Personal Finance Advice and Education! (3 Viewers)

[The Z Machine]

Apologies because I know the word "Trump" isn't allowed on this forum, but, it's in the name: Trump Fund.

Imagine being able to put 5K a year into a Roth for the first 18 years of your kids life.

Then imagine them not doing anything with it, just let it sit there for 30 or 40 years until they retire.

Put that in into a compound interest calculator- I dare you.

WOW

As someone with a 17 month and a 7 month old, this is very intriguing. Will need to research it.

Godspeed, brother. That's a doozy of an age gap.

 

[Instinctive]

Apologies because I know the word "Trump" isn't allowed on this forum, but, it's in the name: Trump Fund.

Imagine being able to put 5K a year into a Roth for the first 18 years of your kids life.

Then imagine them not doing anything with it, just let it sit there for 30 or 40 years until they retire.

Put that in into a compound interest calculator- I dare you.

WOW

As someone with a 17 month and a 7 month old, this is very intriguing. Will need to research it.

Godspeed, brother. That's a doozy of an age gap.

We tried for closer but they wouldn't implant twins and then first couple takes with surrogate didn't work.

 

[Sand]

Apologies because I know the word "Trump" isn't allowed on this forum, but, it's in the name: Trump Fund.

Imagine being able to put 5K a year into a Roth for the first 18 years of your kids life.

Then imagine them not doing anything with it, just let it sit there for 30 or 40 years until they retire.

Put that in into a compound interest calculator- I dare you.

WOW

As someone with a 17 month and a 7 month old, this is very intriguing. Will need to research it.

Godspeed, brother. That's a doozy of an age gap.

My brother and I are 17 months apart. Fought like cats and dogs while growing up. Instinctive is going to have LOADS of fun with those two.

 

[brun]

Ok, maybe the Baby Bonus isn't at capital gains rates, but treated as income on the way out. Found a good article that goes into it:

Creation of “Trump” savings accounts for individuals under 18 Effective: 2026, no end date. This is a wild one and I frankly can’t quite fully follow it or figure it out. There is a lot going on here, and I’m guessing there will be a lot of clarifications from the IRS about this before all of the details and implementation facts are known with certainty. But, to sum up, it appears the OBBBA is establishing an IRA-like account called a “Trump” savings account intended to be used as a savings vehicle for children under 18, where the funding of the account can only occur while the child is under 18. And then distributions from it will follow normal distribution rules for IRAs.

While this means these accounts aren’t going to directly benefit most of you reading this, they may nonetheless be opened by many of you on behalf of children or grand children. Contributions to Trump accounts won’t be allowed until one year after the enactment of the OBBBA, or July 4, 2026. After that, contributions will be allowed up until the calendar year in which the account beneficiary turns 18. The maximum annual contribution is $5,000 (inflation adjusted after 2027),and there will not be any tax deferral or deductions on contributions.

The government will be making $1,000 contributions per year to every child born from 2025 through 2028.And it appears the government will be automatically opening accounts for children born in those years. Investment options for Trump accounts will be limited to index exchange traded funds (“ETFs”) or mutual funds whose expense ratios are not more than 0.1% per year. Distributions are not allowed (at all, I think) until the year the beneficiary turns 18. And after that, it appears the distribution rules around Trump accounts are the same as normal IRAs; a 10% penalty on withdrawals before age 59 ½ (unless there is a penalty exception; just like with IRAs), otherwise, all distributions will be treated like normal IRA distributions where earnings are taxed as ordinary income and return of “basis” or contributions will be tax-free...

Maybe I'm not understanding this correctly. It sounds like contributions are post tax like a Roth IRA. Upon distribution, typically after 59 1/2, earnings are taxed like a traditional IRA. Investment options are limited. Other than a potential $3k over 3 years per kid, from the government. What's the big deal?

Doesn't require earnings to contribute to the "IRA" which you wouldn't have as a child or a retired grandparent giving money to the child.

Also the ability to get it earlier than 59.5 without penalty (don't remember the specifics).

As I read the original post it indicates that distributions will follow regular ira rules. So, 10% penalty if before 59 1/2.

 

[Sand]

Ok, maybe the Baby Bonus isn't at capital gains rates, but treated as income on the way out. Found a good article that goes into it:

Creation of “Trump” savings accounts for individuals under 18 Effective: 2026, no end date. This is a wild one and I frankly can’t quite fully follow it or figure it out. There is a lot going on here, and I’m guessing there will be a lot of clarifications from the IRS about this before all of the details and implementation facts are known with certainty. But, to sum up, it appears the OBBBA is establishing an IRA-like account called a “Trump” savings account intended to be used as a savings vehicle for children under 18, where the funding of the account can only occur while the child is under 18. And then distributions from it will follow normal distribution rules for IRAs.

While this means these accounts aren’t going to directly benefit most of you reading this, they may nonetheless be opened by many of you on behalf of children or grand children. Contributions to Trump accounts won’t be allowed until one year after the enactment of the OBBBA, or July 4, 2026. After that, contributions will be allowed up until the calendar year in which the account beneficiary turns 18. The maximum annual contribution is $5,000 (inflation adjusted after 2027),and there will not be any tax deferral or deductions on contributions.

The government will be making $1,000 contributions per year to every child born from 2025 through 2028.And it appears the government will be automatically opening accounts for children born in those years. Investment options for Trump accounts will be limited to index exchange traded funds (“ETFs”) or mutual funds whose expense ratios are not more than 0.1% per year. Distributions are not allowed (at all, I think) until the year the beneficiary turns 18. And after that, it appears the distribution rules around Trump accounts are the same as normal IRAs; a 10% penalty on withdrawals before age 59 ½ (unless there is a penalty exception; just like with IRAs), otherwise, all distributions will be treated like normal IRA distributions where earnings are taxed as ordinary income and return of “basis” or contributions will be tax-free...

Maybe I'm not understanding this correctly. It sounds like contributions are post tax like a Roth IRA. Upon distribution, typically after 59 1/2, earnings are taxed like a traditional IRA. Investment options are limited. Other than a potential $3k over 3 years per kid, from the government. What's the big deal?

Doesn't require earnings to contribute to the "IRA" which you wouldn't have as a child or a retired grandparent giving money to the child.

Also the ability to get it earlier than 59.5 without penalty (don't remember the specifics).

As I read the original post it indicates that distributions will follow regular ira rules. So, 10% penalty if before 59 1/2.

That part makes sense - put a little in and force it to grow for 60 years. Forcing that and giving those folks another pot of retirement funds is a great idea.

What will be interesting is 60 years from now seeing how many people could resist the urge to plunder the account. I figure, what, 50% will cash it out?

 

[Buckna]

Ok, maybe the Baby Bonus isn't at capital gains rates, but treated as income on the way out. Found a good article that goes into it:

Creation of “Trump” savings accounts for individuals under 18 Effective: 2026, no end date. This is a wild one and I frankly can’t quite fully follow it or figure it out. There is a lot going on here, and I’m guessing there will be a lot of clarifications from the IRS about this before all of the details and implementation facts are known with certainty. But, to sum up, it appears the OBBBA is establishing an IRA-like account called a “Trump” savings account intended to be used as a savings vehicle for children under 18, where the funding of the account can only occur while the child is under 18. And then distributions from it will follow normal distribution rules for IRAs.

While this means these accounts aren’t going to directly benefit most of you reading this, they may nonetheless be opened by many of you on behalf of children or grand children. Contributions to Trump accounts won’t be allowed until one year after the enactment of the OBBBA, or July 4, 2026. After that, contributions will be allowed up until the calendar year in which the account beneficiary turns 18. The maximum annual contribution is $5,000 (inflation adjusted after 2027),and there will not be any tax deferral or deductions on contributions.

The government will be making $1,000 contributions per year to every child born from 2025 through 2028.And it appears the government will be automatically opening accounts for children born in those years. Investment options for Trump accounts will be limited to index exchange traded funds (“ETFs”) or mutual funds whose expense ratios are not more than 0.1% per year. Distributions are not allowed (at all, I think) until the year the beneficiary turns 18. And after that, it appears the distribution rules around Trump accounts are the same as normal IRAs; a 10% penalty on withdrawals before age 59 ½ (unless there is a penalty exception; just like with IRAs), otherwise, all distributions will be treated like normal IRA distributions where earnings are taxed as ordinary income and return of “basis” or contributions will be tax-free...

Maybe I'm not understanding this correctly. It sounds like contributions are post tax like a Roth IRA. Upon distribution, typically after 59 1/2, earnings are taxed like a traditional IRA. Investment options are limited. Other than a potential $3k over 3 years per kid, from the government. What's the big deal?

Doesn't require earnings to contribute to the "IRA" which you wouldn't have as a child or a retired grandparent giving money to the child.

Also the ability to get it earlier than 59.5 without penalty (don't remember the specifics).

As I read the original post it indicates that distributions will follow regular ira rules. So, 10% penalty if before 59 1/2.

That part makes sense - put a little in and force it to grow for 60 years. Forcing that and giving those folks another pot of retirement funds is a great idea.

What will be interesting is 60 years from now seeing how many people could resist the urge to plunder the account. I figure, what, 50% will cash it out?

One of the articles I read said there will be special exceptions at 18 for withdrawals, it mentioned starting a business, 1stbtime home purchase, school expenses... But also limited to no more than 50% of the value. Unclear if that survived to the final version of the bill

 

[cubd8]

Question (something I'm asking on behalf of a friend):
My friend has a daughter with an existing car loan. I think the interest rate is around 9%.
My friend's ex-wife wants to transfer the loan over to her and also attempt to refi the auto loan.

Is that a standard process to transfer the loan to a different person? Can a refi happen and then transfer that new loan to a new person?

 

[Peggy]

Ok, maybe the Baby Bonus isn't at capital gains rates, but treated as income on the way out. Found a good article that goes into it:

Creation of “Trump” savings accounts for individuals under 18 Effective: 2026, no end date. This is a wild one and I frankly can’t quite fully follow it or figure it out. There is a lot going on here, and I’m guessing there will be a lot of clarifications from the IRS about this before all of the details and implementation facts are known with certainty. But, to sum up, it appears the OBBBA is establishing an IRA-like account called a “Trump” savings account intended to be used as a savings vehicle for children under 18, where the funding of the account can only occur while the child is under 18. And then distributions from it will follow normal distribution rules for IRAs.

While this means these accounts aren’t going to directly benefit most of you reading this, they may nonetheless be opened by many of you on behalf of children or grand children. Contributions to Trump accounts won’t be allowed until one year after the enactment of the OBBBA, or July 4, 2026. After that, contributions will be allowed up until the calendar year in which the account beneficiary turns 18. The maximum annual contribution is $5,000 (inflation adjusted after 2027),and there will not be any tax deferral or deductions on contributions.

The government will be making $1,000 contributions per year to every child born from 2025 through 2028.And it appears the government will be automatically opening accounts for children born in those years. Investment options for Trump accounts will be limited to index exchange traded funds (“ETFs”) or mutual funds whose expense ratios are not more than 0.1% per year. Distributions are not allowed (at all, I think) until the year the beneficiary turns 18. And after that, it appears the distribution rules around Trump accounts are the same as normal IRAs; a 10% penalty on withdrawals before age 59 ½ (unless there is a penalty exception; just like with IRAs), otherwise, all distributions will be treated like normal IRA distributions where earnings are taxed as ordinary income and return of “basis” or contributions will be tax-free...

Maybe I'm not understanding this correctly. It sounds like contributions are post tax like a Roth IRA. Upon distribution, typically after 59 1/2, earnings are taxed like a traditional IRA. Investment options are limited. Other than a potential $3k over 3 years per kid, from the government. What's the big deal?

Doesn't require earnings to contribute to the "IRA" which you wouldn't have as a child or a retired grandparent giving money to the child.

Also the ability to get it earlier than 59.5 without penalty (don't remember the specifics).

Any idea if they’d be excluded from an asset list in the child’s name when calculating fafsa?

No idea.

 

[-OZ-]

Ok, maybe the Baby Bonus isn't at capital gains rates, but treated as income on the way out. Found a good article that goes into it:

Creation of “Trump” savings accounts for individuals under 18 Effective: 2026, no end date. This is a wild one and I frankly can’t quite fully follow it or figure it out. There is a lot going on here, and I’m guessing there will be a lot of clarifications from the IRS about this before all of the details and implementation facts are known with certainty. But, to sum up, it appears the OBBBA is establishing an IRA-like account called a “Trump” savings account intended to be used as a savings vehicle for children under 18, where the funding of the account can only occur while the child is under 18. And then distributions from it will follow normal distribution rules for IRAs.

While this means these accounts aren’t going to directly benefit most of you reading this, they may nonetheless be opened by many of you on behalf of children or grand children. Contributions to Trump accounts won’t be allowed until one year after the enactment of the OBBBA, or July 4, 2026. After that, contributions will be allowed up until the calendar year in which the account beneficiary turns 18. The maximum annual contribution is $5,000 (inflation adjusted after 2027),and there will not be any tax deferral or deductions on contributions.

The government will be making $1,000 contributions per year to every child born from 2025 through 2028.And it appears the government will be automatically opening accounts for children born in those years. Investment options for Trump accounts will be limited to index exchange traded funds (“ETFs”) or mutual funds whose expense ratios are not more than 0.1% per year. Distributions are not allowed (at all, I think) until the year the beneficiary turns 18. And after that, it appears the distribution rules around Trump accounts are the same as normal IRAs; a 10% penalty on withdrawals before age 59 ½ (unless there is a penalty exception; just like with IRAs), otherwise, all distributions will be treated like normal IRA distributions where earnings are taxed as ordinary income and return of “basis” or contributions will be tax-free...

Maybe I'm not understanding this correctly. It sounds like contributions are post tax like a Roth IRA. Upon distribution, typically after 59 1/2, earnings are taxed like a traditional IRA. Investment options are limited. Other than a potential $3k over 3 years per kid, from the government. What's the big deal?

Doesn't require earnings to contribute to the "IRA" which you wouldn't have as a child or a retired grandparent giving money to the child.

Also the ability to get it earlier than 59.5 without penalty (don't remember the specifics).

As I read the original post it indicates that distributions will follow regular ira rules. So, 10% penalty if before 59 1/2.

That part makes sense - put a little in and force it to grow for 60 years. Forcing that and giving those folks another pot of retirement funds is a great idea.

What will be interesting is 60 years from now seeing how many people could resist the urge to plunder the account. I figure, what, 50% will cash it out?

Considering college and how many people take loans at a high rate, I’ll take the over. Many won’t because they’ll forget about the account.

 

[Payne]

Have a fairly large amount of money in previous employer 401k (Empower). I am 50.

I asked months ago but am now more serious about doing something.

Should I:
Move to new employer 401k (Fidelity - I have not created or started this yet. Trying to get situated. A lot of moving parts going on right now.)
Move to Fidelity IRA
Keep it at Empower
Move portion to new 401k and balance to IRA (if that is even possible)

Plan to research and find a Fidelity advisor for additional assistance.

Edit: Also have Roth through Fidelity. A portion of my former 401k is Roth.

 

[ConstruxBoy]

Have a fairly large amount of money in previous employer 401k (Empower). I am 50.

I asked months ago but am now more serious about doing something.

Should I:
Move to new employer 401k (Fidelity - I have not created or started this yet. Trying to get situated. A lot of moving parts going on right now.)
Move to Fidelity IRA
Keep it at Empower
Move portion to new 401k and balance to IRA (if that is even possible)

Plan to research and find a Fidelity advisor for additional assistance.

One thing you might not have thought of: if you plan on retiring early and using the Rule of 55, then leave it in the 401k. Can't use that on IRAs.

 

[Payne]

Have a fairly large amount of money in previous employer 401k (Empower). I am 50.

I asked months ago but am now more serious about doing something.

Should I:
Move to new employer 401k (Fidelity - I have not created or started this yet. Trying to get situated. A lot of moving parts going on right now.)
Move to Fidelity IRA
Keep it at Empower
Move portion to new 401k and balance to IRA (if that is even possible)

Plan to research and find a Fidelity advisor for additional assistance.

One thing you might not have thought of: if you plan on retiring early and using the Rule of 55, then leave it in the 401k. Can't use that on IRAs.

That's not the plan, but neither was losing my job due to a merger after 30 years. That's why I'm exploring options.
Would like to be as flexible as possible.

 

[Instinctive]

Have a fairly large amount of money in previous employer 401k (Empower). I am 50.

I asked months ago but am now more serious about doing something.

Should I:
Move to new employer 401k (Fidelity - I have not created or started this yet. Trying to get situated. A lot of moving parts going on right now.)
Move to Fidelity IRA
Keep it at Empower
Move portion to new 401k and balance to IRA (if that is even possible)

Plan to research and find a Fidelity advisor for additional assistance.

One thing you might not have thought of: if you plan on retiring early and using the Rule of 55, then leave it in the 401k. Can't use that on IRAs.

That's not the plan, but neither was losing my job due to a merger after 30 years. That's why I'm exploring options.
Would like to be as flexible as possible.

I basically never recommend converting to an IRA because you lose the backdoor. If at 50 thats not and won't be an issue, then it would come down to rule of 55 and to expense ratios on funds offered.

 

[Sullie]

Have a fairly large amount of money in previous employer 401k (Empower). I am 50.

I asked months ago but am now more serious about doing something.

Should I:
Move to new employer 401k (Fidelity - I have not created or started this yet. Trying to get situated. A lot of moving parts going on right now.)
Move to Fidelity IRA
Keep it at Empower
Move portion to new 401k and balance to IRA (if that is even possible)

Plan to research and find a Fidelity advisor for additional assistance.

Edit: Also have Roth through Fidelity. A portion of my former 401k is Roth.

My experience is purely anecdotal, I'm just an IT guy not a financial advisor nor expert, your mileage may vary, the usual disclaimers, etc. Roughly 60% of my retirement is in a couple of different buckets at Fidelity (401k & 401k Roth), 20% is in my company stock, 20% is with Vanguard.

Just giving you a heads up on what I would expect Fidelity would say. When I spoke with Fidelity, the person I spoke with told me we (my wife and I) could comfortably retire now but he said he wanted me to move all of our money over to Fidelity so he could manage it at less than 1% per year (he said .8% - .9% range) and he said he wanted to put our money into IRA's, different buckets, etc. so that he could lessen the tax burden upon withdrawal, maximize investment but he maintained that at this point, most of our money would be in conservative investments. I didn't get too far into the weeds regarding which specific types of IRA's, etc. because I'm not quite sure if I'm going with Fidelity or another company upon retirement. I wanted to do some more research on which place best suits our needs.

I went back and re-read this and I had mistyped this. I meant that he quoted me between eight tenths of one percent and nine tenths of one percent or between .8% and .9%. I've corrected my mistake above there. My apologies for any confusion.

 

[Desert_Power]

Have a fairly large amount of money in previous employer 401k (Empower). I am 50.

I asked months ago but am now more serious about doing something.

Should I:
Move to new employer 401k (Fidelity - I have not created or started this yet. Trying to get situated. A lot of moving parts going on right now.)
Move to Fidelity IRA
Keep it at Empower
Move portion to new 401k and balance to IRA (if that is even possible)

Plan to research and find a Fidelity advisor for additional assistance.

One thing you might not have thought of: if you plan on retiring early and using the Rule of 55, then leave it in the 401k. Can't use that on IRAs.

Same thing with the 72t I believe. But you could roll it back into a future 401k.

 

[-OZ-]

Have a fairly large amount of money in previous employer 401k (Empower). I am 50.

I asked months ago but am now more serious about doing something.

Should I:
Move to new employer 401k (Fidelity - I have not created or started this yet. Trying to get situated. A lot of moving parts going on right now.)
Move to Fidelity IRA
Keep it at Empower
Move portion to new 401k and balance to IRA (if that is even possible)

Plan to research and find a Fidelity advisor for additional assistance.

One thing you might not have thought of: if you plan on retiring early and using the Rule of 55, then leave it in the 401k. Can't use that on IRAs.

Can’t use previous employer’s plan. Roll it into your current employer or the IRA. If back door Roth contributions are a factor roll it into your current employer

 

[Peggy]

Have a fairly large amount of money in previous employer 401k (Empower). I am 50.

I asked months ago but am now more serious about doing something.

Should I:
Move to new employer 401k (Fidelity - I have not created or started this yet. Trying to get situated. A lot of moving parts going on right now.)
Move to Fidelity IRA
Keep it at Empower
Move portion to new 401k and balance to IRA (if that is even possible)

Plan to research and find a Fidelity advisor for additional assistance.

Edit: Also have Roth through Fidelity. A portion of my former 401k is Roth.

My experience is purely anecdotal, I'm just an IT guy not a financial advisor nor expert, your mileage may vary, the usual disclaimers, etc. Roughly 60% of my retirement is in a couple of different buckets at Fidelity (401k & 401k Roth), 20% is in my company stock, 20% is with Vanguard.

Just giving you a heads up on what I would expect Fidelity would say. When I spoke with Fidelity, the person I spoke with told me we (my wife and I) could comfortably retire now but he said he wanted me to move all of our money over to Fidelity so he could manage it at less than 1% per year (he said .08 - .09 range) and he said he wanted to put our money into IRA's, different buckets, etc. so that he could lessen the tax burden upon withdrawal, maximize investment but he maintained that at this point, most of our money would be in conservative investments. I didn't get too far into the weeds regarding which specific types of IRA's, etc. because I'm not quite sure if I'm going with Fidelity or another company upon retirement. I wanted to do some more research on which place best suits our needs.

They all try to get that 1% from you, just say no thanks you already have a financial advisor. The only thing you have full control over is your expenses and you don't want to start by giving 1% off the top right off the bat.

Also wouldn't carry a IRA balance because you lose the backdoor. Keep it in 401k.

 

[-OZ-]

Have a fairly large amount of money in previous employer 401k (Empower). I am 50.

I asked months ago but am now more serious about doing something.

Should I:
Move to new employer 401k (Fidelity - I have not created or started this yet. Trying to get situated. A lot of moving parts going on right now.)
Move to Fidelity IRA
Keep it at Empower
Move portion to new 401k and balance to IRA (if that is even possible)

Plan to research and find a Fidelity advisor for additional assistance.

Edit: Also have Roth through Fidelity. A portion of my former 401k is Roth.

My experience is purely anecdotal, I'm just an IT guy not a financial advisor nor expert, your mileage may vary, the usual disclaimers, etc. Roughly 60% of my retirement is in a couple of different buckets at Fidelity (401k & 401k Roth), 20% is in my company stock, 20% is with Vanguard.

Just giving you a heads up on what I would expect Fidelity would say. When I spoke with Fidelity, the person I spoke with told me we (my wife and I) could comfortably retire now but he said he wanted me to move all of our money over to Fidelity so he could manage it at less than 1% per year (he said .08 - .09 range) and he said he wanted to put our money into IRA's, different buckets, etc. so that he could lessen the tax burden upon withdrawal, maximize investment but he maintained that at this point, most of our money would be in conservative investments. I didn't get too far into the weeds regarding which specific types of IRA's, etc. because I'm not quite sure if I'm going with Fidelity or another company upon retirement. I wanted to do some more research on which place best suits our needs.

They all try to get that 1% from you, just say no thanks you already have a financial advisor. The only thing you have full control over is your expenses and you don't want to start by giving 1% off the top right off the bat.

Also wouldn't carry a IRA balance because you lose the backdoor. Keep it in 401k.

You’re right, but if that’s really 0.08%, that’s not bad at all if their service is decent.

 

[Sand]

Have a fairly large amount of money in previous employer 401k (Empower). I am 50.

I asked months ago but am now more serious about doing something.

Should I:
Move to new employer 401k (Fidelity - I have not created or started this yet. Trying to get situated. A lot of moving parts going on right now.)
Move to Fidelity IRA
Keep it at Empower
Move portion to new 401k and balance to IRA (if that is even possible)

Plan to research and find a Fidelity advisor for additional assistance.

Edit: Also have Roth through Fidelity. A portion of my former 401k is Roth.

My experience is purely anecdotal, I'm just an IT guy not a financial advisor nor expert, your mileage may vary, the usual disclaimers, etc. Roughly 60% of my retirement is in a couple of different buckets at Fidelity (401k & 401k Roth), 20% is in my company stock, 20% is with Vanguard.

Just giving you a heads up on what I would expect Fidelity would say. When I spoke with Fidelity, the person I spoke with told me we (my wife and I) could comfortably retire now but he said he wanted me to move all of our money over to Fidelity so he could manage it at less than 1% per year (he said .08 - .09 range) and he said he wanted to put our money into IRA's, different buckets, etc. so that he could lessen the tax burden upon withdrawal, maximize investment but he maintained that at this point, most of our money would be in conservative investments. I didn't get too far into the weeds regarding which specific types of IRA's, etc. because I'm not quite sure if I'm going with Fidelity or another company upon retirement. I wanted to do some more research on which place best suits our needs.

They all try to get that 1% from you, just say no thanks you already have a financial advisor. The only thing you have full control over is your expenses and you don't want to start by giving 1% off the top right off the bat.

Also wouldn't carry a IRA balance because you lose the backdoor. Keep it in 401k.

You’re right, but if that’s really 0.08%, that’s not bad at all if their service is decent.

I don't remember Fidelity ever being that low. Maybe 0.8%. Vanguard used to (and maybe still does) have a service for 0.3%. If .08% and OP doesn't want to deal with it that's a great deal. But considering ~4% is a reasonable withdrawal rate having another .8-1.5% taken from that dramatically increases the stash you need. Super simple math, but if you wanted to live off of 4% (and take out 100k per year) paying 1% means you need 830k more to be safe. That's a big extra nut.

 

[Orange&Blue]

Have a fairly large amount of money in previous employer 401k (Empower). I am 50.

I asked months ago but am now more serious about doing something.

Should I:
Move to new employer 401k (Fidelity - I have not created or started this yet. Trying to get situated. A lot of moving parts going on right now.)
Move to Fidelity IRA
Keep it at Empower
Move portion to new 401k and balance to IRA (if that is even possible)

Plan to research and find a Fidelity advisor for additional assistance.

Edit: Also have Roth through Fidelity. A portion of my former 401k is Roth.

My experience is purely anecdotal, I'm just an IT guy not a financial advisor nor expert, your mileage may vary, the usual disclaimers, etc. Roughly 60% of my retirement is in a couple of different buckets at Fidelity (401k & 401k Roth), 20% is in my company stock, 20% is with Vanguard.

Just giving you a heads up on what I would expect Fidelity would say. When I spoke with Fidelity, the person I spoke with told me we (my wife and I) could comfortably retire now but he said he wanted me to move all of our money over to Fidelity so he could manage it at less than 1% per year (he said .08 - .09 range) and he said he wanted to put our money into IRA's, different buckets, etc. so that he could lessen the tax burden upon withdrawal, maximize investment but he maintained that at this point, most of our money would be in conservative investments. I didn't get too far into the weeds regarding which specific types of IRA's, etc. because I'm not quite sure if I'm going with Fidelity or another company upon retirement. I wanted to do some more research on which place best suits our needs.

They all try to get that 1% from you, just say no thanks you already have a financial advisor. The only thing you have full control over is your expenses and you don't want to start by giving 1% off the top right off the bat.

Also wouldn't carry a IRA balance because you lose the backdoor. Keep it in 401k.

IRA balance?

 

[-OZ-]

Have a fairly large amount of money in previous employer 401k (Empower). I am 50.

I asked months ago but am now more serious about doing something.

Should I:
Move to new employer 401k (Fidelity - I have not created or started this yet. Trying to get situated. A lot of moving parts going on right now.)
Move to Fidelity IRA
Keep it at Empower
Move portion to new 401k and balance to IRA (if that is even possible)

Plan to research and find a Fidelity advisor for additional assistance.

Edit: Also have Roth through Fidelity. A portion of my former 401k is Roth.

My experience is purely anecdotal, I'm just an IT guy not a financial advisor nor expert, your mileage may vary, the usual disclaimers, etc. Roughly 60% of my retirement is in a couple of different buckets at Fidelity (401k & 401k Roth), 20% is in my company stock, 20% is with Vanguard.

Just giving you a heads up on what I would expect Fidelity would say. When I spoke with Fidelity, the person I spoke with told me we (my wife and I) could comfortably retire now but he said he wanted me to move all of our money over to Fidelity so he could manage it at less than 1% per year (he said .08 - .09 range) and he said he wanted to put our money into IRA's, different buckets, etc. so that he could lessen the tax burden upon withdrawal, maximize investment but he maintained that at this point, most of our money would be in conservative investments. I didn't get too far into the weeds regarding which specific types of IRA's, etc. because I'm not quite sure if I'm going with Fidelity or another company upon retirement. I wanted to do some more research on which place best suits our needs.

They all try to get that 1% from you, just say no thanks you already have a financial advisor. The only thing you have full control over is your expenses and you don't want to start by giving 1% off the top right off the bat.

Also wouldn't carry a IRA balance because you lose the backdoor. Keep it in 401k.

You’re right, but if that’s really 0.08%, that’s not bad at all if their service is decent.

I don't remember Fidelity ever being that low. Maybe 0.8%. Vanguard used to (and maybe still does) have a service for 0.3%. If .08% and OP doesn't want to deal with it that's a great deal. But considering ~4% is a reasonable withdrawal rate having another .8-1.5% taken from that dramatically increases the stash you need. Super simple math, but if you wanted to live off of 4% (and take out 100k per year) paying 1% means you need 830k more to be safe. That's a big extra nut.

Totally agreed. The only reason imo to even consider paying that much is if it increases your confidence and they do all the planning, including taxes and estate planning, well.