"Your first step is to initiate a direct rollover from your current advisor's custodial firm to wherever you decide to open your new accounts. Then determine if you want to maintain the same allocation that you had. If so, and the old account was populated with passive investments (index funds), you are ready to go. If you owned funds or assets that you do not want to keep, you will need to factor in taxes, if it is a taxable account."
"My wife and I have spoken to a financial advisor whose compensation would be one percent of the value of our portfolio. That one percent comes to about $6,000 this year. He has looked at our investments and says he can do better for us. Is one percent a customary fee? A: One percent is standard on accounts up to about $2,000,000."
Saving-friendly apps can encourage saving and jump-start retirement, though some platforms use gamification and gambling-like mechanics that raise concern. Moving accounts is doable by initiating a direct rollover from the current custodian to the new custodian and deciding whether to maintain the same asset allocation. If the old account holds passive index funds and the allocation is retained, the transition is straightforward. If the account contains assets to sell, taxes must be considered for taxable accounts. Advisor fees around one percent are common up to roughly $2,000,000, but comprehensive financial planning is preferable to mere portfolio management. Notification of highly compensated status can limit Roth 401(k) contribution ability.
Read at www.mercurynews.com
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