Look at my 401k?

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Topic Author
crazycatman
Posts: 54
Joined: Wed Feb 14, 2018 11:23 pm

Look at my 401k?

Post by crazycatman » Sun Jun 02, 2019 8:13 am

Hey, all -

My advisor set us up with SEI and Assorted Pension Consultants for our 401K (self employed). We talked about our risk tolerance and he set us up with 62.52% SDYAX and 37.48% SEOXX.

My problem is that we're paying a 1% management fee along with a $60/yr "Account Service Fee."

As I understand, SEI is typically used by larger corporations, which might be why my advisor set us up with it because his firm does work with larger corps.

I'm thinking about dumping SEI, rolling our funds into a Vanguard IRA and opening a solo 401K with Vanguard to cut fees. I understand 1% isn't huge but I hate seeing money vanish when I can periodically look at my own portfolio and realign if needed.

Thoughts?

User avatar
Wiggums
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Joined: Thu Jan 31, 2019 8:02 am

Re: Look at my 401k?

Post by Wiggums » Sun Jun 02, 2019 8:17 am

A 1% fee is s drag on your earnings. Also, ask yourself what you get for those fees once the funds are selected? Don’t forget that the ER fees are probably higher too.
Last edited by Wiggums on Sun Jun 02, 2019 9:49 am, edited 1 time in total.

supersharpie
Posts: 692
Joined: Wed Dec 22, 2010 1:28 pm

Re: Look at my 401k?

Post by supersharpie » Sun Jun 02, 2019 8:18 am

crazycatman wrote:
Sun Jun 02, 2019 8:13 am
Hey, all -

My advisor set us up with SEI and Assorted Pension Consultants for our 401K (self employed). We talked about our risk tolerance and he set us up with 62.52% SDYAX and 37.48% SEOXX.

My problem is that we're paying a 1% management fee along with a $60/yr "Account Service Fee."

As I understand, SEI is typically used by larger corporations, which might be why my advisor set us up with it because his firm does work with larger corps.

I'm thinking about dumping SEI, rolling our funds into a Vanguard IRA and opening a solo 401K with Vanguard to cut fees. I understand 1% isn't huge but I hate seeing money vanish when I can periodically look at my own portfolio and realign if needed.

Thoughts?
1% is actually quite huge and will cost you tens of thousands, if not hundreds of thousands, over a lifetime. You know what to do.

Topic Author
crazycatman
Posts: 54
Joined: Wed Feb 14, 2018 11:23 pm

Re: Look at my 401k?

Post by crazycatman » Sun Jun 02, 2019 8:19 am

Wiggums wrote:
Sun Jun 02, 2019 8:17 am
I 1% fee is s drag on your earnings. Also, ask yourself what you get for those fees once the funds are selected? Don’t forget that the ER fees are probably higher too.
Looks like SDYAX is 1.19% and SEOXX is 0.20%

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Tamarind
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Re: Look at my 401k?

Post by Tamarind » Sun Jun 02, 2019 8:25 am

I strongly suggest migrating your solo 401k to Vanguard. I find it easy to set up and easy to contribute to and when I called with a question the customer service rep was extremely friendly and knowledgeable. Cost? $0. Why would you pay 1% annually for something you can get for free?

HomeStretch
Posts: 487
Joined: Thu Dec 27, 2018 3:06 pm

Re: Look at my 401k?

Post by HomeStretch » Sun Jun 02, 2019 8:30 am

crazycatman wrote:
Sun Jun 02, 2019 8:19 am
Wiggums wrote:
Sun Jun 02, 2019 8:17 am
I 1% fee is s drag on your earnings. Also, ask yourself what you get for those fees once the funds are selected? Don’t forget that the ER fees are probably higher too.
Looks like SDYAX is 1.19% and SEOXX is 0.20%
The ERs + AUM total 1.82% in fees per year plus the $60 account fee. Moving to a low cost provider like Vanguard will likely save you $$$$$$ over your investing lifetime.

Topic Author
crazycatman
Posts: 54
Joined: Wed Feb 14, 2018 11:23 pm

Re: Look at my 401k?

Post by crazycatman » Sun Jun 02, 2019 8:34 am

HomeStretch wrote:
Sun Jun 02, 2019 8:30 am
crazycatman wrote:
Sun Jun 02, 2019 8:19 am
Wiggums wrote:
Sun Jun 02, 2019 8:17 am
I 1% fee is s drag on your earnings. Also, ask yourself what you get for those fees once the funds are selected? Don’t forget that the ER fees are probably higher too.
Looks like SDYAX is 1.19% and SEOXX is 0.20%
The ERs + AUM total 1.82% in fees per year plus the $60 account fee. Moving to a low cost provider like Vanguard will likely save you $$$$$$ over your investing lifetime.
I don't even have a lot in the account and I'm already getting the sweats with how much we're paying. I think it's time to switch.

lakpr
Posts: 1587
Joined: Fri Mar 18, 2011 9:59 am

Re: Look at my 401k?

Post by lakpr » Sun Jun 02, 2019 8:40 am

Please note, I recently learned that eTrade is the only Solo 401k provider that allows In Plan Roth conversions. This can be a valuable tool to have in your tax planning toolbox. They are a very low cost provider too. Suggest that you take a look at them and compare to Vanguard, before making a decision.

Not self employed, for what it is worth, I have no stake in recommending eTrade over Vanguard.

Topic Author
crazycatman
Posts: 54
Joined: Wed Feb 14, 2018 11:23 pm

Re: Look at my 401k?

Post by crazycatman » Sun Jun 02, 2019 8:48 am

lakpr wrote:
Sun Jun 02, 2019 8:40 am
Please note, I recently learned that eTrade is the only Solo 401k provider that allows In Plan Roth conversions. This can be a valuable tool to have in your tax planning toolbox. They are a very low cost provider too. Suggest that you take a look at them and compare to Vanguard, before making a decision.

Not self employed, for what it is worth, I have no stake in recommending eTrade over Vanguard.
I believe we exceed the income limit for Roths.

Doohop65
Posts: 73
Joined: Wed Feb 04, 2015 11:54 am

Re: Look at my 401k?

Post by Doohop65 » Sun Jun 02, 2019 9:13 am

A Roth 401k is different than a Roth IRA. I believe you would be able to contribute if you set up a solo 401k plan at ETrade with the Roth option.

I am about a year into being self employed and made the decision to go with E*TRADE for my provider. They offer more options than vanguard and their customer service was excellent in helping get me set up.

Most of my other accounts are at vanguard. I am a vanguard fan and actually only own vanguard funds at E*TRADE.

Topic Author
crazycatman
Posts: 54
Joined: Wed Feb 14, 2018 11:23 pm

Re: Look at my 401k?

Post by crazycatman » Sun Jun 02, 2019 9:37 am

Doohop65 wrote:
Sun Jun 02, 2019 9:13 am
A Roth 401k is different than a Roth IRA. I believe you would be able to contribute if you set up a solo 401k plan at ETrade with the Roth option.

I am about a year into being self employed and made the decision to go with E*TRADE for my provider. They offer more options than vanguard and their customer service was excellent in helping get me set up.

Most of my other accounts are at vanguard. I am a vanguard fan and actually only own vanguard funds at E*TRADE.
Odds are that we’re in a higher tax bracket now than we will be when we retire so I’m a little iffy on Roth in general, but I could probably be talked into it.

Doohop65
Posts: 73
Joined: Wed Feb 04, 2015 11:54 am

Re: Look at my 401k?

Post by Doohop65 » Sun Jun 02, 2019 9:49 am

https://thecollegeinvestor.com/18174/co ... #tab-con-5

Look at this link. It does a good job laying out the benefits of each provider. Decide what is important to you.

I don’t currently use the Roth option but know that life can change. It’s nice to have options.

Topic Author
crazycatman
Posts: 54
Joined: Wed Feb 14, 2018 11:23 pm

Re: Look at my 401k?

Post by crazycatman » Wed Jun 12, 2019 11:10 am

Update: I’m about to pull the plug on SEI and Associated Pension Consultants and roll my 401k over to Vanguard. They’re claiming the termination fees will be around $2,500. Does this seem normal?

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