- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Question regarding 401k advisor fees
Posted on 7/19/23 at 1:50 pm
Posted on 7/19/23 at 1:50 pm
What is everyone else paying as a monthly or quarterly advisor fee for their 401k? Or are these fees only in certain 401k plans? I pay between $135 and 150 per month, and obviously it’s eating into the amount of money I am actually able to invest.
On top of that the funds I get to pick from are crap, everything with an expense ratio over 0.55 but that may be a different topic.
On top of that the funds I get to pick from are crap, everything with an expense ratio over 0.55 but that may be a different topic.
9
Posted on 7/19/23 at 2:09 pm to saderade
quote:
I pay between $135 and 150 per month
fire the advisor today, go "self managed", and put 100% into S&P500 IMO
Posted on 7/19/23 at 2:13 pm to saderade
$0.
Do you need monthly or even quarterly services? Unless you want to be completely hands off, may think about finding a flat fee advisor that you chat with once a year to discuss your financial picture. Otherwise as discussed often on this board, most people do fine with a simple index fund approach.
Eta: clearly didn't read the title.
I have a solo401k which is 0 fees. Guess yeah it depends on the 401k plan if you can get away from some of those fees.
Do you need monthly or even quarterly services? Unless you want to be completely hands off, may think about finding a flat fee advisor that you chat with once a year to discuss your financial picture. Otherwise as discussed often on this board, most people do fine with a simple index fund approach.
Eta: clearly didn't read the title.
I have a solo401k which is 0 fees. Guess yeah it depends on the 401k plan if you can get away from some of those fees.
This post was edited on 7/19/23 at 2:27 pm
Posted on 7/19/23 at 2:22 pm to wileyjones
quote:
fire the advisor today, go "self managed", and put 100% into S&P500 IMO
I've never heard of a 401k allowing you to self-manage and not pay those fees.
401k fees are one of those insidious fees you cannot seem to avoid.
When I negotiated my companies 401ks previously, we tried to pay those fees separately, so they were not coming out of the accounts but that wasn't allowed either.
Posted on 7/19/23 at 2:33 pm to saderade
I think I pay around $1.75 a month for the administration. I don’t use an advisor though.
Posted on 7/19/23 at 4:10 pm to Helo
quote:
I've never heard of a 401k allowing you to self-manage and not pay those fees.
They definitely exist. My employer uses Schwab for the 401k. Schwab offers a PCRA (Personal Choice Retirement Acct) option within the 401k account. If you open the PCRA acct within your 401k, you have full access to all trading options including all stocks, ETFs, mutual funds, options, takes, puts, etc. The PCRA has no fee to use it. You can put both traditional 401k and Roth 401k money into the PCRA.
Posted on 7/19/23 at 5:08 pm to saderade
What are you getting for $175/month?
So why don't you stick it in a very low expense Vanguard Admiral 500 index and leave it alone? That expense ratio will eat you up over time.
So why don't you stick it in a very low expense Vanguard Admiral 500 index and leave it alone? That expense ratio will eat you up over time.
This post was edited on 7/19/23 at 5:09 pm
Posted on 7/19/23 at 8:16 pm to saderade
What advisor are you using???
Posted on 7/19/23 at 8:20 pm to Puffoluffagus
quote:
I have a solo401k which is 0 fees
same. and mine is with checkbook control at a bank to where i am the trustee and plan administrator and can invest the funds into whatever i want. some i use at TD AMERITRADE and some i use elsewhere.
Posted on 7/19/23 at 8:47 pm to saderade
$20/year, TransAmerica Portfolio Express for my 401k. It’s either that or a target date fund for $0 fee.
This post was edited on 7/19/23 at 8:49 pm
Posted on 7/19/23 at 10:07 pm to Fat Bastard
quote:Morgan Stanley but it’s through my employer (in which I have a match).
What advisor are you using???
The only thing I get out of my advisor is they contact me once a year to rebalance some funds. I don’t appear to have access to any low fee vanguard funds or anything similar. Every other investment I have in my Roth IRA and brokerage account is a low fee vanguard fund.
Posted on 7/19/23 at 10:48 pm to saderade
I gave you an upvote just because I feel so bad for your situation. That’s outrageous!!!
Posted on 7/20/23 at 11:13 pm to saderade
Really depends upon how it’s set up.
Most of the people on this board are paying an advisor fee in their 401k and unless they read the fee disclosure notice may not even know it.
At least yours is disclosed with a line item. Impossible to tell if it’s too much without knowing how big your balance is and how big the plan is.
Also what you are calling the advisor fee may also be paying the recordkeeper and for plan administration. Plans have costs (such as IRS and DOL compliance, integrations with payroll etc)
Most of the people on this board are paying an advisor fee in their 401k and unless they read the fee disclosure notice may not even know it.
At least yours is disclosed with a line item. Impossible to tell if it’s too much without knowing how big your balance is and how big the plan is.
Also what you are calling the advisor fee may also be paying the recordkeeper and for plan administration. Plans have costs (such as IRS and DOL compliance, integrations with payroll etc)
Posted on 8/13/23 at 10:43 pm to Tigerstark
Thanks for everyone’s opinions and advice. Just to update I spoke with our fund advisor and their explanation was the monthly service fee is 0.75% of the total fund divided by 12 for each month. The fund currently has around 220k, so 0.75% divided by 12 is between $135-150 per month. Not sure if that’s standard or if it’s different than most 401k plans
Posted on 8/13/23 at 11:37 pm to saderade
What in the frick are they possibly doing that is worth $150 a month. I can't even imagine the destruction that would do to you over the course of 40 or so years
quote:That is so bad just wait until you get the account over a million or so
Thanks for everyone’s opinions and advice. Just to update I spoke with our fund advisor and their explanation was the monthly service fee is 0.75% of the total fund divided by 12 for each month. The fund currently has around 220k, so 0.75% divided by 12 is between $135-150 per month. Not sure if that’s standard or if it’s different than most 401k plans
This post was edited on 8/13/23 at 11:39 pm
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News