Unfortunately, Vanguard doesn't offer a solo 401k (aka individual 401k). Fidelity does, though it's called a Keogh by them.
I successfully rolled over our individual 401ks (my wife's and my own) to Fidelity. It happened much faster than the moves to Vanguard - I think we were delayed by end of year retirement account set-up activities.
I was very unhappy with the $50 fee per rolled account Schwab charged me. I wonder if there's a way to ask them to take it back. Felt like a kick in the pants on the way out!
I still have minor accounts at schwab - non-retirement trading accounts, the amounts are small. I'm delaying transferring them for several reasons:
- Vanguard is expensive as a brokerage with higher fees than Fidelity and Schwab.
- I need to age the holdings before selling them or else my capital gainst will count as regular income (taxed at the regular rate).
- I'm wondering if Shanda (SNDA) will continue it's recovery - up 100% from it's low, but still down 30% from it's purchase by me.
The money I rolled over from Schwab was placed in Fidelity's Four-in-One (FFNOX) fund. The idea being that the bulk of my holdings would be placed in self-managed retirement or balanced funds until after our relocation, at which time, we would resume the investment planning with our financial advisor.
FFNOX is an interesting fund. Historically it's slightly exceeded the s&p 500 by 0.6% to 2% when examining trailing returns. The fund is a balanced combination of the following low cost index funds:
55% Fidelity Spartan 500 (s&p 500)
16% Fidelity Spartan International Index (EFA)
15% Fidelity Spartan Extended Mkt Index (not s&p 500)
14% Fidelity U.S. Bond Index
The exact percentages are not where my target asset allocation is, but it will keep me in the approximate direction.
I was very tempted to load up on international index, international small cap, and domestic small cap value and a REIT index, but the fidelity family products do not include much of what I was interested in. I'll have to steer as much of the diversification investment into Vanguard to compensate. I've already pushed my 401k investments toward small cap value (not indexed), international and bonds. I may move in a similar direction with my wife's 401k, which is now predominantly invested in Barclay's 2030 life cycle fund.
How easy things would be if we could do in-service transfers into our private IRAs from our corporate 401ks!! As things are, my portfolio is pretty far from the target. The equity to bond allocation isn't that bad, but large to small and market to growth ratios need alot of help. As things are, I just have to bite my lip until we start-up again with the investment advisor in July or so.
The Schwab to Fidelity rollover took about two weeks or so. Much faster than the move to Vanguard.
This week I'll focus on rolling one of my son's retirement account from Schwab to Vanguard (where he has other retirement accounts). That will eliminate all but our trading accounts at Schwab. We also have trading accounts at First Trade, but can't move them until the assets hit the 1 year mark - due to capital gains - we've had significant gains there.