[Amy]

Guys, kicking myself a bit here. We opened Roth IRAs with an advisor last year (per the Dave Ramsey advice) and I think the fees are too much… Unfortunately after doing some digging I found there is a .85% service fee, and the fund he put us in has a 1.12% expense ratio.

I know I can do better on my own. So my question is: How do you get out? Would you just open a Roth IRA within another brokerage account and initiate a rollover?

[Riley]

Glad you found out sooner rather than later! Dave Ramsey’s actual asset allocation advice and network of advisors are awful.

[Chad]

Go through vanguard or fidelity or Schwab. It’s a standard procedure. They will send documents over that your advisor will sign to release the funds.

Just remember, it’s your money to do with as you want.

Don’t miss: I maxed our Roth IRAs earlier in the year

[Randy]

Lesson here is buy your investments outside an advisor. Then if you need an advisor, hire a fee only person. I know this sounds backwards but you want to avoid buying products from someone who may have a conflict of interest.

[James]

I’d open one with Fidelity and do a rollover. The current advisor probably won’t be much help getting it rolled over but be persistent!

[Frank]

Yes, open a new account at Fidelity, Schwab or Vanguard and have them do the transfer from the new place.

Sorry you got stuck in a high chair with one of DR’s nannies, but that’s why you are supposed to be a financial baby forever in that system. Gazelles may look pretty intense, but they are ultimately being cultivated there to get eaten.

Explore these too: Do people do backdoor Roth IRAs on their own or do they typically have a financial advisor do that for them?

[Monica]

When I went through this process, I opened an account with Vanguard for a Roth IRA then I called them and they were able to take care of it all on their end between our phone conversations and some secure links they would send for me to sign.

I didn’t have to deal with the other company I was rolling over from at all. It was a great process.

[William]

Yeah. Open an account somewhere else and on the new platform to an account transfer/rollover. It’s generally super simple.

One possible complication is that not all funds are available on all platforms, meaning the funds might need to be liquidated to cash before able to be transferred, and the funds may have an early liquidation penalty (backend load).

There’s not much you can do about that, but it’s something to be aware of.

[Ashley]

Yeah, open a Roth IRA somewhere else. I think that Schwab, Vanguard, and Fidelity are generally recommended. Initiate the rollover and then close the first account.

Don’t let the advisor talk you out of it.

Also, check out: Should I put all my funds into the 401k and open a Roth with another brokerage? Or do both options through the company?

[Brian]

Same here…smartvestor pro. Rolled a small amount into a Roth IRA. Was put jnto a loaded fund. After learning more I kindly let them know my philosophy on investing wasn’t aligned and that I was going to roll over to another account on my own. I ended up opening a Roth IRA at M1 and rolled it over no problem. All brokerages you use will gladly help you roll over money. Pretty easy to do.

[Franklin]

Dave Ramseys ELPs will recommend funds with 5+% front load fees. It happened to us and for a few years we were missing out on that growth. Through reading and researching I found that out and ended the relationship and have been doing index funds since. Expense ratios and fees will erode your growth.

[Erica]

Side note: you made a great decision to start investing last year! As you continue to learn, you have the opportunity to do better. Be kind to your past self for doing their best with the information they had! Your future self will thank them for starting when you did and not putting it off longer!

[Author]

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