Solo 401k

[redneck joe]

Anyone got one? For various reasons I want to move it from my previous employer to my self employed self.

I've confirmed the company I want to use accepts rollover but that is about the only pitfall I can see other ensuring it is a direct between the companies.

Anyone have insight?

 

[airshot]

I have a financial advisor that takes care of things like that, I rolled my part time job and my full time job, all into my own account. Use experts when ever you can !

 

[dingbat]

The biggest thing people miss when selecting managers or investments are the management and investment fees.

Providers are not very forth coming on their management fees. I had to ask specifically about their fee structures for the subject to even come up.

While the fees seem rather small on paper, typically 1.0 to 1.50%, a 1/4 to 1/2% difference can add up to thousands over time.

 

[redneck joe]

yeah the fees for schwab are zero for most things, some one off small $ fees for certain things.

 

[redneck joe]

I have a financial advisor that takes care of things like that, I rolled my part time job and my full time job, all into my own account. Use experts when ever you can !

I do well with our stuff, we are very diversified and i'm mostly 'set and forget' kinda guy except for some small small play accounts which i still do fairly well..

I've recently begun to educate myself on how to actually use our money once we need it to live on. Accumulation and investing are fairly straight forward imo but with medicaid based on income, tax levels, she will prob be working when i start drawing in a couple years, how social security works for her when i'm dead, etc - i will be fining a person to guide me thru that.

 

[dingbat]

yeah the fees for schwab are zero for most things, some one off small $ fees for certain things.

I assume you’re looking at an unmanaged account.

Had four separate managed 401K accounts but hired a fiduciary three years ago in prep for retirement.

In hindsight, I should have consolidated and hired an asset manager a lot earlier. The returns are beating the heck out of the leave and forget strategy I practiced for so long.

 

[redneck joe]

yes, unmanaged.

did you use a local fiduciary or a big one, if big, who?

 

[airshot]

I have had my financial guy for over 40 years, a Jewish fellow that really understands finnances, my money is in the same investments his money is in ! If I loose, so does he, and we all know they don't loose.

 

[alldodge]

Just rolled mine from Government Thrift to Vanguard
Have steadily added to IRA in mostly S&P 500. Moved it because Thrift will not pay a Charity directly (Qualified Charitable Distribution). Since they won't do this I moved funds to Vanguards VOO

 

[dingbat]

yes, unmanaged.

did you use a local fiduciary or a big one, if big, who?

Our primary is handled by a local guy. Came highly recommended by good friends of ours

Also have SIMPLE 401K through John Hancock with my current employer and 401K with a past employer at Fidelity investment Services.

 

[FLATHEAD]

Take a look at “Ally”

 

[redneck joe]

10-4

 

[nola mike]

I have funds with Fidelity and vanguard, and both offer absurdly low fee index funds.
Schwab has them as well. It's been shown over and over that actively managed funds don't outperform indexes and that the management fees take a huge bite of of your earnings over time. If you want to keep it simple invest in a 3 fund portfolio. Spend some time on bogleheads.com and ask your question there if you want some in depth answers.

 

[nola mike]

I have had my financial guy for over 40 years, a Jewish fellow that really understands finnances, my money is in the same investments his money is in ! If I loose, so does he, and we all know they don't loose.

So, he knows money and doesn't lose because he's Jewish?

 

[redneck joe]

had not looked in a bit so thought i would

using S&P 500 as the yardstick previous 12 months i have beat the market by 3.6%, YTD basically a push

one of wifes is 2.6% 12 months and even ytd

second does not have a 12 month view and ytd 2% behind.



so all in all about a push

 

[alldodge]

If your unable to see 12 mth or more, enter the stock in google and select it. Google will show YTD, 1Y, 5Y and Max

 

[redneck joe]

If your unable to see 12 mth or more, enter the stock in google and select it. Google will show YTD, 1Y, 5Y and Max

that one is set in a target fund with about 50 diff stocks

 

[Chris1956]

You can have multiple traditional IRAs, 401Ks and Roth IRAs. These can be Individual (yours) or "managed" by an employer.

If they are of the same type, separate IRAs and 401Ks can be merged as you like. i.e. you can merge different employers IRAs and 401Ks into an individual account. Make sure to roll them from/to like accounts to avoid paying income tax on them.

There are lots of investments for those 40Ks and IRAs. Mutual funds, individual stocks, money market, T-bills etc can all be invested in with 401K/IRA funds. It is best to pick the ones that meets your temperament and lifestyle.

 

[redneck joe]

yeah about to pull the trigger got my EIN this morning and i also saw rolling to a roth is taxable and that tax ill would be huge. We'll prob do small ones when she retires.

 

[Chris1956]

Traditional IRAs and 401Ks are tax deferred, such that they are funded with pre-tax $ and you pay income tax on whatever you withdraw.

Roth IRAs are funded with after tax $ and you pay no income tax, when you withdraw the $. If you convert an IRA/401K into a Roth IRA, you pay income taxes on all the $ converted. After that the Roth IRA proceeds are tax free.