| Any opinion for or against Edward Jones as my 401 guy? |
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plasma800
New Poster
Cash: $ 0.45
Posts: 2
Joined: 29 Jun 2006
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| Any opinion for or against Edward Jones as my 401 guy? |
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Im working on opening a 401 and company profit sharing, but making the decision on who to go with is so tough!
Chase bank recommends Transamerica and I'm also talking to an Edward Jones guy and he's pushing Lord Abbot.
I have no idea what I'm doing.. any pointers?
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Thu Jun 29, 2006 4:41 pm |
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efflandt
Senior Member
Cash: $ 80.45
Posts: 401
Joined: 25 Apr 2005
Location: Elgin, IL USA
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Are you looking for someone to handle a 401(k) plan for a company, or are you self employed? I am guessing that anything you would get through a major bank may be expensive, especially if just loaded mutual funds. Something with a selection of no-load mutual funds would be more effective (they still make money from the expense ratio).
Our company uses Principal.com. The funds they offer for 401(k) are called separate accounts instead of mutual funds, but the expense ratios are similar to mutual funds, and they have no load, no minimum contributions, or no minimum holding period before moving between funds (except 2 yr fixed interest fund). The only bond fund we have access to is not worth getting into, but their U.S. Property fund (owns commercial & multi-family property) has a better return and is more stable (10% 5 & 10 yr ave). A number of their stock funds have averaged about 10% or better the past 5 and 10 yrs (and higher the past few yrs). I don't know if or what Principal charges the employer.
My personal IRA and Roth IRA are at Fidelity (no annual or monthly fee). They have a wide selection of no-load mutual funds besides their own, and stock trade fee is reasonable once you have $50k in assets.
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Thu Jun 29, 2006 11:34 pm |
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plasma800
New Poster
Cash: $ 0.45
Posts: 2
Joined: 29 Jun 2006
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Ok well lets talk about this a bit further.
I am at the helm of a company with 13 employees. I'm really more interested in looking out for myself. If employees see the benefit and decide to contribute, great, if not, great.
For myself though, I want to try to put away as much as I can, but I'm concerned about being fleeced. Ive heard people talk of these investment companies moving your money around and getting commissions when they do and blah blah blah.
Now, a 401 is pretax dollars yes? and an IRA is after tax dollars? Am i correct on this, Im really kind of investment dumb, hence my nerves!
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Fri Jun 30, 2006 2:53 pm |
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BlankenshipFP
Money Talk Advisor
Cash: $ 79.56
Posts: 390
Joined: 05 Oct 2004
Location: Illinois
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There are a couple of things you need to know about a 401(k):
1) there are limits to what you can do for yourself (as the owner) versus doing or not doing anything for your employees. Some 401(k) plans are set up to cover this base for you (Safe Harbor), but in other cases you (or your administrator) must keep track of this yourself.
2) setting up a 401(k) can be costly if you don't watch what is being proposed. There are plans that are pretty much self-run, but these cost a bit to implement as well.
Have you reviewed all of your options with regard to retirement plans for yourself? I suspect that, given your focus on your self versus the employee, there may be other options that would work better for your case. I would suggest that you find a fee-only financial planner to discuss your situation with. You can find a fee-only financial planner at www.NAPFA.com, or www.GarrettPlanningNetwork.com.
Hope this helps -
Jim Blankenship, CFP�, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
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Mon Jul 10, 2006 6:53 pm |
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