financial dudes- thoughts on principal financial?

New company uses principal, have always had fidelity.

Principal rep (obviously) encouraged me to rollover everything to them. TME. Phone Post 3.0

Ttt Phone Post 3.0

Everyone that invests with them will die. Phone Post 3.0

In Phone Post 3.0

I presume you mean your 401(k)?

There's absolutely no reason to roll that stuff over other than the rep gets a few basis points (100 basis points is 1%, so 1bp is 1%of 1%, rep probably gets 10-50bps) on the roll. If you have significant assets, you want to keep everything in one place as you get treated better, but theres no real reason to move from Fidelity. For the little guy, its a commoditized business and no one has better pricing than Fidelity.

If your a big shot with lots of assets, you still shouldn't be at Principal, you should be with a fee based advisor or one of Fidelity's high net worth managers.

Im in the biz and have 85% of my stuff at Fidelity and the rest USAA. USAA isnt as good on the pricing side, but their customer service is unparalleled. Phone Post 3.0

Thanks man! Phone Post 3.0

RIP Phone Post 3.0

Anytime. Feel free to pm me if you have any ?s Phone Post 3.0

Since you left your old job....you can also roll it into your own fund.
Like vangard or some other third party.
Then you'll have more options in terms of what to buy. Phone Post 3.0

Rolled my old job 401k (fidelity) into fidelity ira Phone Post 3.0

microbiologynerd - Rolled my old job 401k (fidelity) into fidelity ira Phone Post 3.0

How did that help? It was with Fido, and is still with Fido.

MrFluffyHippo - Everyone that invests with them will die. Phone Post 3.0
rich.


You forgot the important last word of the sentence! Phone Post 3.0

cdmontgo -
microbiologynerd - Rolled my old job 401k (fidelity) into fidelity ira Phone Post 3.0

How did that help? It was with Fido, and is still with Fido.
Well my last job wasnt contributing to the 401k anymore, but now i can add to the rollover ira (afaik). Can also add to fidelity roth ira

The principal rep i spoke with obviously wanted business- my overall question was if people had preferences to using fidelity over principal, or vice versa. I'm probably leaving my iras and kids 529 with fidelity, while current 401k has to stay with principal.

Diversify bitches! Phone Post 3.0

Mihow -
MrFluffyHippo - Everyone that invests with them will die. Phone Post 3.0
Prove it Phone Post 3.0
RIP Phone Post 3.0

cdmontgo - 
microbiologynerd - Rolled my old job 401k (fidelity) into fidelity ira Phone Post 3.0

How did that help? It was with Fido, and is still with Fido.

he moved out of his company's 401(k) plan which has a limited number of investment options as well as it's limitation to open ended investments (mutual funds vs stocks and etfs) and into an IRA which allows the investor to invest in almost anything he or she wants.

microbiologynerd - Rolled my old job 401k (fidelity) into fidelity ira Phone Post 3.0

That is the correct move. Now invest in really low cost index etf's.

microbiologynerd - 
cdmontgo -
microbiologynerd - Rolled my old job 401k (fidelity) into fidelity ira Phone Post 3.0

How did that help? It was with Fido, and is still with Fido.
Well my last job wasnt contributing to the 401k anymore, but now i can add to the rollover ira (afaik). Can also add to fidelity roth ira

The principal rep i spoke with obviously wanted business- my overall question was if people had preferences to using fidelity over principal, or vice versa. I'm probably leaving my iras and kids 529 with fidelity, while current 401k has to stay with principal.

Diversify bitches! Phone Post 3.0

Are you sure you can contribute to a traditional IRA?

I assume you are married, filing jointly. You already stated that your participating in a workplace retirement plan (the 401k through Principle).

Is your AGI over $118k? If so, you can't deduct any of your tIRA contributions.

Is your AGI between $98k and $118k? If so, you can only deduct part of your tIRA contributions.

That's the phaseout for people who are covered by a workplace retirement plan which is reported on your w-2 (box 13 contains an R).

Source: http://www.irs.gov/uac/Newsroom/IRS-Announces-2015-Pension-Plan-Limitations-1

Also if your AGI is over $118.5k, you can't directly contribute to a Roth IRA as that is the upper limit of that phaseout (I don't recall the lower limit).

You can contribute non-deductible funds into a tIRA, then roll it over to a Roth IRA since there is no income limit on roll overs, but if you have other funds in a tIRA, you'll hit the pro-rata rule and end up getting taxed on some of the money in the tIRA which makes it not worth doing (Google 'Backdoor Roth IRA').

You may have just blocked access to this space depending on your income level.

^ ...and now I feel like a giant tax nerd.

You are, and i have no idea wtf all that means... Well sorta, but its not clear.

tRNA ... tIRA... Shampoo is better! Phone Post 3.0

LOL