Help With Rolling Over Retirement Trust

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pnwmom
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Joined: Sun Mar 11, 2018 12:55 pm

Help With Rolling Over Retirement Trust

Post by pnwmom » Sun Mar 11, 2018 1:15 pm

I am totally new to investing since my previous Employer managed a Retirement Trust for their employees. I left my job a year ago to pursue my photography which has taken off. I received a letter from my former employer that I must elect to roll over to an Ira or take the money. I have met with one broker and he was ready to get a account going and call my previous employer and sign paperwork. I was like Whoa um I need to discuss this with my husband first. First of all I was shocked at the amount they charged for a account yes it was Edward Jones :( Then he was like apologizing he said no you can think about it. I felt like I was at a car dealership. So, I have been researching until my head hurts. I am leaning towards Vanguard are there any suggestions on what to invest in? I am 51 and I have 200,000 to invest Thank you.

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David Jay
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Re: Help With Rolling Over Retirement Trust

Post by David Jay » Sun Mar 11, 2018 1:40 pm

You can self-manage at any low-cost brokerage, Vanguard, Fidelity and Schwab are the most common recommendations around here. Work with the brokerage who is receiving the funds as they will be motivated to get the transfer done smoothly.

As an alternate, you can use Vanguard’s Personal Advisor Service (PAS) to get started, with just a 0.3% cost. The best part is that you can cancel at any time and they won’t hassle you about the cancellation. So use PAS while you are learning and getting comfortable with managing your portfolio then cancel when you are ready.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

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David Jay
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Location: Michigan

Re: Help With Rolling Over Retirement Trust

Post by David Jay » Sun Mar 11, 2018 1:46 pm

If you decide to self-manage, I would recommend looking in the “Portfolio Construction” section of the investing startup kit in the BH Wiki.

Link to the Startup kit here: https://www.bogleheads.org/wiki/Boglehe ... art-up_kit

[edit] This doesn’t need to be a difficult choice. I would start with the TargetDate 2025 if you don’t know which fund(s) to select. Within a Vanguard IRA you can change funds later without cost or penalty.
Last edited by David Jay on Sun Mar 11, 2018 1:58 pm, edited 1 time in total.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

2b2
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Re: Help With Rolling Over Retirement Trust

Post by 2b2 » Sun Mar 11, 2018 1:52 pm

I think you are leaning in the right direction.

If you go with Vanguard, they will pull your money from where it is into your new account (which they will help you set up) at Vanguard. I did this 10 years ago when I retired and they did all the work.
My transfer did not involve a retirement trust, however.

Good luck!
PS - Welcome to the forum!

2b2

pnwmom
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Joined: Sun Mar 11, 2018 12:55 pm

Re: Help With Rolling Over Retirement Trust

Post by pnwmom » Mon Mar 12, 2018 12:22 pm

Thank you for the advice and encouragement. Calling Vanguard today I will let you know the outcome. I felt so pressured at EJ and glad I walked away and researched. I learned a lot just from reading on this site. Very informative. I have printed out many articles you suggested to help me choose my investments. Thank You :happy

pnwmom
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Joined: Sun Mar 11, 2018 12:55 pm

Re: Help With Rolling Over Retirement Trust

Post by pnwmom » Tue Mar 13, 2018 8:45 pm

David Jay wrote:
Sun Mar 11, 2018 1:46 pm
If you decide to self-manage, I would recommend looking in the “Portfolio Construction” section of the investing startup kit in the BH Wiki.

Link to the Startup kit here: https://www.bogleheads.org/wiki/Boglehe ... art-up_kit

[edit] This doesn’t need to be a difficult choice. I would start with the TargetDate 2025 if you don’t know which fund(s) to select. Within a Vanguard IRA you can change funds later without cost or penalty.
Thank you for the links to the articles. I walked into EJ with knowledge and I think it took him back when I asked him about expense ratios. I thanked him for his time and told him I could do better for my money. I also spoke with Vanguard this morning and they were very pleasant to talk to. I set up meeting with an adviser on Thursday. I opened an account to get the ball rolling for the transfer from my profit sharing trust to a IRA with Vanguard. As you said and they confirmed that I could cancel that at anytime until I feel comfortable managing myself. This Forum is so great! Thanks Again.

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