I have a traditional IRA which I rolled my previous employer's 401(k) into. I've noticed that there seems to be a quarterly advisory fee, which seems to be about 0.5%. Is this reasonable? I haven't seen any other fees, but $1,600 / year seems a lot. There's about $87k in the account currently. If it's not reasonable, where can I move the IRA to?
What are reasonable administrative fees for an IRA? was recently discussed here. My answer was zero.
An IRA is not an investment, it's a container representing the tax status of an account. Once you decide what to actually invest it in, you'll likely incur additional fees. Mutual funds, for instance can range from .05% per year to 2.00% or more. In your case, you are telling us you are spending 2% per year even before you decide what to invest in.
The real question I'd like to see answered is "what value can an advisor bring to one's retirement account to deserve a 2%/year fee?"
My final thought - most financial types had been suggesting that a retiree can target a 4% per year withdrawal after retiring. This rule of thumb has been debated since the lost decade of 2000-2009, and the safe number may be lower. If an advisor is taking 2% off the top, you are basically sharing half your income with him. A million dollar IRA, you get $20K, he gets $20K?
I will give a slightly different answer which is actually an addendum to JoeTaxpayer's (soon-to-be-edited) answer.
Do NOT go to your financial advisor and ask him "How do I go about transferring my Roth IRA to ...."? where .... is whichever broker or mutual fund family that you have chosen from the list that Joe has suggested. Instead, go to the website of the new group (or call their toll-free number) and tell them "I want to open a Roth IRA account with you and fund it by transferring all the money in my Roth IRA from First Clearing." Your new Roth IRA custodian will take care of all the paperwork and get the money transferred over at no cost to you except possibly fielding a weepy call from your current financial advisor because he had just ordered his new Lamborghini and now will have difficulty making payments on his auto loan. "Why are you leaving me? After all the years we have had together?"
You will need to choose some place to put the money, and I suggest that you use their S&P 500 Index Fund, not the S&P 500 ETF, just the standard vanilla S&P 500 Index Mutual Fund. This recommendation is almost heresy in this forum, but it is better to pay the extra 0.01% fee that the Fund charges over and above the ETF until you become a little more savvy and are ready to branch out into individual stocks (which is when you really need a brokerage account). Revelation: I have never made the transition and invest only in mutual funds which does not require a brokerage account.
After doing all this, pay no attention whatsoever to your Roth IRA investment or how the S&P 500 Index is doing for the next 20 years. This will help avoid the temptation of taking all your money out just because the Index went down a little. Everybody is told "Buy Low, Sell High" but far too many folks end up doing exactly the opposite: buying because the stock market is up and selling when it starts going down.