IRA Rollover

Posts Tagged ‘finance’

Question: What is a typical IRA annual fee?

I’m about to rollover my 401k to an IRA. It’s worth about $19,000.

The investment firm charges an Annual Account Fee of:
“1% of Market Value plus $25/year administrative fee”

In addition, I will be charged:
“investment management fees and expenses by the mutual funds in which the IRA account assets are invested.”

Does that mean I’d be paying $190+$25 per year (and more later as the account grows, obviously), and additional fees for the mutual funds?

That seems very high to me. Is this reasonable, or just a rip-off?

What are typical IRA annual fees?

Answer: IRA Fees for me at Schwab: $0
IRA Fees for me at ThinkOrSwim: $0
IRA Fees for me at Dodge & Cox: $30 a year

As a “newbie” I’d suggest going to;
Schwab (lots of service, lots of mutual Funds)
Fidelity (good service, lots of Mutual Funds)
T. Rowe Price (great “target Funds”, low expneses)
Dodge & Cox (not really set up for newbies…. but wonderful funds with some of the lowest expenses in the country (internal fees of about .60% vs. average Mutual Funds of 1.50% and more).

BTW: The fees you quoted;
“1% of Market Value plus $25/year administrative fee”
does not include the internal fees for the mutual funds or sales charges (if any).

Read:
Mutual Funds For Dummy’s

One last thought;
The worst two places for any investment (IRA’s or not) are Banks and Insurance companies. Stay Clear.