{"id":6900,"date":"2013-09-02T14:33:30","date_gmt":"2013-09-02T21:33:30","guid":{"rendered":"http:\/\/www.marketriders.com\/investing\/?p=6900"},"modified":"2016-12-21T07:28:26","modified_gmt":"2016-12-21T15:28:26","slug":"choosing-among-investment-companies","status":"publish","type":"post","link":"https:\/\/www.marketriders.com\/investing\/choosing-among-investment-companies\/","title":{"rendered":"Choosing Among Investment Companies"},"content":{"rendered":"

Most\u00a0retirement investors<\/a>\u00a0don’t have to choose among investment companies. They join a 401k plan at work and the advisor for that plan is set.<\/p>\n

Often, they can’t even choose the investments, just from a selection of overly expensive mutual funds.<\/p>\n

\"investment<\/p>\n

If you have a\u00a0personal IRA<\/a>\u00a0or a rollover from a past 401k, however, you are in a better position by far. There, choosing an investment company becomes a paramount decision. It helps to understand the differences in investment companies \u2014 what they offer at what prices and why \u2014 before you act.<\/p>\n

Here’s a checklist to help you make the call:<\/p>\n

1) Traditional brokerages<\/strong><\/p>\n

These are the big, well-known consumer brokerages that advertise the most: Fidelity, Vanguard, Schwab, TD Ameritrade, E-Trade and the rest. Some pursue narrow niche markets (wealth management, for instance) but most aim right down the middle at the mass of\u00a0retirement savers<\/a>.<\/p>\n

Pro:<\/strong>\u00a0Cheap, easy to trade online, 24\/7 access.<\/p>\n

Con:<\/strong>\u00a0Advice costs extra, built-in conflicts of interest.<\/p>\n

2) Your bank or credit union<\/strong><\/p>\n

Sometimes called “relationship banking,” your corner bank or credit union probably has an\u00a0investment advisor<\/a>\u00a0in the main branch. He or she can help you set up an IRA, build a portfolio perhaps and advise you on insurance and other matters.<\/p>\n

Pro:<\/strong>\u00a0Personal attention.<\/p>\n

Con:<\/strong>\u00a0Limited scope of products, possible conflicts of interest.<\/p>\n

3) Insurance companies<\/strong><\/p>\n

People often view insurance as a necessary expense, not an investment. But many policies do have investment features, and there are\u00a0annuities<\/a>. Also, you are very likely to already have a trusting relationship with your insurance agent.<\/p>\n

Pro:<\/strong>\u00a0Simplicity, attention.<\/p>\n

Con:<\/strong>\u00a0High costs kill long-term return.<\/p>\n

4) Independent advisors<\/strong><\/p>\n

As the baby boomers have aged into retirement, there has been an explosion in demand for personal advice from full-time financial advisors. Often, they operate through national chains in storefront offices and build their businesses through local networking and marketing.<\/p>\n

Pro:<\/strong>\u00a0Direct financial advice, investment monitoring.<\/p>\n

Con:<\/strong>\u00a0Advisor fees<\/a>\u00a0can demolish returns over time.<\/p>\n

5) Online investment services<\/strong><\/p>\n

The Internet has been part of the answer for many investors. A variety of webs sites have sprung up offering a range of investing advice, from active trading forums to broader\u00a0retirement planning<\/a>\u00a0and everything in between.<\/p>\n

Pro:<\/strong>\u00a0Do-it-yourself investors can access top-notch advice for cheap.<\/p>\n

Con:<\/strong>\u00a0Less face-to-face attention.<\/p>\n

There is no “right” answer in many cases. You might use an online service to build a\u00a0retirement portfolio<\/a>\u00a0but also decide to use your banker for other types of investing and even layer in an insurance product. The truly important decision in all cases is getting the best value for the fees you are likely to pay for each service.<\/p>\n","protected":false},"excerpt":{"rendered":"

Most\u00a0retirement investors\u00a0don’t have to choose among investment companies. They join a 401k plan at work and the advisor for that plan is set. Often, they can’t even choose the investments, … Read more →<\/span><\/a><\/p>\n","protected":false},"author":8,"featured_media":6901,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_wp_rev_ctl_limit":""},"categories":[12],"tags":[],"yoast_head":"\nChoosing Among Investment Companies | MarketRiders.com<\/title>\n<meta name=\"description\" content=\"Most retirement investors don't have to choose among investment companies. They join a 401k plan at work. 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