Managed accounts @ Fidelity or asset allocation funds

Cisco / Product
pi 🕵️‍♀️

Cisco Product

PRE
Cisco
pi 🕵️‍♀️ more
Dec 7, 2019 6 Comments

Looking for some insights from experinced/senior folks ... I just rolled over my 401k from my previous employer to a traditinal IRA account. i plan to keep this as my base account for moving 401k everytime i switch employer.

i cannot decide whether to go for managed account service from fidelity.
why or why not?
the fee for managed account is 1.17% of the total amount in account.
one thing the advisor mentioned was with managed the loss is cut down during recessions

i do have a roth IRA ( managed by me ) and 401k ( new employer ) . im aware of funds and markets , but not an expert .

please share your thoughts. want to take an informed decison and not regret 30 years later .

TIA

comments

Want to comment? LOG IN or SIGN UP
TOP 6 Comments
  • Facebook
    kboU62$;

    Facebook

    PRE
    Google
    kboU62$;more
    1.17% is enormous one you look at the impact over time.

    Always go for smallest fees/cost. No manager beats average in the long haul. Nobody.
    Dec 8, 2019 0
  • Microsoft / Other gtufbd
    You should also ditch that IRA if you ever want to to do a backdoor Roth.
    Dec 8, 2019 1
    • Cisco / Product
      pi 🕵️‍♀️

      Cisco Product

      PRE
      Cisco
      pi 🕵️‍♀️ more
      OP
      I also have a backdoor Roth , and I max it out as long as I can . I could have rolled over my 401k to Roth IRA ,but seeing a chunk of it going to taxes would be painful
      Dec 8, 2019
  • Apple BonFire
    I used Fidelity for a year and it was horrible. They had me in a ton of assets (~20). Their algorithm didn’t allow for $0 in cash even though I told them I had cash outside of this account. So I had to pay 1% for them to manage cash 😑 So, I got out of it.

    I suggest that you spend some time and manage it on your own. It makes no difference if you have $1k or &1m, the principals are the same. You don’t need to diversify into more than 5/6 assets, buy low cost index funds, divide them in a risk ratio that you’re happy with, then just forget about it. Check and rebalance every year.
    Dec 12, 2019 0
  • JPMorgan Chase PartyBoat
    I haven't heard good things about Fidelity managed account.
    1.17% is really high.
    Dec 8, 2019 0
  • Panasonic Avionics xbXV68
    Avoid actively managed funds. The vast majority of them will not beat an index fund, and will happily take your money while doing so.
    Dec 8, 2019 0

Salary
Comparison

    Real time salary information from verified employees