How My Laziness Cost me $115

Posted by Mrs Money on November 15th, 2013

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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?

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2 Responses to “How My Laziness Cost me $115”


  1. That’s an absurd fee, both the closing and on-going yearly. I’m surprised they didn’t offer to waive it after you called to cancel.

    [Reply]

  2. I can’t believe that they still charged the $75 fee for closing an account with less than $400 in it! I know it’s the policy, but it just doesn’t feel right lol. So, your “laziness” only really cost you $40, since you would have paid the $75 even if you took care of this immediately.

    [Reply]



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