Thread: Roth IRAs

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  1. Member
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    #21
    My CFP doesn’t actually charge me an actual percentage every year, he is compensated from the class C mutual funds that I purchase. He does charge a very small fee when I purchase individual stocks. I talked to him today about going all in on Vanguard Funds and he advised me not to. He said that he would, but then he would have to change my client type and charge me about 1% a year. I have done well with him and believe that he is very honest.

    Stifle Financial just bought the company that I invest with. I hope that they are a good company?
    I did not like their debt/equity ratio, so I will watch them closely.

  2. Member
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    #22
    C shares are garbage. I would take the 1% and use low cost funds or etfs all day long. He is making the 1% from the c-share anyway.

  3. Member
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    #23
    I am now totally confused. The fund that I am moving to has an expense fee of 1.44. Are you saying that he is some how getting an additional 1%?

  4. Member
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    #24
    Quote Originally Posted by boneil View Post
    You could always move into one of the many online brokerages and mange it yourself and simply buy SPY and outperform the vast majority of managers. There's an ETF for every market, every currency, every sector and they can be bought with the click of a button.
    I like it!

  5. Member
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    #25
    Yes. Most c-shares pay the broker dealer (b/d) 1%. That is why they are so expensive. The b/d keeps his share and pays the broker an agreed upon amount.

    Look up the annual expense ratio of the same fund but in an A share and it will be .8-1.0% cheaper. C-shares typically pay a 1% a commission in year 1 and then a 1% annual trail. If you sell it in the first 13 months they will keep 1%.

  6. Member
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    #26
    Quote Originally Posted by janky View Post
    Yes. Most c-shares pay the broker dealer (b/d) 1%. That is why they are so expensive. The b/d keeps his share and pays the broker an agreed upon amount.

    Look up the annual expense ratio of the same fund but in an A share and it will be .8-1.0% cheaper. C-shares typically pay a 1% a commission in year 1 and then a 1% annual trail. If you sell it in the first 13 months they will keep 1%.
    But don’t you pay a large up front purchase price for A shares. I know I did with my American Funds. The nice thing about them is, after the initial purchase you can move from fund to fund at no charge.

  7. Member
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    #27
    Yes, A shares you generally pay about 5.75 up front before any breakpoints for equity funds. That is the trade off for the advisor. He can get a big payoff up front with very small trails or small up front with big trails with the c share.

    I would find an independent RIA fee based person and the you can forget which side he is on.

  8. Member
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    #28
    Independent RIA? I think that I watch “American Greed” too much. I like to get references from people that I know, so that is how I got with the CFP that I have now.

  9. Member
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    #29
    An independent can clear through names you know like fidelity, schwab and TD Ameritrade to name a few. Independents are not beholden to their bank employer that has their bottom line interest in front of yours. They are truly independent and can use any non-proprietary investment vehicle out there.

    Feel free to PM me with any questions.

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