SEP IRA brokerage choice

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Topic Author
fund
Posts: 148
Joined: Mon Apr 28, 2014 10:06 pm

SEP IRA brokerage choice

Post by fund »

Hi everyone,

My wife will soon be starting a new job that offers a SEP IRA. The SEP IRA can be located in any brokerage of her choosing, and together we've narrowed down the choices to Fidelity and Schwab based on what appears to be high praise for their customer service. There are locations of each near where we live, so that doesn't factor in the determination. We're a little wary of Vanguard given the "mega thread" and related posts, but we're open to reconsidering. We've done a search of older posts to learn if there was a preference between Fidelity and Schwab or other recommendations, but we've been unable to reach a definitive conclusion. We have a few questions:

* Which brokerage would you recommend for her SEP IRA and why?

* What considerations should we be thinking about? Neither of us has ever had a SEP IRA before, so this is completely new terrain for us.

* If you don't like either Fidelity or Schwab for her SEP IRA, is there a particular brokerage you'd recommend instead? Her previous job had a regular 401(k), and she's happy with the investments there and can leave them there, so the SEP IRA would be brand new (intention at this time is to not roll over the 401(k)).

Thanks very much for your help, and please let me know if we're misunderstanding anything or need to provide any more information.
Nohbdy
Posts: 197
Joined: Mon May 10, 2021 12:48 pm

Re: SEP IRA brokerage choice

Post by Nohbdy »

fund wrote: Tue Jan 24, 2023 9:19 am Hi everyone,

My wife will soon be starting a new job that offers a SEP IRA. The SEP IRA can be located in any brokerage of her choosing, and together we've narrowed down the choices to Fidelity and Schwab based on what appears to be high praise for their customer service. There are locations of each near where we live, so that doesn't factor in the determination. We're a little wary of Vanguard given the "mega thread" and related posts, but we're open to reconsidering. We've done a search of older posts to learn if there was a preference between Fidelity and Schwab or other recommendations, but we've been unable to reach a definitive conclusion. We have a few questions:

* Which brokerage would you recommend for her SEP IRA and why?

* What considerations should we be thinking about? Neither of us has ever had a SEP IRA before, so this is completely new terrain for us.

* If you don't like either Fidelity or Schwab for her SEP IRA, is there a particular brokerage you'd recommend instead? Her previous job had a regular 401(k), and she's happy with the investments there and can leave them there, so the SEP IRA would be brand new (intention at this time is to not roll over the 401(k)).

Thanks very much for your help, and please let me know if we're misunderstanding anything or need to provide any more information.
I doubt you would regret either.

Between the two, I might lean slightly towards Fidelity because some of the Schwab international options appear to me to be less diversified. Fidelity also has slightly lower cost index funds.

Having said that, my wife has a SEP at TD ameritrade which is likely to be consolidated with Schwab this year. Unless Fidelity would pay me for the trouble, I do not intend to make any changes.

If you already have accounts at either, I would lean that way just for simplification.

Things to consider: for me it is cost, diversification, and simplicity. I’m just an individual investor like you, but I think Fidelity gets a very slight edge on 2 out of those 3.
Topic Author
fund
Posts: 148
Joined: Mon Apr 28, 2014 10:06 pm

Re: SEP IRA brokerage choice

Post by fund »

Thank you. Appreciate your thoughts.
TwstdSista
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Joined: Thu Nov 16, 2017 3:03 am

Re: SEP IRA brokerage choice

Post by TwstdSista »

Both are great options. I would choose Fidelity solely because that's where the vast majority of my other accounts are. I like to keep it simple!
Topic Author
fund
Posts: 148
Joined: Mon Apr 28, 2014 10:06 pm

Re: SEP IRA brokerage choice

Post by fund »

Thank you - appreciate your feedback.

Agreed both appear good and likely she'd be happy with either. There's great value in learning from others on the forum and their experiences, so would be grateful to hear from them about the decision between the two, especially if anyone feels particularly strongly one way or the other. Thanks again.
Evergreen2022
Posts: 10
Joined: Wed Jun 01, 2022 8:17 am

Re: SEP IRA brokerage choice

Post by Evergreen2022 »

I have TD which will become Schwab. The only major issue is TD only allows deposits via wire transfer. I have no idea if all SEP’s are like that but it’s enough of a yearly hassle that I’d avoid TD if I knew that in advance. Every other account with TDAmeritrade is standard ACH.
Topic Author
fund
Posts: 148
Joined: Mon Apr 28, 2014 10:06 pm

Re: SEP IRA brokerage choice

Post by fund »

Thanks, Evergreen2022. I called Schwab and they confirmed ACH is one of several ways of making deposits to the account.
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ruralavalon
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Location: Illinois

Re: SEP IRA brokerage choice

Post by ruralavalon »

Either Fidelity or Schwab would be a good choice in my opinion.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
Topic Author
fund
Posts: 148
Joined: Mon Apr 28, 2014 10:06 pm

Re: SEP IRA brokerage choice

Post by fund »

Thank you. That both are good definitely brings peace of mind. There probably isn't an absolute clear winner between the two, which says a lot.

Thanks again.
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