Reply to Move 401K Funds out of Employer Account to IRA Managed by Advisor?

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[quote=Anonymous][quote=Anonymous]I’ll be in similar situation but I don’t have CFP. Some things to think about:

An AUM of .5% is on the low end. For you, that means each year your CFP gets $15K. There are other ways they may make money off your accounts. You should also look at the GE fee of each fund they put you in. With typical low fee funds, this might be .03. Funds with fees that are .4 or higher aren’t ideal.

Your DH should contact his HR and find out if he can keep his 401k with his employer and exactly what his fees would be. For me, my fees would be around $700/year for 1M. Thats nothing IMO.

You should also check his 401k to see what funds he is currently in and if they are low fee.

With that much in 401k, you will be “tax bombed”. You will need to read up on conversions.

There is a ton of information to be learned at this point of life.  Bogleheads is a great resource. [/quote]

This is very informative, thanks.

I did look up the GE (didn't even know what that was before now), and it ranged from .03 to .38 with most being around .1. This is for my portfolio being managed by my CFP of which there are many different funds (38 to be exact). I wasn't able to check the 401K (site is under maintenance now) but I suspect those funds are higher in expenses because they are mainly mutual funds and the choices of investment options are very limited.

You mentioned other ways for CFP to make money off my accounts. Do you have examples of this? I am sorry if this sounds dumb, but I thought the only source of income he has from management was the percentage of the funds being managed. One thing I do notice they do is buy and sell a lot of funds during the quarter in what he calls "loss harvesting." I just trust what he is doing, but should I ask more questions? Is he making money on those trades?
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