has lots of reasonable advice about not being impressed by fancy offices, addresses, and glossy brochures. He says " a fee of 0.50% per year on accounts from $100k to $1 mil is about right and assets over $1 mil should be half of that amount. A minimum fee of $500 per year is reasonable on accounts less than $100K."
Other brokerages and financial advisors charge about 1% of AUM per year. As I wrote before, you should be able to get this done for $3000 or 0.25% of AUM or less.\Any ideas what other brokerages charge for this type of account?
Vanguard charges 0.75 % for the first million It actively manages and 0.35 % for the next million .That is an annual fee .
Wow, who wants to sit through what would appear to be a confrontational interview for several hours and then possibly fire someone or get fired?( I'd plan for several hours).