UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: iona64 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76398  
Subject: Re: Need Help With the Parent's IRA! Date: 9/7/2003 1:03 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Just a comment on your message and reply to your parents.

I don't think a 40% loss of principle ($400,000) over the past 3 years, especially if I am paying someone 1% advisory fee ($24,000.) is acceptable. ( Any commission on all of those stock trades?) Additionally, you indicate that your parents have made $50,000 (8.33%)of the loss back. Again, this is far less than any of the averages (all YTD figures): (S&P 16.09%, DJ 13.93%, and NASDAQ 39.4%). If they are fully invested in stocks, I would question the performance of the account. Top quality preferred stocks are returning about the same as your parents account with far less risk.

I am not sure which type advisory account your parents have, but I would be skeptical of someone advising me to keep 100% of my investments in stocks, especially if I were approaching retirement age. I don't think there is any brokerage advisory service that is recommending this asset allocation.

I would recommend they contact a financial planner as some have suggested and go over their future plans (retirement, transfer of assets, and etc.). The cost will be minimal based on their assets and salary. They will have peace of mind knowing either that the current broker is okay, or should be dumped.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev Thread | Prev | Next | Next Thread

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

The Story Behind the Story
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