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Hello. I am so excited to be a fool now! I just paid all debt off. Now, i would like to open an IRA. I will be investing in mutual funds. What is the best broker for someone like me who is interested in mutual funds, and not in actively trading stocks? Also, it would even be better if i could find a broker that also had a money market fund with a high interest rate so i can park all of my money with the same company. I was thinking of Brown and co., but there MMF is very lame. Scottrade seems cheap. What is their MMF interest rate/ Any suggetions at all would help. Thanks so much!!
allie
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I think you will find all MM's to be very low paying. If you are looking for a good place to put your emergency fund, just about the best deal around is ING. Their savings is paying 3%, which is about as good as you'll get in this market.

Scottrade is very good with no transaction fees for Mutual Fund purchases, and no fee IRA's, (subject to change, of course ;-)
and their trading interface is very easy to use.

Ak, who had a very good day in the market today, in the hills north of Fairbanks.
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Why not open an account directly with a mutual fund company rather than a broker? Scottrade is good because they have a lot of no load funds available that they do not charge a transaction fee but if it is only funds you are looking at consider going direct.
Look at Vanguard, T Rowe Price, or TIAA-CREF for starters.
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Why not open an account directly with a mutual fund company rather than a broker?

That's an easy question to answer....because IF one ever decides to invest in a fund other than the one family...it's easier to do with a broker. Some fund families do allow you to buy stock, but the transaction fees are outragious!

Jean
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Jeanwa,

< IF one ever decides to invest in a fund other than the one family...it's easier to do with a broker. Some fund families do allow you to buy stock, but the transaction fees are outragious! >

Some other good reasons to deal with certain brokerage supermarkets:

Having one consolidated statement at tax time is very convenient.
A walk-in broker can help with questions F2F.
Many brokerage supermarkets can get the investor into no-load mutual funds at lower minimum and subsequent requirements.
Some brokerage supermarkets have don't charge a maintenance fees for low balance IRAs.

I can't think of any good reasons not to deal with a brokerage supermarket---but I'm sure there are some. IMHO, the supermarket's advantages far outweigh the few potential disadvantages. Jack White introduced the supermarket concept and Schwab perfected it. There's no putting the horse back in barn at this point.

Rick, the glampig


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I swear Alie You remind me of my sister!!!
Scottrade is probably the best way for you to go. Their interest on cash stinks...But overall their performance,customer services and fee I think are the best presently.
Add to that the fact that there are 160 branch offices all across the country where you can have a sit down and talk to real people if you have a problem.
Jim
P.S. you may want to check out the scottrade board here on the fool.
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My wife and I each have IRA's with E*Trade. No fees for IRA's and if you invest in no-load mutual funds it won't cost you anything. That's what we both do with our Roth IRA's. Have been doing that for years with no expense. You'll find gripes about E*Trade here but they have been exceptional for us. Have regular brokerage and also several bank accounts with them also. Seems most of the gripes are from people who are clueless and they would be upset with anyone. E*Trade is one of the largest so it has seen it's share of goofy clients and they are the ones who complain the most. Its a shame more people don't post about good experiences. Just my opinion. Good luck. Oh yeah, congrats on being debt free now, feels good doesn't it!
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Allie,
I can't recommend who to open the IRA account with but I can offer who NOT to open it with. We have ROTHs with ML and contributing annually for a couple of years, we would have been better off putting the $ in a savings account that didn't pay squat - at least we wouldn't have even less than what we invested. Now to add insult to injury - Not only do we gert to pay them annual fees but every fund "our" agent invested in the only people that have made any $ are the fund custodian and the "sponsor". Yes you guessed it - ML.

Learn from the mistakes of others.
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My wife and I each have IRA's with E*Trade. No fees for IRA's and if you invest in no-load mutual funds it won't cost you anything. That's what we both do with our Roth IRA's

Not anymore. E*Trade is instituting a $25 annual fee for self-directed IRA's valued at less than $25,000. I'm really peeved, because I was a big fan of the no-load index funds that you can buy through E*Trade without a transaction fee.

Is there any brokerage out there with a no-fee IRA that doesn't charge a transaction fee for no-load S&P index funds?
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