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|Subject: Retirement brokerage account||Date: 9/24/2001 9:43 AM|
|Author: jmuller||Number: 31965 of 82354|
I have a financial advisor who's commission-based, not fee-for-service.
He's currently recommending that, as a strategy to consolidate my several 401(k)s and IRAs, that, instead of merely rolling them over to a rollover IRA, that I roll them into a retirement brokerage account managed by you-know-who.
Well I am imagining that he will make more money in commissions from managing the brokerage account than he would from the IRA (because, I'm assuming, that he could then start buying and selling stuff to generate brokerage fees).
I understand that he's gotta make money like all of us. So, how much worse could the fees be? Also, aside from this expected negative (to me), what other downsides are there? Are there any benefits to doing this? He seems to be inferrring that he can't advise me on my existing accounts because he doesn't manage them, so he can't do it legally. Is that true?
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