My grandmother just retired and decided she should meet with a "financial advisor". She ended up meeting with the company that managed her 401k/403b and they told her she should have those assets in a "managed" IRA. She informed me that she is paying around $150 per month in fees for this service. She doesn't have enough retirement savings as it is, I'm fearful she is just wasting $1,800 per year on this "service".
Is this "managed" account necessary for her circumstances? Are those fees reasonable? I did a little research and read that 1% annually is about average. They told her if her assets reach $200,000+ they could negotiate the fee down. Spoiler alert - she's not going to reach $200,000...
Details - 64 yo woman, $13x,xxx in retirement savings, had 401k or 403b, was told to rollover into a "managed" IRA.
Lastly, I feel like she should be seeing a real "financial advisor" and not someone that works for an investment firm, am I wrong on that?
Thanks for any help on this.
Submitted June 22, 2018 at 06:53AM by carrierpigeon https://ift.tt/2MeKgWB
