Author Topic: I made a big mistake  (Read 3888 times)

bgpiano

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I made a big mistake
« on: June 13, 2017, 11:04:31 PM »
I'm asking anyone for help here that has some knowledge in Custodian matters. Many of you may already have an IRA for prosper investing with Millennium Trust as the Custodian, not sure. Long story short I deposited 2000k with Millennium for my IRA and directed that money to Prosper since I was told they are the only Custodian available. Well I just received a 350.00 charge to my Debit Card for yearly fee. Not hard to figure out that my money will all be gone in fees in the 5 years I'm waiting for loans to mature. Dumb move on my part but how can I possibly even fix this? Can't sell my loans, can't close my account with Millennium and move on because they are the only Custodian for Prosper. All I can do it seems, is keep paying a yearly fee of 350.00 and no way out of this? Any ideas?
Are there any other custodian ideas available to move this account somewhere else? At wits end
Thanks for any help

TWLMG

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Re: I made a big mistake
« Reply #1 on: June 14, 2017, 12:06:42 AM »
My wife and I also have Prosper IRAs with Millennium Trust Company as the custodian.  We've had them for a few years. Prosper has always paid our fees, as far as I know. I don't remember ever giving them my credit card information. This pages lists another potential custodian and also talks about them paying the fees.
https://blog.prosper.com/2012/02/29/prosper-com-brings-consistent-high-yield-10-46-returns-to-iras/
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Fred93

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Re: I made a big mistake
« Reply #2 on: June 14, 2017, 12:13:29 AM »
https://prosper.zendesk.com/hc/en-us/articles/210013303-Is-there-a-fee-to-maintain-a-retirement-account-with-Prosper-
Quote
... there are fees associated with maintaining your Prosper IRA account. However, with the minimum investment of $5000, Prosper will pay for the first year’s service fee. Prosper will continue to pay the annual IRA service fee on your behalf each year if you reach and maintain a greater than $10,000 invested balance in the second year and beyond.

That sounds ok, but they don't mention the $350 number.  That seems awfully high.
« Last Edit: June 14, 2017, 12:17:10 AM by Fred93 »

bgpiano

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Re: I made a big mistake
« Reply #3 on: June 14, 2017, 08:01:34 PM »
I should have explained that the fee is being charged by Millennium Trust Company. I think it's because I only have 2000.00 invested. But since I can't do anything until all my prosper loans mature, I'm stuck with that yearly fee for 5 years until I pull my 2000.00 at which time it will be nearly 0 dollars with the fees. very frustrating.
Thanks for your replies. I can't see a way out of this. I doubt I can even close the account because then where do my Prosper Loans go?

TWLMG

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Re: I made a big mistake
« Reply #4 on: June 14, 2017, 10:58:57 PM »
You could always add more to your IRA and avoid the fee. Prosper has issues, that I can't deny. But I'm thrilled with having another type of retirement investment besides my Schwab IRA and work 401k for diversification.
The more knowledge we share, the better and more successful we’ll all be.

lender90530

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Re: I made a big mistake
« Reply #5 on: June 15, 2017, 11:37:21 AM »
Prosper is currently paying my ira fees because I have more than $10000 in notes. Looking at my Millennium statements the annual fee being paid by Prosper (10/2016) seems to be only $50. I don't know how they arrive at this number because looking at the Millenium fee schedule pdf document, the fee would appear to be anywhere between $100 and $350 or $450. The fee schedule is very confusing.

sensij

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Re: I made a big mistake
« Reply #6 on: June 15, 2017, 11:53:06 AM »
Here is the fee schedule:

https://www.mtrustcompany.com/sites/default/files/forms/static/Self_Directed_IRA_Fee_Schedule.pdf

It looks like there might be a possibility of minimizing the damage by moving cash into a no transaction fee mutual fund as it becomes available, and hoping you get a bunch of early payoffs.

rawraw

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Re: I made a big mistake
« Reply #7 on: June 18, 2017, 09:08:19 AM »
I was struggling with the math of 350 yearly fee impacting a $2 million dollar account.  The comments clarified this for me - that sucks