Ameriprise Simple IRA to IRA Strategy

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deadlycfx
Posts: 2
Joined: Fri Nov 08, 2019 1:36 pm

Ameriprise Simple IRA to IRA Strategy

Post by deadlycfx » Fri Nov 08, 2019 2:00 pm

I have a 6 years Simple IRA account at Ameriprise through work. I recently pay more attention to their funds fee and it seems kind of high and the return is lower than the S&P. Anyone knows a strategy to rollover/transfer funds to a different company like Vangaurd and keep expense down? I guess I will still need to have an Ameriprise account because of work and they charge $100 a year to have a brokerage account open.

I read that Vanguard is good with funds, but what if I want to trade individual stocks too? I just found out that their stock trade is like $25 total per trade. Crazy high compare to the new free trades other company are offering. I won't be day trading on this retirement account, but $25 a trade is quite high.

Thanks for your help.

Silk McCue
Posts: 3240
Joined: Thu Feb 25, 2016 7:11 pm

Re: Ameriprise Simple IRA to IRA Strategy

Post by Silk McCue » Fri Nov 08, 2019 4:24 pm

Welcome to Bogleheads!

Please take time to the read our Wiki on this.

https://www.bogleheads.org/wiki/SIMPLE_IRA

You should be able to roll this over to another Simple IRA or just a Traditional IRA.

Boglhead's are focused on investing in broadly diverse low cost funds. Buying individual stocks is done by some but it is not a primary strategy to achieve long term success. Vanguard as you can see isn't built to support peoples stock trading habits. You would likely be better of at Fidelity or Schwab. Better yet take some time to learn about our investing approach and consider implementing it at your brokerage of choice.

https://www.bogleheads.org/wiki/Getting_started


Cheers

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David Jay
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Location: Michigan

Re: Ameriprise Simple IRA to IRA Strategy

Post by David Jay » Fri Nov 08, 2019 5:26 pm

Trades at Vanguard are tiered based on the size of the account.

For an account with a balance under $50,000 trades are $25, if your account balance is over $50,000 the trades are $7.

I think I would recommend Schwab for your needs.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

retiredjg
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Joined: Thu Jan 10, 2008 12:56 pm

Re: Ameriprise Simple IRA to IRA Strategy

Post by retiredjg » Sat Nov 09, 2019 7:55 am

Get a thorough understanding of the link above to the Wiki.

You need to find out if your SIMPLE IRA is a Form 5304 plan or a Form 5305 plan. This may not be easy to do at first but it is possible that your plan documents tell you.

With either plan, since your SIMPLE IRA is more than 2 years old, you can roll the money that is currently in there out to a traditional IRA at another custodian such as Vanguard or Fidelity.

If you are interested in trading stocks, Vanguard is not the best choice to do that. I would suggest that you not hold individual stocks.

Topic Author
deadlycfx
Posts: 2
Joined: Fri Nov 08, 2019 1:36 pm

Re: Ameriprise Simple IRA to IRA Strategy

Post by deadlycfx » Mon Nov 11, 2019 3:50 pm

Thanks all for the reply. If I transfer to Vanguard, I would go for funds. I will do more research on this Simple IRA rollover and transfer.

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