The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/if-there-is-the-opportunity-to-self-direct-to-11155457.aspx

Subject:  Re: new job/new retirement plan Date:  8/16/1999  12:43 AM
Author:  zay34kc3 Number:  13166 of 76384

If there is the opportunity to self-direct to stocks, would I allow quarterly payments to build in a cash account before distributing the entire year's amount across the Foolish Four once yearly (Dec or Jan)? Or should I establish four different portfolios that need to be revised at four different times each year. I lean toward letting it build up to avoid what I'm afraid would be huge commissions at Lynch.

quick follow-up to my first reply:

i think you would be better to just have one portfolio. park the cash in a money market fund until you have enough to reduce the commissions to a small percentage of your overall portfolio. if you need more than a few years to build up enough, you might look at some other funds that can provide a better return, but be very careful. in my old SEP with ML, every fund was a class B fund. they have "deferred sales charges" that decline from 4% to 0% over 4 years. if you need that money after 2 years, you still pay a fee.

zay34kc3
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us