Fidelity advised to put my lump sum pension in a SMA (Separately Managed Account) within my IRA account. It's a managed portfolios of actual stocks or bonds. Has anyone used it and any pros and cons.
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Dump 50% of the lump into the SPY, DIA , QQQ and get a dividend every Qtr. Use some of the rest to buy the dips or after the next correction , Diversify some into bonds, Gold, Sliver, and use small amount for speculation like for instance BTC, ETH as a hedge
Dang, initial question was on lump sum, but many have nothing to do (while accusing others of that) but spew their discontent and juvenile remarks. Some have tried to answer question and or help. Others, man, get a life and know wonder with negative attitude career takes a nose dive.
You should not be paying any fees whatsoever. If you are fed up with Fidelity fees it is easy as pie to roll it all over to Vanguard.
@2rix, oooh that's very sad about your life. I hope you don't get anymore negative slams but steer clear of the internet in it's entirety if that's your goal. Theses guys are pretty up front and personal on this site. If you think there's something wrong inside, seek therapy. From a professional, not here. And yes, do get a hobby. May help.
The last poster, something wrong on inside, you may have to look hard in the mirror - bottom line is yes some let go, some "hand up" because they saw writing on wall, some hand up because they wanted to go somewhere else anyway and paid $$ to do it........but many others, perfect storm of 30 plus years, low interest rates/big lumpsums, close to retirement, and Sev package gravy to boot.
Sure they browse this site from time to time, and sadly see some that have nothing to do but negative slams because it's actually they, that have no life. Get a hobby, and practice finding things each day to be thankful for. You'll be better person in end, and may even find yourself less critical.
oh yea, that's what I always say when I am forced into a situation where I am helpless and that have no control of it - I PLANNED THAT!!!
And post all day pathetically on a layoffs board because I have no life, lol.
some of us were neither let go or unemployed - we simply timed it just right!
In terms of Fidelity, you do what you feel comfortable with, but not too difficult to manage your own and mix stocks, bonds, cash, etc...previous poster(s) not too off base in that initial timing can be interesting. i.e. I knew one retiree that did lump sum investment right before huge COVID drop; another through simply good timing/luck started right around low point in 2020
I get all of my financial and investment advice right here from the laid off unemployed experts at The Layoff.com. lol. Priceless!
I think if you have enough money fidelity should wave certain fees. Rolling over the company plan to an ira makes sense for flexibility. If you are retired you can spend your entire day managing your assets and watching CNBC all day long.
previous poster obviously didn't get you AVOID the $75 fee by using a Fidelity fund (assuming mutual fund) that basically same index type as Vanguard fund. Total market/S&P/Balanced/Total Bond are examples...
"Timing of market" refers only to some advocate "jumping all in" right off bat with lump sum, others waiting/dollar cost averaging. Point is market is all time high right now, and correction possible. Thus, no one knows for sure. Get it "mr boy and girl" expert?
"Timing of Market"???? .... "$75 fees"?????? Boys and girls, you are better off ignoring the last post. Seek better advice. None of that should be happening.
There is a plethora of useful and valuable information elsewhere free on the interwebs .
They called quite a bit prior to my lump sum and I kindly noted I'd call them back if I needed them, which could happen. But yes, right now I manage myself and you trade almost anything yourself. I did notice any Fidelity mutual funds are free trades, but picking a Vanguard favorite is $75 fee per trade. Not a big deal, but Fidelity has many/many funds that almost exactly mirror Vanguard such as index for total stock, bond, S&P 500, 'balanced funds' (60/40% stock bond mix). Timing of market is always tough as coming off year over year (4/1-4/2021) 60% market increase...so question of "jump all in at once, pro rate dollar cost average etc' can come into play. Also of course how old you are and risk level and long term timing. Bottom line for me you can research your own stock and bond funds and avoid their extra fees, but you have to have comfort doing that. As a side, many advised me to move over Chevron 401k to Fidelity IRA; however, I'm comfortable with split of 401k and options as they have done quite well (mainly Vanguard funds, some closed to new investors anyway).
yes, forget out it, good advice.
Put 100% in VTSAX and forget out it. Seriously.
Don’t they charge you a management fee for this and you may not be able to make trades yourself? Just thinking it may be cheaper if you are good at picking etfs yourself and maintaining a diversified portfolio yourself. In favor of managed is the advisors could have access to funds that generate greater returns then retail investors have access to.