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  • Hank
    replied
    Would you take your car to a mechanic who had no training but felt like he could work on cars at a cost five times higher than a trained, qualified mechanic? Would you get cancer treatment from a close family member who had no training or qualifications but just felt like getting into that line of work to make money?

    It’s nice that your husband wants to throw a bone to a blood relative. Perhaps ask him what the largest check is that he’s willing to hand this relative each year. If your husband picks a number like $5,000 or $10,000, that could be cheaper than what you and your children are on track to pay with the current arrangement.

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  • goatmom
    replied
    LOL on the new husband.  Despite this - he is a great guy and I can't imagine taking this journey with anyone else.  I think I am not going to talk with his relative - I don't see much that I will gain with that.  I will move myself and put my 2018 money in the new place.  We have 529s with EJ - not sure what he is doing to help there.  DH points out that we can call him and he can write a check to the school.  Seems like an expensive phone call to make that money transfer happen.  DH is not happy with me leaving EJ but I think will let me do what I want.  Thanks for the advice and I will post an update.

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  • Peds
    replied




    Thank you for the response and the advise of not starting a new plan but as an amendment to the prior plan.  Is there a big issue if my husband and I “separated” on this issue going forward?  He leaves his stuff at EJ and I move mine.  No worries – marriage still good – he just is very conflicted over this and can’t seem to see it the way I do.
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    I would still consider a new husband. Still might be cheaper than staying with EJ......

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  • jacoavlu
    replied
    sure let your husband stay, move yours, and definitely move the kids Roths. That 1.35% AUM fee on the kids accounts (plus an up front load?) will equate to tens of thousands of dollars lost when extrapolated over decades and that's only on the money already there; hundreds of thousands of dollars lost if they kept and contributed to the Roths there throughout their working life.

    Assuming they have $5,000 there now and add $2,500 per year, annual return 6%, the 1.35% fee compared to a 0.10% fee elsewhere reduces an account value 40 years from now from $449,000 to $321,000. Increase the contributions and return and the results are even more dramatic.

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  • jfoxcpacfp
    replied




    Is there a big issue if my husband and I “separated” on this issue going forward?  He leaves his stuff at EJ and I move mine.  No worries – marriage still good – he just is very conflicted over this and can’t seem to see it the way I do.
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    That sounds like the best solution to me. I can certainly understand his anxiety about hurting the feelings of a relative who thinks he is doing right by your hubbie.

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  • goatmom
    replied
    Thank you for the response and the advise of not starting a new plan but as an amendment to the prior plan.  Is there a big issue if my husband and I "separated" on this issue going forward?  He leaves his stuff at EJ and I move mine.  No worries - marriage still good - he just is very conflicted over this and can't seem to see it the way I do.

    Leave a comment:


  • Peds
    replied
    I would not send a single dollar more.

    This is one of those rip the rug from under him kinda things.

    Do not have a conversation. There is nothing to converse about.

    You need to Google that Upton Sinclair quote.

    Leave a comment:


  • jacoavlu
    replied
    It’s pretty simple. Your EJ agent, your relative, this “good guy” does not have your best interests in mind. Not when he’s letting you buy some fund with a 5% load.

    He doesn’t have your kids best interest in mind either.

    Of course he didn’t have financial training. He doesn’t need it.

    You can and should move your solo 401k by establishing a solo 401k at another institution like Fidelity, E*TRADE, Schwab, or Vanguard not as a new plan but as an amendment of your prior plan.

    Leave a comment:


  • goatmom
    replied
    No - EJ dude is a close relative and a very good guy.  He had no financial training before getting hired by EJ - dh was trying to "help him out" by putting our money with him.  I really am not excited to send more money to my solo 401 k this year and lose up to 5.5 percent off the top.  Also - still not sure why I had to find all this stuff out by reading blogs - guess I felt we were being taken care of these past few years.  I do kind of actually enjoy understanding all this financial stuff which is a shocker.  Never thought it was something I would care about. Thanks for your help!

    Leave a comment:


  • jfoxcpacfp
    replied


    My dh states that relative says we are paying no fees at all at EJ.  Is that even possible?
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    Yes, it is possible that people think this. No, it is not possible that EJ is in business just for the warm fuzzies. The high front load fees are gone forever.

    You and your DH should sit down with a fee-only planner if you are looking for help or just move the funds under your own supervision if you are comfortable doing so. If your DH is not interested in the finance stuff, why doesn't he just let you handle it all and leave his relative's advice alone? Is the EJ dude a friend?

    Leave a comment:


  • goatmom
    replied
    Hi all.  I realize I sent this original question back in January.  Still at EJ.  Have a meeting set up for this week with DH and EJ guy.  My dh states that relative says we are paying no fees at all at EJ.  Is that even possible?  I pointed out the high front load fees. I suppose these are just sunk costs?  DH opened roths for our two teens that help at my business and I realized they have not only yearly fees but also 1.35 percent AUM cost.  DH not that interested in finance stuff - feels overwhelmed with the rest of life and I get that as he is very busy doc.  He is starting to trust me and after last year's tax season was very impressed with all that I have learned and the money I save by doing my back door roth and switching from a sep to a solo 401k.  Thanks again for any thoughts you have as I head into this conversation.

    Leave a comment:


  • Hank
    replied
    Is your Edward Jones guy / gal a family member or a real close friend?  If they're an actual friend, they'll keep golfing or fishing with you after you move your funds to Fidelity or Vanguard.  If they don't want to keep golfing with you, then you know they were more interested in using your money to send their kids to private schools / universities instead of your own kids having the option to go to non-state schools.

    Leave a comment:


  • spiritrider
    replied







    Thanks for all the help.  Can I do the backdoor roth somewhere else and leave my solo 401k at EJ? DH not open to moving stuff at this time.
    Click to expand…


    can you get a new DH? its kinda that bad…
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    I was thinking it, but was not going to say it, but now I can't help myself. There are many kinds of forgivable sins, but EJ ...

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  • Peds
    replied




    Thanks for all the help.  Can I do the backdoor roth somewhere else and leave my solo 401k at EJ? DH not open to moving stuff at this time.
    Click to expand...


    can you get a new DH? its kinda that bad...

    Leave a comment:


  • DR R
    replied
    Thank you for your quick reply.  Yes, by Traditional IRA is all pretax.

    Leave a comment:

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