Trying to consolidate multiple retirement accounts. What company do you trust to handle your retirement accounts?

2016-12-13T21:25:21-05:00

My wife and I have a whole mess of retirement accounts (mostly Roth IRAs, but some other stuff as well) that we would like to consolidate under one roof. I heard good things about Vanguard, but I encountered horrible customer service when trying to establish accounts. USAA is also out of the question. Their returns have been horrible compared to my other accounts of a similar nature.

Response by SFC George Smith made Dec 13 at 2016 9:35 PM

2016-12-13T21:35:53-05:00

You are Lucky You have enough for accounts...
some of Us have retirement income and Social Security while it lasts...

Response by LTC Steve Mannell made Dec 13 at 2016 9:39 PM

2016-12-13T21:39:28-05:00

Are you looking for a discount brokerage where you can manage your own accounts, or do you want someone else to manage your assets for you? I used to manage my family retirement accounts myself. Now, everything other than my 401(k) is managed by AAFMAA Wealth Management & Trust. Full disclosure: I trust them because I work there.

Response by Sgt Private RallyPoint Member made Dec 13 at 2016 10:06 PM

2016-12-13T22:06:44-05:00

CPT Private RallyPoint Member I have been with Vanguard for many years and trust them. My experiences have been positive.

Response by PO2 Peter Klein made Dec 13 at 2016 10:20 PM

2016-12-13T22:20:40-05:00

Lt. Beggs I would suggest that you and your wife interview some financial planners in your community. Start by asking family and friends who they use. They may not tell you the truth about their feelings about the planners, especially if they have had a not so good experience. Also check with your tax person. Get to know the ones that seem like you could work with them. Do not be in a rush to move your money around. Investments are long term, no rush.

Make sure that the planners are licensed and have at least one certification.

I have had planners in big and small firms. For the past few years I have been with a planner who works at LPL Financial.

Response by PO1 Private RallyPoint Member made Dec 13 at 2016 10:20 PM

2016-12-13T22:20:47-05:00

My company was recently acquired and our old John Hancock accounts are closed and we now use Fidelity. I need to rollover my JH and I am thinking about giving these guys a try: https://www.wealthfront.com/.

I am going to give the automated investment arena a try.

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Response by LTC John Shaw made Dec 13 at 2016 11:47 PM

2016-12-13T23:47:05-05:00

CPT Private RallyPoint Member Here are my experiences: I have accounts and over 25+ years with Fidelity, USAA, TIAA-CREF and TSP. I manage my own money and have since 1988.
USAA has self-directed IRA with no managed wrap fee and USAA will provide limited financial advice on their funds. This advise is free and you may do your own allocation or use a target date fund.
I value my relationship with USAA and prefer the self-directed accounts with them as I can trade in into ETF or USAA or non-USAA, including Vanguard.
You can have part or all in a managed account, my wife's funds are in a managed account (UMP) with USAA because when I am overseas on deployment, she wants to call someone and talk whenever she wants and we pay 70 basis points or .007 for the privilege of USAA conducting active allocation on her money. If my wife is risk adverse, remember Happy Wife, Happy Life.
Bottom line if you want detailed advice, you generally will pay for it one way or another.

I like my Fidelity and TIAA-CREF accounts as well, but I don't have the same level of trust in the organization as USAA. TSP, I tolerate because I must and at least it has low fees.
I have had accounts and experiences with Charles Schwab, E*Trade, USPA-IRA (now First Command) all I have closed mainly based on inconsistent service, inaccurate accounting or mis-leading sales or market trading purchase practices.
This is just my experience and it has been at least five years since I have had these accounts, companies service levels change, so you may have different experiences.
I have family that have accounts with Vanguard and they run self-directed just fine as well.
Good luck and happy investing.

Response by LTC John Shaw made Dec 14 at 2016 12:00 AM

2016-12-14T00:00:43-05:00

CPT Private RallyPoint Member I forget to mention automated investing services or robo-advisory services like Betterment, Wealthfront, Acorn. I opened an account with Wealthfront about a year ago with 10k just to get a feel for the actual method and models. They charge lower fees (25 or 30 basis points) but you will do everything via web via self-service and accept their automated risk assessment methodology and limited reporting. I like the ability to compare my own portfolio with what Wealthfront recommends and sometimes I find they made a choice that I use for my own portfolio to track a segment of the market. Just another option to consider.

Response by Capt Private RallyPoint Member made Dec 14 at 2016 9:42 AM

2016-12-14T09:42:43-05:00

I'm a big fan of consolidating investment accounts. Fewer accounts makes for easier asset allocation, management, and administration.

There are three big areas to consider: Your risk tolerance, your timeline, and the cost of the investments.

Your risk tolerance and timeline will help determine your asset allocation (how your funds are invested).

The management fees you pay determine how much you keep in your pocket (Management fees include the expense ratio of the investment fund as well as any management fees you might pay to someone to manage your investments for you - you must consider all associated costs before making any investment decision).

This study from Vanguard shows the impact of management fees on investments:
http://vanguardblog.com/2011/10/28/stopping-the-silent-killer-of-returns/

The short and skinny - a 1% increase in the fees you pay will reduce your returns by 25% over a 30 year period. A 2% increase in fees erases 44.8% of your returns over the same 30 year period.

This is why so many experts recommend investing in low-cost index funds - they are substantially less-expensive than managed investment funds, and often have similar or better returns.

Keep these three things in mind and you will do fine.

Stopping the silent killer of returns

There continues to be a lot of focus on the consequences of today’s low-rate environment. In such an environment, one of the most important things an investor can do is economize on the cost …

Response by MSgt Doug P. made Dec 14 at 2016 1:54 PM

2016-12-14T13:54:12-05:00

I've been self-managing my investment and retirement funds with Fidelity Investments for 25+ years and added T. Rowe Price within the last 10 years. No issues with either of them. Their customer service reps quickly take care of whatever needs/concerns/issues you have if they can handle it. If not they will connect you with an agent in the appropriate department that can. Only once did I have to call back to get some clarification/update on an issue. Normally, everything is resolved in one call.

Some of their funds do require minimum balances to open and maintain but most of them are no load funds (purchase or sell). Most of these funds have slightly higher management fees than TSP and other low-cost funds but with the average returns of their (aggressive) growth funds, you still come out well ahead.

You can ask them for advice on selecting a fund or funds that meets your needs: risk tolerance, investment style, timelines, tax benefits, loads/fees, open/maintain balances, etc. You'll need to do a little research into the funds that look appealing. I look at the fund's Morningstar rating hsitory, 3, 5, & 10 year returns, and several other factors including those previously mentioned.

Even if you prefer to have someone else manage your money, it's still on you to be smart about it. I'm no financial advisor, day trader, etc. but I've learned enough about investment funds, tax implications, estate planning, etc. to grow my retirement savings quite nicely. Finding an advisor who puts your needs/goals above their commission can be difficult but it is possible. Just have to research them and choose wisely. Don't be afraid to move to a different advisor or fund if you aren't getting the service you need or performance you expect.

Be careful when moving money out of one fund and into another. You have to do it the right way or the IRS will have a field day with your mistake (personal experience).

Response by MAJ Raymond Brooks made Dec 14 at 2016 3:09 PM

2016-12-14T15:09:52-05:00

The problem with money in retirement accounts is not the company, but the economy. Most retirement accounts today are tacked to the stock market, because there is 0 (zero) interest on holding money. The last couple of weeks, the market has gone great, my accounts are all up and doing well, but I am still not back to where I was when the market tanked the last time. Find a good company, I like USAA for a number of reasons, but there are others as good. Do your homework, and read the prospectus that they send. Then hold your nose. and pick one out of the pile. It really won't make any difference if/when the market tanks.

Response by Lt Col Jim Coe made Dec 14 at 2016 4:21 PM

2016-12-14T16:21:25-05:00

Financial Engines handles my retirement account. I'm very pleased with their services. They can also help you pick the best funds in TSP to reach your goals.

Response by MAJ Raúl Rovira made Dec 15 at 2016 3:00 AM

2016-12-15T03:00:17-05:00

I moved my "stuff" from USAA to Charles Schwab. We sold most of our USAA Mutual Funds for ETF. Like you said, not doing so well. I have an independent financial planner that helps me with the decisions.
Always consider the fees for buying trading and selling + reputation of the bank/investment company.

Response by Col Joseph Lenertz made Dec 15 at 2016 11:18 AM

2016-12-15T11:18:30-05:00

I did the consolidation thing a few years ago. Went under Fidelity because they have low trading costs, their website does a great job comparing Fidelity and non-Fidelity funds, and I've never been pressured to buy Fidelity funds. I've been happy with them.

Response by MSgt John McGowan made Dec 15 at 2016 12:04 PM

2016-12-15T12:04:20-05:00

2LT. Sir I have a account with Vanguard and have had a good return on my 401k. I lost a little interest during the last melt down but no money. The people of Merrill Edge has been pretty good. So far they haven't made trades just to make commissions. My wife had another firm and had paid about $2500 in commissions this year.

Response by MSgt John McGowan made May 15 at 2018 6:53 PM

2018-05-15T18:53:07-04:00

I hate to be a pain where do you get the extra income in SS. Who do you see and what kind of paper work?