Parting Ways with a Robo-Advisor

Investing
#1

I started investing earlier this year and was so intimidated that I let a robo-advisor handle my investments, including my Roth IRA. 3 months later, I look more carefully at my portfolio and find that even though I selected the socially conscious preference, I’m invested in the usual VTI with a dash of bonds and alternatives. Now that I’ve taken Personal Finance Club’s course, I want to manage it myself. I’ve already contacted them and they said I can leave at any time.

BUT transferring my portfolios elsewhere will cost me $100 whereas liquidating will not. It’s only been 4 months that I’ve been with this robo-advisor and today was a bloody day so I’m actually negative by about $200. I’m leaning towards liquidating it but how would that affect my Roth IRA? Should I at least wait until I’m in the green to initiate that process? Should I try to negotiate with my brokerage or robo-advisor to try and get that $100 waived?

#2

You’re never taxed for any trading inside of your IRA. So you could sell everything, then transfer the cash. That may be worth it to avoid the $100 fee if there’s not much money in there.

Who is charging you the $100? The outgoing robo-advisor or the incoming brokerage?

#3

The outgoing robo-advisor said “If you cancel your membership, you will have to rollover or liquidate your Roth IRA. We charge a $100 fee, per account, for transferring to another institution.”

I have both a Roth IRA (which I maxed out at $6k) and $12k general build wealth portfolio with them. :frowning:

#4

Yeah… I doubt you can get away with not paying that $100. You wouldn’t want to “liquidate” because I’m pretty sure that is a taxable event and may even incur a penalty. So you want to rollover. It’s possible there’s a program with your new brokerage where THEY cover the fee as an incentive for you to transfer to them?!