Fees on retirement accounts?

**my4littlebuffaloes** · 07-17-2008, 05:14 PM

My dh has 3 different retirement accts from 3 different employers. We had wanted to combine them into 1 IRA. We had wanted to specifically pull his acct from the state PERA program in CO (there was a big to do before we moved about the PERA program being out of money, so we are a little nervous even though they say it is safe now) and we had thought that we would combine the 3 to make it easier on ourselves down the line.

We have a guy that has handled other stuff for us and were going to just use him. The fees though seem high, although I don't really know for sure. There are annual fees of $35 (fine) and a 1.3% of the value of the account. What do y'all think? Is this normal or high? It seems high to me, because each year the account might only make 7% or so, maybe higher? The market stinks right now, so you can't count on much. To take 1.3% each year seems high. Any input? Thanks!

**brainyblonde** · 07-17-2008, 07:21 PM

It depends on what you are getting for the 1.3%.

I pay 1.25% to have one of my accounts managed by an expert. For that, I get quarterly reports, asset allocation recommendations, an annual meeting reviewing all of my assets (not just those being managed) and financial situation including diversification/re-balancing recommendations. Most importantly, I have the expertise of someone with 30 years in the industry. I am financially savvy, but can't compete with that.

Even in these lousy market conditions, my portfolio has outperformed the S&P.

I can do a lot of things myself, but I have no problem paying for services of a professional whether it be money management or electrical work when I know they can do it better.

Oh, the $35 charge is probably an IRA custodial fee. That seems to be a standard charge for IRA accounts.