I read this article today:
Which made me wonder if having my SEP IRAs at Fidelity and Vanguard was wasting money.
My Fidelity money is scattered among individual stocks and mutual funds/ETFs that interest me. But then on this subreddit's advice I opened a much more passive Vanguard account.
All my Vanguard money is in their Target 2050 Fund - VFIFX - with an expense ratio of 0.16%. The Schwab Target 2050 Fund - SWXIX - has an expense ratio of 0.08%.
SWXIX 1 month return = 2.49% 3 month return = 7.81%
VFIFX 1 month return = 2.63% 3 month return = 7.24%
It may be obnoxious to open a third SEP IRA, but as long as I don't contribute over the yearly max between the three combined, it shouldn't be an issue. So I think my February contribution will open my Schwab account and I'll track the Vanguard and Schwab accounts and see if that 50% lower expense ratio makes a difference.
What say you all?
Submitted February 04, 2017 at 01:52AM by mac3blade http://ift.tt/2jJJI0R
