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Suggestions for new broker/investor

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Money Talk > Investing, Stocks and Bonds

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newbie2017
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Suggestions for new broker/investor  Reply with quote  

Im 49, Own my home, have zero debt. I have a small IRA invested currently,...Making my yearly contribs to max. Been very conservative up to this point. My investor left my original company he signed me up with. Wants me to go with him to a much smaller local firm.

He is advising me to go with a monthly fee of 1-1/2% of the amount im investing with him vs a charge per trade in which I was doing at the previous firm.
Im extremely naive and a novice here when it comes to investing. Scared to death actually . I live by my means and have saved up a decent about of money to this point. Actually my savings is 4 times more than my ira currently. Im considering letting loose of some of it and letting him invest some along with my current IRA he has.
What i dont know is will my earnings with him be advantageous to the monthly flat fee he;s goin to ding me for .

Is the monthly fee the way to go here? Any help or advice is welcome.
Post Wed Apr 04, 2018 8:18 pm
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oldguy
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quote:
Is the monthly fee the way to go here?


No. Use a no-load mutual fund company such as Vanguard or Fidelity. Invest the money in their SP500 Index Fund. That will give you a return that tracks the generic US Stock Market. The fees are minimal - and it is the proper choice for a 49-year-old.
Later, when you are close to age 65, you will want to shift some of that money into a bond fund.
The idea is to invest during your wealth-building years and shift to wealth-preservation funds for your retirement years.
Post Wed Apr 04, 2018 11:54 pm
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newbie2017
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Please explain (noload) spi500 no one works for free, they have to charge you somewhere along the line.

What do you consider a low fee?

my guy is telling me 1.5% up to 100k monthly fee based on that amount. Any monies above the 100k will be charged 1.25%. or a 1.50-2.00 fee per trade.

What im thinking now old guy is too leave the 53k with him, keep making my contributions yearly. Give him 50k more to get above the minimum so as im only paying 1.25 vs 1.5 Try him for a year see what he does. Take my the balance of my savings and take your advice and invest in the spi

keep a lil back for emergency fund.

Is it as simple as googling either company and calling to switch funds? sorry im green as they come on this stuff.
Post Fri Apr 06, 2018 6:13 pm
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