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|Subject: Re: Talk me out of a Financial Advisor||Date: 6/3/2013 9:07 PM|
|Author: AngelMay||Number: 72407 of 83150|
FWIW, *I* didn't know about Vanguard index funds when I started investing. I started in 92-ish, and I bought two funds: Fidelity Magellan and Fidelity Contrafund, which I believe had front loads in those days. Why? Because that's what the sales lady at the bank suggested I buy. She was attractive and dressed well so I followed her advice. Why did I buy from the bank? I had a lot cash I had been saving and a bank clerk suggested I talk to the mutual fund lady. Given my own initial level of due diligence, I'm not going to pass judgement on anyone else's. :)
Don't feel bad.
I started with $1000 and went to Dean Witter.
The slick sob there sold me THREE stocks for that $1000 which included about $50 commission for EACH stock for himself. I actually saw the guy in another room with glass walls laughing at me afterwards.
Cheap at $1000 though.
Next looked into mutual funds.
I also invested in Fidelity Magellan and Fidelity Freedom Fund for the IRA. Then I discovered Twentieth Century (now called American Century) and bought into a couple of their funds.
Finally, I discovered Vanguard.
My money is with Vanguard today. This includes mutual funds and two brokerage accounts for buying and selling stocks. So far this year I've bought and sold stocks about 15 times and it hasn't cost me one single penny in commissions. If I keep this up... I will run out of free transactions and have to begin paying.....<GASP!>....$2 whole dollars in commission for each purchase or sale. :)
I get really angry when I hear stories from people like a couple I know who do business with Edward James (which doesn't advertise its commission schedule - and you will play hell trying to find out what it is). ONE SINGLE stock buy cost them about $250 in commission. WHY? Why would anyone do that?
I can't for the life of me understand how these shysters stay in business. There's no way in hell I would do business with a full-service (eye-roll) broker.
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