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My uncle swore I should get a broker for my 401k rollover and it cost me $340 in fees
When I quit my job in Denver back in March, I had about $12k sitting in my old 401k and my uncle kept telling me to go to a broker instead of just leaving it with the plan. He said the broker would get me into better funds and it would pay off in a year or two. So I did it, and the guy charged me 2.5% upfront plus a $75 annual account fee, which came out to roughly $340 right off the top. My old plan had expense ratios under 0.10% and the broker put me in funds charging 1.2%. After 7 months I ran the math and I'd be up about $600 more if I had just rolled it into an IRA myself at Vanguard. Has anyone else gotten talked into a broker when the DIY route was clearly cheaper?
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wells.reese1d ago
$340 for 7 months, not a year, so the gap's smaller than you think.
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