With some research I stumbled upon this, what appears to be, very useful site. We visited an advisor yesterday to discuss investing. My father in law has Edward Jones and he suggested we talk to them about our options. My wife and I are early 30's, green to investing, about $45,000 to play with, have 401K's, good credit/budget, and are looking at the retirement stages. My wife set up a traditional IRA with him, and we'll go back to see him in August some time. From what I know, we didnt get charged anything from the hour long visit. He said we should invest in mutual funds, not stocks, as stocks are more volatile. I was thinking he made $ off of funds! We dont know if he is paif by fees or commissions. I think he gave good advice, but nothing I really didnt already know. He did mention we need to save 12-15% of our income, and we'll need over a million to maintain our lifestyle at retirement. I found it interesting that he said the current economy is nothing to be alarmed about. I prefer not to shovel him money for handling my money. Honestly, I dont know much about investing, but am willing to learn the system. So, with all that said, we visited him once and he helped my wife with rolling over her 401K to an IRA. He didnt try to sell us anything. What do I need to find out before we get further involved with this guy? I want to make $, but losing $ to an advisor concerns me. What is the best way to invest on our own? Go through T Rowe, Vanguard, Fidelity, etc.? I hope I can learn a lot from this site, and look forward to any advice. Sorry for the long post...
Part of Edward Jones' philosophy is to give free one-on-one financial advice. I found them quite helpful to me as well a few months back. I was able to bounce several questions off them and receive some free prognosis printouts based on my actual figures. That said, they charge a hefty management fee to actually manage your funds, as well as a hefty trade commission for their brokerage services. I, therefore, opted not to place my IRA funds with them.
My wife hasnt received the check yet, so I guess we could tell him were not interested. Our we allowed to tell Edward Jones that we dont want them handling the 401K? All the guy did was fill in the paperwork and mail it off. We havent given him money yet. What is a better route than to deal with an advisor? I assume most advisiing companies will drain money out of its clients. We're not gonna dive in until we really know the details of there services. I need to know if this guy is commission or fee. I assume we'll get sales pitches if he is commission. Would recommend another company whos fees arent so hefty? I'd really like to do all this on my own, but I have no clue on what funds/stocks/IRA's to pick.
My wife hasnt received the check yet, so I guess we could tell him were not interested. Our we allowed to tell Edward Jones that we dont want them handling the 401K? All the guy did was fill in the paperwork and mail it off. We havent given him money yet. What is a better route than to deal with an advisor? I assume most advisiing companies will drain money out of its clients. We're not gonna dive in until we really know the details of there services. I need to know if this guy is commission or fee. I assume we'll get sales pitches if he is commission. Would recommend another company whos fees arent so hefty? I'd really like to do all this on my own, but I have no clue on what funds/stocks/IRA's to pick.Unless I am missing something, you are not obligated to any broker or financial planner unless you signed some sort of binding contract. I can't imagine that is the case. It's your money. Unless you have singed some sort of binding agreement, invest it when and where you want it. I recommend researching some of the discount brokerage firms, i.e., Scottrade, SogoTrade, Fidelity, etc. Most all of them provide FREE IRA accounts. You pay only a small commission for trading equities, and you usually have to pay ZERO for buying and selling fixed income instruments.I hope this helps.
re: mutual funds, not stocks, as stocks are more volatile.re: ETF's (exchange traded funds).re: CEF's (close end funds).re: etfconnect.comre: salesmen vs investors/tradersLandenChase,On your next visit to the pied piper, ask them the advantages of investing/trading with ETF's vs Mutual Funds. As you will see, Mutuals are out of vogue.Ask them also, what are the advantages of self directed CEF's over any kind of annunities they will be next directing to you. If you buy an annunity with them, you will give up 12% of the pile of dollars dumped on the desk. 5% goes to the broker and the remainder goes to the insurnace company they are working with. Thereafter, the broker will get 2% of total assets held in account yearly. and every time send them any more monies, the broker gets 5% in commishes.The amount you will receive monthly is a ripoff. It is more of a 70% to the house and you get 30%. Bottom line you will get about 3% earnings where if you did it on your own getting any where from 8 percent to 13% and sometimes more.I own 24 CEF's with a check coming in every month for the rest of my life. Half are FED tax free where I get an extra 2 to 3% in my pocket and not in the Uncle's (sam that is) pocket. etfconnect.com http://www.etfconnect.com/select/rank/default.asp?fType=1&oT... and find the ones per your state if you wish.Bill Gross the CEO, Billionaire of PIMCO the Bond King owns 37 of the FED TAx FREE cef's.Look at US energy trusts as an example....PBT, BPT, SJT, HGT, DOM, ERF, CRT, DMLP, SBR, MTR. MTR examplehttp://finance.yahoo.com/q?s=mtrhttp://biz.yahoo.com/bw/080619/20080619006063.html?.v=1http://finance.yahoo.com/q/hp?s=MTR&a=11&b=30&c=1987&d=06&e=... price per share per month.The Canadian energy trusts charge 15% as a penality before you get your dividend check.http://seekingalpha.com/article/44892-the-top-350-monthly-di... as an FYI only.CEF's have been around since 1850 in England and 1896 in the US on wall street.GAM and CET have been around since 1927 and 1929 respectively.re: http://www.zinio.com/express3?issue=267097127 look for page 36 however I would not invest in them because of there strange payment schedule. I would swing trade them only.http://www.zinio.com/express3?issue=267097127 slide the bottom bar for a sneak preview of articles.perhaps a check coming in every week coming for the rest of your life will do.Dividends every week of a quarter.The following pays a dividend every week of the year.KFT....Pays the first week of Jan, Apr, Jul, Oct HNZ....Pays the second week of Jan, Apr, Jul, Oct O......Pays the 15th (or third week ) of every month GE.....Pays the fourth week of Jan, Apr, Jul, Oct T......Pays the first week of Feb, May, Aug, Nov UVV....Pays the second week of Feb, May, Aug, NovC......Pays the fourth week of Feb, May, Aug, Nov. PNW....Pays the first week of Mar, Jun, Sep, Dec HON....Pays the second week of Mar, Jun, Sep, DecBAC....Pays the fourth week of Mar, Jun, Sep, Dec PEP....Pays the fifth week of Mar, Jun, Sep, Dec.One more thought, ask them what are there thoughts on Proshares.com and how would they trade/invest in them. Clueless will be the answer. However, I can show you how to make money hassle free with a little patience and discipline. All you have to know is the tetter totter principle....A certain game of children; seesaw; - called also titter-totter, and titter-cum-totter. I would also ask the salesperson for a copy of there resume and surprise them while at the office visit for a peek at there broker account as to what stocks, funds, etf's, cef's they own. Hey they know what kind of underwear you have, it's time to take a substantial look at theres. They probably don't own any of the funds/stocks they are touting. Ah just a thought and enjoy the journey in hoping you can understand some of the above mess.Quillnpenn - ....http://www.averagjoe.com/smack-the-pony.wmv - a professional Swing Trader in "Buying from the Scared, Selling to the Greedy""in tribute to all who seek to record their ideas and share them with others"
In the past, my mom has used Edward Jones, as have I. I found it easier and less costly to do my own via discount online brokerage. However, my mother likes the one-on-one advice and stuff. Her Ed Jones guy is pleasant, not overly-aggressive, and he's not all about the sales pitch and the hustle. He did buy stocks for me when I wanted, but he is more about the load funds.My mom's investments have done well overall and she has been happy. For me, I don't want to pay those fees/commissions and can do better just doing index funds and a few other things, so I didn't use him very long and now just use an online discount brokerage.Given your ages, and that you're just starting out, I'd just DIY with a simple Vanguard portfolio of index funds bought through Vanguard directly. Very cheap, diversified, simple. Once you have more money and experience you might want to explore other things, but my recommendation would be to get started with the basics.
Wow, this is really great advice! I greatly appreciate the guidance. We just had a bad experience with buying a timeshare, so I now ensure I thoroughly research any sort of investement. My wife calls me a penny-pincher, and it sounds like we'd have to if we stayed with an advisor. So it sounds like Vanguard, T. Rowe, Fidelity would benefit us more? If so, would our inexperience in investing come back to hurt us? Bottom line, my wife and I werent confident in our investing abilities, hence seeing Edward Jones. What exactly are index funds and is the rate of return respectable? Personally, I may like the challenge of the DIY method. I assume we can do IRA's, Funds, Stocks with these online discount brokerages..It sounds like the fees/commissions arent as steep for Vanguard and such. My wife and I plan to both have 401K's, Traditional IRA's, as well as stock/funds. I dont think we'll do much more than that at this time. It appears that is the "basics" but I'd like to get into some of what was mentioned above. Again, thanks...Bear with me, I'm sure I'll have more questions.
Not to change subjects, but did your bad expericence with the timeshare involve buying or selling? My wife and I have been trying to sell our LV timeshare and are havning a tough time. The resort offered to buy it back at 25% of what we paid two years ago!
LandenChaseExcellent, just keep reading and reading information to understand the wall street jibberish.Get a copy of IBD's monday edition on Saturday for home werk over the weekend. IBD papers are tax deductable as an investment deduction. 52 tymes 2.50 equals. Please review http://www.thekirkreport.com/ everyday at your leisure and read some of his interesting articles. you may review the Archieves for more neat stuff.ie...... http://www.thekirkreport.com/2008/06/25/index.html if it catches your eye, read it, otherwize pass it.http://www.thekirkreport.com/2008/02/the-best-of-200.html very, very good articles to read. Better than reading the NY Times business section. The man does the reseach for you.And finally, please set up a Business Plan on paper in block form of all your goals. It ain't easy for newbies, probies, grasshoppers.Mine is broken down into a triangle. within the triangle is Stocks, etf's, cef's. and that's it.All the profits trickle downwards. when retirement tyme comes, the CEF's will pay all the tabs by drawing once a month. Very simple.Hope the above mess can help. Enjoy the journey and have fun.Best regards,Quillnpenn -
Buying! It was an awful experience that really has put a bad taste in my mouth about timeshare developers. Selling is depressing because you'll understand how much money you flushed away. You'd be lucky to get 25% of what you paid for it. Personally, 10% is more realistic, maybe even 5%. Trust me, I've done tons of research. From what I know, most timeshares on the resale market are $2000 or less, whereas folks are paying 10-20X times from developers.
Quill, you're obviously very knowledgeable. My plan is to sit down with the wife and inform her of the Fidelity, USAA, and Vanguard options. Being honest, Quill, we will most likely start with basic investing (IRA, Index Funds, Mutual Funds, etc) It sounds like the stuff you're talking about is quite advanced. I will do some reading, but I'm not sure I'd be comfortable with getting to those options you mentioned. I do know that this site has convinced me to think twice about Edward Jones. I just hope my wife's 401K money isnt affected once we discontinue our relations with them. The check is coming in the mail and Edward Jones is the payee..We agreed to let them handle the IRA. I think my wife may have signed a document when we visited the office. Any guidance on how we can get around this?
LandenChase writes,Wow, this is really great advice! I greatly appreciate the guidance. We just had a bad experience with buying a timeshare, so I now ensure I thoroughly research any sort of investement. My wife calls me a penny-pincher, and it sounds like we'd have to if we stayed with an advisor. So it sounds like Vanguard, T. Rowe, Fidelity would benefit us more? If so, would our inexperience in investing come back to hurt us? Bottom line, my wife and I werent confident in our investing abilities, hence seeing Edward Jones. What exactly are index funds and is the rate of return respectable? Personally, I may like the challenge of the DIY method. I assume we can do IRA's, Funds, Stocks with these online discount brokerages..It sounds like the fees/commissions arent as steep for Vanguard and such. My wife and I plan to both have 401K's, Traditional IRA's, as well as stock/funds. I dont think we'll do much more than that at this time. It appears that is the "basics" but I'd like to get into some of what was mentioned above. Again, thanks...Bear with me, I'm sure I'll have more questions. One thing that you'll realize as your retirement nestegg grows is that most financial advisors are absolute ripoffs. By the time you retire, even a "low-cost" financial advisor may be taking 3 or 4 times as much money out of your account each year than the IRS.http://www.retireearlyhomepage.com/irsadvisor.htmlintercst
I told my wife we need to look at an online brokerage service, such as USAA, Vanguard, and Fidelity. Who has the best reputation and service? I'm pretty convinced that the financial advisor is a salesman that takes money from its client on a frequent basis. I dont think Edward Jones will be part of our future...I appreciate all the guidance! I have really learned a lot in the brief time I've been on here.
Who is the best online brokerage service? We dont want to pay a ton of fees, but we do want a decent website and good customer service. I find financial advisors to be self-serving salesmen. I am glad we found this site so we didnt fork over all kinds of fees to Edward Jones. I think we'll start with IRA, Index Fund, etc..Again, thanks for the help!
Who is the best online brokerage service? We dont want to pay a ton of fees, but we do want a decent website and good customer service.That's just the kind of question you need to answer for yourself. Do so knowledgeably, with a survey of our opinions and facts from broker's own web sites. The Discount Broker's board may be of help. The Motley Fool has a discount broker's comparison table but be aware that it only lists a few brokers and they pay for the privilege. You need to determine what services you will use in your account and see what each broker would cost you over time. Some have annual fees. Many don't. Some charge a set fee for a defined number of trades per quarter or year. Maybe not useful if you're a buy-and-hold type of investor. Some have minimum account or fund balances that you can easily meet. Others, maybe not. And don't do too much hand-wringing over your decision. If you decide at some point you'd do better with a different broker, simply go to the new broker, sign here, and here, and here, and they'll take care of it all. So you never have to see the Edward Jones guy again.Some broker's charge a gotcha fee to transfer your account to another broker. But don't worry, some brokers will refund that fee to get you to transfer.You already have an adviser. He is the collective us.Doug
LandenChase,Let's peruse the following:http://www.tradingwinner.com/archive/2006/06/27/choosing-an-...TD Ameritrade and Scottrade.com are about the two (2) who can help you. However, Scottrade does not have any hassle or inactivity fees. But, TD Ameritrade has a 25 dollar fee per quarter for inactivity if less than $25,000.00 in account. I don't have any problems with TD Ameritrade, however, my kids went to Scottrade for there Roth IRA accounts and scottradeelite for there non roth/ira account.If you want to draw monies out of the account, you can transfer from the IRA account to your banks checking account. Because of the drawing, FED taxes at the minimum of 10% have to be taken out. With Scottrade, you have to call and ask them to cut you a check. As for drawing from the IRA or RothIRA account, I don't know how much FED and local taxes are taken out. That, you'll have ask them when you sit down with them at there local office near you.I use both bokers for trading and TD Ameritrade for my IRA. Best regards,Quillnpenn
I have an eTrade account, but I don't know that I'd highly recommend them - I'd put them in the OK column for service. I also have TD Ameritrade and think they are pretty good, although I'm pretty new to them and haven't really done much over there yet.One thing to consider - if you decide to go the Vanguard route - I'd recommend just buying from the Vanguard website directly. I used to do this but then I got the bright idea that I'd consolidate my stuff into less accounts so I moved my Vanguard (among other things) to my eTrade account. Now when I buy new Vanguard funds I pay a $19 commission (some are commission free to buy, but most aren't) when it was 0 commission direct on Vanguard.com. It was a tradeoff for me because I wanted less statements and most everything in one bucket, and I don't really have many transactions so even though I'm paying commission, it's not that often.
We agreed to let them handle the IRA. I think my wife may have signed a document when we visited the office. Any guidance on how we can get around this?You could talk to the 401K company about having the check reissued. They would require you return the check to them, and I suspect they might have a fee for a reissue/paperwork change. If it was me, I think it'd be worth it. I'd open an IRA rollover account at eTrade, ScottTrade, or TD Ameritrade and have the check reissued to them.
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