401k Rollovers and IRAs- Finally!

The last time I talked about my ROTH IRA, I mentioned how my laziness cost me $115.  Well, I no longer will be losing money due to silly fees at the old brokerage firm.  I finally moved my IRA over to Vanguard and couldn’t be happier! It’s a huge weight off my shoulders and I’m looking forward to contributing as much as I can every month.  It may not be a lot, but I figure every bit counts and the earlier I get the money in there, the more time it has to grow.

I also transferred my old pension from working at the bank and Mr. Money’s ROTH IRA to Vanguard as well.  It’s starting to look good!  I feel very optimistic because having everything at one institution just makes sense to me.  The only thing I haven’t done yet is moved over my old 401k from working at the bank and I’m unsure if I’m going to do that.  I know part of it is traditional and part of it is in ROTH. I cannot tell how much money is in each, and that makes me nervous that they’ll mess up the transfer and I’ll be penalized on my taxes.  However, I do realize that this is probably very silly since the institutions specialize in these kinds of things so they should know what they are doing.

Now for retirement we have: my old 401k, Mr. Money’s ROTH IRA, my Traditional IRA, and my ROTH IRA.  I will be very happy once this all is finalized.  My traditional IRA is still in progress and I’m hoping that will be done in a few weeks.  I’m hoping to start contributing monthly to one or both of our IRAs as we are able.

Mr. Money has the option to contribute to a 401k with his employer but we’ve decided not to do that currently, as they don’t offer a match.  It just makes more sense for us to contribute to our IRAs right now.  If they offer a match in the future we would take advantage of that.

I should call the brokerage firm where my 401k is held and ask what the process is to roll it over or if they can tell me how much is in each part.  I should have taken care of all of this years ago, but I was afraid.  I was afraid of investing in the stock market and losing money.  However, I feel like if we don’t, there’s absolutely no way our money will grow enough for us to be able to retire off of it.  Thanks to my friend Kacie for spurring me to get this all done and answering so many of my silly questions!

I hope this alleviates some stress for me.  I always worry we won’t have enough money and now I’m being proactive to ensure that doesn’t happen!  Now I will just have to start contributing as much as we’re able to, and we’ll be good!

Do you save for retirement?  Do you ever worry you won’t have enough money?


How My Laziness Cost me $115

So back in 2011 I was looking for fee free IRAs. Mr. Money and I both had IRAs at a brokerage firm and the $40 annual fee was eating into our accounts, especially mine that contained around $400.  I said I was going to either move it to a new brokerage firm that had no or low annual fees or move it to ING where it could sit in an IRA savings account.  At least if I did that, I’d be avoiding the $40 annual fee.

Well that didn’t happen.

Penny was born, life got crazy and I didn’t even think about that IRA after that.  Until last month when I got another bill for $40. Doh.  And now the account balance was roughly $379, since they took out the $40 annual fee for last year.  So I called them up, asked about closing it and moving it over to Capital One 360 so I would avoid penalties and they reminded me of the $75 closing fee.  Yay.  So now I’m down to $264 after the annual fee and closing fee.

I am really disappointed because I thought my account was in mutual funds, but it turns out that it was sitting in cash.  Like I’m going to make any money with it not being invested.  I ended up opening a ROTH IRA with Capital One 360 as a place to park the money.  Even if I leave it there and never add any more money, at least it won’t be eaten by annual fees.  Plus, there is no closing fee in the event that I decide to roll it into an IRA with another institution.

The paperwork is in the mail and I’m just waiting for them to take care of it.  I’m annoyed at myself that I didn’t get it taken care of earlier but what can I do now?  One of my most annoying habits is when I’m intimidated by something (like the thought of rolling over IRAs, researching investments, and possibly screwing up retirement funds) I put it off.  I’ve got to learn to be better about that.  I feel so much better when I just get things done!

We’re planning on leaving Mr. Money’s IRA at the brokerage firm because even with the $40 annual fee he still comes out ahead in his account.  I’m really going to sit down and look at Vanguard and see about rolling my 401k from my old job there.  What concerns me is that part of it is in a traditional 401k and part of it is in a ROTH 401k, so I don’t know how they’d go about rolling that over.  Of course, they’re the experts so I probably should give them a call 😉

I think once all of our retirement funds are all together I’ll feel a lot better about it.  We’re fairly young and need to get that money working for us!

I was so aggravated that I let this happen but then I realized that it’s already done and all I can do is learn from it and move on.  Have you made any money mistakes lately?


Fee Free IRAs

Mr. Money and I both have Roth IRAs with a brokerage account at the bank I currently work at.  Since they are in mutual funds, there is an annual fee for having the accounts.  Every year it’s been $15 since I’m an employee, and he’s my spouse.  Imagine my surprise when this year I received the bills and they were each $40! I almost had a heart attack.  I didn’t mind paying $15 a year, but $40 a year is way too much because the balances we have in those accounts doesn’t make up for it.  My account has around $400 (I put $500 in about 7 years ago and left it at that).  Mr. Money’s has more, which is good because he’s older.

When I went to talk to the broker about it, he told me that the fee had gone up and they would try to get it waived for me.  However, if I wanted to close the accounts, there is a $75 fee.  Nice.  So not only would I be out the annual fee if they can’t get it waived, I’m also out $75 each account.  Really?  I am exploring these options:

-Finding a new brokerage company that doesn’t charge annual fees or other stupid fees.  I’m fine with paying trading fees, since I don’t think there’s really any way around those at any company.  I just can’t stand the idea of paying $40 a year just for them to hold my account.

-Opening up a Roth IRA for each of us with ING.  With ING, they have an IRA savings account that has no minimum balance and no fees.  I really like that idea.  I’ve thought about starting one of those for each of us, and then contributing what we can each month.  When the balance builds up to say $10,000 (which will probably take quite awhile!), then I could always look into transferring it into a brokerage account.

-I’m thinking about just closing out my account totally and just using the money to buy baby things.  Of course, I’d have to claim this as income, which would be a pain, but I wouldn’t have to pay that much in taxes since the balance is so small.

I am waiting to see what happens with the annual fee.  If they can get it waived, then I’ll probably just leave the accounts as they are.  However, I’m worried that once I terminate my employment that they will realize that and remove the waiver and I’ll be right back in the same situation.  I think it would be easiest to just close out the accounts and move them to ING because of the no minimums and no fees, but I’m worried about lost opportunity in the mutual funds.  Of course, if my account has been in mutual funds for 7 years, and I’m $100 less than what I put in, it’s really not doing that well any way!

Planning for retirement can be such a headache.  I’m glad we’re getting it done now, but I’m hoping there’s an easy solution so I don’t have to do too much work after we get it squared away!

Do you have an IRA?  What is your favorite place for a fee free IRA?

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