UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: beonice Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: What is a standard fee structure? Date: 2/23/2001 2:31 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Hello again.

I'm back with another question regarding
setting up a retirement plan for my one-person
S-corp.

Since I'm leaning towards the profit-sharing
or money-purchase plan, there is going to
be up to $30,000 invested each year. Apparently
I have the option of putting it in a straight
mutual-fund plan (some up-front load), or
into a plan that allows me to buy stocks.

The catch? The stock variety will cost 1% of
assets up to the first $250,000 in the plan!
If I go beyond that amount, it falls to a fixed
fee.

This seems high to me. Even in the first year,
I will probably be trying to reach at least a
20K investment, and will therefore have to put
in at least an extra $200 to pay this fee. This
is on top of the standard trading commissions
that the brokerage house charges. As the balance
in the account increases year over year, the
fees sound outrageous! It could reach $500 in
the second year itself, if things go well.

It's being described as an "advisory" fee,
but I plan to do my own research, so I'm not
really going to be relying on their "advice".

Is this a normal amount to pay? Do banks set up this
sort of plan without me having to go through an
intermediary and pay him/her the 1% or whatever?
I don't mind paying trading commissions (well, I
do, but there are not many ways to totally eliminate
them), but these extra fees just sound like padding
to me.

Comments? Advice? All cheerfully welcomed.

Thanks,
Beonice
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

Looking at Currency Ratios
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