No. of Recommendations: 5
Hi Watertree !

You wrote:

"I am 55 years old and want to real serious about investment strategy for retirement. I have been ivesting through an agent of Fidelty Investments for past few years. Limited success rate. My broker has left to go to Smith Barney.
According to broker, he will pay my transfer fees from Fidelty to Smith Barney and if he is not sucessful in growing my accounts the first year he will pay transfer fees to another brokerage house."

If you want to get real serious about investment strategy for retirement, then you need to take the bull by the horns and start learning. No one will care as much about your money as you will. Your broker will pay the transfer fees because s/he knows they will more than make the money back.

Consider this:

$10,000 invested for 40 years with a 8% return yields $217,245.21

$10,000 invested for 40 years with a 8% return and 1% going to a financial advisor yields 149,744.58

Big difference on a small chunk of change. Consider learning about asset allocation and low cost mutual funds. You could do it quite easily with Vanguard Total Stock Market Index Fund, Total Bond Market Index Fund and Total Internation Index Fund. I am quite sure that you will be further ahead with that as opposed to going with a "Financial Manager" which is nothing more than a salesperson.

Here is another good site for you to read and post:

http://socialize.morningstar.com/NewSocialize/asp/AllConv.asp?forumId=F100000015

We work so long and hard for our money, but we often fail to understand how to invest it. Read books by John Boogle, Andrew Tobias and William Berstein. Knowledge gives confidence. I would not want to go into retirement depending upon someone elses judgement for my financial security, I would not be able to sleep at night.

Best of luck !

-helen



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