This is the third post in a series on finding the best place to hold an IRA.   Previously, I reviewed transaction fees for stocks and mutual funds and the number of mutual fund offerings at each brokerage.  This time I’ll look at the types of assistance offered.  Then I’ll write a post summarizing all the pros and cons. Read the rest of this entry »

Tags: Comparing brokerages, investment advice, IRA

If your employer offers a match to your 401(k) contributions, then your first priority should be to contribute enough to the 401(k) to maximize the match.  Fewer companies are matching these days, and it may be a benefit on the way out, but as long as it’s there, take advantage of it.  It’s free money; don’t leave any on the table. Read the rest of this entry »

Tags: 401(k), retirement, Roth IRA, tax hedge

This is the second post in a series on finding the best place to hold an IRA.   Last time, I reviewed the stock transaction fees.  Today I’ll look at the number of mutual fund offerings and transaction fees.  Next time I’ll look at the types of assistance offered.  Then I’ll write a post summarizing all the pros and cons.

Mutual funds can be an important component of your retirement portfolio.  Funds offer reduced risk through diversification, as compared to holding individual stocks.  There is a wide range of mutual funds — over 9,000 at last count, with enough well-managed and low-cost funds to fill out most, if not all, of a solid retirement portfolio.

Mutual funds tend to come in three flavors:  no-load no-transaction fee, no-load with transaction cost, and loaded. The no-load no-transaction fee (NTF) funds tend to be a brokerage’s own funds, e.g. Fidelity funds bought through Fidelity.  However, most brokerages also have agreements enabling them to offer other house’s mutual funds with no transaction costs.  Most any brokerage will sell you any mutual fund for a fee, if they do not offer the fund as an NTF.

Here’s a summary of what I found online for each brokerage.  Of course, before taking action and moving your assets, please double-check with the brokerage(s) for your particular situation.

Fidelity: Over 1,400 NTF mutual funds offered.  For any other fund, a $75 transaction fee is assessed, in addition to any load the fund charges.  Fees are assessed if an NTF fund is held less than 180 days, to discourage short-term trading.

E*Trade: Over 1,300 NTF mutual funds offered.  For any other fund, a $50 transaction fee is assessed, in addition to any load the fund charges.  Fees are assessed if an NTF fund is held less than 90 days.

Scottrade: Over 1,200 NTF mutual funds offered.  For any other fund, a $17 transaction fee is assessed, in addition to any load the fund charges.  Fees are assessed if an NTF fund is held less than 90 days.

TD Ameritrade: Over 1,400 NTF mutual funds offered.  For any other fund, a $50 transaction fee is assessed, in addition to any load the fund charges.  Fees are assessed if an NTF fund is held less than 180 days.

Schwab: Over 2,000 NTF mutual funds offered.  For any other fund, a $50 transaction fee is assessed, in addition to any load the fund charges.  Fees are assessed if an NTF fund is held less than 90 days.

Tags: IRA, mutual funds, no-load mutual funds, transaction fees

This is the first of a series of posts on finding the best place to hold an IRA.   I’ll review transaction fees, the number of mutual fund offerings, and types of assistance offered.  Then, I’ll write a post summarizing all the pros and cons. Read the rest of this entry »

Tags: brokerage commission, Comparing brokerages, IRA