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Author: Meowiz Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75801  
Subject: Keogh rollover question Date: 1/21/1999 3:05 PM
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I have been looking at the fees I pay with the investment co. I currently have my Keogh with. They charge 5.7% on contributions, plus 10.00 annual fee.
I compared this with Vanguard Keogh fees....no contribution charge, and just $10.00 annual fee.

My current investment co. charges no fees to withdraw my Keogh and roll it over to other trustee.

I would eventually like to take it out of where it is now and save all those charges, but I am not ready to manage it myself yet. However, since I have'n't made full contribution for l998 yet, but have to buy April 15, when we turn taxes in, they could still get a big chunk of money from me w/the 5.7% charge if I leave it there till April. I guess depending on interest rate of where I'd put it would be involved in evaluating what to do transitionally, since lower interest rate might offset fee savings. I would appreciate any thoughts on this. I would never have even thought of this without having studied TMF info....you're creating a monster! (A Foolish monster!) meowiz
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Author: TheBadger Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7972 of 75801
Subject: Re: Keogh rollover question Date: 1/22/1999 12:03 PM
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To be charged 5.7% to make Keogh contribution is outrageous. Get out as fast as possible. Regarding your 1998 contribution, you can go to any discount brokerage (Fidelity & Schwab for sure) and open a Keogh account, literally for free. If you are hesitant as to how to invest the money once it is in the account, put it all in a money market account yielding 4% until you feel more comfortable.


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Author: Meowiz Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7975 of 75801
Subject: Re: Keogh rollover question Date: 1/22/1999 12:59 PM
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1/22/99 12:03 PM
Author: TheBadger

To be charged 5.7% to make Keogh contribution is outrageous. Get out as fast
as possible. Regarding your 1998 contribution, you can go to any discount
brokerage (Fidelity & Schwab for sure) and open a Keogh account, literally for
free. If you are hesitant as to how to invest the money once it is in the account,
put it all in a money market account yielding 4% until you feel more comfortable.>>

Dear Badger! thanks for your advice. This is all new to me, managing my own investments, but even I have to say I am shocked I didn't think of this! Since I had just talked w/VAnguard yesterday about putting a 401a into a money market acct. temporarily. I think I don't have the hang of all this enough yet to see the similarities between different transactions and accts. I thought the Keogh was something totally different. Many thanks. meowiz

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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7986 of 75801
Subject: Re: Keogh rollover question Date: 1/22/1999 1:56 PM
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Meowiz writes:

<<I have been looking at the fees I pay with the investment co. I currently have my Keogh with. They charge 5.7% on contributions, plus 10.00 annual fee.
I compared this with Vanguard Keogh fees....no contribution charge, and just $10.00 annual fee.

My current investment co. charges no fees to withdraw my Keogh and roll it over to other trustee.

I would eventually like to take it out of where it is now and save all those charges, but I am not ready to manage it myself yet. However, since I have'n't made full contribution for l998 yet, but have to buy April 15, when we turn taxes in, they could still get a big chunk of money from me w/the 5.7% charge if I leave it there till April. I guess depending on interest rate of where I'd put it would be involved in evaluating what to do transitionally, since lower interest rate might offset fee savings. I would appreciate any thoughts on this. I would never have even thought of this without having studied TMF info....you're creating a monster! (A Foolish monster!)>>


I'm not certain there's a question here, but I'm certainly glad you're thinking like a Fool. That 5.7% load is outrageous. IMHO the sooner you can dump that onerous fee, the better. I'm not sure what type of vehicle you're looking for, but certainly Vanguard will pay you at least money market rates on the transferred cash until you decide. Unless it's gonna take you longer than six months to do so, then IMHO unless there's a violent upward surge in the market, then you won't lose much to a lower rate of return by moving the money ASAP.

Just one Fool's .02 FWIW.

Regards….Pixy


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Author: Meowiz Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7992 of 75801
Subject: Re: Keogh rollover question Date: 1/22/1999 4:54 PM
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Pixy, thanks for your replies to this and my other question, ...helpful point about moving the Keogh to money market acct. till I know what to do w/it if it's within 6 mos. Thanks for referring me to the tax pub.,too.

meowiz

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