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| Stephan • Messages: 1 • Years on forum: 9.5 |
11:07 PM 04/25/2016 |
Hello. I'm a self-employed professional and I'm just startint to think about investments. My accountant suggested I open a SEP IRA account to help offset my tax return for 2015, so I opened one on Weathfront with the amount he suggested. Now, I'm advised to open a Solo 401K account and roll over the SEP IRA into that, but Wealthfront doesn't do that. Would you advise that I open a Solo 401K account on Vanguard or another site, and keep my SEP IRA on Weathfront? Or, would be better to find a provider that can host both accounts? Also, once I fund the Solo 401K with the $18K permitted, where do I invest the rest of my allowed investment (up to $53K), the 401K or the SEP IRA? I guess I'm confused about whether I need both accounts, or how to fund them. Thanks!!
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| Jo Choo • Messages: 11 • Years on forum: 11.3 |
02:47 AM 05/03/2016 |
Stephan, you actually asked two questions, here are my thoughts about them:
1) The selection of a broker depends on your believe in the ability of a broker to make profits and management costs. If you have opened Weathfront account, that means you believe that Weathfront model can bring better returns long term (which I also do). Their costs should be much lower than those at Vanguard, so there is no reason to move Weathfront SEP IRA account to Vanguard.
2) 401K vs. SEP IRA - there are some small things to consider (assess to funds, administrative responsibilities), here is a good table from Fidelity, it should help. https://www.fidelity.com/retirement-ira/small-business/compare-plans
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