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ramair4,

You wrote, I thought Schwabs fees sound a bit high too. I probably can't put enough money in there right now to offset the cost. I was mainly looking for something with a higher than $6,500 limit that is like a Roth, and to be able to buy individual stocks with it. So far, haven't found anyone else that will do that. All other 401k's want me to do the fund scenario. Still have a hard time letting someone else picking the stocks after our 12 year waste of time with Ed Jones.

I don't know why you seem to be stuck on buying individual stocks. (I assume you're not talking ETFs here.) It might not be worth paying Edward Jones (EJ) to pick individual stocks for you; but that doesn't mean EJ is the same thing as a mutual fund company. Besides, what makes you think you'll do any better than EJ at picking stocks?

Given your situation - in other words, you're heavily involved in running your own business and don't really have time to learn investing strategies - I'd stick with the basics. I'd probably invest in either a low-cost target retirement fund or I'd create a fairly diverse collection of low-cost index funds (or low-cost ETFs) and try to keep them balanced. Also most of my money would just be invested in a major stock index either through that target retirement fund or some fund like VOO, SPY or IVV. (Much of my own money is invested in an S&P 500 fund.) Any of these approaches gets you fairly safe returns over any reasonably long investment period without paying some company too much money in fees.

Investing in individual company stock is something people should do either when they're young or once they already have so much money socked away that loosing the entire investment won't have a material impact on their retirement. At least that's my view of the world.

- Joel
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