Author Topic: Alto Alternative IRA  (Read 359 times)

jameslend

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Re: Alto Alternative IRA
« Reply #15 on: April 18, 2021, 03:38:50 PM »
Alto's fees look almost as scary as LC's I won't be changing my custodian.

https://www.altoira.com/pricing

Looks like STRATA is also giving us the present of raising fees:

https://quikforms.com/viewform/zpWO-izCfdrSN

They are a bit diff => alto seems to be per investment, strata annual holding fee - never understood what constitutes an "asset". per fund? per loan? per account? per house?

macroman7799

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Re: Alto Alternative IRA
« Reply #16 on: April 18, 2021, 04:06:28 PM »
The way I understand it the Lending Club account is one asset. You could if you were of a mind add another asset like a rental house or a gold hoard or your Interactive Brokers account. Doing this could allow you to reallocate between your assets without rollowvers. I don't see that as being worth it for me though as I don't need to make that many changes and there are so many free custodians for the assets that I hold.

We've all been promised that these fees would be covered, I see a potential class action suit with thousands of Lending Club IRA holders and an average cost of $375/ member. Failing in that we could also start a really nasty social media campaign. What's to say that LC doesn't start changing the rules on their borrowers next?

jameslend

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Re: Alto Alternative IRA
« Reply #17 on: April 18, 2021, 04:44:29 PM »
The way I understand it the Lending Club account is one asset. You could if you were of a mind add another asset like a rental house or a gold hoard or your Interactive Brokers account. Doing this could allow you to reallocate between your assets without rollowvers. I don't see that as being worth it for me though as I don't need to make that many changes and there are so many free custodians for the assets that I hold.

We've all been promised that these fees would be covered, I see a potential class action suit with thousands of Lending Club IRA holders and an average cost of $375/ member. Failing in that we could also start a really nasty social media campaign. What's to say that LC doesn't start changing the rules on their borrowers next?

The LC account makes sense. But i don't think it's be asset class exactly. For real estate crowdfunding I think it's per deal. It gets pretty expense then annually.

RE the LC strata fee, haven't checked the TOCs but I think they would be terminology that they were free to change at any time.

macroman7799

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Re: Alto Alternative IRA
« Reply #18 on: April 18, 2021, 07:10:50 PM »
I know that a LC rep made the representation to me that they would be covering the fees even after my account balance went under 10k because it was not my choice to turn off the LC P2P lending program. The same promise has been made to others here. Now this was a verbal promise so it could be hard to prove in court. Ideally we would start a class with a few individuals that have gotten a promise like this in writing.

If we got the class certified I think LC would be quick to settle.

rj2

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Re: Alto Alternative IRA
« Reply #19 on: Today at 01:53:24 AM »
Does anyone know what kind of fees Alto is going to charge? Specifically what annual fee, and what exit fee?

Strata now wants $250 as an exit fee. If I pay the annual fee as well it's $350 in fees before I would be out, as I have a little less than a year to run down my account. I would then move the money to a regular investment account somewhere.

Oh, and if I move my account from Strata to Alto, is LC going to pick up the Strata exit fee as well? Or am I on the hook for that too?

rj2

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Re: Alto Alternative IRA
« Reply #20 on: Today at 02:04:45 AM »
Answering my own questions..

Alto's termination fee is less, it's $50, plus maybe another $25 outbound wire fee. LC will cover the Strata termination fee.

So just on that basis it saves me $275 or $300 to move from Strata to Alto before terminating the account, so long as I terminate it within a year. After that it's $100/year, but I think I can get out in less time than that (I had already been getting out).

Seems like a lot of clicking and hassle but it is what it is I guess.
« Last Edit: Today at 02:07:41 AM by rj2 »