Source
r/personalfinance•
listur65

Switching Roth IRA from EJ to Schwab

Retirement

I know this is talked about here frequently so I am thinking of switching, although I would like to know a little more of the process first.

https://i.imgur.com/LygqQNT.png

These are the mutual funds my EJ advisor has everything in right now. Pretty basic stuff I think, but I was unfamiliar with the fees associated and didn't realize they took as much as they did. That being said I still got 20% annual returns in 2019 and 2020, with a 16% YTD this year so I am not upset, but if better is available I would be silly not to take advantage.

It looks like if I switch over most people recommend VTSAX or VTI or something similar? Can I have Schwab auto-reinvest dividends and things like that, or do I need to be more active if I switch over? I would prefer to be hands off as much as possible, besides most likely having to purchase after my yearly contribution.

Also, is there anything more than setting up my account with Schwab, and initiating the transfer with EJ? I am aware of the $100 closing fee or whatever it is and not worried about that. Just other paperwork or anything I may not think of. I already have a fun account with Schwab so I am guessing just adding a Roth IRA to it won't be a huge deal.

These are probably silly questions, but there's a decent chunk in this account and I am scared of making administrative mistakes. (I know the market risks) If I missed anything, or if anyone has went through this conversion with any other info that may be handy I am all ears. Thank you all for this amazing sub!

Not sure if this should be flagged as investing/retirement/other so if this is incorrect feel free to change it mods

Posted Oct 20, 2021, 7:44 PM UTC

14
shadracko​•

It looks like if I switch over most people recommend VTSAX or VTI or something similar?

Yes, probably more likely the Schwab equivalent.

Can I have Schwab auto-reinvest dividends and things like that, or do I need to be more active if I switch over?

Yes, Schwab allows auto-invest dividends.

Also, is there anything more than setting up my account with Schwab, and initiating the transfer with EJ?

Call Schwab and ask them how they would like to proceed with the rollover. You just want to make sure the money going in is categorized as a rollover, not a new contribution.

2
listur65OP​•

Thank you for the information!

1
ahj3939​•

You want to get the ticker symbols and ask Schwab if there will be any fee to sell those funds after the roll over. If so you can contact EJ and ask what their fees are to sell. If they are lower at EJ sell before the transfer.

I know Fidelity would probably charge $75 fee to sell those funds which adds up to $600.

2
listur65OP​•

Ahh good call, thank you!

1