UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76397  
Subject: Re: 403(b) discount brokers Date: 4/25/1998 11:53 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Greetings, Quinapalus, and welcome.

<<Two questions:

Does anyone know of a discount broker that will let me setup a 403(b) account? Schwab won't and I spoke to Smith Barney and they want 1.75% per trade if I do the Dow Dividend Approach.I'd have to open a unit trust to do that. What is a unit trust?>>

A unit trust is a vehicle that invests in a fixed portfolio of securities. You buy a share of that portfolio and must hold that share until the trust expires, anywhere from six months or many years later. It is similar to a mutual fund, but the shares you own in the trust are not readily marketable for the most part.

As to your 403b account, I can't tell from your question what you are trying to do. However, both Vanguard and Fidelity accept 403b accounts in something called a 403b(7) arrangement. Also, you should be aware that with a 403b your investments are limited to just two things: annuities and/or mutual funds. Individual stocks don't qualify (and neither do unit trusts to my knowledge). If you want to use a Dow strategy, you'll have to wait until you can transfer the money to an IRA to do that. That option is available when you leave the employer sponsoring the 403b when you quit or retire.

Regards….Pixy
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement